Current Mortgage Rates: A Look Back at the Week of July 29 to August 2, 2024

• According to Money’s daily rate survey, the average rate on a 30-year fixed-rate mortgage decreased to 6.702%, a change of 0.16 percentage points.
• According to Money’s daily rate survey, borrowers looking for a 30-year fixed-rate refinance loan found rates averaging 6.796%, a decrease of 0.066 percentage points.
• Freddie Mac’s current rate for a 30-year fixed-rate mortgage decreased to 6.73%, its lowest level since February.
• Freddie Mac’s current rate for a 15-year fixed-rate mortgage dropped below 6% and is currently averaging 5.99%.

Rates Resume Downward Trend:

Rates resumed their downward trend this week. Though the expectation of a further decline in rates during the remaining months of 2024 has increased, buyers are still facing affordability challenges, according to Sam Khater, Freddie Mac’s chief economist, in a statement.

Even more positive news includes a recent moderation in home price growth and increased inventory, which are “a welcome sign for potential homebuyers,” added Khater.

If you’re offered a higher rate than expected, make sure to ask why and compare offers from multiple lenders. (Money’s list of the Best Mortgage Lenders is a good place to start. Homeowners considering a mortgage refinance should consider our list of the Best Mortgage Refinance Companies.)

Use Money’s mortgage calculator to get an estimate of your monthly payment, taking different rate scenarios into consideration.

Money’s Average Mortgage and Refinancing Rates for August 2, 2024:

How Mortgage Rates Affect Affordability:

The rate on your mortgage can make a big difference in how much home you can afford and the size of your monthly payments. That’s true whether you’re buying your primary residence, an investment property or refinancing an existing loan.

Here’s an example. If you bought a $250,000 home and made a 20% down payment — of $50,000 — you would end up with a starting loan balance of $200,000. On a $200,000 home loan with a fixed rate for 30 years, here’s what you would pay:

• At a 3% interest rate = $843 in monthly payments (not including taxes, insurance, or HOA fees)
• At a 4% interest rate = $955 in monthly payments (not including taxes, insurance, or HOA fees)
• At a 6% interest rate = $1,199 in monthly payments (not including taxes, insurance, or HOA fees)
• At an 8% interest rate = $1,468 in monthly payments (not including taxes, insurance, or HOA fees)

Experimenting with a mortgage calculator allows you to find out how much a lower rate or other changes could impact what you pay. A home affordability calculator can also give you an estimate of the maximum loan amount you may qualify for, based on your income, debt-to-income ratio, mortgage interest rate and other variables. The Consumer Financial Protection Bureau can also provide a range of rates being offered by lenders in each state.

How to Get the Best Mortgage Rate:

One of the most effective ways to find the best mortgage rate is to shop around. According to Freddie Mac, borrowers who get a rate quote from just one additional lender save an average of $600 over the life of the loan. Those savings go up to $1,200 if you get three quotes. A larger down payment amount will also result in a lower interest rate.

The best mortgage lender for you will be the one that can give you the lowest rate and the terms you want. Your local bank or credit union is one place to look. Online lenders have expanded their market share over the past decade and promise to get you pre-approved within minutes.

You can also lower the offered rate if you buy discount points, which are also known as mortgage points. A point typically costs 1% of the loan amount and can reduce the interest rate by 0.25 percentage points.

Compare loan options, rates and terms, and make sure your lender has the type of mortgage you need. Not all lenders write FHA loans, USDA-backed mortgages or VA loans, for example. If you’re not sure about a lender’s credentials, ask for its NMLS number and search for online reviews.

Once you find the best rate, get a rate lock to guarantee it won’t change before you can close on the loan. Getting a preapproval letter can also help.

Summary of Current Mortgage Rates:

This week’s mortgage rate movements:

• According to Money’s daily rate survey, the average rate on a 30-year fixed-rate mortgage decreased to 6.702%, a change of 0.16 percentage points.
• According to Money’s daily rate survey, borrowers looking for a 30-year fixed-rate refinance loan found rates averaging 6.796%, a decrease of 0.066 percentage points.
• Freddie Mac’s current rate for a 30-year fixed-rate mortgage decreased to 6.73%, its lowest level since February.
• Freddie Mac’s current rate for a 15-year fixed-rate mortgage dropped below 6% and is currently averaging 5.99%.