Mortgage rates were capped at intervals of more than six weeks, with nothing forcing them to go up or down. According to Zillow, the 30-year average rate is 6.07%. The average rate over 15 years is 5.53%. A Federal Reserve rate cut is likely tomorrow, comments from Fed Chairman Jerome Powell and the Fed’s points plan are likely to drive bond market sentiment.
Here are the current mortgage rates, according to the latest Zillow data:
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30 years fixed: 6.07%
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20 years fixed: 6.03%
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15 years fixed: 5.53%
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5/1 ARM: 6.19%
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7/1 ARM: 6.30%
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VA for 30 years: 5.64%
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VA for 15 years: 5.25%
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5/1 VA: 5.40%
Note that these are national averages and are rounded to the nearest hundredth.
These are the current mortgage refinance rates, according to the latest Zillow data:
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30 years fixed: 6.20%
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20 years fixed: 6.19%
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15 years fixed: 5.66%
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5/1 ARM: 6.50%
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7/1 ARM: 6.71%
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VA for 30 years: 5.67%
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VA for 15 years: 5.52%
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5/1 VA: 5.39%
Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates.
A mortgage calculator can help you see how different mortgage term lengths and interest rates will affect your monthly payments. Use this mortgage calculator to play with different results.
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You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use as you shop for homes and lenders. It also considers factors such as property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you were just looking at the mortgage principal and interest.
As a general rule, 15-year mortgage rates are lower than 30-year mortgage rates. When you compare 15- and 30-year mortgage rates, you know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you pay off the same loan amount in half the time.
For example, with a $400,000 mortgage with a 30-year term and a rate of 6.07%, you’ll make a monthly payment of about $2,416 against your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $469,844 in interest.
If you get a $400,000 15-year mortgage at 5.53%, you’ll pay about $3,275 monthly for your principal and interest However, you will only pay $189,447 in interest over the years.
If the monthly payment on the 15-year mortgage is too much, remember that you can always make additional payments on the 30-year loan to pay off your loan faster and ultimately pay less interest.
With a fixed rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage.
An adjustable rate mortgage keeps your rate the same for a set period of time. The rate will then go up or down based on several factors, such as the economy and the maximum amount the rate can change based on the contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remainder of the term.
Adjustable rates sometimes start out lower than fixed rates, but once the initial rate lock period is over, you run the risk of your interest rate going up. Also, ARM rates have started higher than fixed rates recently, so sometimes you don’t get a rate drop.
Economists do not expect drastic declines in mortgage rates until the end of 2026.
The Federal Reserve has announced two rate cuts so far in 2025, including at its last meeting on October 29. The Fed is considering another rate cut tomorrow. However, a “less calculated Fed” — a Fed that signals it is likely to announce further rate cuts in 2026 — could be a good sign for mortgage rates, according to loanDepot Chief Economist Jeff DerGurahian. But an economic ratio seems high.
“Less shock tone from the Fed could provide some relief, but the December 16 November payrolls report will likely be the main driver of year-end rate direction,” DerGurahian said in an analysis. “A significantly lower jobs number could overshadow the inflation data and push rates lower toward 6 percent as we head into the new year.”
According to Zillow data, today’s 30-year fixed rate is 6.07% for home purchases and 6.20% for refinances. These are national averages, so keep in mind that the average in your state or city might be different. Your rate will also vary based on your personal finances.
Mortgage rates aren’t expected to move much until the end of 2025. As the Federal Reserve considers all relevant financial factors ahead of its meeting tomorrow, even another quarter-point rate cut won’t push mortgage rates much lower.
According to its November forecast, the Mortgage Bankers Association expects the 30-year mortgage rate to be near 6.4% by 2026. Fannie Mae also predicts a 30-year rate above 6% by next year, but will drop to 5.9% in Q4 2026.