Mortgage rates fell all the way to 6.59 percent this week, reaching their lowest level since May 2023, according to Bankrate’s latest lender survey. The drop follows a stock market sell-off and decline in the all-important 10-year Treasury yield.
If you took at mortgage at a rate above 7 percent, the refinancing door has swung open. If you have an adjustable-rate mortgage you’re looking to get out of, this is your chance. Mortgage rates are likely to fall further in the months ahead, but there are no guarantees and current rates are a bird in the hand for prospective borrowers. — Greg McBride, CFA , chief financial analyst for Bankrate

Current mortgage rates

Loan type Current 4 weeks ago One year ago 52-week average 52-week low
30-year 6.59% 7.04% 7.12% 7.22% 6.59%
15-year 5.89% 6.38% 6.54% 6.55% 5.89%
30-year jumbo 6.80% 7.06% 6.95% 7.18% 6.80%

The 30-year fixed mortgages in this week’s survey had an average total of 0.29 discount and origination points. Discount points are a way for you to reduce your mortgage rate, while origination points are fees a lender charges to create, review and process your loan.

Experts tell us: Will mortgage rates go down in August?

Monthly mortgage payment at today’s 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 of an existing home sold in June 2024 was $426,900, a record, according to the National Association of Realtors. Based on a 20 percent down payment and a 6.59 percent mortgage rate, the monthly payment of $2,179 amounts to 27 percent of the typical family’s monthly income.

Will mortgage rates go down?

In the simplest sense, the economy drives whether mortgage rates go up or down. Thirty-year mortgage rates tend to fall in recessions — but not always — and today the economy is anything but a downturn. The jobs market has been strong, and inflation, while lower compared to a few months ago, is still above the Federal Reserve’s 2 percent target.

Learn more: How are mortgage rates set?

“We expect that mortgage rates will continue to drift lower through the remainder of the year, particularly if the Fed does launch a series of rate cuts in September,” says Mike Fratantoni, chief economist at the Mortgage Bankers Association.

“The question now becomes, ‘Will the Fed drop it a quarter or a half?’ I think a quarter is reasonable,” says David Druey, regional president at Centennial Bank.

To be clear, mortgage rates are not set directly by the Fed, but by investor appetite, particularly for 10-year Treasury bonds, the leading indicator for fixed mortgage prices. That can lead to intense rate swings — they soar on news of Fed hikes, then plummet in anticipation of a cut. As of now, forecasters expect the Fed to begin cutting rates in September.

  • The Bankrate.com national survey of large lenders is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison. Our rates differ from other national surveys, in particular Freddie Mac’s weekly published rates. Each week Freddie Mac surveys lenders on the rates and points based on first-lien prime conventional conforming home purchase mortgages with a loan-to-value of 80 percent. “Lenders surveyed each week are a mix of lender types — thrifts, credit unions, commercial banks and mortgage lending companies — is roughly proportional to the level of mortgage business that each type commands nationwide,” according to Freddie Mac.