Today’s mortgage rates are significantly lower than last January’s rates. This time last year, the average 30-year fixed mortgage rate was more than 7%, according to Freddie Mac. Now, the 30-year rate is down 98 basis points year over year to 6.06%. This is a good time to shop around for the mortgage lender that offers the best deal and lock in a rate.
Here are the current mortgage rates, according to the latest Zillow data:
-
30 years fixed: 5.86%
-
20 years fixed: 5.82%
-
15 years fixed: 5.33%
-
5/1 ARM: 6.11%
-
7/1 ARM: 6.14%
-
30 year old VA: 5.46%
-
15 year old VA: 5.09%
-
5/1 VA: 5.16%
Remember, these are national averages and have been rounded to the nearest hundred.
Here are today’s mortgage refinance rates, according to the latest Zillow data:
-
30 years fixed: 6.05%
-
20 years fixed: 5.92%
-
15 years fixed: 5.47%
-
5/1 ARM: 6.39%
-
7/1 ARM: 6.29%
-
30 year old VA: 5.41%
-
15 year old VA: 5.08%
-
5/1 VA: 5.12%
-
30 year FHA: 5.83%
Again, the numbers provided are national averages rounded to the nearest hundred. Mortgage refinancing rates are often higher than home buying rates, although this is not always the case.
Dig deeper into the 7 home refinancing options.
Refinance interest rates
Your mortgage rate plays a big role in how much your monthly payment will be. Use this mortgage calculator to see how your mortgage amount, rate and duration will impact your monthly payments:
This embedded content is not available in your region.
You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders.
A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.
A fixed rate mortgage locks in your rate for the life of your loan. For example, if you get a 30-year mortgage with an interest rate of 6%, your rate will remain at 6% for the entire 30-year term unless you refinance or sell.
An adjustable rate mortgage locks in your rate for a predetermined period and then adjusts it periodically. Let’s say you get a 7/1 ARM with a 6% intro rate. Your rate will be 6% for the first seven years, then the rate will increase or decrease once a year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and the housing market.
At the start of your mortgage term, most of your monthly payment goes towards interest. Your monthly payment towards the mortgage principal and interest remains the same over the years — however, less and less of your payment goes towards interest, and more goes towards the mortgage principal or the amount you originally borrowed.
A 30 year fixed rate mortgage is a good option if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Know that your rate will be higher than if you choose a shorter term, and you will pay significantly more in interest over the years.
You may want to consider a 15-year fixed rate mortgage if you aim to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot in interest in the long run. But you’ll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.
Typically, an adjustable rate mortgage can be a good fit if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, so your rate will change after a predetermined amount of time. However, the 5/1 and 7/1 ARM rates have been similar to (or even higher than) 30-year fixed rates recently. Before you take out an ARM only for a lower rate, compare your rate options from term to term and from lender to lender.
Mortgage rates have generally fallen since the end of May, and home loan rates are still lower than the same time a year ago. Economists do not expect a drastic reduction in the mortgage rate until the end of 2026. Even with the most recent cut in December to the federal funds rate, mortgage rates continue to hover in a range — barely moving since mid-October.
According to Freddie Mac, the national average 30-year mortgage increased by 10 basis points to 6.06% for the week, while the average 15-year mortgage rate decreased by eight basis points to 5.38%.
According to its December forecast, the MBA expects the 30-year mortgage rate to be close to 6.4% by 2026. Fannie Mae also predicts a 30-year rate above 6% through next year, but will drop to 5.9% in Q4 2026.
Mortgage rates are likely to remain little changed in 2027. The MBA forecasts 30-year fixed rates at 6.3% for most of 2027, before rising to an average of 6.4% in Q4 ’27. Fannie Mae predicts average rates close to 5.9% for the full year of 2027.