Current 15-Year Loan Interest Rate and What Influences It

As of mid-August 2024, the average interest rate for a 15-year fixed-rate mortgage in the U.S. is approximately 6.29%. Rates have varied slightly over recent weeks, influenced by economic indicators such as inflation trends and Federal Reserve policy decisions. Mortgage interest rates are subject to frequent changes depending on the broader economic environment and individual borrower profiles.

For 15-year loans, rates are generally lower than their 30-year counterparts, making them attractive for those who can afford higher monthly payments and wish to save on total interest. In comparison, the current 30-year fixed-rate mortgage hovers around 6.89%, underscoring the cost-saving potential of opting for a shorter-term loan.

Several factors influence the interest rate you may receive:

• Credit Score and History: Borrowers with strong credit scores typically qualify for lower rates.
• Loan Amount and Down Payment: Higher down payments or loan amounts can result in more favorable rates.
• Market Conditions: Economic factors such as inflation, Treasury yields, and Federal Reserve policies can cause fluctuations in mortgage rates.
• Lender-Specific Offers: Some lenders might offer better rates based on personalized factors like location or type of mortgage.

Given the many variables affecting mortgage rates, it's advisable to shop around and consider options like rate locks or pre-approvals. This ensures that you get the most competitive rate available while planning your purchase or refinance​ (Money)​ (Fox Business).