15-year rates back below 5%

Mortgage rate trends are little consistent today. For example, according to Zillow data, the 30-year mortgage rate is rising seven basis points to 5.77%. However, the 15-year fixed mortgage rate fell 12 basis points 4.92%putting it back below 5% for the first time in days.

Although national average rates fluctuate, mortgage rates are expected to generally decline through the rest of 2024 and into 2025. You can also shop rates from multiple mortgage lenders to see which is offering the best interest rates right now.

Read more: Mortgage Rate Forecasts – A Look at 2024 and 2025.

Today’s mortgage rates

Here are the current mortgage rates, according to the latest Zillow data:

• 30 years fixed: 5.77%

• 20 years fixed: 5.43%

• 15 years fixed: 4.92%

• 5/1 ARM: 5.89%

• 7/1 ARM: 6.08%

• VA for 30 years: 5.09%

• VA for 15 years: 4.82%

• 5/1 VA: 5.61%

Note that these are national averages and are rounded to the nearest hundredth.

Dig deeper: Is it a good time to buy a house?

Today’s mortgage refinance rates

These are the current mortgage refinance rates, according to the latest Zillow data:

• 30 years fixed: 5.86%

• 20 years fixed: 5.53%

• 15 years fixed: 5.03%

• 5/1 ARM: 6.10%

• 7/1 ARM: 6.32%

• 5/1 FHA: 4.51%

• VA for 30 years: 5.16%

• VA for 15 years: 5.03%

• 5/1 VA: 5.37%

Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates, but they are similar to today’s purchase rates, so it may be a good time to refinance your mortgage.

Yahoo Finance Mortgage Calculator

A mortgage calculator can help you see how different mortgage term lengths and interest rates will affect your monthly payments. Use Yahoo Finance’s free mortgage calculator to play around with different results.

Our calculator also takes into account factors such as property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of ​​your total monthly payment than if you were just looking at the mortgage principal and interest.

30-year fixed mortgage rates versus 15-year

As a general rule, 15-year mortgage rates are lower than 30-year mortgage rates. When you compare 15- and 30-year mortgage rates, you know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you pay off the same loan amount in half the time.

For example, with a $400,000 mortgage with a 30-year term and a rate of 5.77%, you’ll make a monthly payment of about $2,339 against your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $442,175 in interest.

If you get a $400,000 15-year mortgage at 4.92%, you’ll pay approx. $3,147 monthly for your principal and interest However, you will only pay $166,375 in interest over the years.

If the monthly payment on the 15-year mortgage is too much, remember that you can always make additional payments on the 30-year loan to pay off your loan faster and ultimately pay less interest.

Fixed-rate mortgages vs. with adjustable rate

With a fixed rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage.

An adjustable rate mortgage keeps your rate the same for a set period of time. The rate will then go up or down based on several factors, such as the economy and the maximum amount the rate can change under the contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remainder of the term.

Adjustable rates sometimes start out lower than fixed rates, but once the initial rate lock period ends, you risk your interest rate going up. Fixed rates also start lower than adjustable rates right now.

Dig deeper: Adjustable rate mortgage vs. Fixed Rate Mortgage — Which One Should You Choose?

When will mortgage rates finally come down?

Mortgage rates trended downward from early August until the Federal Reserve meeting on September 18, when the central bank announced a 50 basis point cut in the federal funds rate. Since that announcement, mortgage rates have come down a bit. But in general, people expect mortgage rates to continue to fall in 2024 and into 2025.

The trajectory of future mortgage rates will largely depend on the Federal Reserve’s decision on whether or not to cut the federal funds rate at its meetings this year and next. The federal funds rate doesn’t have a direct impact on mortgage rates, but it’s a good indicator of how the economy is doing in general. So when the Fed rate goes down, mortgage rates usually go down too.

Learn more: How the Federal Reserve Affects Mortgage Rates

Mortgage Rates Today: Frequently Asked Questions

What is today’s 30-year fixed rate?

According to Zillow data, today’s 30-year fixed rate is 5.77% and the 30-year refinance rate is 5.86%. These are national averages, so keep in mind that the average in your state or city might be different. Your rate will also vary based on your personal finances.

Are mortgage rates expected to drop?

Yes, mortgage rates are expected to decline later in 2024 and throughout 2025, especially if the Federal Reserve continues to cut the federal funds rate as planned.

Will mortgage rates fall in 2024?

Mortgage rates are likely to continue to decline in 2024, then more significantly in 2025.