Rates remain elevated ahead of Fed decision | Today's mortgage rates, July 31, 2024

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Jul 31, 2024 / 3 min read

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Mortgage interest rates moved in different directions compared to last week, according to Bankrate data. Rates for 15-year and ARM loans rose, while 30-year fixed and jumbo loan rates fell.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.85%	6.87%	-0.02
15-year fixed	6.33%	6.32%	+0.01
5/1 ARM	6.42%	6.41%	+0.01
30-year fixed jumbo	6.89%	6.99%	-0.10

Rates last updated July 31, 2024.

These rates are Bankrate's overnight average rates and are based on the assumptions indicated here. Actual rates displayed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Wednesday, July 31st, 2024 at 7:30 a.m. ET.

Market mortgage rates shift up and down as the economy changes, policymakers and investors digest new data 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?

In mid-July, the average rate on a 30-year fixed mortgage slipped under 7 percent thanks to better inflation numbers in June. Inflation has run hotter than the Federal Reserve’s 2 percent target for some time now, prompting the Fed to keep its benchmark rate elevated — a policy likely to continue when the central bank meets this week. As of now, market watchers expect the Fed to start cutting rates in September.

“Inflation pressures are easing and we’re getting closer to Fed interest rate cuts,” says Greg McBride, CFA, chief financial analyst for Bankrate.

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 slides, -0.02%

The average rate you'll pay for a 30-year fixed mortgage today is 6.85 percent, a decrease of 2 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 7.06 percent.

At the current average rate, you'll pay a combined $655.26 per month in principal and interest for every $100,000 you borrow. That's a decline of $1.33 from last week.

Use Bankrate’s mortgage rate calculator to approximate your monthly payments and see how much you’ll save by adding extra payments. This calculator will also help you calculate how much interest you’ll pay over the life of your loan.

15-year mortgage rate goes up, +0.01%

The average rate for the benchmark 15-year fixed mortgage is 6.33 percent, up 1 basis point from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $862 per $100,000 borrowed.

5/1 ARM rate rises, +0.01%

The average rate on a 5/1 adjustable rate mortgage is 6.42 percent, adding 1 basis point since the same time last week.

Monthly payments on a 5/1 ARM at 6.42 percent would cost about $627 for each $100,000 borrowed over the initial five years.

Current jumbo mortgage rate declines, -0.10%

The average rate you'll pay for a jumbo mortgage is 6.89 percent, down 10 basis points over the last seven days. Last month on the 31st, the average rate on a jumbo mortgage was higher at 7.09 percent.

At today's average jumbo rate, you'll pay principal and interest of $657.93 for every $100,000 you borrow. That represents a decline of $6.70 over what it would have been last week.

30-year fixed-rate refinance climbs, +0.01%

The average 30-year fixed-refinance rate is 6.89 percent, up 1 basis point compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 7.08 percent.

At the current average rate, you'll pay $657.93 per month in principal and interest for every $100,000 you borrow. That's an extra $0.67 compared with last week.

When will mortgage rates go down?

While 30-year mortgage rates have come down slightly in July, it’s unlikely there’ll be a meaningful drop beyond that if the economy continues its strong streak.

“Even if the Fed starts cutting rates this year, mortgage rates won’t get down to, or below, 6 percent unless there is a significant economic slowdown,” 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.