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Mortgage rates have dropped dramatically in recent days, with 30-year mortgage rates now down around 6.04%, according to Zillow data. A month ago, this rate was at 6.62%.
Rates could drop even further in the coming months as the Federal Reserve gears up to start cutting the federal funds rate. Traders are currently expecting a half-point cut at the Fed's next meeting in September, potentially followed by a couple more cuts before the end of 2024.
Mortgage rates don't track the federal funds rate, but they're often indirectly pushed up or down by Fed rate changes.
As mortgage rates go down , affordability should improve for hopeful homebuyers. A borrower getting a $200,000 loan at last month's rates would have paid $1,280 per month for their mortgage. Today, that same mortgage would cost around $80 less each month. Once rates drop further, the potential savings will be even bigger.
Current Mortgage Rates
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Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.
Click "More details" for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Fall (-0.29%)
The current average 30-year fixed mortgage rate is 6.04%, down 29 basis points from where it was this time last week, according to Zillow data. This rate is down compared to a month ago, when it was 6.62%.
At 6.04%, you'll pay $602 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you'll pay back what you borrowed over 30 years, and your interest rate won't change for the life of the loan.
20-Year Fixed Mortgage Rates Decrease (-0.32%)
The average 20-year fixed mortgage rate is 32 basis points down from where it was last week, and is sitting at 5.72%. This time last month, the rate was 6.25%.
With a 5.72% rate on a 20-year term, your monthly payment will be $700 toward principal and interest for every $100,000 borrowed.
A 20-year term isn't as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Tick Down (-0.20%)
The average 15-year mortgage rate is 5.43%, 20 basis points lower than last week. It's down compared to this time last month, when it was 5.99%.
With a 5.43% rate on a 15-year term, you'll pay $813 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you'll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Drop Over Half a Percentage Point (-0.58%)
The 7/1 adjustable mortgage rate is down 58 basis points from a week ago at 5.86%. It's down compared to a month ago, when it was at 6.66%.
At 5.86%, your monthly payment would be $591 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Go Down (-0.18%)
The average 5/1 ARM rate is 6.13%, an 18-basis-point decrease from last week. It's down compared to where it was a month ago, when it was 6.57%.
Here's how a 6.13% rate would affect you for the first five years: You'd pay $608 per month toward principal and interest for every $100,000 you borrow.
30-Year FHA Rates Plunge (-0.59)
The average 30-year FHA interest rate is 4.96% today, down 59 basis points from the week before. This rate was 5.99% a month ago.
At 4.96%, you would pay $534 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don't qualify for a conforming mortgage. You'll need a 3.5% down payment and 580 credit score to qualify.
30-Year VA Rates Down a Quarter Point (-0.25%)
The current VA mortgage rate is 5.44%, down 25 basis points from this time last week. This rate was 5.94% a month ago.
With a 5.44% rate, your monthly payment would be $564 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Tick Down (-0.18%)
The average 30-year refinance rate is 7.56%, 18 basis points down from last week. It's down compared to a month ago, when it was 7.86%.
Here's how a 7.56% rate would affect your monthly payments: You'd pay $703 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you'll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Drop Nearly Half a Point (-0.46%)
The current 20-year fixed refinance rate is 6.00%, which is down 46 basis points compared to a week ago. This rate was 7.01% this time last month.
A 6.00% rate on a 20-year term will result in a $716 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Up (+0.27%)
The average 15-year fixed refinance rate is 6.88%, which is 27 basis points higher compared to last week. It's also up compared to this time a month ago, when it was at 6.41%.
A 6.88% rate on a 15-year term means you'll pay $892 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you'll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Go Down (-0.22%)
The average 7/1 ARM refinance rate is 6.35%, down 22 basis points from last week. It's down from a month ago, when it was 6.96%.
Refinancing into a 7/1 ARM with a 6.35% rate means your monthly payment toward principal and interest will be $622 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Drop Slightly (-0.15%)
The 5/1 ARM refinance rate is 6.24%, which is 15 basis points lower than it was this time last week. It's down compared to this time last month, when it was 6.38%.
A 6.24% rate will result in a monthly payment of $615 toward principal and interest for every $100,000 borrowed. You'll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Increase (+0.18)
The 30-year FHA refinance rate is 5.49%, which is up 18 basis points from this time last week. It was 5.79% a month ago.
A 5.49% refinance rate would lead to a $567 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Inch Up (+0.09)
The average 30-year VA refinance rate is 5.59%, which is up nine basis points compared to where it was was last week. This rate was 6.25% a month ago.
At 5.59%, your new monthly payment would be $573 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Rates spent the first half of this year relatively high, but they've recently dropped and may go down further throughout the rest of 2024.
For homeowners looking to leverage their home's value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you're borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you'd do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
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