Mortgage Rates: Compare Today's Rates | Bankrate (2024)

FAQs

Are mortgage rates going up or down right now? ›

Majority of rates fall | Mortgage rates for today, August 1, 2024. The current average rate for a 30-year fixed mortgage is 6.83, the average rate you'll pay for a 15-year fixed mortgage is 6.27 percent, and the average 5/1 ARM rate is 6.30 percent.

Locking in early can help you get what you were budgeting for from the start. As long as you close before your rate lock expires, any increase in rates won't affect you. The ideal time to lock your mortgage rate is when interest rates are at their lowest, but this is hard to predict — even for the experts.

Experts also don't expect any drastic dips in rates — say to 3% or 4%, as experienced during the height of the COVID-19 pandemic. “A significant drop in rates would only happen if the U.S. went into a deep recession,” said Neil Christiansen, a home loan specialist at Churchill Mortgage in Denver, in an email.

• Fannie Mae: Rates Will Decline to 6.7%

The July Housing Forecast from Fannie Mae puts the average 30-year fixed rate at 6.7% by year-end, a slight decline from an average of 6.8% in the third quarter. All told, the mortgage giant predicts mortgage rates will average 6.8% in 2024 and 6.4% in 2025.

As of August 5, 2024, the average interest rate on the 30-year fixed-rate mortgage was 6.75 percent, according to Bankrate's survey of the nation's largest lenders. The yield on the 10-year Treasury dropped below 3.7 percent, the lowest it's been since May 2023.

Currently, Union Bank of India and Bank of Maharashtra offer the lowest home loan interest rates, starting from 8.35% p.a.

Interest rates reached their highest point in modern history in October 1981 when they peaked at 18.63%, according to the Freddie Mac data. Fixed mortgage rates declined from there, but they finished the decade at around 10%. The 1980s were an expensive time to borrow money.

When you lock the interest rate, you're protected from rate increases due to market conditions. If rates go down prior to your loan closing and you want to take advantage of a lower rate, you may be able to pay a fee and relock at the lower interest rate. This is called “repricing” your loan.

What day of the week are mortgage rates lowest? ›

Monday is the best day to lock-in mortgage rates; Wednesdays are risky. Mortgage rates are in constant flux, even changing multiple times a day. This volatility can make it challenging to know when to lock in your rate.

Depending on your lender's policies, you might be able to secure the lower rate. Along with a standard rate lock on a mortgage, some lenders offer a float-down lock, which is designed to help you take advantage of lower rates if they become available before you close the loan.

As of Aug. 5, 2024, the average 30-year fixed mortgage rate is 6.35%, 20-year fixed mortgage rate is 6.07%, 15-year fixed mortgage rate is 5.42%, and 10-year fixed mortgage rate is 5.36%. Average rates for other loan types include 6.18% for an FHA 30-year fixed mortgage and 6.67% for a jumbo 30-year fixed mortgage.

Right now, the Fed interest rate is 5.25% to 5.50%. The FOMC established that rate in late July 2023. At its most recent meeting in July, the committee decided to leave the rate unchanged.

Prediction of Mortgage Rates for 2025

Keep in mind that inflation is still a factor, and mortgage rates may continue to hover around 6%. Here are some predictions for 2025 from key players and industry associations in the mortgage space: Fannie Mae: 6.1% Mortgage Bankers Association: 5.9%

Inflation influences how lenders set their mortgage rates. Consumers are likely to borrow more during periods of economic growth, which often leads to higher interest rates. Although the Fed doesn't set them, mortgage rates are impacted by the Fed funds rate.

Right now, the Fed interest rate is 5.25% to 5.50%. The FOMC established that rate in late July 2023. At its most recent meeting in July, the committee decided to leave the rate unchanged.