Today’s mortgage rates aren’t drastically different than yesterday. For example, according to Zillow, the 30-year fixed mortgage rate has increased by four basis points to 5.83%. The 15-year fixed rate holds steady at 4.97%, and the 5/1 ARM rate is down four basis points to 5.89%.
Last week, the Federal Reserve slashed the federal funds rate for the first time in four years and indicated it would cut the rate two more times in 2024. Now, many people expect mortgage rates to trend downward through the rest of the year — but why have rates been fairly stagnant since the Fed announcement and sometimes even increased?
Some economic reports will be released next week, such as the job openings report on Tuesday and initial jobless claims on Thursday. We may see rates shift more noticeably after some of the first financial data since the Fed meeting — mortgage rates tend to increase when the economy is thriving and decrease when the economy is struggling.
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Dig deeper: How are mortgage rates determined?
Today’s mortgage rates
Here are the current mortgage rates, according to the latest Zillow data:
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30-year fixed: 5.83%
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20-year fixed: 5.56%
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15-year fixed: 5.97%
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5/1 ARM: 5.89%
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7/1 ARM: 6.01%
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30-year VA: 5.25%
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15-year VA: 5.04%
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5/1 VA: 5.78%
Remember, these are the national averages and rounded to the nearest hundredth.
Learn more: 5 strategies for getting the lowest mortgage rates
Today’s mortgage refinance rates
These are today’s mortgage refinance rates, according to the latest Zillow data:
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30-year fixed: 5.74%
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20-year fixed: 5.58%
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15-year fixed: 4.94%
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5/1 ARM: 5.97%
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7/1 ARM: 6.25%
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30-year VA: 5.18%
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15-year VA: 4.86%
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5/1 VA: 4.90%
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.
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Use our mortgage calculator
Use Yahoo Finance’s free mortgage calculator to see how various interest rates and term lengths will impact your monthly mortgage payment. It also shows how the home price and down payment amount play into things.
Our calculator includes homeowners insurance and property taxes in your monthly payment estimate. You even have the option to enter costs for private mortgage insurance (PMI) and homeowners’ association dues if those apply to you. These details result in a more accurate monthly payment estimate than if you simply calculated your mortgage principal and interest.
30-year fixed mortgage rates: Pros and cons
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 to 30-year fixed mortgage rates is 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.
15-year fixed mortgage rates: Pros and cons
The pros and cons of 15-year fixed mortgage rates are basically swapped from 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.
Dig deeper: 15-year vs. 30-year mortgages
Adjustable mortgage rates: Pros and cons
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.
Learn more: Adjustable-rate vs. fixed-rate mortgage
Is now a good time to buy a house?
The Federal Reserve slashed the fed funds rate by 50 basis points at its meeting last Wednesday. The central bank also signaled it would cut the rate two more times in 2024 and four times in 2025. When the Fed decreases rates, mortgage rates usually go down too. So, is now a good time to buy a house, or should you wait for more Fed rate cuts?
First of all, now is a relatively good time to buy a house compared to the last couple of years. Mortgage rates have been dropping since the beginning of August, and 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 climate.
If you’re in no rush to buy, you may want to hold out until later in 2024 or even next year, when mortgage rates are expected to be lower. Just remember that no one has a crystal ball about what mortgage rates will do, so there is no guarantee that rates will plummet in 2025. Also, if rates do go down, you’ll likely face more competition and maybe even higher prices to meet the demand.
Read more: Which is more important, your home price or mortgage rate?
Today’s mortgage rates: FAQs
What is a 30-year mortgage rate right now?
The national average 30-year mortgage rate is 5.83% right now, according to Zillow. But keep in mind that averages can vary depending on where you live. For example, if you’re buying in a city with a high cost of living, rates could be higher.
Are interest rates expected to go down?
Yes, mortgage interest rates are expected to decrease for the rest of 2024 and throughout 2025.
Are mortgage rates dropping?
Some mortgage rates are dropping today while others are rising, but yes, they have been dropping overall. They’ve been steadily inching down since early August.
How do I get the lowest refinance rate?
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.
