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Mortgage rates have been decreasing lately. The average 30-year and 15-year fixed rates have dropped by over 60 basis points in the last month, according to Zillow data, and the 5/1 ARM rate is down by 48 basis points.
But the Federal Reserve is expected to cut the federal funds rate at its next meeting in mid-September, and mortgage rates will likely fall even more significantly in response. So, should you buy a house now or wait until late September?
Timing the real estate market can be as difficult and futile as trying to time the stock market. Rates have improved recently, and historically, summer is the time of year with the most houses on the market. But rates will likely be lower in autumn, when inventory is usually still decent. Your best move might be to focus on finding a house you love that is in your price range rather than obsess over timing.
Dig deeper: What is the best time of year to buy a house?
Mortgage rates today
Here are the current mortgage rates, according to the latest Zillow data:
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30-year fixed: 6.12%
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20-year fixed: 5.72%
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15-year fixed: 5.35%
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5/1 ARM: 6.02%
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7/1 ARM: 6.05%
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30-year FHA: 5.42%
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15-year FHA: 4.84%
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5/1 FHA: 5.00%
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30-year VA: 5.42%
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15-year VA: 4.84%
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5/1 VA: 5.72%
Remember, these are the national averages and rounded to the nearest hundredth.
Read more: Is it a good time to buy a house?
Refinance rates today
These are the current mortgage refinance rates, according to the latest Zillow data:
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30-year fixed: 7.23%
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20-year fixed: 6.96%
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15-year fixed: 5.96%
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5/1 ARM: 5.94%
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7/1 ARM: 5.85%
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30-year FHA: 5.60%
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15-year FHA: 4.83%
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30-year VA: 5.53%
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15-year VA: 4.94%
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5/1 VA: 5.79%
Again, the numbers provided are national averages rounded to the nearest hundredth. Although it’s not always the case, mortgage refinance rates tend to be a little higher than purchase rates.
Mortgage payment calculator
A mortgage calculator can help you see how different mortgage term lengths and interest rates will impact your monthly payments. Use the free Yahoo Finance mortgage calculator to play around with different outcomes.
Our calculator also considers factors like property taxes and homeowners insurance when estimating your monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.
30-year mortgage rates today
Today’s average 30-year mortgage rate is 6.12%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is relatively low.
If you had a $300,000 mortgage with a 30-year term and a 6.12% rate, your monthly payment toward the principal and interest would be about $1,822, and you’d pay $355,870 in interest over the life of your loan — on top of that original $300,000.
15-year mortgage rates today
The average 15-year mortgage rate is 5.35% today. When deciding between a 15-year versus 30-year mortgage, there are several factors to consider.
A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to compound.
However, because you’re squeezing the same debt payoff into half the time, your monthly payments will be higher.
If you get that same $300,000 mortgage but with a 15-year term and 5.35% rate, your monthly payment would jump up to $2,427 — but you’d only pay $136,939 in interest over the years.
Dig deeper: How much house can I afford?
Adjustable mortgage rates
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 every year.
Adjustable rates usually start lower than fixed rates, but you run the risk that your rate goes up once the introductory rate-lock period is over. But an ARM could be a good fit if you plan to sell the home before your rate-lock period ends — that way, you pay a lower rate without worrying about it rising later.
How to get a low mortgage rate
Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.
You can also buy down your interest rate permanently by paying for discount points at closing. A temporary interest rate buydown is also an option — for example, maybe you get a 6.5% rate with a 2-1 buydown. Your rate would start at 4.5% for year one, increase to 5.5% for year two, then settle in at 6.5% for the remainder of your term.
Just consider whether these buydowns are worth the extra money at closing. Ask yourself whether you’ll stay in the home long enough that the amount you save with a lower rate offsets the cost of buying down your rate before making your decision.
Learn more: How to get the lowest mortgage rates
Mortgage rates today: FAQs
What are interest rates today?
Here are interest rates for the most popular mortgage terms: The national average 30-year fixed rate is 6.12%, the 15-year fixed rate is 5.35%, and the 5/1 ARM rate is 6.02%.
What is a normal mortgage rate right now?
A normal mortgage rate on a 30-year fixed loan is 6.12%. However, keep in mind that’s the national average based on Zillow data. The average might be higher or lower depending on where you live in the U.S.
Will mortgage rates drop down?
Yes, mortgage rates should drop down slightly in 2024. Rates will likely decrease more drastically throughout 2025 since the Federal Reserve plans to cut the federal funds rate several times.