Mortgage rates have risen since last week. According to Zillow data, the 30-year fixed mortgage rate rose 13 basis points to 6.10% and the 15-year fixed rate rose 14 basis points to 5.55%.
The Federal Reserve will announce on Wednesday whether it will cut the federal funds rate for the third time this year. Many experts predict the central bank will cut interest rates again – but based on how mortgage rates have reacted to previous rate cuts, that doesn’t necessarily mean home loan rates will fall in response. However, they could fall if the Fed indicates it plans to cut rates more aggressively next year.
Here are the current mortgage rates, according to the latest Zillow data:
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30 years fixed: 6.10%
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20 years fixed: 5.97%
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15 years fixed: 5.55%
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5/1 ARM: 6.45%
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7/1 ARM: 6.38%
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VA for 30 years: 5.56%
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VA for 15 years: 5.22%
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5/1 VA: 5.40%
Remember, these are national averages and rounded to the nearest hundredth.
See the mortgage lenders with the best rates this week.
These are the current mortgage refinance rates, according to the latest Zillow data:
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30 years fixed: 6.15%
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20 years fixed: 6.09%
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15 years fixed: 5.63%
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5/1 ARM: 6.43%
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7/1 ARM: 6.69%
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VA for 30 years: 5.62%
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VA for 15 years: 5.47%
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5/1 VA: 5.37%
Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance mortgage rates are often higher than rates when you buy a home, although that’s not always the case.
MORE: Read about the best mortgage refinance lenders right now.
You can use Yahoo Finance’s free mortgage calculator below to play around with how different terms and rates will affect your monthly payment. Our calculator takes factors like property taxes and homeowner’s insurance into account when estimating your 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.
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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.
30 Year Mortgage Rates Today
Today’s average 30-year mortgage rate is 6.10%. A 30-year term is the most popular type of mortgage because by spreading the payments over 360 months, the monthly payment is relatively low.
If you had a $300,000 mortgage with a 30-year term and a rate of 6.10%, your monthly principal and interest payment would be approximately $1,818, and you will pay $354,474 interest over the life of your loan – on top of the original $300,000.
The average 15-year mortgage rate today is 5.55%. There are several factors to consider when deciding between a 15- and 30-year mortgage.
A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you will pay off your loan 15 years earlier and that means 15 fewer years for the interest to compound.
However, your monthly payments will be higher because you’re squeezing the same debt payment in half the time.
If you get the same $300,000 mortgage with a 15-year term and a rate of 5.55%, your monthly payment would jump to $2,459. But you would only pay $142,659.
With an adjustable rate mortgage, your rate is locked in for a set period of time and then increases or decreases periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then changes each year.
Adjustable rates usually start lower than fixed rates, but you risk your rate going up once the introductory rate lock period ends. But an ARM might be right for you if you plan to sell the home before the rate lock period ends — that way, you pay a lower rate without worrying about it going up later.
Recently, ARM rates have occasionally been similar to or higher than fixed rates. Before you commit to a fixed or adjustable rate mortgage, be sure to shop around for the best lenders and rates. Some will offer more competitive adjustable rates than others.
Mortgage lenders typically give the lowest mortgage rates to people with larger down payments, excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try to save more, improve your credit score, or pay off some debt before you start buying homes.
You can also lower your interest rate permanently by paying discount points at closing. A temporary interest rate cut is also an option – for example, maybe you can get a 6.25% rate with a 2-1 redemption. Your rate would start at 4.25% for the first year, increase to 5.25% for the second year, then settle at 6.25% for the remainder of the term.
Just consider whether these redemptions are worth the extra money at closing. Ask yourself if you will stay in the home long enough for the amount you save with a lower rate to offset the cost of buying the lower rate before you make your decision.
Here are the interest rates for some of the most popular mortgage terms: According to Zillow data, the average 30-year fixed rate is 6.10%, the 15-year fixed rate is 5.55%, and the 5/1 ARM rate is 6.45%.
A typical mortgage rate for a 30-year fixed loan is 6.10%. However, note that this is the national average based on Zillow data. The average may be higher or lower depending on where you live in the US
Mortgage rates are not expected to fall significantly before the end of the year as economists continue to monitor inflation, rates and Federal Reserve actions.