The current 30-year mortgage rate is 5.93%, according to Zillow data. That’s down 20 points from Aug. 1, when the rate 6.13%The 30-year refinancing rate has fallen even more significantly in the past month, down 41 basis points to 6.18%.
This could be a good time to buy a home. However, you may want to wait to refinance, especially if your primary goal is to refinance at a lower rate. Yes, refinance rates have dropped, but they should continue to drop this month and into 2025.
More information: When will mortgage rates drop?
Current mortgage rates
Here are the current mortgage rates, according to the most recent data from Zillow:
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30 years fixed: 5.93%
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20 years fixed: 5.74%
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15 years fixed: 5.27%
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5/1 ARM: 6.30%
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7/1 ARM: 6.31%
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5/1 FHA mortgage: 4.88%
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30 year old VA: 5.26%
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15 year old VA: 4.69%
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5/1 VA: 5.64%
Please note that these are national averages, rounded to the nearest hundredth.
Current mortgage refinancing rates
Here are the current mortgage refinance rates, according to the most recent data from Zillow:
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30 years fixed: 6.18%
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20 years fixed: 6.03%
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15 years fixed: 5.50%
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5/1 ARM: 6.35%
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7/1 ARM: 6.80%
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5/1 FHA mortgage: 4.91%
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30 year old VA: 5.41%
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15 year old VA: 5.31%
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5/1 VA: 5.34%
Again, the numbers listed are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a home, although that is not always the case.
Read more: Is this 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 picture of your total monthly payment than if you only looked at mortgage principal and interest.
Fixed mortgage rates of 30 years versus 15 years
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 a shorter-term loan.
The average 15-year mortgage rate today is 5.27%. When choosing between a 15-year mortgage and a 30-year mortgage, you should consider your short-term versus long-term goals.
A 15-year mortgage has a lower interest rate than a 30-year mortgage. This is great in the long run because you pay off your loan 15 years early, which is 15 fewer years of interest accumulating. But the downside is that your monthly payment will be higher because you are paying off the same amount in half the time.
Let’s say you get a $300,000 mortgage. With a 30-year term and an interest rate of 5.93%, your monthly principal and interest payment would be about $1,785 and you would pay $342,662 in interest over the life of your loan, on top of that original $300,000.
If you get the same $300,000 mortgage, but with a 15-year term and an interest rate of 5.27%, your monthly payment would increase to $2,415But you only pay $134,662 has come into the spotlight over the years.
Fixed rate mortgages versus variable rate mortgages
With a fixed rate mortgage, your interest rate is fixed for the entire term of your loan. However, you will get a new interest rate if you refinance your mortgage.
An adjustable-rate mortgage keeps your interest rate the same for a set period of time. After that, the interest rate goes up or down depending on a variety of factors, including the economy and the maximum amount your interest rate can change under your contract. For example, with a 7/1 ARM, your interest rate would be fixed for the first seven years and then change annually for the remaining 23 years of your term.
Variable rates typically start lower than fixed rates, but once the initial fixed rate period ends, your rate may go up. Recently, however, fixed rates have started lower than variable rates.
Dig deeper: Variable rate mortgage versus fixed rate mortgage
How do you get a low mortgage rate?
Mortgage lenders typically give the lowest mortgage rates to people with larger down payments, great or excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start looking for homes.
Waiting for interest rates to drop is probably not the best way to get the lowest mortgage rate now, unless you are really in no hurry and don’t mind waiting until late 2024 or into 2025. If you are ready to buy, it is probably best to focus on your personal finances to lower your interest rate.
More information: How to get the lowest mortgage rate
How do you choose a mortgage provider?
To find the best mortgage lender for your situation, apply for mortgage preapproval from three or four companies. Make sure you apply to all of them within a short period of time. This will give you the most accurate comparisons and will have less impact on your credit score.
When choosing a lender, don’t just compare interest rates. Look at the mortgage’s annual percentage rate (APR) — this takes into account the interest rate, any discount points, and fees. Also expressed as a percentage, the APR reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.
Current mortgage rates: frequently asked questions
What is the current mortgage rate?
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 may be different. Averages tend to be higher in expensive parts of the U.S. and lower in less expensive areas.
What is a good mortgage rate at the moment?
According to Zillow, the average 30-year fixed mortgage rate is currently 5.93%. However, you can get an even better rate with a great credit score, a large down payment, and a low debt-to-income ratio (DTI).
Are mortgage rates expected to fall?
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 will also likely fall into 2025.
