Rates decline | Mortgage rates for August 28, 2024

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Aug 28, 2024 / 3 min read

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National mortgage rates trended lower on all loan terms compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all receded.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.46%	6.54%	-0.08
15-year fixed	5.91%	5.97%	-0.06
5/1 ARM	6.02%	6.11%	-0.09
30-year fixed jumbo	6.56%	6.66%	-0.10

Rates as of August 28, 2024.

The rates listed here are averages based on the assumptions shown here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Wednesday, August 28th, 2024 at 7:30 a.m. ET.

Market mortgage rates fluctuate as the economy evolves, new data comes in 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, real life doesn't necessarily consider the Fed, inflation and yields. If you're in a position to buy or sell a home now, it might be better to make a move than try to wait out the market. Wherever prevailing rates are, shop lenders to help uncover the best deal.

30-year mortgage rate eases, -0.08%

The average rate for a 30-year fixed mortgage for today is 6.46 percent, down 8 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 6.83 percent.

At the current average rate, you'll pay principal and interest of $629.44 for every $100,000 you borrow. That's lower by $5.26 than it would have been last week.

Most mortgage lenders defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers buying a home because it allows the borrower to disperse payments out over 30 years, keeping their monthly payment lower.

15-year mortgage rate drops, -0.06%

The average 15-year fixed-mortgage rate is 5.91 percent, down 6 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $839 per $100,000 borrowed.

5/1 ARM rate slides, -0.09%

The average rate on a 5/1 adjustable rate mortgage is 6.02 percent, down 9 basis points over the last week.

Monthly payments on a 5/1 ARM at 6.02 percent would cost about $601 for each $100,000 borrowed over the initial five years.

Jumbo mortgage interest rate falls, -0.10%

The current average rate you'll pay for jumbo mortgages is 6.56 percent, down 10 basis points from a week ago. A month ago, the average rate was above that at 6.90 percent.

At the current average rate, you'll pay $636.02 per month in principal and interest for every $100,000 you borrow. That's lower by $6.61 than it would have been last week.

30-year mortgage refinance rate moves down, -0.07%

The average 30-year fixed-refinance rate is 6.44 percent, down 7 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.88 percent.

At the current average rate, you'll pay $628.13 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $4.60 lower.

When will mortgage rates go down?

With the widely-expected 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.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.