Rates fell by 20 points in August

The current 30-year mortgage rate is 5.93%, according to Zillow data. This is 20 points lower than on August 1, when the rate was 6.13%. The 30-year refinance rate fell even more significantly in the past month — 41 basis points for 6.18%.

Now could be a good time to buy a house. However, you may want to wait to refinance, especially if your primary goal is to refinance at a lower interest rate. Yes, refinancing rates have fallen, but they should fall even more this month and throughout 2025.

Learn more: When will mortgage rates drop?

Current mortgage rates

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

• 30 years fixed: 5.93%

• 20 years fixed: 5.74%

• 15 years fixed: 5.27%

• 5/1 ARM: 6.30%

• 7/1 ARM: 6.31%

• 5/1 FHA: 4.88%

• VA for 30 years: 5.26%

• VA for 15 years: 4.69%

• 5/1 VA: 5.64%

Remember, these are national averages and rounded to the nearest hundredth.

Current mortgage refinance rates

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

• 30 years fixed: 6.18%

• 20 years fixed: 6.03%

• 15 years fixed: 5.50%

• 5/1 ARM: 6.35%

• 7/1 ARM: 6.80%

• 5/1 FHA: 4.91%

• VA for 30 years: 5.41%

• VA for 15 years: 5.31%

• 5/1 VA: 5.34%

Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a home, although that’s not always the case.

Read more: Is now a good time to refinance your mortgage?

Monthly mortgage payment calculator

Use Yahoo Finance’s free 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 homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic 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

The average 30-year mortgage rate today is 5.93%. A 30-year term is the most popular type of mortgage because by spreading your payments over 360 months, your monthly payment is lower than with a shorter-term loan.

The average 15-year mortgage rate today is 5.27%. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.

A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that means 15 fewer years for the interest to accumulate. But the trade-off is that your monthly payment will be higher because you pay the same amount in half the time.

Let’s say you get a $300,000 mortgage. With a 30-year term and a rate of 5.93%, your monthly principal and interest payment would be approx. $1,785 and you will pay $342,662 interest over the life of your loan – on top of the original $300,000.

If you get the same $300,000 mortgage, but with a 15-year term and a rate of 5.27%, your monthly payment would increase to $2,415. But you would only pay $134,662 in interest over the years.

Fixed-rate mortgages vs. with adjustable rate

With a fixed rate mortgage, your rate is locked in for the life of the 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. The rate will then go up or down based on several factors, such as the economy and the maximum amount your 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 remaining 23 years of your term.

Adjustable rates usually start lower than fixed rates, but once the initial rate lock period ends, your rate may increase. Lately, however, fixed rates have started lower than adjustable rates.

Dig deeper: Adjustable rate vs. fixed rate mortgage

How to get a low mortgage rate

Mortgage lenders typically give the lowest mortgage rates to people with larger down payments, excellent or excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try to save more, improve your credit score, or pay off some debt before you start buying homes.

Waiting for rates to drop probably isn’t the best way to get the lowest mortgage rate right now, unless you’re in a real hurry and don’t mind waiting until late 2024 or 2025. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.

Learn more: How to get the lowest mortgage rates

How to choose a mortgage lender

To find the best mortgage lender for your situation, apply for mortgage pre-approval at three or four companies. Just make sure you apply for all of these within a short time frame – this will give you the most accurate comparisons and have less of an impact on your credit score.

When choosing a lender, don’t just compare interest rates. Look at your mortgage’s annual percentage rate (APR) – this includes the interest rate, any discount points and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing the money. This is probably the most important number to consider when comparing mortgage lenders.

Current Mortgage Rates: Frequently Asked Questions

What is the mortgage interest rate at the moment?

According to Zillow, the national average 30-year mortgage rate is 5.93% and the average 15-year mortgage rate is 5.27%. But these are national averages, so the average in your area might be different. Averages are typically higher in expensive parts of the US and lower in less expensive areas.

What is a good mortgage rate now?

The average 30-year fixed mortgage rate is 5.93% right now, according to Zillow. However, it’s possible to get an even better rate with an excellent credit score, sizeable down payment, and low debt-to-income ratio (DTI).

Are mortgage rates expected to drop?

Yes, mortgage rates are expected to fall after the Federal Reserve meeting on September 18, when the central bank will hopefully announce a cut in the federal funds rate. They are also likely to decline throughout 2025.