This week, mortgage rates officially rose below 6%, although it has been widely reported elsewhere for weeks (including Yahoo Finance). According to Freddie Mac, the 30-year average is down three points 5.98%. Some mortgage raters have been reporting rates in the 5% range, but Freddie Mac is the official voice of the industry. Now, the question is how long does the rate below 6% last.
Here are the current mortgage rates, according to the latest Zillow data:
-
30 years fixed: 5.85%
-
20 years fixed: 5.71%
-
15 years fixed: 5.37%
-
5/1 ARM: 6.01%
-
7/1 ARM: 6.02%
-
VA for 30 years: 5.41%
-
15 year VA: 4.91%
-
5/1 VA: 4.82%
Remember, these are national averages and rounded to the nearest hundredth.
Here are today’s mortgage rates, according to the latest Zillow data:
-
30 years fixed: 6.01%
-
20 years fixed: 5.83%
-
15 years fixed: 5.61%
-
5/1 ARM: 6.07%
-
7/1 ARM: 5.89%
-
VA for 30 years: 5.50%
-
15 year VA: 5.08%
-
5/1 VA: 4.76%
Also, the numbers given are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than home buying rates, although not always.
Dive deep into 7 options for repurchasing a home.
Your mortgage rate plays a big role in how much your monthly payment will be. Use this mortgage calculator to see how the loan amount, rate, and term will affect your monthly payments:
You can bookmark Yahoo Finance’s down payment calculator and keep it handy for future use, as you shop for homes and lenders.
The mortgage interest rate is the payment for borrowing money from your lender, expressed as a percentage. You can choose from two types of prices: fixed or adjustable.
A fixed rate mortgage locks in your amount for the life of your loan. For example, if you get a 30-year mortgage with an interest rate of 6%, your rate will remain at 6% for the entire 30 years unless you refinance or sell.
An adjustable rate mortgage locks in your rate for a set period of time and adjusts it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate will be 6% for the first seven years, and then the rate will increase or decrease once a year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and the housing market.
At the beginning of your mortgage term, most of your monthly payment goes towards interest. Your monthly payment towards the mortgage principal and interest remains the same throughout the years – however, less of your payment goes towards interest, and more towards the loan principal or original loan amount.
A 30-year fixed rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher if you choose a shorter term, and you’ll pay more in interest over the years.
You may want to consider a 15-year fixed rate mortgage if you intend to pay off your home loan quickly and save on interest. These shorter terms come with a lower interest rate, and since you’re cutting your repayment period in half, you’ll save more interest in the long run. But you’ll need to be sure you can comfortably afford the monthly payments that come with 15-year terms.
In general, an adjustable rate mortgage can be good if you plan to sell before the end of the introductory rate period. Adjustable rates usually start below the fixed rates, and your rate will change after a predetermined period of time. However, the 5/1 and 7/1 ARM rates are similar to (or higher than) the 30-year fixed rates recently. Before getting an ARM at the lowest rate, compare your rate options from term to term and lender to lender.
Mortgage rates have generally declined since the end of last May, and mortgage rates are now at their lowest level since September 2022, according to Freddie Mac. Economists do not expect mortgage rates to decline until the end of 2026. However, the slow and steady decline we’ve seen is serving loan buyers well.
According to Freddie Mac, the national 30-year mortgage rate fell three points to 5.98% on the week, while the 15-year mortgage rate rose nine points to 5.44%.
According to February forecasts, the MBA expects the 30-year mortgage rate to approach 6.10% by 2026. Fannie Mae is also forecasting a 30-year rate near 6% by the end of the year.
Mortgage rates are likely to remain relatively unchanged through 2027. MBA predicts 30-year fixed rates of 6.20% to 6.30% through most of 2027. Fannie Mae is forecasting average rates closer to 6.0% for the full year of 2027.
