Published on August 23, 2024 at 6:00 a.m. UTC
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A 30-year fixed mortgage has an average interest rate of 6.95%, while a 15-year fixed mortgage has an average interest rate of 6.22% and a jumbo mortgage has an average interest rate of 7%.
*The data is current as of August 22, 2024.
30-year fixed mortgage rate
Mortgage rates on a 30-year fixed loan rose to an average of 6.95% from 6.92% last week, according to Curinos data. That's down from 7.32% last month and 7.6% last year.
Based on current 30-year fixed rates, you'll pay about $662 a month for every $100,000 you borrow, up from about $660 last week.
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15-year fixed mortgage rate
Mortgage rates on 15-year fixed loans averaged 6.22%, up from 6.21% last week. That's down from 6.54% last month and down from 6.79% last year.
Based on current 15-year fixed rates, you'll pay about $856 per month for every $100,000 you borrow, the same as last week.
30-year jumbo mortgage interest rates
The average mortgage rate on a 30-year jumbo loan remained at 7% week over week. Rates were unchanged from 7% last month and down from 7.38% a year ago.
At the current 30-year jumbo interest rate, you'd pay about $665 per month for every $100,000 you borrow, the same as last week.
Methodology
Curinos uses a standardized set of parameters to determine average mortgage rates. For conventional mortgages, the calculations are based on an owner-occupied one-unit property with a loan amount of $350,000. For jumbo mortgages, the loan amount is $766,550. These calculations assume a loan-to-value ratio of 80%, a credit score of 740 or higher, and a fixed term of 60 days.
Frequently Asked Questions (FAQ)
How are mortgage interest rates determined?
Mortgage interest rates are determined by a variety of factors, including the overall economy, inflation, Federal Reserve actions, etc. Mortgage lenders set their loan rates based on these economic factors.
The interest rate you're offered on a mortgage will vary depending on not only the lender but also other parts of your financial profile, such as your credit score, income, and debt-to-income ratio (DTI).
How long can I lock in my mortgage interest rate?
If you choose to fix your interest rate, you can usually lock it in for 30 to 60 days, depending on the lender, but in some cases you may be able to lock your interest rate for up to 120 days.
Some lenders may let you lock in your mortgage interest rate for free, but be aware that you'll likely have to pay a fee if you want to extend the fixed period. This fee usually ranges between 0.25% and 0.5% of the loan amount. You may also be charged a fee for extending the fixed period, usually 0.375% of the loan amount.
How can I get the best mortgage rate?
There are several strategies that can help you get the best mortgage rate, including:
Check your credit report: When you apply for a mortgage, lenders will review your credit report to determine your creditworthiness and interest rate. Generally, the higher your credit score, the lower your interest rate. That's why it's a good idea to check your credit report before applying to see where you stand. If you find errors on your credit report, you may be able to dispute them with the appropriate credit bureaus to raise your score. Compare lenders: Taking the time to compare your options from as many lenders as possible can help you find the best deal. In addition to interest rates, consider each lender's terms, fees, and eligibility requirements. Improve your credit score: If your credit score isn't perfect and you can wait to apply for a mortgage, it may be worth making an effort to improve your credit score up front to qualify for better rates in the future. Ways to improve your credit include paying all bills on time and keeping your credit utilization ratio (the ratio of your credit utilization to your credit limit) on credit cards and lines of credit below 30%. Reduce debt: Paying off debt can help lower your DTI ratio, which is your monthly debt to your income. A lower DTI ratio means you're viewed as a lower risk in the eyes of lenders, which could result in a lower interest rate. Shorten your repayment term: Lenders typically offer lower interest rates to borrowers who shorten their term. For example, you're likely to get a lower interest rate on a 15-year mortgage than a 30-year loan.
Blueprint is an independent publisher and comparison service and is not an investment advisor. The information provided is for educational purposes only and we recommend that you seek individual advice from a qualified professional for any specific financial decision. Past performance is not indicative of future results.
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Jamie Young is the Managing Editor of Loans and Mortgages at USA TODAY Blueprint. She has been a professional writer and editor for 12 years. Previously, she worked at Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has appeared in some of the most prestigious media outlets, including Yahoo, Fox Business, Time, CBS News, AOL, and MSN. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to play games, hang out with her two crazy cats (Detective Snoop and his girl Friday), and maintain her ever-growing plant collection.
Megan Horner is Editorial Director at USA TODAY Blueprint. She has over 10 years of experience in online publishing, focusing primarily on credit cards and banking. She previously served as Director of Publishing at Finder.com, where she led the publishing team for personal finance content on credit cards, banking, loans, mortgages and more. Previously, she was the editor of Credit Karma. Megan has been featured on CreditCards.com, American Banker, Lifehacker and on news broadcasts across the country. She holds a BA in English and Editing.
Ashley Harrison is the Associate Editor of Loans & Mortgages at USA TODAY Blueprint and has been working in the online finance industry since 2017. She is passionate about creating helpful content that demystifies complex financial topics. She previously worked at Forbes Advisor, Credible, LendingTree, and Student Loan Hero. Her work has been featured on Fox Business and Yahoo. Ashley is also an artist and a huge horror fan, and her short story “The Box” was produced by the award-winning NoSleep Podcast. In her spare time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.
