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Mortgage rates are down across the board right now. According to Zillow, the 30-year fixed mortgage rate has dropped by four basis points to 6.27%, and the 15-year fixed interest rate has decreased by four basis points to 5.57%. The 5/1 adjustable mortgage rate has inched down by two basis points to 6.53%.
Historically, introductory rates on adjustable-rate mortgages (ARMs) have been lower than fixed rates. However, average ARM rates are starting higher than fixed ones right now. Even in the current high-rate environment, a fixed mortgage rate could be a better deal. However, be sure to look at your options with several mortgage lenders before choosing a loan type.
Have questions about buying, owning, or selling a house in today’s market? Submit your question to Yahoo’s panel of Realtors using this Google form.
Dig deeper: Fixed-rate vs. adjustable-rate mortgage — Which should you choose?
Here are the current mortgage rates, according to the latest Zillow data:
30-year fixed: 6.27%
20-year fixed: 5.98%
15-year fixed: 5.57%
5/1 ARM: 6.53%
7/1 ARM: 6.62%
30-year VA: 5.72%
15-year VA: 5.18%
5/1 VA: 5.91%
Remember, these are the national averages and rounded to the nearest hundredth.
Read more: How are mortgage rates determined?
These are the current mortgage refinance rates, according to the latest Zillow data:
30-year fixed: 6.27%
20-year fixed: 5.88%
15-year fixed: 5.58%
5/1 ARM: 6.73%
7/1 ARM: 6.84%
30-year VA: 5.68%
15-year VA: 5.33%
5/1 VA: 6.09%
30-year FHA: 6.06%
Again, the numbers provided are national averages rounded to the nearest hundredth. Although it’s not always the case, mortgage refinance rates tend to be a little higher than purchase rates.
You can use the free Yahoo Finance mortgage calculator to play around with how different terms and rates will affect your monthly payment. Our calculator considers factors like property taxes and homeowners insurance when estimating your monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.
Today’s average 30-year mortgage rate is 6.27%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is relatively low.
If you had a $300,000 mortgage with a 30-year term and a 6.27% rate, your monthly payment toward the principal and interest would be about $1,851, and you’d pay $366,380 in interest over the life of your loan — on top of that original $300,000.
The average 15-year mortgage rate is 5.57% today. Several factors must be considered when deciding between a 15-year and 30-year mortgage.
A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to compound.
However, because you’re squeezing the same debt payoff into half the time, your monthly payments will be higher.
If you get that same $300,000 mortgage but with a 15-year term and a 5.57% rate, your monthly payment would jump up to $2,462 — but you’d only pay $143,233 in interest over the years.
Dig deeper: How much house can I afford? Use our home affordability calculator.
With an adjustable-rate mortgage, your rate is locked in for a set period of time and then increases or decreases periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then changes every year.
Adjustable rates usually start lower than fixed rates, but you run the risk that your rate goes up once the introductory rate-lock period is over. But an ARM could be a good fit if you plan to sell the home before your rate-lock period ends — that way, you pay a lower rate without worrying about it rising later.
ARM rates have also been higher than fixed rates lately. Before dedicating yourself to a fixed or adjustable mortgage rate, be sure to shop around for the best lenders and rates. Some will offer more competitive adjustable rates than others.
Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.
You can also buy down your interest rate permanently by paying for discount points at closing. A temporary interest rate buydown is also an option — for example, maybe you get a 6% rate with a 2-1 buydown. Your rate would start at 4% for year one, increase to 5% for year two, then settle in at 6% for the remainder of your term.
Just consider whether these buydowns are worth the extra money at closing. Ask yourself whether you’ll stay in the home long enough that the amount you save with a lower rate offsets the cost of buying down your rate before making your decision.
Here are interest rates for some of the most popular mortgage terms: According to Zillow data, the national average 30-year fixed rate is 6.27%, the 15-year fixed rate is 5.57%, and the 5/1 ARM rate is 6.53%.
A normal mortgage rate on a 30-year fixed loan is 6.27%. However, keep in mind that’s the national average based on Zillow data. The average might be higher or lower depending on where you live in the U.S.
While mortgage rates could inch down here and there, they will probably not significantly drop in 2025.
A rate-and-term refinance replaces your original mortgage with a new one with a different mortgage rate and term length. Find out if it’s a good fit.
Want to get a mortgage on a $500,000 home? Learn what your monthly mortgage payment and long-term costs will be to determine if you can afford a $500,000 house.
When you can refinance a mortgage depends on your loan type. You may have to wait up to 12 months. Learn how soon you can refinance your mortgage.
A buydown interest rate program lets you pay extra at closing for a lower mortgage rate, either permanently or temporarily. Learn how to buy down your rate.
Refinancing a mortgage hurts your credit, but the effects are usually small and go away quickly. Learn how to prepare for a refinance to affect your credit.
There are several types of home refinance options, including cash-out, no-closing-cost, and more. Learn which type of refinance is best for your financial goals.
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Mortgage rates today
Refinance rates today
Mortgage payment calculator
30-year mortgage rates today
15-year mortgage rates today
Adjustable mortgage rates
How to get a low mortgage rate
Mortgage rates today: FAQs
Refinance interest rates
What are interest rates today?
What is a normal mortgage rate right now?
Will mortgage rates drop down?
Read More
Rate-and-term refinance: What it is and how it works
How much is a mortgage on a $500,000 house?
How soon can you refinance a mortgage after buying a home?
How to buy down your mortgage interest rate
Does refinancing a mortgage hurt your credit?
Want to refinance your mortgage? Here are 7 home refinance options.
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Best mortgage lenders for first-time home buyers of March 2025
Is now a good time to refinance your mortgage?
Average US rate on a 30-year mortgage falls for sixth-straight week
The average rate on a 30-year mortgage in the U.S. eased for the sixth week in a row, a welcome boost in purchasing power for home shoppers just as the annual spring homebuying season gets going
The average rate on a 30-year mortgage in the U.S. eased for the sixth week in a row, a welcome boost in purchasing power for home shoppers just as the annual spring homebuying season gets going.
The average rate fell 6.76% from 6.85% last week, mortgage buyer Freddie Mac said Thursday. A year ago, it averaged 6.94%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also eased this week. The average rate fell to 5.94% from 6.04% last week. A year ago, it averaged 6.26%, Freddie Mac said.
The steady decline in mortgage rates rates this year hasn’t been enough to change the affordability equation for many prospective home shoppers, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase.
Sales of previously occupied U.S. homes fell in January as rising mortgage rates and prices froze out many would-be homebuyers despite a wider selection of properties on the market.
New data on pending home sales, a bellwether for future completed sales, point to potentially further sales declines in coming months. They slid to an all-time low in January.
The average rate on a 30-year mortgage is now at its lowest level since Dec. 19, when it was also 6.72%. It briefly fell to a 2-year low last September, but has been mostly hovering around 7% this year. That’s more than double the 2.65% record low the average rate hit a little over four years ago.
“The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home,” said Sam Khater, Freddie Mac’s chief economist.
The inventory of U.S. homes on the market climbed last month to its highest level since June 2020, according to data from Redfin. But mortgage rates and prices remain an unaffordable combination for many would-be homebuyers.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy decisions.
The latest pullback in rates echoes a decline in the 10-year Treasury yield, which lenders use as a guide for pricing home loans.
The yield, which was at 4.79% in mid-January, has been mostly easing since then, reflecting worries among bond investors over the potential impact from tariffs and other policies proposed by the Trump administration.
The 10-year yield was at 4.28% in midday trading Thursday.
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Mortgage rates are falling. Here’s how much income you need now to buy a house for $250,000, $400,000 and $1 million.
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Mortgage rates fell for the sixth week in a row, offering some financial relief to prospective home buyers.
The 30-year mortgage rate averaged 6.76% as of Feb. 27, the lowest rate in over two months, according to weekly data from Freddie Mac. Rates were down 9 basis points from the previous week, and down from 6.91% as of Jan. 2.
Mortgage rates are falling as investors weigh reports of a slowing U.S. economy and the possibility of a Federal Reserve interest-rate cut. The 30-year mortgage rate typically rises and falls in tandem with the yield on the 10-year Treasury note
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“Although a slowing economy may not seem like a good thing, lower rates could give the housing market the shot in the arm that it so desperately needs,” Lisa Sturtevant, chief economist at Bright MLS, said in a statement.
Home buying has sagged under the weight of high interest rates over the last few years. In January, there was a 4.6% drop in the number of contracts signed to purchase homes compared to the previous month, according to the National Association of Realtors. Pending home sales are now at an all-time low, the industry group said. It’s been tracking pending home-sales activity since 2001.
“The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home,” Sam Khater, chief economist at Freddie Mac, said in a statement.
Home prices hit record highs last year while mortgage rates have remained elevated, shutting many would-be buyers out of the market. People are still struggling to afford to buy homes, so “even a slight reduction in mortgage rates will likely ignite buyer interest, given rising incomes, increased jobs and more inventory choices,” Lawrence Yun, chief economist at the NAR, said in a statement.
So how much money would a buyer now need to make to buy a home? Realtor.com provided some figures to help guide prospective homeowners. (Realtor.com is operated by News Corp subsidiary Move Inc.; MarketWatch publisher Dow Jones is also a subsidiary of News Corp.)
With a down payment of 20% and an estimated 30-year mortgage rate of 6.76%, while also factoring in property taxes and homeowners-insurance premiums, a home buyer would need to make at least $66,300 in yearly income to afford a home priced at $250,000, Hannah Jones, a senior economic research analyst Realtor.com, told MarketWatch.
Also read: Mortgage rates are falling, but it’s not helping sell more homes. Are lower house prices next?
That calculation assumes the buyer does not spend more than 30% of their gross income on housing costs, the level that is considered affordable.
To afford a $400,000 home, which was roughly the median price of an existing home as of January, a buyer would need to earn $106,100.
To afford a $1 million home — a price tag that’s become far more common in the postpandemic era — a buyer would need to earn at least $265,100, Jones said. There are nearly 1 million more homes in the U.S. that are worth $1 million dollars than when the pandemic started, real-estate platform
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About the Author
Aarthi Swaminathan is a MarketWatch personal finance reporter.
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