Mortgage Interest Rates Today, July 21, 2024 | Rates Are Down This Month. Will They Continue to Drop?
These are today's mortgage and refinance rates. Mortgage rates fell in response to slowing inflation, and they could fall further in the coming months.
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Average 30-year mortgage rates were 6.58% last month, but they're currently trending almost 30 basis points lower, according to Zillow data.
Rates are down in response to Consumer Price Index data showing that inflation slowed more than expected in June, rising just 3.0% year over year. This is a slowdown from the previous month's reading of 3.3% and down significantly from when inflation peaked at 9.1% in June 2022.
This cooler-than-expected data helped renew hopes that the Federal Reserve could cut the federal funds rate multiple times this year. This would remove a lot of upward pressure off of mortgage rates and allow them to trend down.
As long as inflation continues to slow, mortgage rates should tick down further throughout the remainder of 2024. This means that those planning to buy a home later this year or in 2025 should benefit from lower rates and increased affordability.
Current Mortgage Rates
Current Refinance Rates
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Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.
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Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Inch Up (+0.09%)
The current average 30-year fixed mortgage rate is 6.30%, up nine basis points from where it was this time last week, according to Zillow data. This rate is down compared to a month ago, when it was 6.62%.
At 6.30%, you'll pay $619 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.
20-Year Fixed Mortgage Rates Up Slightly (+0.08%)
The average 20-year fixed mortgage rate is eight basis points up from where it was last week, and is sitting at 6.11%. This time last month, the rate was 6.19%.
With a 6.11% rate on a 20-year term, your monthly payment will be $723 toward principal and interest for every $100,000 borrowed.
A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Barely Tick Up (+0.02%)
The average 15-year mortgage rate is 5.68%, just two basis points higher than last week. It's down compared to this time last month, when it was 5.87%.
With a 5.68% rate on a 15-year term, you'll pay $827 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Nearly Flat (+0.02%)
The 7/1 adjustable mortgage rate is up two basis points from a week ago at 6.41%. It's down compared to a month ago, when it was at 6.87%.
At 6.41%, your monthly payment would be $626 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Rise (+0.16%)
The average 5/1 ARM rate is 6.42%, a 16-basis-point increase from last week. It's down compared to where it was a month ago, when it was 6.74%.
Here's how a 6.42% rate would affect you for the first five years: You'd pay $627 per month toward principal and interest for every $100,000 you borrow.
30-Year FHA Rates Flat (No Change)
The average 30-year FHA interest rate is 5.54% today, unchanged from the week before. This rate was 6.14% a month ago.
At 5.54%, you would pay $570 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.
30-Year VA Rates Slightly Higher This Week (+0.08%)
The current VA mortgage rate is 5.66%, eight basis points higher than this time last week. This rate was 6.00% a month ago.
With a 5.66% rate, your monthly payment would be $578 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Fall (-0.37%)
The average 30-year refinance rate is 7.08%, 37 basis points down from last week. It's also down compared to a month ago, when it was 7.58%.
Here's how a 7.08% rate would affect your monthly payments: You'd pay $671 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Drop a Bit (-0.14%)
The current 20-year fixed refinance rate is 6.48%, which is down 14 basis points compared to a week ago. This rate was 7.03% this time last month.
A 6.48% rate on a 20-year term will result in a $744 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Tick Up (+0.17%)
The average 15-year fixed refinance rate is 6.32%, which is 17 basis points higher compared to last week. It's also up compared to this time a month ago, when it was at 5.97%.
A 6.32% rate on a 15-year term means you'll pay $861 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Almost Unchanged (-0.02%)
The average 7/1 ARM refinance rate is 6.41%, down just two basis points from where it was last week. It's down from a month ago, when it was 6.72%.
Refinancing into a 7/1 ARM with a 6.41% rate means your monthly payment toward principal and interest will be $626 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Go Up (+0.34%)
The 5/1 ARM refinance rate is 6.59%, which is 34 basis points higher than it was this time last week. It's down compared to this time last month, when it was 6.78%.
A 6.59% rate will result in a monthly payment of $638 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Decrease (-0.38)
The 30-year FHA refinance rate is 5.25%, which is down 38 basis points from this time last week. It was 5.79% a month ago.
A 5.25% refinance rate would lead to a $552 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Inch Up (+0.03)
The average 30-year VA refinance rate is 5.88%, which is up three basis points compared to where it was was last week. This rate was 6.03% a month ago.
At 5.88%, your new monthly payment would be $592 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Rates spent the first half of this year relatively high, but they've recently dropped and may go down further throughout the rest of 2024.
For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.