Rates fall ahead of today's Fed announcement | Mortgage rates, September 18, 2024

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Sep 18, 2024 / 4 min read

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

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.24%	6.30%	-0.06
15-year fixed	5.60%	5.64%	-0.04
5/1 ARM	5.78%	5.88%	-0.10
30-year fixed jumbo	6.30%	6.43%	-0.13

Rates as of September 18, 2024.

These rates are Bankrate's overnight average rates and are 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, September 18th, 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?

Mortgage rates have continued their fall into September, crossing below the 6.5 percent mark 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 fixed-rate mortgage drops, -0.06%

Today's average rate for the benchmark 30-year fixed mortgage is 6.24 percent, down 6 basis points since the same time last week. Last month on the 18th, the average rate on a 30-year fixed mortgage was higher, at 6.52 percent.

At the current average rate, you'll pay a combined $615.07 per month in principal and interest for every $100,000 you borrow. That's lower by $3.90 than it would have been last week.

There are various benefits to choosing a fixed-rate mortgage , including predictable mortgage payments.

Learn more: What is a fixed-rate mortgage and how does it work?

15-year mortgage rate retreats, -0.04%

The average rate you'll pay for a 15-year fixed mortgage is 5.60 percent, down 4 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $822 per $100,000 borrowed.

5/1 ARM rate moves lower, -0.10%

The average rate on a 5/1 ARM is 5.78 percent, ticking down 10 basis points over the last 7 days.

Monthly payments on a 5/1 ARM at 5.78 percent would cost about $585 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate moves lower, -0.13%

The average jumbo mortgage rate is 6.30 percent, down 13 basis points since the same time last week. A month ago, the average rate on a jumbo mortgage was higher at 6.62 percent.

At today's average rate, you'll pay a combined $618.97 per month in principal and interest for every $100,000 you borrow. That's a decline of $8.50 from last week.

30-year mortgage refinance rate retreats, -0.04%

The average 30-year fixed-refinance rate is 6.28 percent, down 4 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 6.52 percent.

At the current average rate, you'll pay $617.67 per month in principal and interest for every $100,000 you borrow. That's $2.61 lower, compared with last week.

When will mortgage rates go down?

With the likely Fed rate cut on Sept. 18 and more cuts to potentially come, mortgage rates could continue to fall through the end of 2024 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.

Lower rates in August and September have caused some homeowners to refinance. 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.

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.