Mortgage rates this week
- The average rate on a 30-year fixed mortgage is unchanged at 6.35% this week
- The average rate on a 15-year fixed mortgage is down to 5.47% this week
30-year fixed-rate mortgages
The average 30-year fixed mortgage rate held steady at 6.35% this week. A year ago at this time, the 30-year rate averaged 7.12%.
15-year fixed-rate mortgages
The average 15-year mortgage rate decreased to 5.47%, down from an average of 5.51% last week. This time a year ago, the 15-year fixed rate averaged 6.52%.
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Explore better ratesMortgage rate trends
See how mortgage rates have changed over the last 3 months. The average 30-year mortgage rate hit a high of 6.99% the week of June 6th, while the average 15-year mortgage rate topped out at 6.29%, the same week.
| Week of | 30-year mortgage rate | 15-year mortgage rate |
|---|---|---|
| September 5, 2024 | 6.35% | 5.47% |
| August 29, 2024 | 6.35% | 5.51% | August 22, 2024 | 6.46% | 5.62% |
| August 15, 2024 | 6.49% | 5.66% |
| August 8, 2024 | 6.47% | 5.63% |
| August 1, 2024 | 6.73% | 5.99% |
| July 25, 2024 | 6.78% | 6.07% |
| July 18, 2024 | 6.77% | 6.05% |
| July 11, 2024 | 6.89% | 6.17% |
| July 4, 2024 | 6.95% | 6.25% |
| June 27, 2024 | 6.86% | 6.16% |
| June 20, 2024 | 6.87% | 6.13% |
| June 13, 2024 | 6.95% | 6.17% |
| June 6, 2024 | 6.99% | 6.29% |
What’s behind current mortgage rate trends?
Inflation: The current inflation rate is 2.9%, compared to 3.0% last month. Mortgage lenders often demand higher interest rates to compensate for the eroding purchasing power of money due to inflation.
Federal funds rate: The federal funds rate is set by central bank officials, and it’s the interest rate that banks charge one another for borrowing money. Central banks adjust key interest rates to control inflation or stimulate the economy, and mortgage rates can follow suit. The current federal funds rate is at 5.25% to 5.50%.
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Get StartedHow mortgage rates affect your monthly payments
Say you’re buying a $500,000 property, have a 10% down payment and lock in a 30-year fixed mortgage at today’s average rate of 6.35%. Using a mortgage calculator, your monthly mortgage payment would be $3,718 a month, not including property taxes and insurance.
When buying a home, keep in mind that most lenders want you to keep your housing expenses at or under 30% of your gross income. Based on your income and expenses, use this calculator to find out how much home you could afford at today’s mortgage rates.
Mortgage application demand increases
Demand for mortgages increased 1.6% this week from a week earlier, according to the Mortgage Bankers Association (MBA).
Meanwhile, the Refinance Index decreased 0.3% from the previous week and was 94% higher than the same week one year ago.
“Refinance applications were slightly down but continued to show strong annual gains as borrowers with higher rates have been refinancing to lower their monthly payments. Similar to purchase activity, refinance activity has picked up across the various loan types,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.
"The refinance share of applications averaged almost 46 percent in August, the highest monthly average since March 2022.”
Should you buy a home at the current mortgage rates?
With the current 30-year fixed mortgage rate at 6.35%, you might wonder if now is the right time to buy a home. To help you make the best decision, ask yourself a few questions.
Am I financially stable? Reflect on your current financial situation, including your income, job stability, and overall financial health. Use a mortgage income calculator to determine what monthly mortgage payment you could comfortably afford. Remember to factor in property taxes, insurance, and maintenance costs.
Where do I see myself in 5, 10 years? Imagine yourself five, 10, 15 years from now. What does your career look like? Are you in the same city/state? Thinking about your long-term plans can help you determine if buying a home at today’s mortgage rates is a good idea or not.
How’s my credit score? Your credit score plays a significant role in the interest rate you'll be offered. If it’s on the low end, you may want to focus on boosting your score. With a higher credit score, you can qualify for the best mortgage rates available.
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