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The average 30-year mortgage rate was 6.58% last month and is currently trending down about 30 basis points, according to Zillow data.
The rate cut comes after consumer price index data showed inflation slowed more than expected in June, rising just 3.0% year-on-year. This slowed from 3.3% the previous month and is a significant drop from the 9.1% inflation peak in June 2022.
The weaker-than-expected data has rekindled hopes that the Federal Reserve may cut the federal funds rate multiple times this year, which would significantly reduce upward pressure on mortgage rates and help them trend lower.
As long as inflation continues to slow, mortgage rates should continue to fall through the remainder of 2024, meaning that people planning to buy a home later this year or in 2025 should benefit from lower interest rates and increased affordability.
Current mortgage interest rates
Mortgage Type Today's Average Interest Rates
This information is provided by Zillow. See more mortgage rates on Zillow Zillow Real Estate
Current refinance rates
Mortgage Type Today's Average Interest Rates
This information is provided by Zillow. See more mortgage rates on Zillow Zillow Real Estate
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Mortgage interest rates for buying a home
30-year fixed mortgage rates rise slightly (+0.09%)
The average interest rate on a 30-year fixed mortgage is currently 6.30%, up 9 basis points from the same time last week, according to data from Zillow. The rate is down from 6.62% a month ago.
At 6.30%, you'll pay $619 per month in principal and interest for every $100,000 you borrow.
A 30-year fixed rate mortgage is the most common type of mortgage. With this type of mortgage, you pay back the amount you borrow over 30 years, and your interest rate will remain the same for the life of the loan.
20-year fixed mortgage rates rise slightly (+0.08%)
The average interest rate on a 20-year fixed mortgage rose 8 basis points from last week to 6.11%, compared with 6.19% at the same time last month.
With a 20-year term and a 6.11% interest rate, your monthly payments for principal and interest would be $723 for every $100,000 borrowed.
Although 20-year terms are less common than 30-year or 15-year terms, many mortgage lenders still offer this option.
15-year fixed mortgage rates increased slightly (+0.02%)
The average rate on a 15-year mortgage is 5.68%, just 2 basis points higher than last week and down from 5.87% at the same time last month.
With a 15-year term and a 5.68% interest rate, you'll pay $827 per month in principal and interest for every $100,000 borrowed.
If you want the predictability that a fixed rate offers, but want to lower your interest payments over the life of your loan, a 15-year fixed-rate mortgage may be right for you. These terms are shorter and have lower interest rates than 30-year fixed-rate mortgages, which could save you tens of thousands of dollars in interest. However, your monthly payments will be higher than you would with a longer term.
7/1 ARM rates remain roughly flat (+0.02%)
7/1 Variable mortgage rates rose 2 basis points from a week ago to 6.41%, but are down from 6.87% a month ago.
At 6.41%, your monthly payments for principal and interest would be $626 per $100,000 borrowed, but only for the first seven years. After that, your payments would increase or decrease each year based on the new interest rate.
5/1 ARM interest rates rise (+0.16%)
The average 5/1 ARM rate is 6.42%, up 16 basis points from last week and down from 6.74% a month ago.
Here's how a 6.42% interest rate would affect you over the first five years: For every $100,000 you borrow, you'll pay $627 per month in principal and interest.
30-year FHA rates remain stable (unchanged)
The average 30-year FHA interest rate is 5.54% today, unchanged from last week. This rate was 6.14% a month ago.
At 5.54%, you'll pay $570 per month in principal and interest for every $100,000 you borrow.
An FHA mortgage is a good option if you can't qualify for a conforming mortgage. To qualify, you'll need a 3.5% down payment and a credit score of 580.
30-year VA rates increased slightly this week (+0.08%)
Current VA mortgage rates are 5.66%, 8 basis points higher than the same time last week. This rate was 6.00% a month ago.
At a 5.66% interest rate, your monthly payment for principal and interest will be $578 for every $100,000 borrowed.
Home loan refinancing interest rates
The refinancing rate for 30-year fixed-rate loans has fallen (-0.37%).
The average refinance rate for a 30-year mortgage is 7.08%, down 37 basis points from last week and down from 7.58% a month ago.
Here's how a 7.08% interest rate would affect your monthly payments: For every $100,000 you borrow, you'll pay $671 in principal and interest.
Refinancing to a 30-year term will result in lower monthly payments, but refinancing to a longer term will ultimately mean you pay more.
The refinancing rate for 20-year fixed-rate loans has fallen slightly (-0.14%).
The current 20-year fixed refinance rate is 6.48%, down 14 basis points from a week ago, compared with 7.03% at the same time last month.
With a 20-year term and a 6.48% interest rate, you'll pay $744 per month in principal and interest for every $100,000 borrowed.
15-year fixed refinancing rates rise (+0.17%)
The average refinance rate for a 15-year fixed loan is 6.32%, up 17 basis points from last week and compared to 5.97% at the same time a month ago.
At a 6.32% interest rate over a 15-year term, you'll pay $861 per month in principal and interest for every $100,000 borrowed.
Refinancing to a 15-year term could save you money in the long run because you'll get a lower interest rate and pay off your mortgage quicker than you would with a 30-year term, but your monthly payments may be higher.
7/1 ARM refinance rates remain almost unchanged (-0.02%)
The average 7/1 ARM refinance rate is 6.41%, down just 2 basis points from last week and down from 6.72% a month ago.
If you refinance to a 7/1 ARM with a 6.41% interest rate, your monthly principal and interest payments will be $626 per $100,000 borrowed. This is for the first seven years, and your rate will change every year thereafter unless you refinance again.
5/1 ARM refinancing rates rise (+0.34%)
The 5/1 ARM refinance rate is 6.59%, 34 basis points higher than the same time last week and down from 6.78% at the same time last month.
At a 6.59% interest rate, you would pay $638 per month in principal and interest for every $100,000 you borrow. That’s the amount you’d pay for the first five years of your new mortgage.
30-year FHA refinance rates fall (-0.38)
The 30-year FHA refinance rate was 5.25%, down 38 basis points from the same time last week, compared with 5.79% a month ago.
If the refinance rate is 5.25%, your total monthly principal and interest payments will be $552 per $100,000 borrowed.
30-year VA refinance rates rise slightly (+0.03)
The average 30-year VA refinance rate is 5.88%, up 3 basis points from last week. This rate was 6.03% a month ago.
At 5.88%, your monthly payment for principal and interest will be $592 for every $100,000 borrowed.
Will mortgage rates fall?
Mortgage rates began to rise from record lows in the second half of 2021 and have risen by more than three percentage points in 2022. Mortgage rates have also risen significantly in 2023, but have begun to trend downward again toward the end of the year. While rates were relatively high during the first half of the year, they have recently fallen and may continue to fall through the remainder of 2024.
For homeowners looking to use the value of their home to cover a major purchase, like a home renovation, a home equity line of credit (HELOC) may be a good option until mortgage rates drop further. To find the best loan for you, check out our best HELOC lenders.
A HELOC is a line of credit that allows you to borrow against the equity in your home. It's similar to a credit card in that you only borrow what you need, rather than a lump sum. It also allows you to tap into the money you have left in your home without having to pay off your entire mortgage like a cash-out refinance would.
Current HELOC interest rates are relatively low compared to other loan options such as credit cards and personal loans.
Molly Grace
Mortgage Reporter