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Most mortgage rates have increased today. According to Zillow data, the 30-year fixed mortgage rate has risen by nine basis points to 6.30%, and the 15-year fixed rate is up five basis points to 5.58%. Both rates have hit their highest points since late July.
The Federal Reserve will probably cut the federal funds rate by 25 basis points at its November meeting, but this anticipated decrease has already been baked into current mortgage rates. Interest rates should stay relatively flat (or even keep inching upward) through the rest of 2024 — though it’s possible they will go down if something unexpected happens, such as the Fed slashing its rate by 50 basis points instead of 25.
Dig deeper: Mortgage rate predictions — A look at 2024 and 2025.
Here are the current mortgage rates, according to our latest Zillow data:
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30-year fixed: 6.30%
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20-year fixed: 6.17%
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15-year fixed: 5.58%
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5/1 ARM: 6.75%
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7/1 ARM: 6.86%
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30-year VA: 5.76%
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15-year VA: 5.30%
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5/1 VA: 5.69%
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5/1 FHA: 4.81%
Remember that these are the national averages and rounded to the nearest hundredth.
Read more: How to get the lowest mortgage rates possible
These are the current mortgage refinance rates, according to the latest Zillow data:
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30-year fixed: 6.41%
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20-year fixed: 6.24%
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15-year fixed: 5.73%
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5/1 ARM: 6.68%
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7/1 ARM: 6.73%
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30-year VA: 5.76%
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15-year VA: 5.47%
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5/1 VA: 5.30%
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30-year FHA: 5.43%
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15-year FHA: 5.27%
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5/1 FHA: 4.84%
Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates, but they’re similar to today’s purchase rates, so it may be a good time to refinance your mortgage.
A mortgage calculator can help you see how various mortgage term lengths and interest rates will affect 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 calculating your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.
As a rule of thumb, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15- versus 30-year mortgage rates, know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you’re paying off the same loan amount in half the time.
For example, with a $400,000 mortgage with a 30-year term and a 6.30% rate, you’ll make a monthly payment of about $2,476 toward your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $491,321 in interest.
If you get a $400,000 15-year mortgage with a 5.58% rate, you’ll pay about $3,285 monthly toward your principal and interest. However, you’ll only pay $191,361 in interest over the years.
If that 15-year mortgage monthly payment is too high, remember you can always make extra mortgage payments on your 30-year loan to pay off your mortgage 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. Then the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your 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 your term.
Adjustable rates sometimes start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up. Fixed rates are also starting lower than adjustable rates right now.
Dig deeper: Adjustable-rate vs. fixed-rate mortgage — Which should you choose?
Mortgage rates trended downward from early August to the Sept. 18 Federal Reserve meeting, when the central bank announced a 50-basis-point slash to the federal funds rate. Since that announcement, mortgage rates have wavered a bit. They will likely continue fluctuating in 2024, and many experts agree that they won’t fall below 6% this year.
The trajectory of future mortgage rates will largely depend on the Federal Reserve’s decision on whether or not to cut the federal funds rate at its future meetings. The federal funds rate doesn’t directly impact mortgage rates, but it is a good indicator of how the economy is doing overall. So when the Fed rate drops, mortgage rates typically go down, too.
Current mortgage rates already factor in an anticipated rate cut in November, though additional cuts in 2025 will likely push them down further.
Learn more: How the Federal Reserve impacts mortgage rates
According to Zillow data, today’s 30-year fixed rate is 6.30%, and the 30-year refinance rate is 6.41%. These are the national averages, so keep in mind the average in your state or city could be different. Your rate will also vary depending on your personal finances.
It’s likely that mortgage rates will decrease in the near future, especially if the Federal Reserve keeps cutting the fed funds rate as planned. However, today’s mortgage rates have already priced in additional Fed rate cuts for 2024; rates probably won’t change much for the remainder of this year.
Mortgage rates will likely hover above 6% in 2024, then fall more significantly in 2025.