Rates remain elevated ahead of jobs report - Current mortgage rates for October 2, 2024

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Oct 02, 2024 / 4 min read

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Mortgage interest rates were mixed compared to last week, according to Bankrate data. Rates for 30-year fixed and ARM loans increased, while 15-year fixed and jumbo loan rates declined.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.20%	6.18%	+0.02
15-year fixed	5.48%	5.50%	-0.02
5/1 ARM	5.80%	5.77%	+0.03
30-year fixed jumbo	6.33%	6.34%	-0.01

Rates as of October 2, 2024.

These rates are Bankrate's overnight average rates and are based on the assumptions indicated here. Actual rates available across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Wednesday, October 2nd, 2024 at 7:30 a.m. ET.

Market mortgage rates shift up and down as the economy changes, new data comes in and lenders decide how much risk they’re willing to tolerate on a given day.

That includes Federal Reserve decisions. In mid-September, the central bank cut interest rates by a half-point, the first such move since the pandemic. The Fed projected that another rate cut might still come this year, depending on economic data.

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

Mortgage rates have continued their fall into September, dropping below 6.5 percent as of Sept. 11. Slower inflation and weaker jobs numbers make it almost certain the Fed will cut rates at its next meeting on Sept. 18.

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 trends upward, +0.02%

Today's average 30-year fixed-mortgage rate is 6.20 percent, an increase of 2 basis points from a week ago. Last month on the 2nd, the average rate on a 30-year fixed mortgage was higher, at 6.43 percent.

At the current average rate, you'll pay principal and interest of $612.47 for every $100,000 you borrow. That's an additional $1.30 per $100,000 compared to last week.

Learn more about 30-year fixed mortgage rates, and compare to a variety of other loan types.

15-year mortgage rate falls, -0.02%

The average rate for a 15-year fixed mortgage is 5.48 percent, down 2 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $816 per $100,000 borrowed.

5/1 ARM moves upward, +0.03%

The average rate on a 5/1 ARM is 5.80 percent, up 3 basis points over the last week.

Monthly payments on a 5/1 ARM at 5.80 percent would cost about $587 for each $100,000 borrowed over the initial five years.

Jumbo mortgage rate retreats, -0.01%

The average jumbo mortgage rate today is 6.33 percent, a decrease of 1 basis point since the same time last week. This time a month ago, the average rate on a jumbo mortgage was above that at 6.53 percent.

At today's average rate, you'll pay $620.93 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $0.65 lower.

Today's 30-year mortgage refinance rate increases, +0.06%

The average 30-year fixed-refinance rate is 6.22 percent, up 6 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.44 percent.

At the current average rate, you'll pay $613.77 per month in principal and interest for every $100,000 you borrow. That's an increase of $3.89 over what you would have paid last week.

When will mortgage rates go down?

With the Fed now cutting rates, mortgage rates could continue to fall some through the end of 2024 and into 2025.

“The Fed cuts rates by half a percentage point right out of the gate and the Summary of Economic Projections saw expectations of higher unemployment and lower inflation than was forecast just three months ago. This will sustain the downward momentum in mortgage rates,” says Greg McBride, CFA, chief financial analyst for Bankrate.

Lower rates have already driven some homeowners to refinance, but more could be making the choice to refi if rates drop further. Nearly 3 million outstanding mortgages have a rate at or above 6.75 percent, according to a CoreLogic. If rates fall more, refinancing could become more viable for these borrowers.

“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.

For purchase loans, many are still holding out for lower rates, according to Bankrate’s Mortgage Rates Survey, which found that 47 percent of homeowners would need rates under 5 percent to feel comfortable buying a home in 2024.

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.