Mortgage rates have risen for three straight weeks and are now at their highest points since July 2024. According to Freddie Mac, the average 30-year fixed mortgage rate rose six basis points to 6.91%and the 15-year fixed rate rose 13 basis points to 6.13%.
It would be a good idea to wait until spring to buy a home – housing inventory tends to rise in the spring, and mortgage rates may be lower by then. However, these benefits often bring with them more competition and even higher prices. If you want to have a more peaceful shopping experience, consider starting the process now. Remember, you can always refinance in a few years when rates are better.
Dig deeper: What is the best time of year to buy a house?
Here are the current mortgage rates, according to the latest data from Zillow:
-
30 years fixed: 6.68%
-
20 years fixed: 6.53%
-
15 years fixed: 6.04%
-
5/1 ARM: 6.74%
-
7/1 ARM: 6.68%
-
30-year VA: 6.10%
-
15-year VA: 5.62%
-
5/1 VA: 6.21%
Remember, these are national averages and rounded to the nearest hundredth.
Learn more: 5 strategies to get the lowest mortgage rate
Here are today’s mortgage refinance rates, according to the latest data from Zillow:
-
30 years fixed: 6.64%
-
20 years fixed: 6.57%
-
15 years fixed: 5.95%
-
5/1 ARM: 6.14%
-
7/1 ARM: 6.59%
-
30-year VA: 6.06%
-
15-year VA: 5.77%
-
5/1 VA: 5.93%
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.
Learn more: Want to refinance your mortgage? Here are 7 home refinancing options.
Yahoo Finance has a free mortgage payment calculator. Use the calculator to see how different mortgage rates and loan terms can affect your monthly payments.
Our calculator also takes into account home insurance, property taxes and other costs that affect your monthly payment. This will give you a better idea of what you would realistically pay in a month than just looking at the mortgage principal and interest.
AND mortgage interest rate is the fee for borrowing money from your lender, expressed as a percentage. You can choose between two types of rates: fixed or adjustable.
A fixed rate mortgage locks in your interest rate for the duration of the loan. For example, if you get a 30-year mortgage with an interest rate of 6%, your rate will remain at 6% for the entire 30 years unless you refinance or sell it.
An adjustable rate mortgage it locks in your rate for a predetermined amount of time and then changes it periodically. Let’s say you get a 7/1 ARM with an initial rate of 6%. Your rate would be 6% for the first seven years, and then the rate would increase or decrease once a year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and housing market.
At the start of your mortgage term, most of your monthly payment goes towards interest. Your monthly payment according to mortgage principal and the interest stays the same over the years — however, less and less of your payment goes toward interest, and more goes toward the mortgage principal, or the amount you originally borrowed.
Learn more: Adjustable rate mortgages vs. fixed rate mortgages
A 30-year fixed rate mortgage is a good choice if you want lower mortgage payments and the predictability that comes with a fixed rate. Just know that your rate will be higher than if you choose a shorter term and will result in paying significantly more interest over the years.
You might like a 15-year fixed rate mortgage if you want to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot on interest in the long run. But you’ll need to make sure you can comfortably afford the higher monthly payments that come with 15-year terms.
Read more: How to decide between a 15-year and a 30-year fixed rate mortgage
Typically, an adjustable rate mortgage can be good if you plan to sell before the prime rate period ends. Adjustable rates usually start lower than fixed rates and then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates are currently very similar to 30-year fixed rates. Before getting a lower-rate-only ARM, compare your rate options from period to period and lender to lender.
Mortgage rates started to fall in August and early September — but have largely stagnated or risen since mid-September.
In fact, they grew for three weeks in a row.
Mortgage rates are likely to decline through 2025, but with uncertainty over how a Trump presidency will affect the economy, it’s unclear how drastically they will fall. We can expect rates to remain above 6%.
Read more: When will the real estate market crash again?
This week’s national average 30-year mortgage rate rose six basis points to 6.91%, and the average 15-year mortgage rate rose 13 basis points to 6.13%, according to Freddie Mac.
According to the December forecast, Fannie Mae expects the 30-year mortgage rate to be 6.20% by the end of 2025. The Mortgage Bankers Association’s (MBA) December forecast is less optimistic, putting the 30-year rate at 6.40% in the fourth quarter of 2025.
There’s a decent chance that mortgage rates will generally decline in 2025, not rise. However, we will have to see how the next few months shake out as markets react to Trump’s upcoming presidency and when the Fed decides to cut its rate.
