The average 30-year fixed mortgage rate has fallen again to an important benchmark. The current 30-year rate is 6.00%according to data compiled from lender marketplace Zillow. The fixed rate of 15% per year is 5.50%. Maybe this is the right time to lock in a mortgage rate.
Here are the current mortgage rates, according to the latest Zillow data:
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Fixed over 30 years: 6.00%
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Fixed over 20 years: 5.98%
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Fixed over 15 years: 5.50%
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ARM 5/1: 6.15%
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ARM 7/1: 6.35%
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VA over 30 years: 5.54%
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VA over 15 years: 5.14%
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5/1 VA: 5.18%
Remember, these are national averages rounded to the nearest hundredth.
Discover 8 strategies to get the lowest mortgage rates.
Here are today’s mortgage refinance rates, according to the latest data from Zillow:
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Fixed over 30 years: 6.12%
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Fixed over 20 years: 6.09%
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Fixed over 15 years: 5.60%
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ARM 5/1: 6.39%
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ARM 7/1: 6.88%
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VA over 30 years: 5.59%
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VA over 15 years: 5.35%
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5/1 VA: 5.31%
Again, the figures provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than home purchase rates, although this is not always the case.
Use the mortgage calculator below to see how current interest rates would affect your monthly mortgage payments.
You can add Yahoo Finance to your favorites mortgage payment calculator and keep it handy for future use when shopping for homes and lenders. You also have the option of entering costs for private mortgage insurance (PMI) and homeowners association dues, if applicable. These details provide a more accurate monthly payment estimate than if you simply calculated the principal and interest on your mortgage.
A 30-year fixed mortgage has two main advantages: your payments are lower and your monthly payments are predictable.
A 30-year fixed-rate mortgage has relatively low monthly payments because you spread your repayment over a longer period of time than, for example, a 15-year mortgage. Your payments are predictable because, unlike an adjustable rate mortgage (ARM), your rate will not change from year to year. Most years, the only things that could affect your monthly payment are changes to your home insurance Or property taxes.
The main disadvantage of 30-year fixed mortgage rates is mortgage interest, both short and long term.
A 30-year fixed term comes with a higher rate than a shorter fixed term, and it is higher than the introductory rate of a 30-year ARM. The higher your rate, the higher your monthly payment. You’ll also pay a lot more interest over the life of your loan because of the higher rate and longer term.
The pros and cons of 15-year fixed mortgage rates are essentially traded off with those of 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 early. This will potentially save you hundreds of thousands of dollars in interest over the course of your loan.
However, since you repay the same amount in half the time, your monthly payments will be higher than if you choose a term of 30 years.
Adjustable Rate Mortgages lock in your rate for a predetermined period of time, then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then increases or decreases once a year for the remaining 25 years.
The main advantage is that the introductory rate is generally lower than what you would get with a 30-year fixed rate, so your monthly payments will be lower. (However, current average rates don’t necessarily reflect this – in some cases, fixed rates are actually lower. Talk to your lender before choosing between a fixed or variable rate.)
With an ARM, you have no idea what mortgage rates will be after the introductory rate period ends, so you risk your rate going up later. This 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 enjoy the benefits of a low rate without the risk of rates rising later.
First of all, it’s a good time to buy a house compared to a few years ago. Housing prices are not rising like they were at the height of the COVID-19 pandemic. So if you want or need to buy a home soon, you should feel pretty good about the current real estate market.
Mortgage rates have also fallen since this time last year.
The best time to buy is usually one that matches your stage of life. Trying to time the real estate market can be as futile as timing the stock market: buy when it’s the right time for you.
According to Zillow, the national average 30-year mortgage rate is currently 6.00%. Why are Zillow prices generally lower than those reported by Freddie Mac and elsewhere? Each source compiles prices using different methods. Zillow obtains rates from its marketplace of lenders, and Freddie Mac pulls information from loan applications submitted to its underwriting system. Mortgage rates vary by state and even zip code, by lender, loan type and many other factors. This is why it is so important to shop around with multiple mortgage lenders.
Should interest rates fall?
Not much. According to its December forecast, the MBA expects the 30-year mortgage rate to be near 6.4% through 2026. Fannie Mae also predicts a 30-year rate above 6% through next year, but dropping to 5.9% in the fourth quarter of 2026.
Overall, mortgage rates have been falling gradually since late May. The 30-year fixed rate topped 7% in January 2025, then bounced lower and lower for months. On May 29 last year, the 30-year rate was 6.89% and began to slowly decline.
In many ways, getting a low mortgage refinance rate is similar to buying your home. Try to improve your credit score and reduce your debt-to-income ratio (DTI). A shorter-term refinance will also get you a lower rate, even though your monthly mortgage payments will be higher.
