Today’s mortgage rates have risen. According to Zillow data, the average 30-year fixed rate increased by two basis points to 6.74%and the 15-year fixed rate is five basis points higher than 6.03% -Pushing the 15-year rate above 6% for the first time in over a week.
Economists don’t expect mortgage rates to drop significantly until 2025. January forecasts from both Fannie Mae and the Mortgage Bankers Association (MBA) put the 30-year fixed rate at 6.50% by year’s end. Locking in lower rates may not be worth it – if you’re otherwise financially ready to buy, now could be a good time to get started.
Dive deeper: 5 strategies to get the lowest mortgage interest rate
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Here are the current mortgage rates, according to the latest Zillow data:
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30 years fixed: 6.74%
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20 years fixed: 6.49%
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15 years fixed: 6.03%
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5/1 arm: 6.69%
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7/1 arm: 6.74%
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30 year old VA: 6.17%
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15 year old VA: 5.66%
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5/1 VA: 6.07%
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30-year FHA: 6.29%
Remember, these are national averages and rounded to the nearest hundredth.
Here are today’s current refinance rates, according to the latest Zillow data:
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30 years fixed: 6.75%
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20 years fixed: 6.45%
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15 years fixed: 6.08%
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5/1 arm: 6.68%
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7/1 arm: 6.64%
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30 year old VA: 6.16%
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15 year old VA: 5.89%
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5/1 VA: 6.08%
Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinancing rates are often higher than rates when you purchase a home, although that is not always the case.
Read more: Is now a good time to refinance your mortgage?
Use the free Yahoo Finance mortgage calculator to see how different mortgage terms and interest rates affect your monthly payments.
Our calculator also takes into account factors such as property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at the mortgage principal and interest.
The average 30-year mortgage rate today is 6.74%. A 30-year term is the most popular type of mortgage because by spreading your payments over 360 months, your monthly payment will be lower than with a shorter loan.
The average 15-year mortgage rate today is 6.03%. When deciding between a 15-year mortgage and a 30-year mortgage, consider your short-term versus long-term goals.
A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you pay off your loan 15 years sooner, and that’s 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher because you’re paying off the same amount in half the time.
Let’s say you get a $300,000 mortgage. With a 30-year term and a 6.74% rate, your monthly payment versus principal and interest would be approximately $1,944and you would pay $399,768 In interest over the life of your loan – on top of that original $300,000.
If you get the same $300,000 mortgage, but with a 15-year term and a 6.03% rate, your monthly payment would go to $2,536. But you would only pay $156,558 in interest over the years.
With a fixed-rate mortgage, your rate is locked in for the life of your loan. However, you will get a new rate if you refinance your mortgage.
An adjustable rate mortgage keeps your rate the same for a predetermined period of time. Then the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change under your contract. For example, with a 7/1 arm, your rate would be locked in for the first seven years and then change every year for the remaining 23 years of your term.
Adjustable rates typically start lower than fixed rates, but once the initial speed lock period ends, your rate may increase. Recently, however, some fixed rates have started lower than adjustable rates. Talk to your lender about rates before choosing one or the other.
Dive deeper: Fixed rate versus adjustable rate mortgages
Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores and low debt-to-income ratios. So if you want a lower rate, try to save more, improve your credit score or pay down some debt before you start shopping for homes.
Waiting for rates to drop is probably not the best method to get the lowest mortgage rate now, unless you’re really not in a hurry and don’t mind waiting until the end of 2025. If you’re ready to buy, focus on your personal finance is probably the best way to lower your rate.
To find the best mortgage lender for your situation, apply to a three- or four-company mortgage advance. Make sure you apply to all of them within a short time frame – this will give you the most accurate comparisons and have less impact on your credit score.
Don’t just compare interest rates when choosing a lender. Look at the annual percentage rate (APR) of the mortgage – This factors into the interest rate, any discount points and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage providers.
More information: Best mortgage lenders for first home buyers
According to Zillow, the national average 30-year mortgage rate is 6.74%, and the average 15-year mortgage rate is 6.03%. But these are national averages, so the average in your area may be different. Averages tend to be higher in expensive parts of the US and lower in cheaper areas.
The average 30-year fixed mortgage rate is currently 6.74%, according to Zillow. However, you can get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI).
Mortgage rates are expected to drop dramatically in the near future, although they may trend downward here and there.