Mortgage Rates for August 19, 2024
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In July, the average 30-year fixed mortgage rate dropped below 7 percent for the first time in months, following an encouraging inflation report in June. Inflation has exceeded the Federal Reserve’s 2 percent target for a while, leading the Fed to maintain its benchmark rate at elevated levels—a policy reaffirmed during its July meeting. Market analysts anticipate that the Fed might begin lowering rates in September.
The Fed’s July statement suggests an increased likelihood of a rate cut in September, influenced by a weakening, yet still robust, labor market and progress in curbing inflation. Although the Fed doesn’t directly set fixed mortgage rates, its policies significantly impact them. Mortgage rates typically fluctuate with the 10-year Treasury yield, reflecting the effective interest rate on 10-year Treasury notes. The yield on these notes rises when demand decreases, often when investors are confident in the economy and monetary policy.
However, the Fed’s decisions, inflation trends, and Treasury yields shouldn’t be the sole factors guiding your decision to buy or sell a home. Timing the housing market is notoriously tricky. If you’re financially prepared to move, monitoring mortgage rates regularly is wise to secure the best deal with the lowest-cost lender.
All rate data is accurate as of August 19, 2024, at 7:30 a.m. ET.
Today’s 30-year mortgage interest rate
Today, the average 30-year fixed mortgage rate is 6.56 percent, an increase of 5 basis points compared to last week. The average rate was higher just a month ago, at 6.87 percent. At this rate, monthly payments total $636.02 per $100,000 borrowed in principal and interest, an increase of $3.29 per $100,000 compared to the previous week.
Today’s 15-year mortgage interest rate
The latest average rate for a 15-year fixed mortgage is 5.95 percent, up 4 points from last week. At this rate, monthly payments total $841 per $100,000 borrowed.
Consumers should shop around to get the best deal. Rates below national averages are available. FreeRateUpdate.com has verified fixed mortgage rates as low as 4.625%, with a 4.960 APR available today in our mortgage lender network.
