For the most part, fixed mortgage rates have decreased since yesterday, and adjustable rates have increased. Fixed rates have fallen significantly since the beginning of August. According to Zillow data, the average 30-year fixed rate is down 55 basis points since August 1, and the 15-year fixed rate has dropped by 54 basis points.
Mortgage rates have been falling for almost seven weeks in anticipation of the Federal Reserve cutting the federal funds rate at today’s meeting. Rates probably won’t move much if the Fed decreases its rate by 25 basis points today, but if there’s a 50-basis-point slash, mortgage rates will probably continue decreasing. The Fed will make its announcement at 2 p.m. ET.
Dig deeper: Is now a good time to buy a house?
Today’s mortgage rates
Here are the current mortgage rates, according to the latest Zillow data:
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30-year fixed: 5.58%
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20-year fixed: 5.38%
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15-year fixed: 4.86%
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5/1 ARM: 5.99%
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7/1 ARM: 6.00%
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30-year FHA: 4.66%
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15-year FHA: 4.25%
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5/1 FHA: 4.69%
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30-year VA: 4.97%
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15-year VA: 4.57%
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5/1 VA: 5.58%
Remember, these are the national averages and rounded to the nearest hundredth.
Learn more: 5 strategies for getting the lowest mortgage rates
Today’s mortgage refinance rates
These are today’s mortgage refinance rates, according to the latest Zillow data:
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30-year fixed: 5.55%
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20-year fixed: 5.29%
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15-year fixed: 4.85%
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5/1 ARM: 5.99%
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7/1 ARM: 6.01%
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5/1 FHA: 4.54% 4.58%
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30-year VA: 5.00%
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15-year VA: 4.86%
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5/1 VA: 5.19%
Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.
Use our mortgage calculator
Use Yahoo Finance’s free mortgage calculator to see how various interest rates and term lengths will impact your monthly mortgage payment. It also shows how the home price and down payment amount play into things.
Our calculator includes homeowners insurance and property taxes in your monthly payment estimate. You even have the option to enter costs for private mortgage insurance (PMI) and homeowners’ association dues if those apply to you. These details result in a more accurate monthly payment estimate than if you simply calculated your mortgage principal and interest.
How does the Federal Reserve affect mortgage rates?
The Federal Reserve and federal funds rate don’t directly impact mortgage rates the way they do interest rates on your savings accounts or auto loans. That’s because mortgages are longer-term financial products — typically 15, 20, or 30 years.
However, the fed funds rate more closely tracks the 10-year Treasury yield, which has historically moved in tandem with longer-term rates such as — you guessed it — mortgage rates.
So, when the Federal Reserve lowers the federal funds rate, mortgage rates tend to follow suit. Economists have been expecting the Fed to cut the fed funds rate at today’s meeting, so the 10-year Treasury yield and mortgage rates have been decreasing for weeks.
Dig deeper: How the Federal Reserve impacts mortgage rates
Will mortgage rates keep dropping?
If the Fed cuts the rate by just 25 basis points today, mortgage rates might not move at all — and they could even tick back up a bit until it becomes clearer whether the Fed will cut rates further later this fall. Remember, the impact of today’s action is already baked into current rates and the expectation has long been for a 25-basis-point cut.
However, if the Fed slashes the benchmark rate by 50 basis points, mortgage rates could fall more substantially. And if the central bank indicates it will lower the rate again in November and December, mortgage rates could continue to drop in the coming weeks.
The Fed is expected to cut the federal funds rate more than once in 2025, so mortgage rates will probably keep decreasing next year.
Fixed vs. adjustable mortgage rates
With a fixed-rate mortgage, your rate is locked in from day one. Your rate would change only if you refinance your mortgage.
An adjustable-rate mortgage keeps your rate the same for a set period of time. Then, the rate goes up or down depending on several factors, such as the broader interest rate environment and the terms of your loan. For example, with a 5/1 ARM, your rate would be locked in for the first five years, then change every year for the remainder of your term.
Adjustable rates sometimes start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up. Some mortgage lenders are offering lower fixed-rate mortgages than adjustable rates right now, so talk with your lender about your options before choosing one or the other.
Dig deeper: Adjustable-rate vs. fixed-rate mortgage: Which should you choose?
Today’s mortgage rates: FAQs
What is a 30-year mortgage rate right now?
The national average 30-year mortgage rate is 5.58% right now, according to Zillow. But keep in mind that averages can vary depending on where you live. For example, if you’re buying in a city with a high cost of living, rates could be even higher.
Are interest rates expected to go down?
Mortgage rates aren’t necessarily expected to go down immediately after today’s Fed meeting. But overall, yes, interest rates are expected to decrease gradually over the next couple of years. Experts predict the average 30-year rate will settle somewhere between 6.4% to 6.5% by the end of 2024, and then to 5.9% by late 2025.
Are mortgage rates dropping?
Yes, mortgage rates are inching down overall. According to Zillow data, the 30-year fixed mortgage rate has been gradually inching down closer to 5.50%.
How do I get the lowest refinance rate?
In many ways, securing a low mortgage refinance rate is similar to when you bought your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing into a shorter term will also land you a lower rate, though your monthly mortgage payments will be higher.
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