Inflation figures push higher rates

Mortgage rates are up today. According to Zillow, the average 30-year fixed mortgage rate increased by 13 basis points. 6.10%And the 15-year fixed rate is up 14 basis points 5.55%.

These increases can probably be attributed to the latest Personal Consumption Expenditure (PCE) data, which was released yesterday. The PCE index showed inflation moving mostly as expected. While this is not necessarily bad news, it gives reason to believe that the Federal Reserve will not be more assertive about its rate cuts in early 2026. Mortgage rates will remain relatively flat for at least several months, so if you’re ready to buy a home, the next six months might be as good a time as any.

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

• 30-year fixed: 6.10%

• 20-year fixed: 5.97%

• 15 years fixed: 5.55%

• 5/1 ARM: 6.45%

• 7/1 ARM: 6.38%

• 30-year VA: 5.56%

• 15-year VA: 5.22%

• 5/1 VA: 5.40%

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

Discover 8 strategies to get the lowest mortgage rates.

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

• 30-year fixed: 6.15%

• 20-year fixed: 6.09%

• 15 years fixed: 5.63%

• 5/1 ARM: 6.43%

• 7/1 ARM: 6.69%

• 30-year VA: 5.62%

• 15-year VA: 5.47%

• 5/1 VA: 5.37%

Again, the numbers provided are national averages rounded to the nearest hundred. Mortgage refinance rates are often higher than rates when you buy a home, although this is not always the case.

Want to refinance your mortgage before the end of 2025? Here’s what to do.

Use the mortgage calculator below to see how today’s interest rates will affect your monthly mortgage payment.

You can bookmark the Yahoo Finance mortgage payment calculator and use it for future reference as you shop for homes and lenders. If applicable, you also have the option of entering costs for private mortgage insurance (PMI) and homeowners association dues. These details result in a more accurate monthly payment estimate than when you calculate your mortgage principal and interest.

A 30-year fixed mortgage has two main advantages: your payments are lower, and your monthly payments are predictable.

A 30-year fixed-rate mortgage has relatively low monthly payments because you’re spreading your payments over a longer period than a 15-year mortgage. Your payments are predictable because, unlike an adjustable-rate mortgage (ARM), your rate won’t change from year to year. Over the years, the only things that can affect your monthly payment are any changes in your homeowner’s insurance or property taxes.

The main disadvantage of 30-year fixed mortgage rates is mortgage interest, both short and long term.

A 30-year fixed term comes with a higher rate than a shorter fixed term, and it is higher than the introductory rate of a 30-year ARM. The higher your rate, the higher your monthly payment. You’ll pay more in interest over the life of your loan due to both the higher rate and longer term.

The advantages and disadvantages of 15-year fixed mortgage rates are basically reversed with 30-year rates. Yes, your monthly payments will still be predictable, but another advantage is that shorter terms come with lower interest rates. Not to mention, you’ll pay off your mortgage 15 years sooner. Then you’ll potentially save hundreds of thousands of dollars in interest over the life of your loan.

However, since you’re paying the same amount half the time, your monthly payments will be higher than if you chose a 30-year term.

Adjustable-rate mortgages lock in your rate for a predetermined period of time, then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years and then goes up or down once per year for the remaining 25 years.

The main advantage is that the introductory rate is usually lower than what you would get with a 30-year fixed rate, so your monthly payments will be lower. (The current average rate doesn’t reflect this, though—in some cases, fixed rates are actually lower. Talk to your lender before deciding between a fixed or adjustable rate.)

With an ARM, you don’t know what mortgage rates will be after the intro-rate period ends, so you risk having your rate go up later. This can ultimately end up costing more, and your monthly payments are unpredictable from year to year.

But if you plan to move before the intro-rate period ends, you can take advantage of lower rates without risking rate increases down the road.

First of all, now is a relatively good time to buy a home compared to a few years ago. Home prices have not risen as much as they did at the height of the Covid-19 pandemic. So, if you want or want to buy a home soon, you should feel good about the current housing market.

Although mortgage rates are up today, rates overall are trending down. Since early 2025, the average 30-year rate on conventional loans has fallen by more than half a point.

The best time to buy is usually when it makes sense for your stage of life. Trying to time the real estate market can be as pointless as timing the stock market – buy when it’s the right time for you.

According to Zillow, the national average 30-year mortgage rate is currently 6.10%. But keep in mind that mortgage rates vary by state and zip code. For example, if you are buying in a city with a high cost of living, rates may be higher.

Economists do not expect mortgage interest rates to drop significantly before the end of the year. They may drop an inch here or there, but they probably won’t sink.

Overall, mortgage rates have declined steadily. The 30-year fixed rate has fallen by half a point since January.

In many ways, securing a low mortgage refinance rate is like buying your own home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing in the short term also gives you a lower rate, although your monthly mortgage payment will be higher.