Today’s average mortgage rate on a 30-year fixed-rate mortgage is 6.79%, down 0.11 percentage point from the previous week, according to Curinos.
Borrowers may be able to save on interest costs by going with a 15-year fixed mortgage, which will typically have a lower rate than a 30-year, fixed-rate home loan. The average APR on a 15-year fixed mortgage is 6.09%. However, you’ll have higher monthly payments since you’re paying off your mortgage in 15 years instead of 30.
If you want to refinance your existing mortgage, check out the average refinance rate.
Current Mortgage Rates for August 29, 2024
30-Year Mortgage Rates
Borrowers paid an average rate of 6.79% on a 30-year mortgage. This was down from the previous week’s rate of 6.90%.
Currently, the average annual percentage rate (APR) on a 30-year fixed-rate mortgage is 6.81%. The APR contains both mortgage interest and the lender fees to help give a more complete picture of loan costs.
To get an idea of how much you’ll pay: a $100,000 mortgage with a 30-year fixed-rate loan at the current average interest rate of 6.79% will cost you about $651 including principal and interest (taxes and fees not included) each month, the Forbes Advisor mortgage calculator shows. That’s around $134,501 in total interest over the life of the loan.
15-Year Mortgage Rates
Today’s 15-year mortgage (fixed-rate) is 6.06%, down 0.12 percentage point from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 6.18%.
The APR on a 15-year fixed is 6.09%. It was the same last week.
A 15-year, fixed-rate mortgage with today’s interest rate of 6.06% will cost $847 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $52,498 in total interest.
Jumbo Mortgage Rates
On a 30-year jumbo, the average interest rate is 6.92%, lower than it was at this time last week. The average rate was 6.95% at this time last week.
Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 6.92% will pay $660 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $4,950 and you’d pay around $1.03 million in total interest over the life of the loan.
How To Calculate Mortgage Payments
To get an estimate of your mortgage costs, using a mortgage calculator can help.
Simply input the following information:
- Home price
- Down payment amount
- Interest rate
- Loan term
- Taxes, insurance and any HOA fees
How Are Mortgage Rates Determined?
Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s annual percentage rate (APR).
Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.
For the most part, several economic factors influence the trajectory of rates for new home loans. The recent Federal Reserve rate hikes don’t directly cause mortgage rates to rise but have indirectly caused the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.
Further, the inflation rate and the general state of the economy directly impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may help rates decrease.
What Is the Best Type of Mortgage Loan?
Many home buyers are eligible for several mortgage loan types. Each program can have its own advantages:
- Conventional mortgage. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums.
- FHA loan. An FHA home loan is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579.
- VA loan. Borrowers with a qualifying military background may prefer a VA loan for its flexibility. A down payment may not be required. While you pay a one-time funding fee, there are no ongoing mortgage insurance premiums or service fees.
- USDA loan. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower.
- Jumbo loan. Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency’s conforming loan limits. The limit in most municipalities is $726,200 in 2023.
Frequently Asked Questions (FAQs)
What is a good mortgage rate?
How to get a lower mortgage interest rate?
How long can you lock in a mortgage rate?
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