Current Mortgage Rates for October 3, 2024: What You Need to Know
Mortgage interest rates have shown a mixed trend compared to last week, as reported by Bankrate. Below is a detailed breakdown of the movement in various loan types.
The rates mentioned are marketplace averages based on specific assumptions. Actual rates may vary. This report has been reviewed by Suzanne De Vita, and all rate data is accurate as of Thursday, October 3, 2024, at 7:30 a.m. ET.
Mortgage rates fluctuate based on economic changes, new data releases, and lenders' risk tolerance on any given day. Recent Federal Reserve decisions also play a significant role. In mid-September, the Fed cut interest rates by half a point, marking its first such move since the pandemic began. The Fed has indicated that another rate cut could occur this year, depending on forthcoming economic data.
Historical Context of Mortgage Rates
Mortgage rates have been on a downward trend, dipping below the 6.5 percent threshold as of September 11. Slower inflation and weaker job statistics suggest that the Fed might cut rates again at its next meeting on September 18.
While the Fed does not directly set fixed mortgage rates, its decisions influence them. Typically, mortgage rates move in tandem with the 10-year Treasury yield, which reflects investor confidence in the economy and monetary policy. When demand for Treasury notes decreases, the yield rises, impacting mortgage rates.
Regardless of the Fed's actions, housing needs can change. If you're looking to buy or sell a home, it's advisable to shop around for the best possible rates.
Today's Average Mortgage Rates
- 30-Year Fixed Mortgage: The average rate is currently 6.20 percent, unchanged from last week. A month ago, this rate was higher at 6.38 percent. At this rate, monthly payments would be approximately $612.47 per $100,000 borrowed.
- 15-Year Fixed Mortgage: The average rate remains at 5.42 percent, consistent with last week. Monthly payments would be around $813 for every $100,000 borrowed.
- 5/1 Adjustable Rate Mortgage (ARM): The average rate is 5.69 percent, which has increased by 6 basis points since last week. Monthly payments would be about $580 for each $100,000 borrowed during the initial five years.
- Jumbo Mortgages: The average rate is 6.36 percent, up 3 basis points from last week. A month ago, this rate was higher at 6.54 percent, leading to monthly payments of $622.89 per $100,000 borrowed.
- 30-Year Fixed Refinance Rate: The average rate is 6.22 percent, up 4 basis points from last week. A month ago, it was higher at 6.35 percent, resulting in monthly payments of $613.77 for every $100,000 borrowed.
With the Fed's recent rate cuts, mortgage rates may continue to decline through the end of 2024 and into 2025. Greg McBride, CFA, chief financial analyst for Bankrate, notes that the Fed's actions and the economic projections indicate a sustained downward trend in mortgage rates.
Lower rates have already prompted some homeowners to refinance, and more could follow if rates drop further. Nearly 3 million outstanding mortgages have rates at or above 6.75 percent, according to CoreLogic. If rates decrease, refinancing may become a viable option for these borrowers.
"The best time to consider refinancing is when you can reduce your rate by half to three-quarters of a percentage point," McBride advises.
For those looking to purchase homes, many are still waiting for lower rates. According to Bankrate’s Mortgage Rates Survey, 47 percent of homeowners would feel comfortable buying a home in 2024 only if rates fall below 5 percent.
Bankrate provides two sets of rate averages from different surveys: daily (“overnight averages”) and weekly (“Bankrate Monitor averages”). The rates on this page reflect our overnight averages, based on no existing relationship or automatic payments.
For more detailed information about Bankrate’s rate averages, editorial guidelines, and revenue generation, visit our website.