A persistently high rate environment can be frustrating for people hoping to buy a home or refinance their mortgage. But there is good news: mortgage rates are falling week by week.
According to Zillow, the average 30-year fixed mortgage rate has decreased five basis points since this time last week and is now 6.67%. The 15-year fixed rate fell 12 basis points to 6.00%.
Dig deeper: Real Estate Market 2025 — Is It a Good Time to Buy a Home?
Here are the current mortgage rates, according to the latest data from Zillow:
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30 years fixed: 6.67%
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20 years fixed: 6.51%
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15 years fixed: 6.00%
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5/1 ARM: 6.68%
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7/1 ARM: 6.65%
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30-year VA: 6.08%
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15-year VA: 5.63%
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5/1 VA: 6.23%
Remember, these are national averages and rounded to the nearest hundredth.
Here are today’s mortgage refinance rates, according to the latest data from Zillow:
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30 years fixed: 6.65%
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20 years fixed: 6.62%
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15 years fixed: 5.89%
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5/1 ARM: 6.04%
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7/1 ARM: 6.68%
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30-year VA: 6.05%
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15-year VA: 5.77%
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5/1 VA: 5.97%
Again, the numbers listed are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than home buying rates, although this is not always the case.
Read more: Is now a good time to refinance your mortgage?
Use for free Yahoo Finance Mortgage Calculator to see how different mortgage terms and interest rates will affect your monthly payments.
Our calculator also takes into account factors such as property taxes and home insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than looking at just the mortgage principal and interest.
The average 30-year mortgage rate today is 6.67%. The 30-year term is the most popular type of mortgage because by spreading the payment over 360 months, your monthly installment is lower than with a shorter-term loan.
The average 15-year mortgage rate today is 6.00%. When deciding between a Mortgage for 15 years and 30 yearsconsider your short-term versus long-term goals.
A 15-year mortgage comes with a lower interest rate than a 30-year mortgage. That’s great in the long run because you’ll pay off your loan 15 years earlier, and that’s 15 less years to accumulate interest. But the trade-off is that your monthly payment will be higher because you pay off the same amount in half the time.
Let’s say you get it $300,000 mortgage. With a repayment term of 30 years and a rate of 6.67%, your monthly payment towards principal and interest would be approx. 1930 dollarsyou would pay too 394,752 dollars 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 6.00% rate, your monthly payment would jump to 2532 dollars. But you would just pay 155,683 dollars in interest over the years.
with fixed rate mortgageyour 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 usually start out lower than fixed rates, but once the initial rate lock-in period ends, it’s possible your rate will go up. However, recently some fixed rates start lower than adjustable rates. Talk to your lender about their rates before choosing one or the other.
Dig deeper: Fixed rate mortgages versus adjustable rate mortgages
Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, good or excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try saving more, improve your credit scoreor paying off debt before you start buying houses.
Waiting for rates to drop probably isn’t the best method to get the lowest mortgage rate right now unless you’re in a real hurry and don’t mind waiting until the end of 2024 or 2025. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.
To find the best mortgage lender for your situation, apply mortgage pre-approval with three or four companies. Just make sure you apply them all within a short time frame — that way you’ll get the most accurate comparisons and have the least impact on your credit score.
When choosing a lender, don’t just compare interest rates. Look mortgage annual percentage rate (APR) — this includes the interest rate, any discount points and fees. The annual interest rate, also expressed as a percentage, reflects the actual annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.
According to Zillow, the national average 30-year mortgage rate is 6.67% and the average 15-year mortgage rate is 6.00%. 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 less expensive areas.
The average 30-year fixed mortgage rate is currently 6.67%, according to Zillow. However, you can get an even better rate with an excellent credit score, a hefty down payment, and a low debt-to-income (DTI) ratio.
Mortgage rates are not expected to drop drastically in the near future, although they may drop a little here and there.
