As of August 13, the average interest rate for a 30-year fixed-rate mortgage remains steady at 6.490%, showing no change from the previous day. Similarly, the average interest rate for a 15-year fixed-rate mortgage holds firm at 5.625%, mirroring the rate observed yesterday.
Industry experts remain optimistic that a reduction in interest rates may be on the horizon, with the Federal Reserve signaling the possibility of a rate cut in September.
Given the fluctuating nature of mortgage rates, it’s advisable to review the current rates before proceeding with a loan application. Additionally, comparing the latest interest rates, terms, and fees from various lenders is essential to secure the most favourable deal.
The median interest rates were last updated on August 13, 2024. These rates are derived from data gathered from over 500 mortgage lenders across all 50 states. The data is compiled daily based on the following criteria: a $400,000 purchase price, an $80,000 down payment, a single-family primary residence, and a FICO score of 740 or higher.
As inflation begins to ease, the Federal Reserve is preparing for what could be its first interest rate reduction later this year. While the housing market is unlikely to experience an immediate rebound, forecasts suggest that mortgage rates may gradually decline in the months ahead.
When selecting a mortgage term, you’ll choose a payment schedule that suits your financial goals, with 15- and 30-year terms being the most common, though 10-, 20-, and 40-year options are also available. Fixed-rate mortgages offer a stable interest rate throughout the loan, providing predictability, while adjustable-rate mortgages (ARMs) feature an initially fixed rate for a set period—typically five, seven, or 10 years—before adjusting annually based on market conditions. A fixed-rate mortgage is ideal for long-term stability, while ARMs may offer lower upfront rates if you plan to move or refinance before the adjustment period begins.