Mortgage rates are slowly falling today – but just barely. According to Zillow, the 30-year fixed mortgage rate decreased by one basis point to 6.67%and the 15-year fixed rate fell four basis points 6.00%.
Rates are likely to fall during 2025, but not drastically. If you are otherwise ready to buy a home, now might be as good a time as any to start your home search.
Dig deeper: Should you buy a house? How to know if you are ready.
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.
Learn more: 5 strategies for getting the lowest mortgage rate
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.
Use Yahoo Finance for free mortgage calculator to see how different interest rates and term lengths will affect your monthly mortgage payment. It also shows how the price of the house and the amount of the down payment affect things.
Our calculator includes home insurance and property taxes in your estimated monthly payment. You even have the option to enter costs for private mortgage insurance (PMI) and apartment owners’ association membership fees if they apply to you. These details result in a more accurate monthly payment estimate than if you simply calculated the mortgage principal and interest.
There are two main advantages of a 30-year fixed mortgage: Your payments are lower and your monthly payments are predictable.
A 30-year fixed-rate mortgage has relatively low monthly payments because you’re spreading your repayments over a longer period of time than with, say, a 15-year mortgage. Your payments are predictable because, unlike an adjustable rate mortgage (ARM), your rate won’t change from year to year. Most years, the only things that can affect your monthly payment are any changes to your home owner insurance or property tax.
The main disadvantage of 30-year fixed mortgage rates is mortgage interest — short and long term.
A 30-year fixed term comes with a higher rate than a shorter fixed term and is higher than the introductory rate for a 30-year ARM. The higher your price, the higher your monthly payment. You will also pay much more interest over the life of the loan due to the higher rate and longer term.
The pros and cons of 15-year fixed mortgage rates have basically been replaced with 30-year rates. Yes, your monthly payments will still be predictable, but another benefit is that shorter terms come with lower interest rates. Not to mention, you’ll pay off your mortgage 15 years earlier. This will potentially save you hundreds of thousands of dollars in interest over the life of your loan.
However, because you pay off the same amount in half the time, your monthly payments will be higher than if you choose a 30-year term.
Dig deeper: 15-year versus 30-year mortgages
Adjustable rate mortgages lock in your rate for a predetermined amount of time and then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then rises or falls once a year for the remaining 25 years.
The main advantage is that the initial rate is usually lower than what you’ll get with a 30-year fixed rate, so your monthly payments will be lower. (Current average rates don’t necessarily reflect this, however — in some cases, fixed rates are actually lower. Talk to your lender before deciding between a fixed or adjustable rate.)
With an ARM, you have no idea what mortgage rates will be after the introductory rate period ends, so you run the risk of your rate going up later. It could end up costing more, and your monthly payments are unpredictable from year to year.
But if you plan to move before the introductory rate period ends, you could take advantage of the low rate without the risk of a rate increase in the future.
Learn more: Adjustable Rate Mortgage vs. Fixed Rate Mortgage
first of all, now is a relatively good time to buy a house compared to the last few years. House prices are not rising like they did during the peak of the COVID-19 pandemic. So if you want or need to buy a home soon, you should feel pretty good about the current climate.
Also, mortgage rates are not projected to drop as drastically during 2025 as people expected a few months ago. With exchange rates now fluctuating – and competition usually less fierce in the winter months – it could be a good time to buy.
Read more: What’s more important, the price of your home or the mortgage rate?
According to Zillow, the national average 30-year mortgage rate is currently 6.67%. But keep in mind that averages can vary depending on where you live. For example, if you’re buying in a city with a high cost of living, prices could be higher.
Mortgage rates are expected to generally decline in 2025, although they are unlikely to fall that soon.
Mortgage rates have been going back and forth for a few weeks, and today they eased a bit.
In many ways, securing a low rate mortgage refinance is similar to when you bought your home. Try to improve your credit score and lower it debt to income ratio (DTI). Refinancing for a shorter term will also get you a lower rate, although your monthly mortgage payments will be higher.
