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Mortgage Rates Today, Aug. 20, 2024: Fed Still Front of Mind

USDA loan down payment: mortgage rates today

The average 30-year fixed rate mortgage is 6.43% today, a decrease of 0.02% since yesterday. The 15-year fixed mortgage rate stands at 5.54%, up by 0.02%. The 30-year FHA mortgage now averages 5.82%, having dropped by 0.02. Meanwhile, the 30-year jumbo mortgage rate is 7%, reflecting a decrease of 0.01%.

In brief

Business coverage across the mainstream media appears united in the belief that the Federal Reserve will drive markets (and therefore mortgage rates) today and this week.

However, as always, it's possible that some market-shaking global news event (a Middle East settlement?) could briefly snatch the spotlight from the central bank.

So far, we don't have a clear steer on whether the Fed is likely to choose a quarter-point or half-point cut to general interest rates on Sep. 18. Senior Fed officials who have expressed views recently seem unanimous in favoring some cut that day.

But markets are hoping that Fed Chair Jerome Powell will drop broader hints during his next speech, scheduled for Friday morning. Still, you probably shouldn't bank on that because Mr. Powell is famously enigmatic.

Mortgage Rate Trends: Past 90 Days

Purchase Rates

Loan Type Rate APR Daily Change Monthly Change
30-Year Fixed 6.43% 6.47% -0.02% -0.43%
15-Year Fixed 5.54% 5.6% +0.02% -0.46%
30-Year Fixed FHA 5.82% 6.65% -0.02% -0.3%
30-Year Fixed VA 5.75% 5.9% -0.02% -0.42%
30-Year Fixed USDA 5.81% 5.85% -0.01% -0.21%
30-Year Fixed Jumbo 7% 7.02% -0.01% -0.31%
5/6 Year ARM 6.79% 6.84% -0.02% -0.42%

Refinance Rates

Loan Type Rate APR Daily Change Monthly Change
30-Year Fixed 6.55% 6.59% -0.02% -0.42%
15-Year Fixed 5.53% 5.59% +0.01% -0.48%
30-Year Fixed FHA 5.82% 6.66% -0.01% -0.3%
30-Year Fixed VA 5.74% 5.89% -0.03% -0.43%
5/6 Year ARM 6.85% 6.91% -0.03% -0.38%
How we source rates and rate trends.

The Fed and its rate cut

The Fed's rate-setting body is the Federal Open Market Committee (FOMC). And two of the 12 voting members of the FOMC gave interviews that appeared in the financial press yesterday.

Minneapolis Fed President Neel Kashkari told The Wall Street Journal (paywall) that "he didn’t see any reason to lower interest rates in increments of larger than a quarter percentage point because layoffs remain low and claims for unemployment benefits don’t suggest a notable deterioration."

Meanwhile, as reported here yesterday, San Francisco Fed President Mary Daly told The Financial Times (paywall, but this article may be open), “Gradualism is not weak, it’s not slow, it’s not behind, it’s just prudent.”

So, it sounds as if both those senior Fed officials support the smaller, quarter-point cut to general interest rates on Sep. 18. Markets seem to be accepting this.

A week ago, the CME FedWatch tool put the chances of a half-point cut at 53%. That's now tumbled to 24.5%.

Two more voting members of the FOMC have speaking engagements today, Atlanta Fed President Raphael Bostic and Fed Vice Chair for Supervision Michael Barr. Markets will be listening to see if they concur or disagree with Ms. Daly and Mr. Kashkari.

Fed Chair Jerome Powell speaks at the Jackson Hole economic symposium, the most powerful voice in the discussion.

Of course, Friday won't close the matter. Plenty of inflation and employment data are due between then and the Sep. 18 decision. And any of it could influence the Fed's final choice.


The minutes of the last meeting of the FOMC are set to be published tomorrow afternoon. These used to move mortgage rates regularly, but that's been less common recently.

The Fed has generally improved its transparency, and markets probably already have a pretty good idea of what was said at the meeting. However, you can never rule out a shocking revelation.

Other things this week

The volatility that marred the first half of August seems to have largely dissipated. But don't assume it's gone for good. New inflation data due next week and market-moving news stories could bring it back.

No economic reports are due today or tomorrow, according to the MarketWatch economic calendar. But four are scheduled for Thursday.

We'll brief you more fully on those tomorrow so you know what to expect. But these particular reports rarely move mortgage rates far or for long.

Finally, there's the week's last economic report scheduled for Friday morning. That's even less likely to affect mortgage rates than Thursday's four.






About The Author:

Peter Warden has been covering mortgage, real estate, and personal finance for 15 years. He has appeared on The Mortgage Reports, Credit Sesame, Bills.com, and other publications.

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