Mortgage Rates Take Dips Down: Today's Mortgage Rates on Aug. 28, 2024

A couple of key mortgage rates ticked downward. Will rates continue to trend downward in 2024?
Katherine Watt
Writer
Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor’s degree in English literature.
Laura Michelle Davis
Editor
Laura is a professional nitpicker and good-humored troubleshooter with over 10 years of experience in print and digital publishing. Before becoming an editor with CNET, she worked as an English teacher, Spanish medical interpreter, copy editor and proofreader. She is a fearless but flexible defender of both grammar and weightlifting, and firmly believes that technology should serve the people. Her first computer was a Macintosh Plus.
CNET staff — not advertisers, partners or business interests — determine how we review the products and services we cover. If you buy through our links, we may get paid.
Katherine Watt
Writer
Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor’s degree in English literature.
Laura Michelle Davis
Editor
Laura is a professional nitpicker and good-humored troubleshooter with over 10 years of experience in print and digital publishing. Before becoming an editor with CNET, she worked as an English teacher, Spanish medical interpreter, copy editor and proofreader. She is a fearless but flexible defender of both grammar and weightlifting, and firmly believes that technology should serve the people. Her first computer was a Macintosh Plus.
CNET staff — not advertisers, partners or business interests — determine how we review the products and services we cover. If you buy through our links, we may get paid.
The average for a 30-year fixed mortgage is 6.46% today, down -0.08% compared to one week ago. The average rate for a 15-year fixed mortgage is 5.91%, which is a decrease of -0.07% compared to a week ago. For a closer look at mortgage predictions this week, see here.
With inflation at its lowest level since spring 2021 and a weakening labor market, the Federal Reserve is set to make its first interest rate cut in September, which should help mortgage rates fall in the coming months. Generally speaking, bad news for the economy means good news for mortgage rates. Though prospective homebuyers are starting to emerge from the sidelines, it will take more than lower mortgage rates to repair today’s unaffordable housing market.
Lower mortgage rates are finally on their way. You can take advantage by comparing multiple offers to get the best deal on your home loan. Enter your information here to get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

Mortgage rates change daily in response to a range of economic factors, including the bond market, investor expectations, inflation and labor data, as well as the Fed’s monetary policy decisions.
When inflation is high, the Fed increases interest rates to slow the economy and ease pressures on prices. Higher interest rates make it more expensive for banks to borrow money, so banks raise the rates on consumer loans, like mortgages, to compensate.
Over the last few years, the Fed increased its short-term interest rate from near zero to a target range of 5.25% to 5.5%, and mortgage rates soared in response.
At the start of August, mortgage rates dropped significantly in response to a concerning labor report that sparked fears of a recession. Though the average rate on a 30-year fixed mortgage fell to a low of 6.5% in August, that’s still more than double what it was in 2020-21.
For a look at mortgage rate movement over the past four years, see the chart below.

Mortgage rates have already fallen in 2024, due in large part to market volatility. With markets now stabilizing, we may see interest rates on home loans increase a bit. Over the long term, however, experts predict a gradual decline in mortgage rates.
Just how far rates will fall this year continues to depend on upcoming inflation and labor data. With economic growth expected to continue slowing, the Fed will likely lower rates at its September meeting. The central bank could also cut an additional one or two times this year.
“As history shows, once the cutting begins, it triggers a series of rate cuts over a long period of time,” said Greg Sher, managing director at NFM Lending. “That first cut will allow those tied to housing or interested in buying to exhale.”
But one thing is for sure: A return to the 2-3% mortgage rates from just a few years ago is unlikely.
Here’s a look at where some major housing authorities expect average mortgage rates to land.

Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.
The 30-year fixed-mortgage rate average is 6.46% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.
Today, the average rate for a 15-year, fixed mortgage is 5.91%. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.
A 5/1 adjustable-rate mortgage has an average rate of 6.02% today. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.
Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.

What are some tips for finding the best mortgage rates?

Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.
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