Rates remain elevated | Current mortgage rates, September 4, 2024

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Sep 04, 2024 / 4 min read

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Mortgage rates moved in different directions compared to last week, according to Bankrate data. See the table below for a breakdown of how each loan type moved.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.44%	6.46%	-0.02
15-year fixed	5.87%	5.91%	-0.04
5/1 ARM	6.04%	6.02%	+0.02
30-year fixed jumbo	6.56%	6.56%	N/C

Rates last updated September 4, 2024.

The rates listed above are averages based on the assumptions shown here. Actual rates displayed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Wednesday, September 4th, 2024 at 7:30 a.m. ET.

Market mortgage rates constantly change as the economy ebbs and flows, 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 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.

Current 30 year mortgage rate eases, -0.02%

Today's average 30-year fixed-mortgage rate is 6.44 percent, down 2 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.52 percent.

At the current average rate, you'll pay principal and interest of $628.13 for every $100,000 you borrow. Compared with last week, that's $1.31 lower.

While the 30-year rate is the most popular mortgage term, as with any financial product, the 30-year mortgage does have some negatives, including:

More total interest paid. Stretching out repayment to a 30-year term means you pay more overall in interest than you would with a shorter-term loan.
Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster retirement of the loan amount.
Buying a pricier house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.

15-year mortgage rate slides, -0.04%

The average rate for the benchmark 15-year fixed mortgage is 5.87 percent, down 4 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $837 per $100,000 borrowed.

5/1 ARM trends higher, +0.02%

The average rate on a 5/1 adjustable rate mortgage is 6.04 percent, rising 2 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.04 percent would cost about $602 for each $100,000 borrowed over the initial five years.

Jumbo mortgage interest rate goes unchanged

The average rate for the benchmark jumbo mortgage is 6.56 percent, unaltered over the last seven days. Last month on the 4th, the average rate for jumbo mortgages was greater than 6.56 at 6.69 percent.

At today's average jumbo rate, you'll pay principal and interest of $636.02 for every $100,000 you borrow.

30-year mortgage refinance holds firm

The average 30-year fixed-refinance rate is 6.44 percent, unchanged over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.56 percent.

At the current average rate, you'll pay $628.13 per month in principal and interest for every $100,000 you borrow.

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 weeks and over the next year.

“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.