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Mortgage rates are currently the lowest they've been in over a year. Average 30-year mortgage rates are hovering near 6%, according to Zillow data, and they're slated to fall further. This means we could soon see rates drop back into the 5% range for the first time since early 2023.
In fact, some borrowers may already be enjoying rates this low. According to myFICO, average mortgage rates for borrowers with a 760 credit score or better are down to 5.976%. The higher your credit score and the bigger your down payment, the more likely you are to get a low rate.
Rates have dropped substantially in recent weeks thanks to cooling economic data and increased expectations that the Federal Reserve will start lowering the federal funds rate soon . A month ago, 30-year rates were around 6.30%.
Recent rate drops mean now could be a good time to refinance if the rate on your current mortgage is higher than today's rates. However, if you want to maximize your potential savings, it may make sense to wait until next year, since most experts believe mortgage rates will continue to trend down in the coming months.
Current Mortgage Rates
Current Refinance 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 Tick Down (-0.10%)
The current average 30-year fixed mortgage rate is 6.09%, down 10 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 6.30%.
At 6.09%, you'll pay $605 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 Drop Slightly (-0.14%)
The average 20-year fixed mortgage rate is 14 basis points down from where it was last week, and is sitting at 5.70%. This time last month, the rate was 6.11%.
With a 5.70% rate on a 20-year term, your monthly payment will be $699 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 Inch Up (+0.04%)
The average 15-year mortgage rate is 5.49%, four basis points higher than last week. It's down compared to this time last month, when it was 5.68%.
With a 5.49% rate on a 15-year term, you'll pay $817 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 Flat (No Change)
The 7/1 adjustable mortgage rate is unchanged from a week ago at 6.11%. It's down compared to a month ago, when it was at 6.41%.
At 6.11%, your monthly payment would be $607 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 Inch Down (-0.04%)
The average 5/1 ARM rate is 6.26%, a four-basis-point decrease from last week. It's down compared to where it was a month ago, when it was 6.42%.
Here's how a 6.26% rate would affect you for the first five years: You'd pay $616 per month toward principal and interest for every $100,000 you borrow.
30-Year FHA Rates Hold Steady (No Change)
The average 30-year FHA interest rate is 4.96% today, unchanged from the week before. This rate was 5.54% 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 Dip (-0.08%)
The current VA mortgage rate is 5.48%, up 12 basis points from this time last week. This rate was 5.66% a month ago.
With a 5.48% rate, your monthly payment would be $567 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Plunge (-0.73%)
The average 30-year refinance rate is 6.34%, 73 basis points down from last week. It's down compared to a month ago, when it was 7.08%.
Here's how a 6.34% rate would affect your monthly payments: You'd pay $622 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 Rise (+0.39%)
The current 20-year fixed refinance rate is 6.02%, which is up 39 basis points compared to a week ago. This rate was 6.48% this time last month.
A 6.02% rate on a 20-year term will result in a $718 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Fall (-0.66%)
The average 15-year fixed refinance rate is 5.64%, which is 66 basis points lower compared to last week. It's also down compared to this time a month ago, when it was at 6.32%.
A 5.64% rate on a 15-year term means you'll pay $825 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 Tick Up (+0.09%)
The average 7/1 ARM refinance rate is 6.28%, up nine basis points from last week. It's down from a month ago, when it was 6.41%.
Refinancing into a 7/1 ARM with a 6.28% rate means your monthly payment toward principal and interest will be $618 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 Increase Somewhat (+0.19%)
The 5/1 ARM refinance rate is 6.02%, which is 19 basis points higher than it was this time last week. It's down compared to this time last month, when it was 6.59%.
A 6.02% rate will result in a monthly payment of $601 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 Flat (No Change)
The 30-year FHA refinance rate is 5.49%, exactly where they were this time last week. It was 5.25% 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 Decrease (-0.25%)
The average 30-year VA refinance rate is 5.66%, which is down 25 basis points compared to where it was was last week. This rate was 5.88% a month ago.
At 5.66%, your new monthly payment would be $578 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage 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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