Mortgage Rates Continue to Trend Down Amid Slowing Inflation and Federal Reserve Hopes

Strategic Insights -

Mortgage rates have been trending down in response to cooling inflation and renewed hopes from the Federal Reserve that interest rates may be cut, potentially allowing mortgage rates to drop further throughout the remainder of 2024. The current average 30-year fixed mortgage rate is 6.30%, down from 6.62% a month ago, while 20-year fixed mortgage rates have also declined, dropping eight basis points to 6.11%. In addition, 15-year fixed mortgage rates have remained relatively flat, with a 0.02% increase to 5.68%. Meanwhile, adjustable-rate mortgages, such as 7/1 and 5/1 ARMs, have also seen decreases in interest rates.

Key Takeaways:

  • The current average 30-year fixed mortgage rate is 6.30%, down from 6.62% a month ago
  • 20-year fixed mortgage rates have dropped eight basis points to 6.11%
  • 15-year fixed mortgage rates remain at 5.68%, with a 0.02% increase
  • 7/1 ARM rates have decreased, with a 0.02% drop to 6.41%
  • 5/1 ARM rates have risen, but remain competitive at 6.42%
  • 30-year FHA mortgage rates remain flat at 5.54%
  • 30-year VA mortgage rates have slightly increased, rising to 5.66%
  • Mortgage refinance rates have also seen declines, with 30-year fixed rates falling 37 basis points to 7.08%

Statistics:

  • Average 30-year fixed mortgage rate: 6.30%
  • 20-year fixed mortgage rate: 6.11%
  • 15-year fixed mortgage rate: 5.68%
  • 7/1 ARM: 6.41%
  • 5/1 ARM: 6.42%
  • 30-year FHA mortgage rate: 5.54%
  • 30-year VA mortgage rate: 5.66%
  • 30-year fixed refinance rate: 7.08%
  • 20-year fixed refinance rate: 6.48%
  • 15-year fixed refinance rate: 6.32%
  • 7/1 ARM refinance rate: 6.41%
  • 5/1 ARM refinance rate: 6.59%

Sources:

  • Business Insider: "Current Mortgage Refinance Rates and Trends" (https://www.businessinsider.com/personal-finance/30-year-refinance-rates)
  • Zillow: Mortgage data
  • Federal Reserve: Inflation data
  • Consumer Price Index: Inflation data
  • Business Insider: "Current Mortgage Rates and Trends" (https://www.businessinsider.com/personal-finance/current-mortgage-rates)