Majority of rates decline ahead of fresh jobs report | Mortgage rates, September 3, 2024

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Sep 03, 2024 / 4 min read

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National mortgage rates were mostly lower compared to a week ago, according to Bankrate data. Average rates for 30-year fixed, 15-year fixed and jumbo mortgages each decreased, while rates for adjustable rate mortgages rose.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.46%	6.53%	-0.07
15-year fixed	5.94%	5.96%	-0.02
5/1 ARM	6.28%	6.13%	+0.15
30-year fixed jumbo	6.71%	6.72%	-0.01

Rates as of September 3, 2024.

The rates listed here are Bankrate's overnight average rates and are based on the assumptions here. Actual rates listed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, September 3rd, 2024 at 7:30 a.m. ET.

Market mortgage rates constantly change as the economy ebbs and flows, new data releases and lenders decide how much risk they’re willing to tolerate on a given day.

Historical mortgage rates: How do today’s rates compare to years past?

Mortgage rates tumbled in August after a weaker jobs report spooked investors and fueled further expectation for a Federal Reserve rate cut in September. That expectation still stands.

The Fed doesn’t outright determine fixed mortgage rates, but its decisions matter. Mortgages tend to increase or decrease with the 10-year Treasury yield, the effective yield rate on 10-year Treasury notes. The 10-year yield rises when there’s less demand for notes — and this tends to happen when investors feel confident in the economy, including monetary policy.

Still, the Fed, inflation and yields shouldn’t necessarily drive your decision to buy or sell a home. There’s no surefire way to time the housing market, either. If you’re financially ready to move, check mortgage rates regularly to help find the lowest-cost lender.

Current 30 year mortgage rate drops, -0.07%

Today's average 30-year fixed-mortgage rate is 6.46 percent, a decrease of 7 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 6.56 percent.

At the current average rate, you'll pay a combined $629.44 per month in principal and interest for every $100,000 you borrow. That's lower by $4.60 than it would have been last week.

There are various advantages to choosing a fixed-rate mortgage to purchase a new home, including predictable mortgage payments.

15-year mortgage rate moves down, -0.02%

The average rate for a 15-year fixed mortgage is 5.94 percent, down 2 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $841 per $100,000 borrowed.

5/1 ARM rises, +0.15%

The average rate on a 5/1 adjustable rate mortgage is 6.28 percent, up 15 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.28 percent would cost about $618 for each $100,000 borrowed over the initial five years.

Jumbo mortgage interest rate moves down, -0.01%

Today's average rate for jumbo mortgages is 6.71 percent, down 1 basis point since the same time last week. A month ago, jumbo mortgages' average rate was higher at 6.75 percent.

At the average rate today for a jumbo loan, you'll pay a combined $645.94 per month in principal and interest for every $100,000 you borrow. That represents a decline of $0.67 over what it would have been last week.

30-year fixed-rate refinance trends down, -0.01%

The average 30-year fixed-refinance rate is 6.45 percent, down 1 basis point over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.58 percent.

At the current average rate, you'll pay $628.78 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $0.66 lower.

When will mortgage rates go down?

With all signs pointing to a Fed cut in September, there’s room for mortgage rates to fall more in the coming months and into 2025.

“The expectation is that the Federal Reserve will be cutting interest rates multiple times over the next year or two, so a consistent downtrend in mortgage rates well into next year is a reasonable assumption,” says Greg McBride, CFA, chief financial analyst for Bankrate.

The sudden drop in rates in August spurred some homeowners to refinance, but that was short-lived. Homebuyers and homeowners largely plan to hold out for even lower rates, according to Bankrate’s recent Mortgage Rates Survey, which found that 47 percent of homeowners would need rates under 5 percent to feel comfortable buying a home in 2024.

For homeowners wondering whether to refinance, “the time to start thinking about it is when you can shave one-half to three-quarters of a percentage point off your rate,” McBride says.

Methodology

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

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