It may seem like mortgage rates will never stop rising, especially since just a few months ago many people expected rates to be lower than they are today.
However, week-on-week rates have actually fallen. According to Zillow, 30-year mortgage rates have fallen 15 basis points 6.45%the 15-year fixed rate has fallen by 12 basis points 5.80%and the 5/1 ARM rate is down 62 basis points 6.59%.
Today could be a good time to buy a home, especially if you have a good credit score, a low debt-to-income ratio and have enough money saved for a down payment and closing costs.
More information: How to Get the Lowest Mortgage Rate Possible
Here are the current mortgage rates, according to the latest Zillow data:
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30 years fixed: 6.45%
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20 years fixed: 6.35%
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15 years fixed: 5.80%
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5/1ARM: 6.59%
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7/1ARM: 6.53%
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30 years VA: 5.87%
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15 years VA: 5.44%
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5/1 VA: 6.08%
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30 years FHA: 5.58%
Please note that these are national averages, rounded to the nearest hundredth.
Here are the current mortgage interest rates, according to the latest data from Zillow:
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30 years fixed: 6.47%
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20 years fixed: 6.44%
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15 years fixed: 5.82%
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5/1ARM: 6.04%
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7/1ARM: 6.18%
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30 years VA: 5.91%
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15 years VA: 5.82%
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5/1 VA: 5.49%
Again, the figures provided are national averages, rounded to the nearest hundredth. Mortgage refinancing rates are often higher than the rates when you buy a home, although that is not always the case.
Read more: Is now a good time to transfer your mortgage?
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 looked only at the principal and interest of the mortgage.
The average 30-year mortgage rate is currently 6.45%. A term of 30 years is the most popular mortgage type. By spreading your payments over 360 months, your monthly payment is lower than with a shorter loan.
The average 15-year mortgage rate is currently 5.80%. When choosing between a 15- and 30-year mortgage, consider your short- and long-term goals.
A mortgage with a term of 15 years has a lower interest rate than a mortgage with a term of 30 years. This is great in the long run because you’ll pay off your loan 15 years sooner, which is 15 fewer years before interest can accumulate. But the downside is that your monthly payment will be higher because you’re paying off the same amount in half the time.
Suppose you get a mortgage of € 300,000. With a 30-year term and a 6.45% rate, your monthly payment for principal and interest would be approximately $1,886and you would pay $379,086 in 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 5.80% rate, your monthly payment would increase to $2,499. But you would only pay $149,869 in the spotlight over the years.
With a fixed-rate mortgage, your interest rate is fixed for the entire term of your loan. However, you will receive a new rate if you refinance your mortgage.
With a variable rate mortgage, your rate remains the same for a predetermined period. Then the rate goes up or down depending on several factors, such as the economy and the maximum amount your rate can change based on your contract. For example, with a 7/1 ARM, your rate is fixed for the first seven years and then changes every year for the remaining 23 years of your term.
Adjustable rates typically start lower than fixed rates, but once the initial fixed rate period ends, it’s possible your rate will increase. Lately, however, some fixed rates start lower than variable rates. Talk to your lender about rates before choosing one or the other.
Dig deeper: Fixed rate mortgages versus variable rate mortgages
Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, good 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 off some debt before you start buying homes.
Waiting for rates to drop is probably not the best method to get the lowest mortgage rate right now unless you’re really not in a 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.
To find the best mortgage lender for your situation, apply for a mortgage preference from three or four companies. Make sure you apply for all of them within a short time frame. Doing this will give you the most accurate comparisons and have less impact on your credit score.
When choosing a lender, don’t just compare interest rates. Look at the annual mortgage percentage rate (APR) – this takes into account the interest rate, any discount points and fees. The APR, which is also expressed as a percentage, reflects the actual annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage providers.
According to Zillow, the national average 30-year mortgage rate is 6.45% and the average 15-year mortgage rate is 5.80%. But these are national averages, so the average in your area may differ. The averages tend to be higher in expensive parts of the US and lower in cheaper areas.
According to Zillow, the average 30-year mortgage rate is currently 6.45%. However, you can get an even better rate with an excellent credit score, a sizable down payment, and a low debt-to-income ratio (DTI).
Mortgage rates are not necessarily expected to fall in the last few months of 2024 – at least not dramatically – but they could gradually decline in 2025.
