Mortgage rates have been range-bound for more than six weeks, with nothing forcing rates up or down. According to Zillow, the 30-year average interest rate is 6.07%. The 15-year average interest rate is 5.53%. The Fed is likely to cut interest rates tomorrow, with comments from Fed Chairman Jerome Powell and the Fed’s dot plot likely to guide bond market sentiment.
Based on our latest Zillow data, here are the current mortgage rates:
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30 years fixed: 6.07%
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20 years fixed: 6.03%
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15 years fixed: 5.53%
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5/1 Arm: 6.19%
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7/1 Arm: 6.30%
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30 years VA: 5.64%
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15 years VA: 5.25%
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5/1 Virginia: 5.40%
Remember, these are national averages and rounded to the nearest percentile.
Here are the current mortgage refinance rates, according to the latest Zillow data:
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30 years fixed: 6.20%
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20 years fixed: 6.19%
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15 years fixed: 5.66%
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5/1 Arm: 6.50%
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7/1 Arm: 6.71%
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30 years VA: 5.67%
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15 years VA: 5.52%
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5/1 Virginia: 5.39%
Again, the numbers provided are national averages, rounded to the nearest percentile. Refinance rates are typically higher than purchase rates.
A mortgage calculator can help you understand how different mortgage terms and interest rates will affect your monthly payment. Different results can be calculated using this mortgage calculator.
You can bookmark the Yahoo Finance Mortgage Payment Calculator and keep it with you for future home purchases and loans. It also takes factors like property taxes and homeowners insurance into account when calculating your estimated monthly mortgage payment. This can give you a better idea of your total monthly payment than just looking at your mortgage principal and interest.
Generally speaking, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15-year mortgage rates versus 30-year mortgage rates, keep in mind that the shorter term will save you money in interest in the long run. However, your monthly payments will be higher because you’ll pay off the same loan amount in half the time.
For example, for a $400,000 mortgage with a 30-year term and an interest rate of 6.07%, your monthly payment would be approximately $2,416 Your mortgage principal and interest. As interest accumulates over decades, you will eventually pay $469,844 interested.
If you get a $400,000 15-year mortgage with an interest rate of 5.53%, you will pay approximately $3,275 Make your principal and interest payments each month. However, you only need to pay $189,447 interest over the years.
If your monthly payments on a 15-year mortgage are too high, remember that you can always make extra mortgage payments on a 30-year loan to pay off your mortgage faster and ultimately pay less interest.
With a fixed-rate mortgage, your interest rate is locked in from day one. However, if you refinance your mortgage, you will get a new interest rate.
An adjustable-rate mortgage allows your interest rate to remain the same for a period of time. Rates will then go up or down based on a variety of factors, such as the state of the economy and the maximum amount your rate can change under your contract. For example, with a 7/1 ARM, your rate is locked in for the first seven years and then changes every year for the remaining term.
Adjustable rates are sometimes lower than fixed rates, but you run the risk of interest rates rising once the initial rate lock period is over. Recently, ARM rates have also started to go higher than fixed rates, so sometimes you won’t get a rate adjustment.
Economists don’t expect mortgage rates to fall significantly by the end of 2026.
The Fed has announced two interest rate cuts in 2025 so far, including its last meeting on October 29. The Fed is considering another interest rate cut tomorrow. However, LoanDepot Chief Economist Jeff DerGurahian said that a “less hawkish Fed” – which has indicated it may announce further rate cuts in 2026 – could be a good sign for mortgage rates. But one economic report stands out.
“The Fed’s less hawkish tone may provide relief, but the November non-farm payrolls report on December 16 is likely to be the main driver of year-end interest rate direction,” DerGurahian said in an analysis. “Significantly weaker employment data as we enter the new year could overshadow the inflation data and push rates down to 6%.”
According to Zillow data, today’s 30-year fixed rate for home purchases is 6.07%, and the refinance rate is 6.20%. These are national averages, so keep in mind that your state or city’s averages may vary. Your rates will also vary based on your personal financial situation.
Mortgage rates are not expected to change much through the end of 2025. Even another quarter-point cut is unlikely to significantly lower mortgage rates as the Fed considers all relevant financial factors ahead of tomorrow’s meeting.
The Mortgage Bankers Association expects 30-year mortgage rates to be close to 6.4% by 2026, according to a November forecast. Fannie Mae also forecasts that 30-year mortgage rates will be above 6% next year, but will fall to 5.9% by the fourth quarter of 2026.
