Image by PM Images/Getty Images; Illustration by Hunter Newton/Bankrate
Mortgage rates were mixed this week: The 30-year fixed rate rose to 6.62 percent, but 15-year rates held steady, according to Bankrate’s latest lender survey. Rates are still much lower than they were earlier this summer, and forecasters expect that trend to continue as the Federal Reserve prepares to cut rates in September.
Current mortgage rates
| Loan type | Current | 4 weeks ago | A year ago | 52-week average | 52-week low |
|---|---|---|---|---|---|
| 30 years | 6.62% | 7.90% | 7.36% | 7.19% | 6.59% |
| 15 years | 5.86% | 6.24% | 6.78% | 6.52% | 5.89% |
| 30-year jumbo | 6.74% | 6.97% | 7.21% | 7.17% | 6.74% |
The 30-year fixed-rate mortgages in this week’s survey averaged 0.29 total discount and origination points. Discount points are a way for you to lower your mortgage rate, while origination points are fees a lender charges for originating, reviewing and processing your loan.
Monthly mortgage payment at today’s interest rates
The national median family income for 2024 is $97,800, according to the U.S. Department of Housing and Urban Development, and the median price for an existing home sold in June 2024 was $426,900, a record high, according to the National Association of Realtors. Based on a 20 percent down payment and a 6.62 percent mortgage rate, the $2,186 monthly payment represents 27 percent of a typical family’s monthly income.
Will mortgage rates fall?
In the simplest terms, the economy determines whether mortgage rates rise or fall. As the stock market sell-off earlier this month demonstrated, rates can fall during times of volatility as well as recessions. With Federal Reserve rate cuts all but certain in September – and likely beyond – mortgage watchers expect rates to continue falling for now.
“Ten-year bond yields are currently near their 2024 lows, partly due to the revision in the number of new jobs,” said Melissa Cohn, regional vice president at William Raveis Mortgage. “The government reported that 818,000 fewer jobs were created in the fiscal year ending March 2024. That’s a significant revision and, along with other reports, supports the case for a rate cut in September.”
Fixed mortgage rates are not set directly by the Fed, but by investor demand, particularly for 10-year Treasuries. The 30-year fixed mortgage rate is often directly tied to the yield on a 10-year Treasury note. When there is uncertainty in the market, investors buy Treasuries, which in turn drives yields (and mortgage rates) down. This can lead to daily interest rate fluctuations as news arrives.
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Bankrate.com’s nationwide survey of major lenders is conducted weekly. To conduct the nationwide average survey, Bankrate obtains interest rate information from the 10 largest banks and thrifts in 10 major U.S. markets. In Bankrate.com’s nationwide survey, our market research team collects interest rates and/or yields on bank deposits, loans and mortgages. We have conducted this survey the same way for more than 30 years, and because it is always conducted the same way, it allows for accurate national comparison. Our rates differ from other nationwide surveys, particularly Freddie Mac’s weekly published rates. Each week, Freddie Mac surveys lenders on rates and points based on first-lien, conventional mortgages with 80 percent loan-to-value ratios. “The lenders surveyed weekly are a mix of lender types — thrifts, credit unions, commercial banks and mortgage loan companies — and roughly correspond to the amount of mortgage business each type does nationwide,” Freddie Mac says.
