As of today, mortgage rates have seen a slight increase, but the overall trend remains favorable compared to last week.
According to recent data from Zillow, the average 30-year fixed mortgage rate has fallen by eight basis points to 6.51% since last weekend. The 20-year fixed mortgage rate has decreased by 20 basis points to 6.25%, while the 15-year fixed rate has dipped by four basis points to 5.89%. While today’s minor fluctuations may seem discouraging, prospective homebuyers are still in a relatively better position compared to the previous week.
Should You Lock in a Mortgage Rate?
Considering locking in your mortgage rate? Understanding market trends and your financial readiness can help you make an informed decision.
Current Mortgage Rates
Below are the latest mortgage rates based on Zillow’s most recent data:
| Mortgage Type | Interest Rate |
|---|---|
| 30-Year Fixed | 6.51% |
| 20-Year Fixed | 6.25% |
| 15-Year Fixed | 5.89% |
| 5/1 ARM | 6.79% |
| 7/1 ARM | 6.92% |
| 30-Year VA | 6.09% |
| 15-Year VA | 5.57% |
| 5/1 VA | 6.07% |
Note: These rates represent national averages and are rounded to the nearest hundredth.
Current Mortgage Refinance Rates
For homeowners looking to refinance, here are today’s average refinance rates based on Zillow data:
| Mortgage Type | Interest Rate |
| 30-Year Fixed | 6.53% |
| 20-Year Fixed | 6.11% |
| 15-Year Fixed | 5.88% |
| 5/1 ARM | 7.01% |
| 7/1 ARM | 7.40% |
| 30-Year VA | 6.08% |
| 15-Year VA | 5.90% |
| 5/1 VA | 6.13% |
| 30-Year FHA | 6.01% |
| 15-Year FHA | 5.72% |
Comparing 30-Year vs. 15-Year Fixed Mortgage Rates
The choice between a 30-year and a 15-year mortgage depends on your financial goals:
- 30-Year Fixed Mortgage:
- Lower monthly payments.
- Higher overall interest costs.
- Interest rate: 6.51%.
- 15-Year Fixed Mortgage:
- Higher monthly payments.
- Lower total interest paid over the loan term.
- Interest rate: 5.89%.
For instance, on a $300,000 mortgage:
| Loan Term | Monthly Payment | Total Interest Paid |
| 30-Year at 6.51% | $1,898 | $383,344 |
| 15-Year at 5.89% | $2,514 | $152,480 |
Fixed-Rate vs. Adjustable-Rate Mortgages (ARM)
- Fixed-Rate Mortgage: The interest rate remains constant for the entire loan term.
- Adjustable-Rate Mortgage (ARM): The initial rate is fixed for a set period before adjusting periodically. For example, a 7/1 ARM offers a fixed rate for the first seven years before annual adjustments.
Tips to Secure a Lower Mortgage Rate
To qualify for a competitive mortgage rate:
- Improve your credit score.
- Increase your down payment.
- Lower your debt-to-income ratio.
- Compare multiple lenders to find the best rates and terms.
Choosing the Right Mortgage Lender
When selecting a lender, consider:
- Interest rates and APR.
- Loan terms and fees.
- Customer reviews and lender reputation.
Frequently Asked Questions
What is the current mortgage rate?
- The national average for a 30-year mortgage is 6.51%, while a 15-year mortgage stands at 5.89%.
Are mortgage rates expected to drop?
- While significant declines aren’t expected in the near future, small fluctuations may occur.
By staying informed and understanding your financial situation, you can navigate the mortgage market effectively and make sound borrowing decisions.