The 30-year drops to an important baseline

The average 30-year fixed mortgage rate has once again slipped to an important baseline. The current 30-year rate is 6.00%, according to data compiled from the Zillow lender marketplace. The 15%-year fixed rate is 5.50%. Now may be a good time to lock in a mortgage rate.

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

• 30-year fixed: 6.00%

• 20-year fixed: 5.98%

• 15-year fixed: 5.50%

• 5/1 ARM: 6.15%

• 7/1 ARM: 6.35%

• 30-year VA: 5.54%

• 15-year VA: 5.14%

• 5/1 VA: 5.18%

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

Discover 8 strategies for getting the lowest mortgage rates.

These are today’s mortgage refinance rates, according to the latest Zillow data:

• 30-year fixed: 6.12%

• 20-year fixed: 6.09%

• 15-year fixed: 5.60%

• 5/1 ARM: 6.39%

• 7/1 ARM: 6.88%

• 30-year VA: 5.59%

• 15-year VA: 5.35%

• 5/1 VA: 5.31%

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

Use the mortgage calculator below to see how today’s interest rates would affect your monthly mortgage payments.

You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders. You also have the option to enter costs for private mortgage insurance (PMI) and homeowners’ association dues, if applicable. These details result in a more accurate monthly payment estimate than if you simply calculated your mortgage principal and interest.

There are two main advantages to a 30-year fixed mortgage: Your payments are lower, and your monthly payments are predictable.

A 30-year fixed-rate mortgage has relatively low monthly payments because you’re spreading your repayment out over a longer period of time than with, say, a 15-year mortgage. Your payments are predictable because, unlike with an adjustable-rate mortgage (ARM), your rate isn’t going to change from year to year. Most years, the only things that might affect your monthly payment are any changes to your homeowners insurance or property taxes.

The main disadvantage of 30-year fixed mortgage rates is the mortgage interest, both in the short and long term.

A 30-year fixed term comes with a higher rate than a shorter fixed term, and it’s higher than the intro rate to a 30-year ARM. The higher your rate, the higher your monthly payment. You’ll also pay much more in interest over the life of your loan due to both the higher rate and the longer term.

The pros and cons of 15-year fixed mortgage rates are basically swapped with those of the 30-year rates. Yes, your monthly payments will still be predictable, but another advantage is that shorter terms come with lower interest rates. Not to mention, you’ll pay off your mortgage 15 years sooner. So you’ll save potentially hundreds of thousands of dollars in interest over the course of your loan.

However, because you’re paying off the same amount in half the time, your monthly payments will be higher than if you choose a 30-year term.

Adjustable-rate mortgages lock in your rate for a predetermined amount of time, then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years and then goes up or down once per year for the remaining 25 years.

The main advantage is that the introductory rate is usually lower than what you’ll get with a 30-year fixed rate, so your monthly payments will be lower. (Current average rates don’t necessarily reflect this, though — in some cases, fixed rates are actually lower. Talk to your lender before deciding between a fixed or adjustable rate.)

With an ARM, you have no idea what mortgage rates will be like once the intro-rate period ends, so you risk your rate increasing later. This could ultimately end up costing more, and your monthly payments are unpredictable from year to year.

But if you plan to move before the intro-rate period is over, you could reap the benefits of a low rate without risking a rate increase down the road.

First of all, now is a good time to buy a house compared to a couple of years ago. Home prices aren’t spiking like they were during the height of the COVID-19 pandemic. So, if you want or need to buy a house soon, you should feel pretty good about the current housing market.

Mortgage rates have also plummeted since this time last year.

The best time to buy is typically whenever it makes sense for your stage of life. Trying to time the real estate market can be as futile as timing the stock market — buy when it’s the right time for you.

According to Zillow, the national average 30-year mortgage rate is 6.00% right now. Why are Zillow’s rates usually lower than those reported by Freddie Mac and elsewhere? Each source compiles rates by different methods. Zillow gets rates from its lender marketplace, and Freddie Mac pulls information from loan applications submitted to its underwriting system. Mortgage rates vary by state and even ZIP code, by lender, loan type, and many other factors. That’s why it’s so important to shop multiple mortgage lenders.

Are interest rates expected to go down?

Not much. According to its December forecast, the MBA expects the 30-year mortgage rate to be near 6.4% through 2026. Fannie Mae also predicts a 30-year rate above 6% through next year, yet dipping down to 5.9% in Q4 2026.

Overall, mortgage rates have dropped gradually since the end of May. The 30-year fixed rate topped out over 7% in January 2025, then bounced higher and lower for months. On May 29 last year, the 30-year rate was 6.89%, and began slowly moving down.

In many ways, securing a low mortgage refinance rate is similar to when you bought your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing into a shorter term will also land you a lower rate, though your monthly mortgage payments will be higher.