Mortgage Interest Rates Today, July 24, 2024 | Rates Hold Steady

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Mortgage rates haven't moved much in recent days, with average 30-year mortgage rates sticking around 6.51% so far this week, according to Zillow data. But we should see them trend down overall throughout the remainder of 2024 as inflation continues to slow. 

This means that those who plan to buy a home soon may be able to snag a lower rate later this year or in 2025. But if you're currently in the market, there may be some benefits to buying right now.

Even though mortgage rates are still relatively high, those who are currently shopping for a home may have an easier time than those who wait for rates to drop. In June, existing-home sales fell and inventory increased to a 4.1-month supply, the highest level since May 2020, according to the National Association of Realtors.

"We're seeing a slow shift from a seller's market to a buyer's market," NAR's chief economist Lawrence Yun said in a press release. "Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis."

An increase in inventory is good news for potential buyers, because it eases competition and gives them more bargaining power. This means you're less likely to have to bid up the price of a home just to get an offer accepted.  

Once mortgage rates fall, homebuying demand is likely to increase again, putting more upward pressure on home prices. If you're worried about competition, it could make sense to buy now and consider refinancing when rates drop.

Mortgage Rates Today

Mortgage Refinance Rates Today

Mortgage Calculator

Use our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments.

By plugging in different term lengths and interest rates, you'll see how your monthly payment could change.

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate was 6.77% this week, according to Freddie Mac. This is 12 basis points lower than it was the week before.

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.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you'll have a higher rate than you would with shorter terms or adjustable rates. 

15-Year Fixed Mortgage Rates

Average 15-year mortgage rates were 6.05% this week, according to Freddie Mac data, which is a 12-basis-point decrease from the previous week.

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.

Are Mortgage Rates Going Down?

Mortgage rates increased throughout most of 2023. But mortgage rates are expected to trend down in the coming months and years.

In the last 12 months, the Consumer Price Index rose by 3.0%. As inflation comes down and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates should fall further as well.

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. 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. 

How Do Fed Rate Hikes Affect Mortgages?

The Fed aggressively raised the federal funds rate in 2022 and 2023 to slow economic growth and get inflation under control. As a result, mortgage rates spiked.

Mortgage rates aren't directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy. 

Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which may happen this year, mortgage rates should fall even further.