Mortgage and Refinance Rates Today, July 30, 2024: Rates Drop Ahead of Fed Meeting
Almost all mortgage rates fell today. According to data from Zillow, the average 30-year fixed rate fell 11 basis points to 6.36%, the 15-year fixed rate fell seven basis points to 5.68%, and the 5/1 variable rate fell ten basis points to 6.32%.
The Federal Reserve will meet tomorrow to announce whether it will cut the federal funds rate. The Fed is unlikely to cut rates anytime soon, but economists hope the central bank will do so at its next meeting in September. Any comments about future rate cuts at tomorrow's meeting could cause mortgage rates to rise or fall in the coming weeks.
Today's Mortgage Rates
Here are the current mortgage rates, according to our most recent Zillow data:
30 Year Fixed: 6.36%
20 Year Fixed: 6.01%
15 Year Fixed: 5.68%
5/1 ARM: 6.32%
7/1 ARM: 6.32%
30 Year FHA: 5.50%
15 Year FHA: 5.17%
5/1 FHA: 5.57%
30 Year VA: 5.66%
15 Year VA: 5.18%
5/1 VA: 5.97%
Remember, these are national averages and are rounded to the nearest hundredth.
Here are the current mortgage refinance rates, according to the latest Zillow data:
30-year fixed: 7.52%
20-year fixed: 6.59%
15-year fixed: 6.46%
5/1 ARM: 6.26%
7/1 ARM: 6.34%
30-year FHA: 5.30%
15-year FHA: 5.17%
30-year VA: 5.96%
15-year VA: 5.40%
5/1 VA: 5.68%
Again, the numbers provided are national averages rounded to the nearest hundredth. Some refinance rates have gone up today. While not always the case, mortgage refinance rates are slightly higher than purchase rates.
A mortgage calculator can help determine how mortgage term lengths and interest rates affect your monthly payments. Use Yahoo Finance's free mortgage calculator to experiment with different results.
Our calculator also considers property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of your monthly payment than just the principal and interest.
30-Year vs. 15-Year Fixed Mortgage Rates
Generally, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15-year vs. 30-year mortgage rates, know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you're paying off the same loan amount in half the time.
For example, with a $400,000, 30-year mortgage at a 6.36% rate, you'll pay about $2,492 monthly toward principal and interest. With interest compounding over decades, you'll pay $496,960 in interest.
If you take out a $400,000, 15-year mortgage at 5.68%, you'll pay about $3,307 monthly in principal and interest. However, you'll only pay $195,200 in interest over the years.
If your monthly payment on a 15-year mortgage is too high, remember that you can always make additional mortgage payments on your 30-year loan to pay off your mortgage faster and ultimately pay less interest.
Fixed-rate mortgage vs. adjustable-rate mortgage
With a fixed-rate mortgage, your interest rate is locked in from day one. However, you'll get a new rate if you refinance.
An adjustable-rate mortgage keeps your interest rate the same for a set period. However, depending on several factors, such as the economy and the maximum amount, your interest rate can change according to your contract, going up or down. For example, with a 7/1 ARM, your interest rate will be locked in for the first seven years and then change every year for the rest of your term.
Adjustable rates sometimes start lower than fixed rates, but once the initial rate lock period ends, you risk your interest rate rising.
When will mortgage rates finally come down?
Mortgage rates have generally been trending down, but the shifts have been gradual and sometimes small. In Fannie Mae's July housing outlook, the government-sponsored corporation expects 30-year fixed rates to end at 6.7% in 2024 and 6.2% in 2025. The Mortgage Bankers Association has forecast a slightly lower rate of 6.6% by the fourth quarter of 2024 and 6.0% by the end of 2025. While rates may decline later this year, they likely won't drop significantly until 2025.
The path of future mortgage rates will largely depend on the Federal Reserve's decision to cut the federal funds rate at its meetings throughout the year. The federal funds rate doesn't directly affect mortgage rates, but it is a good indicator of how the economy is developing.
When the federal funds rate goes down, mortgage rates go down. The Fed's next announcement is tomorrow, July 31.
What is the 30-year fixed rate today?
According to Zillow, the 30-year fixed rate is currently 6.36%. This is the national average; therefore, the average in your state or city may differ. Your interest rate will also vary depending on your financial situation.
Are mortgage rates expected to fall?
Yes, mortgage rates are expected to fall in 2024. However, we are unlikely to see more dramatic rate declines until 2025.
Will mortgage rates fall in 2024?
Mortgage rates are likely to fall slightly in 2024, but not dramatically.
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