Mortgage Rates for August 9, 2024

In July, the average rate on a 30-year fixed mortgage dropped below 7% for the first time since February, largely due to a more favorable June inflation report. Inflation has consistently exceeded the Federal Reserve’s 2% target, leading the central bank to maintain its elevated benchmark rate. This strategy was upheld during the Fed’s July meeting.

Market analysts anticipate that the Federal Reserve may begin reducing rates in September. According to Allison Kaminaga, a lecturer of Mathematics and Economics at Bryant University, “The Fed’s statement [in July] seems to imply the probability of a rate decrease in September has increased due to a weakening — but still strong — labor market and progress on inflation.”

While the Federal Reserve doesn’t directly set fixed mortgage rates, its decisions significantly impact them. Mortgage rates typically rise and fall with the 10-year Treasury yield, which is the effective yield rate on 10-year Treasury notes. The 10-year yield tends to increase when there is less demand for these notes, often when investors are confident in the economy and monetary policy.

All rate data is accurate as of August 9, 2024, at 7:30 a.m. ET.

Today’s 30-year mortgage interest rate

Today, the average 30-year fixed mortgage rate is 6.50 percent, a decrease of 27 basis points compared to last week. Notably, the average rate was higher just a month ago, at 6.92 percent. At this rate, monthly payments total $632.07 per $100,000 borrowed in principal and interest, a decrease of $17.86 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 5.86 percent, down 35 points from last week. At this rate, monthly payments total $836 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 5.490 %, with a 5.713 APR available today in our mortgage lender network.