Will rates stay below 6%?

Most mortgage rates are up today, but it’s not all bad news. According to Zillow, the average 30-year fixed rate is currently 5.97% — which means the 30-year rate has stayed below 6% for about a week and a half. Today’s 15-year fixed rate is 5.47%, down from 5.5% for nearly as long. There’s no guarantee that rates will stay this low, so today might be a good time to lock in a mortgage rate.

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

• 30-year fixed: 5.97%

• 20-year fixed: 5.90%

• 15 years fixed: 5.47%

• 5/1 ARM: 5.95%

• 7/1 ARM: 5.82%

• 30-year VA: 5.54%

• 15-year VA: 5.21%

• 5/1 VA: 5.09%

Note that these are national averages and are rounded to the nearest hundred.

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

• 30-year fixed: 6.07%

• 20-year fixed: 5.88%

• 15 years fixed: 5.59%

• 5/1 ARM: 6.10%

• 7/1 ARM: 6.14%

• 30-year VA: 5.62%

• 15-year VA: 5.47%

• 5/1 VA: 5.22%

Again, the numbers provided are national averages rounded to the nearest hundred. Refinance rates are usually higher than purchase rates.

A mortgage calculator can help you see how different mortgage term lengths and interest rates affect your monthly payments. Use this mortgage calculator to explore different outcomes.

You can bookmark the Yahoo Finance mortgage payment calculator and use it for future reference as you shop for homes and lenders. It also considers factors such as property taxes and homeowner’s insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of ​​your total monthly payment than if you just looked at the mortgage principal and interest.

Generally, 15-year mortgage rates are lower than 30-year mortgages. When comparing 15- vs. 30-year mortgage rates, know that a shorter term will save you money in interest over the long term. However, your monthly payments will be higher because you are paying the same loan amount in half the time.

For example, with a $400,000 mortgage with a 30-year term and a 5.97% rate, you’ll make monthly payments of approx. $2,390 towards your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $460,577 in interest.

If you get a $400,000 15-year mortgage with a 5.47% rate, you’ll pay approx. $3,262 monthly towards your principal and interest. However, you will only pay $187,155 Over the years interest.

If that 15-year mortgage monthly payment is too high, remember that you can make additional mortgage payments on your 30-year loan to pay off your mortgage faster and ultimately pay less interest.

With a fixed rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage.

Adjustable-rate mortgages keep your rate the same for a specified period of time. Then, the rate increases or decreases depending on many factors, such as the economy, and the maximum amount can be changed according to your contract. For example, with a 7/1 ARM, your rate will be locked for the first seven years, then adjust annually for the remainder of your term.

Adjustable rates sometimes start out lower than fixed rates, but after the initial rate-lock period ends, you risk your interest rate going up. ARM rates have also recently started higher than fixed rates, so you may not always get a rate break.

According to Zillow data, today’s 30-year fixed rate is 5.97% for home purchases and 6.08% for refinances. These are national averages, so keep in mind that averages for your state or city may differ. Your rate will vary based on your personal finances.

According to its December forecast, the MBA expects the 30-year mortgage rate to be near 6.4% by the end of the year. Fannie Mae also predicted a 30-year rate above 6% in 2026, but dipped to 5.9% in Q4.

Mortgage rates are likely to change little in 2027. MBA forecasts 30-year fixed rates at 6.3% for most of 2027, before stepping up to an average of 6.4% in Q4 ’27. Fannie Mae predicts average rates near 5.9% for the full year of 2027.