Mortgage Interest Rates Today, July 27, 2024 | Rates Should Drop Again Soon
These are today's mortgage and refinance rates. The PCE price index showed that inflation cooled last month, which is good news for mortgage rates.
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Average 30-year mortgage rates are currently around 20 basis points down from where they were a month ago, according to Zillow data. Rates fell earlier this month and have been holding relatively steady this week.
It's also looking increasingly likely that mortgage rates will drop even further in the coming months. On Friday, the Commerce Department reported that the personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, rose 2.5% year over year in June, a downtick from the previous month's reading.
As inflation continues to slow and the Fed is able to start lowering the federal funds rate, mortgage rates should trend down.
While the Fed is expected to keep its benchmark rate steady at its meeting next week, investors think it's very likely the central bank will start cutting rates in September, according to the CME FedWatch Tool. This will remove some of the upward pressure off of mortgage rates and allow them to fall a bit.
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.
Click "More details" for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Inch Up (+0.08%)
The current average 30-year fixed mortgage rate is 6.38%, up eight 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 6.58%.
At 6.38%, you'll pay $624 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 a Bit (+0.16%)
The average 20-year fixed mortgage rate is 16 basis points up from where it was last week, and is sitting at 6.27%. This time last month, the rate was 6.16%.
With a 6.27% rate on a 20-year term, your monthly payment will be $732 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 (+0.04%)
The average 15-year mortgage rate is 5.72%, just four basis points higher than last week. It's down compared to this time last month, when it was 5.98%.
With a 5.72% rate on a 15-year term, you'll pay $829 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 Increase Somewhat (+0.18%)
The 7/1 adjustable mortgage rate is up 18 basis points from a week ago at 6.59%. It's almost flat compared to a month ago, when it was at 6.57%.
At 6.59%, your monthly payment would be $638 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 (+0.10%)
The average 5/1 ARM rate is 6.52%, a 10-basis-point increase from last week. It's down compared to where it was a month ago, when it was 6.72%.
Here's how a 6.52% rate would affect you for the first five years: You'd pay $633 per month toward principal and interest for every $100,000 you borrow.
30-Year FHA Rates Essentially Flat (+0.01)
The average 30-year FHA interest rate is 5.55% today, up a single basis point from the week before. This rate was 5.99% a month ago.
At 5.55%, you would pay $571 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 Hold Steady (No Change)
The current VA mortgage rate is 5.66%, exactly where it was this time last week. This rate was 5.96% 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 Tick Up (+0.14%)
The average 30-year refinance rate is 7.22%, 14 basis points down from last week. It's up compared to a month ago, when it was 6.96%.
Here's how a 7.22% rate would affect your monthly payments: You'd pay $680 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 Inch Down (-0.02%)
The current 20-year fixed refinance rate is 6.46%, which is down just two basis points compared to a week ago. This rate was 6.88% this time last month.
A 6.46% rate on a 20-year term will result in a $743 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Up Slightly (+0.10%)
The average 15-year fixed refinance rate is 6.42%, which is 10 basis points higher compared to last week. It's also up compared to this time a month ago, when it was at 5.81%.
A 6.42% rate on a 15-year term means you'll pay $867 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 Flat (No Change)
The average 7/1 ARM refinance rate is 6.41%, the same as it was last week. It's down from a month ago, when it was 6.74%.
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 Fall (-0.35%)
The 5/1 ARM refinance rate is 6.24%, which is 35 basis points lower than it was this time last week. It's down compared to this time last month, when it was 6.33%.
A 6.24% rate will result in a monthly payment of $615 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 Increase a Bit (+0.06)
The 30-year FHA refinance rate is 5.31%, which is up six basis points from this time last week. It was 5.79% a month ago.
A 5.31% refinance rate would lead to a $556 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Drop Slightly (-0.08)
The average 30-year VA refinance rate is 5.80%, which is down eight basis points compared to where it was was last week. This rate was 5.96% a month ago.
At 5.80%, your new monthly payment would be $587 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.