Prices could remain high this year

Today’s mortgage rates have increased. According to Zillow data, the average 30-year fixed rate rose two basis points to 6.74%and the 15-year fixed rate is up five basis points 6.03% – The interest rate on 15-year government bonds exceeds the 6 percent mark for the first time in just over a week.

Economists do not expect mortgage rates to fall significantly in 2025. January forecasts from Fannie Mae and the Mortgage Bankers Association (MBA) suggest the 30-year fixed rate will be 6.50% by year’s end. It may not be worth waiting for lower interest rates – if you’re otherwise financially ready to buy, now could be a good time to start.

Dig Deeper: 5 Strategies to Get the Lowest Mortgage Rate

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Here are the current mortgage rates according to the latest Zillow data:

• 30 years fixed: 6.74%

• 20 years fixed: 6.49%

• 15 years fixed: 6.03%

• 5/1 ARM: 6.69%

• 7/1 ARM: 6.74%

• 30 year old VA: 6.17%

• 15 year old VA: 5.66%

• 5/1VA: 6.07%

• 30-year FHA: 6.29%

Remember, these are national averages rounded to the nearest hundredth.

These are the current mortgage refinance rates according to the latest Zillow data:

• 30 years fixed: 6.75%

• 20 years fixed: 6.45%

• 15 years fixed: 6.08%

• 5/1 ARM: 6.68%

• 7/1 ARM: 6.64%

• 30 year old VA: 6.16%

• 15 year old VA: 5.89%

• 5/1 VA: 6.08%

Here too, the figures given are national average values ​​rounded to the nearest hundredth. Mortgage refinance interest rates are often higher than interest rates when purchasing a home, although this is not always the case.

Read more: Is now a good time to refinance your mortgage?

Use Yahoo Finance’s free mortgage calculator to see how different mortgage terms and interest rates affect your monthly payments.

Our calculator also takes factors like property taxes and home insurance into account when determining your estimated monthly mortgage payment. This will give you a more realistic idea of ​​your total monthly payment than if you just looked at the mortgage amount and interest.

The average 30-year mortgage rate today is 6.74%. A 30-year mortgage is the most popular type of mortgage because by spreading your payments over 360 months, your monthly payment is lower than a shorter-term loan.

The average 15-year mortgage rate today is 6.03%. When deciding between a 15-year and 30-year mortgage, consider your short-term and long-term goals.

A 15-year mortgage comes with a lower interest rate than a 30-year mortgage. This is great in the long run because you pay off your loan 15 years early, meaning the interest accrues for 15 years less. The downside, however, is that your monthly payment will be higher because you’re paying off the same amount in half the time.

Let’s say you get a $300,000 mortgage. With a term of 30 years and an interest rate of 6.74%, your monthly payment for principal and interest will be approx $1,944and you would pay $399,768 Interest over the life of your loan – in addition to the original $300,000.

If you take out the same $300,000 mortgage but with a 15-year term and an interest rate of 6.03%, your monthly payment would increase up to $300,000 $2,536. But you would just pay $156,558 interest over the years.

With a fixed-rate mortgage, your interest rate is fixed for the entire term of your loan. However, you will receive a new interest rate when you refinance your mortgage.

With an adjustable rate mortgage, your interest rate stays the same for a set period of time. Then the tariff increases or decreases depending on several factors, such as: B. the economic situation and the maximum amount that your tariff can change depending on the contract. For example, with a 7/1 ARM, your rate would be fixed for the first seven years and then change every year for the remaining 23 years of your term.

Adjustable rates typically start lower than fixed rates, but once the initial rate lock-in period ends, it’s possible your rate will increase. However, recently some fixed interest rates are lower than the variable interest rates. Talk to your lender about interest rates before deciding on one or the other.

Dig Deeper: Fixed Rate vs. Variable Rate Mortgages

Mortgage lenders typically offer the lowest mortgage rates to people with larger down payments, good or excellent credit, and a low debt-to-income ratio. So if you want a lower interest rate, try saving more, improving your credit score, or paying off some debt before you start buying a home.

Waiting for interest rates to fall probably isn’t the best way to get the lowest mortgage rate now, unless you’re really not in a hurry and don’t mind waiting until the end of 2025. When you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.

To find the best mortgage lender for your situation, apply for mortgage pre-approval from three or four companies. Make sure you apply to everyone within a short period of time – this will give you the most accurate comparisons and have less impact on your credit score.

When choosing a lender, don’t just compare interest rates. Look at the mortgage’s annual percentage rate (APR) – this takes into account the interest rate, any discount points and fees. The APR, which is also expressed as a percentage, reflects the actual annual cost of borrowing. This is probably the most important number to consider when comparing mortgage lenders.

Learn more: Best Mortgage Lenders for First Time Home Buyers

According to Zillow, the national average 30-year mortgage rate is 6.74% and the average 15-year mortgage rate is 6.03%. However, since these are national averages, the average in your region may differ. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas.

According to Zillow, the average 30-year fixed mortgage rate is currently 6.74%. However, with excellent credit, a high down payment, and a low debt-to-income ratio (DTI), you may get an even better interest rate.

Mortgage rates are not expected to drop drastically in the near future, although they may drop slightly here and there.