Mortgage rates surprise industry watchers with a long period of no volatility. According to Zillow, the average 30-year fixed rate is 5.85%. The current 15-year fixed rate is 5.36%. These rates are the lowest we have reported in years. However, these are national averages based on Zillow’s lender marketplace, so shop around a few lenders for your best deal.
Here are the current mortgage rates, according to our latest Zillow data:
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Fixed for 30 years: 5.85%
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Fixed for 20 years: 5.64%
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Fixed for 15 years: 5.36%
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ARM 5/1: 5.81%
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7/1 ARM: 5.71%
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30 year old VA: 5.36%
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VA of 15 years: 5.15%
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5/1VA: 4.99%
Remember these are national averages and are rounded to the nearest hundredth.
Here are the current mortgage refinance rates, according to the latest data from Zillow:
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Fixed for 30 years: 5.97%
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Fixed for 20 years: 5.67%
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Fixed for 15 years: 5.39%
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ARM 5/1: 6.10%
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7/1 ARM: 5.89%
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30 year old VA: 5.68%
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VA of 15 years: 5.21%
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5/1VA: 4.95%
Again, the figures provided are national averages rounded to the nearest hundredth. Refinancing rates are typically 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 explore different outcomes.
You can bookmark Yahoo Finance’s mortgage payment calculator and keep it on hand for future use as you research homes and lenders. Also consider 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 just looked at the principal and interest on the mortgage.
Generally, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15-year 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 will 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 5.85%, you will make a monthly payment of approximately $2,360 towards the principal and interest of your mortgage. As interest accumulates over decades, you will end up paying $449,515 in interest.
If you take out a 15-year, $400,000 mortgage with a rate of 5.36%, you will pay approximately $3,239 monthly toward your principal and interest. However, you will only pay $182,965 in interest over the years.
If your monthly payment on your 15-year mortgage is too high, remember that you can always make additional 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 set from day one. However, you’ll get a new rate if you refinance your mortgage.
An adjustable rate mortgage keeps your rate the same for a specific period of time. Your rate will then increase or decrease depending on several factors, such as the economy and the maximum amount your rate can change under your contract. For example, with a 7/1 ARM, your rate would be fixed for the first seven years and then adjust annually for the remainder of your term.
Adjustable rates sometimes start lower than fixed rates, but once the initial rate lock-in period ends, you run the risk of your interest rate going up. ARM rates have also started to be higher than fixed rates recently, so you may not always get a rate discount.
According to data from Zillow, the current 30-year fixed rate is 5.85% for home purchases and 5.36% for refinancing. These are national averages, so keep in mind that the average in your state or city could be different. Your rate will also vary depending on your personal finances.
Based on January forecasts, the MBA expects the 30-year mortgage rate to approach 6.10% through 2026. Fannie Mae also predicts a 30-year rate near 6% through the end of the year.
Mortgage rates are likely to remain little changed in 2027. MBA forecasts 30-year fixed rates of 6.20% to 6.30% through most of 2027. Fannie Mae predicts average rates near 6.0% for all of 2027.