Today’s mortgage interest rates continue to rise little by little. The national average 30-year fixed mortgage rate and 15-year fixed mortgage rate each rose 15 basis points to 6.02% and 5.24%, respectively, according to Zillow data.
Mortgage interest rates tend to rise when the economy is doing well and fall during recessions. On Friday, the Bureau of Labor Statistics released its September employment report, showing a hotter-than-expected job market. This news likely led to an increase in mortgage interest rates. The Consumer Price Index (CPI) for September, a key indicator of inflation, will be released this Thursday. Inflation numbers can help raise or lower interest rates.
Learn more: How does inflation affect mortgage rates?
current mortgage interest rate
According to the latest Zillow data, current mortgage rates are:
Fixed for 30 years: 6.02%
Fixed for 20 years: 5.82%
Fixed for 15 years: 5.24%
5/1 ARM: 6.36%
7/1 ARM: 6.32%
VA for 30 years: 5.31%
15 years VA: 5.03%
5/1 VA: 5.62%
Please note that these are national averages and are rounded to the nearest hundredth.
Current mortgage refinance rates
These are today’s mortgage refinance rates, according to the latest Zillow data.
Fixed for 30 years: 6.11%
Fixed for 20 years: 6.05%
Fixed for 15 years: 5.38%
5/1 ARM: 6.63%
7/1 ARM: 6.19%
VA for 30 years: 5.27%
15 years VA: 5.10%
5/1 VA: 4.78%
30 year FHA: 5.25%
15 year FHA: 5.08%
5/1 FHA: 4.55%
Again, the numbers provided are national averages rounded to the nearest hundred. Mortgage refinance rates are often higher than the interest rate you paid when you purchased the home, but this isn’t always the case.
Read more: Is now the right time to refinance your mortgage?
Monthly mortgage payment calculator
Use the free Yahoo Finance mortgage calculator to see how different mortgage terms and interest rates affect your monthly payments.
Our calculator also takes into account factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This will give you a more realistic picture of your total monthly payment than if you only looked at your mortgage principal and interest.
Comparison of 30-year and 15-year fixed mortgage rates
The current average 30-year mortgage rate is 6.02%. The 30-year term is the most popular type of mortgage because it spreads your payments over 360 months, resulting in lower monthly payments than shorter-term loans.
Currently, the average interest rate on a 15-year mortgage is 5.24%. When deciding between 15-year and 30-year mortgages, consider your short-term and long-term goals.
A 15-year mortgage has a lower interest rate than a 30-year term. This is better in the long run as it allows you to pay off your loan 15 years sooner, reducing the number of years interest accumulates by 15 years. However, your monthly payments will be higher because you will be paying back the same amount over half the period.
Let’s say you take out a $300,000 mortgage. With a 30-year term and an interest rate of 6.02%, your monthly payments for principal and interest would be approximately $1,803, meaning you would pay $348,904 in interest on top of the original $300,004 over the life of the loan.
For the same $300,000 mortgage with a 15-year term and 5.24% interest rate, your monthly payments would jump to $2,410. But you’ll only pay $133,810 in interest over the years.
Fixed rate and variable rate mortgages
With a fixed-rate mortgage, the interest rate remains the same for the entire term of the loan. However, if you refinance your mortgage, a new interest rate will apply.
With an adjustable rate mortgage, the interest rate remains constant for a predetermined period of time. After that, your rate will go up or down depending on several factors, including your financial situation and the maximum amount the rate can change depending on your contract. For example, with a 7/1 ARM, the interest rate is fixed for the first seven years and then changes annually for the remaining 23 years of the term.
Variable interest rates typically start lower than fixed rates, but the interest rate can rise after the initial rate lock-in period ends. However, recently, some fixed interest rates have started at lower interest rates than variable interest rates. Talk to your lender about interest rates before choosing one.
Learn more: Variable rate vs. fixed rate mortgages
How to lower home loan interest rates
Mortgage lenders typically give the lowest mortgage rates to people with high down payments, good credit scores, and low debt-to-income ratios. So if you want a lower interest rate, save more, improve your credit score, or pay off your debt before you start buying a home.
Unless you’re really in a hurry or don’t mind waiting until the end of 2024 or 2025, waiting for rates to drop probably isn’t the best way to get the lowest mortgage rates right now. If you’re ready to buy, perhaps the best way to lower your interest rate is to focus on your personal finances.
More information: How to get the lowest mortgage interest rate
How to choose a mortgage lender
To find the best mortgage lender for your situation, apply for mortgage pre-approval from three or four companies. Be sure to apply for all applications within a short period of time. Doing so will give you the most accurate comparison and will have less impact on your credit score.
When choosing a financial provider, don’t just compare interest rates. Look at your mortgage’s annual percentage rate (APR). This takes into account interest rates, discount points, and fees. APR is also expressed as a percentage and reflects the actual annual cost of borrowing. This is probably the most important number to look at when comparing mortgage lenders.
Current mortgage rates: FAQ
What is the current mortgage interest rate?
According to Zillow, the national average 30-year mortgage rate is 6.02% and the average 15-year mortgage rate is 5.24%. However, these are national averages, so the averages in your area may be different. Typically, more expensive areas of the United States have higher average values, and less expensive areas have lower average values.
What is the current mortgage interest rate?
The average interest rate on a 30-year fixed mortgage is currently 6.02%, according to Zillow. However, if you have a good credit score, a large down payment, and a low debt-to-income ratio (DTI), you may be able to get a better interest rate.
Are mortgage rates expected to fall?
Mortgage rates are not necessarily expected to fall in the final months of 2024, but are likely to fall in 2025.
