Above the 2025 low

Mortgage rates have generally declined since late May, bottomed out in late October, and have remained within a 10 basis point range since then. According to Freddie Mac, the average 30-year fixed mortgage rate is 6.22%. That’s up five basis points from the 2025 low of 6.17%. 15 years fixed rate 5.54%.

“The average 30-year fixed-rate mortgage is well below the historical average of 6.62%, providing a sense of balance in the housing market,” Sam Khatter, chief economist at Freddie Mac, said in a statement.

Here are the current mortgage rates, according to the latest Zillow data:

• 30-year fixed: 6.15%

• 20-year fixed: 6.01%

• 15 years fixed: 5.57%

• 5/1 ARM: 6.21%

• 7/1 ARM: 6.30%

• 30-year VA: 5.58%

• 15-year VA: 5.24%

• 5/1 VA: 5.44%

Remember, these are national averages and are rounded to the nearest hundred.

Here are 8 strategies for getting the lowest mortgage rate possible.

Here are today’s mortgage refinance interest rates, according to the latest Zillow data:

• 30-year fixed: 6.19%

• 20-year fixed: 6.05%

• 15 years fixed: 5.62%

• 5/1 ARM: 6.36%

• 7/1 ARM: 6.61%

• 30-year VA: 5.64%

• 15-year VA: 5.41%

• 5/1 VA: 5.41%

As with mortgage rates for purchases, these are national averages that we’ve rounded to the nearest hundreds. Refinance rates can be higher than purchase mortgage rates, but that’s not always the case.

Use the mortgage calculator below to see how different mortgage rates affect your monthly payments.

You can bookmark the Yahoo Finance mortgage payment calculator and use it for future reference as you shop for homes and lenders. Be sure to use the dropdown to include private mortgage insurance costs and HOA dues if they apply to you. These monthly expenses, along with your mortgage principal and interest rate, will give you a realistic idea of ​​what your monthly payment might be.

A mortgage interest rate is the fee a lender charges for borrowing money, expressed as a percentage. There are two basic types of mortgage rates: fixed and adjustable rates.

A fixed-rate mortgage locks in your rate for the life of your loan. For example, if you get a 30-year mortgage with a 6% interest rate, your rate will stay at 6% for the entire 30 years. (Unless you refinance or sell the home.)

Adjustable-rate mortgages keep your rate the same for the first few years, then change it periodically. Let’s say you get a 5/1 ARM with an introductory rate of 6%. Your rate will be 6% for the first five years, and then the rate will increase or decrease once per year for the last 25 years of your term. Whether your rate goes up or down depends on many factors, such as the economy and the U.S. housing market.

At the beginning of your mortgage term, most of your monthly payments go toward interest. Over time, less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.

Two categories determine mortgage rates: what you can control and what you can’t control.

What factors can you control? First, you can compare the best mortgage lenders to find the one that offers the lowest rates and fees.

Second, lenders typically extend low rates to people with high credit scores, low debt-to-income (DTI) ratios, and substantial down payments. If you can save more or pay off the loan before securing a mortgage, a lender will give you a better interest rate.

What factors can’t you control? In short, the economy.

The list of ways the economy affects mortgage rates is long, but here are the basics. If the economy—think employment rates, for example—is struggling, mortgage rates go down to encourage lending, which in turn boosts the economy. If the economy is strong, mortgage rates tend to go up in spending.

All other things being equal, mortgage refinance rates are generally slightly higher than purchase rates. So don’t be surprised if your refinance rate is higher than you expected.

The two most common mortgage terms are 30-year and 15-year fixed-rate mortgages. Both lock in your rate for the entire loan term.

A 30-year mortgage is popular because it has relatively low monthly payments. But it comes with a higher interest rate than shorter terms, and because you’re collecting interest for three decades, you’ll pay more interest over the long term.

A 15-year mortgage may be a better option because it has a lower rate than you’ll get with longer terms, so you’ll pay less interest over the years. You will pay off your mortgage much faster. But your monthly payments will be higher because you’re paying the same loan amount in half the time.

Generally, 30-year mortgages are more affordable month-to-month, while 15-year mortgages are cheaper over the long term.

According to 2024 Home Mortgage Disclosure Act (HMDA) data, some of the banks with the lowest median mortgage rates are Bank of America and Citibank. However, it’s a good idea to shop around for the best rate, not only with banks, but also with credit unions and companies that specialize in mortgage lending.

Yes, 2.75% is a fantastic mortgage rate. You’re unlikely to get a 2.75% rate in today’s market unless you get a foreclosed mortgage from a seller who locks in this rate in 2020 or 2021, when rates are at all-time lows.

According to Freddie Mac, the lowest 30-year fixed mortgage rate was 2.65%. This was the national average in January 2021. Rates are unlikely to fall below 3% again anytime soon.

Some experts say it’s worth refinancing when you can lock in a rate 2% lower than your current mortgage rate. Others say 1% is the magic number. It all depends on what your financial goals are when refinancing and where your break-even point will be after paying the refinance closing costs.