Rates stay calm before Fed announcement
Mortgage purchase rates haven’t made huge jumps since last Wednesday. Some are up while others are down, and the most significant shift is with the 5/1 ARM rate, which is down 15 basis points to 5.66%. On the other hand, most mortgage refinance rates have increased.
The Federal Reserve meets today and will announce its decision about whether it’s cutting the federal funds rate at 2 p.m. ET. It’s unlikely the Fed will slash its rate today, but many economists expect a cut at the central bank’s September meeting. So, we could continue to experience this trend of minor ups and downs until the Fed makes a move this autumn.
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Dig deeper: What determines mortgage rates? It’s complicated.
Mortgage rates today
Here are the current mortgage rates, according to our latest Zillow data:
30-year fixed: 6.37%
20-year fixed: 6.11%
15-year fixed: 5.66%
5/1 ARM: 6.35%
7/1 ARM: 6.42%
30-year FHA: 5.50%
30-year VA: 5.68%
15-year VA: 5.20%
5/1 VA: 5.98%
Remember that these are the national averages and rounded to the nearest hundredth.
Learn more: 5 strategies to get the lowest mortgage rates
Mortgage refinance rates today
Here are today’s mortgage refinance interest rates, according to the latest Zillow data:
30-year fixed: 7.13%
20-year fixed: 6.27%
15-year fixed: 6.13%
5/1 ARM: 6.37%
7/1 ARM: 6.50%
30-year FHA: 5.30%
30-year VA: 5.81%
15-year VA: 5.23%
5/1 VA: 5.71%
As with the purchase mortgage rates, these are national averages we’ve rounded to the nearest hundredth. Keep in mind that refinance rates are usually a little higher than rates on your original mortgage.
Learn more: Is now a good time to refinance your mortgage?
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Mortgage calculator
Use the free Yahoo Finance mortgage calculator see how different mortgage terms and interest rates will impact your monthly payments. This can help you decide whether to buy a home or refinance in the near future.
Our calculator also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.
How mortgage rates have changed this week30-year fixed rates drop (-0.13%)
Today’s 30-year fixed rate is 6.37%, which is down 13 basis points from last week’s 6.50%.
On a $300,000 mortgage, a 6.37% rate on a 30-year term would result in a monthly mortgage payment of $1,871 toward principal and interest.
20-year fixed rates increase (+0.07%)
The 20-year fixed rate is 6.11% today, up seven basis points since last Wednesday.
A 6.11% rate on a $300,000, 20-year mortgage means you would pay $2,168 toward principal and interest each month. A 20-year term can be a nice balance between a 30-year and 15-year term because you’ll pay off your mortgage faster and pay less in interest, but your monthly payments won’t be as high as with a 15-year mortgage loan.
15-year fixed rates decrease (-0.09%)
The current 15-year fixed rate is 5.66%, a decrease of nine basis points since last week.
With a 15-year term and 5.66% interest rate, your monthly payment on a $300,000 mortgage would jump to $2,477 However, you would pay off your loan much more quickly than with a longer term and pay less in interest.
Learn more: 15-year vs. 30-year mortgages
5/1 ARM rates decline (-0.15%)
The mortgage interest rate is 6.35% on a 5/1 adjustable-rate mortgage (ARM) today. This is 15-basis-point drop from last week, when it was 6.50%.
If you have a 5/1 ARM with a 30-year term, and your loan is for $300,000, a 6.35% rate will result in a $1,867 monthly payment for the first five years. Then, your rate will increase or decrease once per year for the remaining 25 years.
7/1 ARM rates tick up (+0.06%)
Today’s 7/1 ARM mortgage rate is 6.42%. This time last week, the rate was 6.36%.
A 6.42% rate means your monthly payment on a $300,000 mortgage will be $1,880 for the first seven years, then it will change annually for the last 23 years of your term.
Dig deeper: Best mortgage lenders for first-time home buyers
30-year FHA rates go down (-0.08%)
The 30-year FHA loan rate is 5.50%, which is down eight basis points since last week.
With a 5.50% rate on a 30-year term, you’d pay $1,703 monthly toward your principal and interest on a $300,000 mortgage. FHA loans can be great options if you have a low credit score or high debt levels, especially since interest rates are relatively low.
30-year VA loan rates fall (-0.09%)
The current 30-year VA loan rate is 5.68%, which is down from last week’s 5.77%.
VA loans also typically come with lower rates. You also don’t have to pay annual mortgage insurance premiums, which can make them more affordable than FHA loans. If you’re affiliated with the military, a VA loan can be a great choice.
A 30-year, $300,000 mortgage with a 5.68% rate would result in a monthly payment of $1,737.
15-year VA loan rates inch up (+0.02%)
Today’s 15-year VA loan rate is 5.20% — a two-basis-point incline from last week.
With $300,000 mortgage loan that has a 15-year term and 5.20% rate, you’d pay $2,404 monthly toward the principal and interest.
5/1 VA ARM rates let up (-0.12%)
The 5/1 VA ARM rate today is 5.98%, which is a 12-point decrease from last week.
If you got a 5/1 VA ARM with a 30-year term and 5.98% rate, you’d pay $1,795 toward the $300,000 principal and interest. After the first five years, your rate and monthly payment would alter annually.
Learn more: Best VA loan lenders
How mortgage refinance rates have changed this week30-year fixed refinance rates increase (+0.13%)
Today’s 30-year fixed refinance rate is 7.13%, up from last week’s 7.00%.
If you refinance into a $300,000 mortgage with a 30-year term and 7.13% rate, your new monthly mortgage payment toward principal and interest will be $2,022.
20-year fixed refinance rates plummet (-0.21%)
The current 20-year fixed refinance rate is 6.27%, which is 21 basis points lower than this time last week.
A new 20-year $300,000 mortgage with a 6.27% rate would result in a $2,196 monthly principal and interest payment.
15-year fixed refinance rates inch up (+0.04%)
The 15-year fixed refinance rate is 6.13%, which is up just four basis points from last week’s 6.09%.
A refinanced mortgage with a $300,000 principal, 15-year term, and 6.13% rate would result in a $2,553 monthly payment.
Read more: Want to refinance your mortgage? Here are 7 home refinance options.
5/1 ARM refinance rates go up (+0.08%)
Today’s 5/1 ARM refinance rate is 6.37%, eight basis points higher than last week.
A 5/1 ARM with a 6.37% rate and $300,000 principal would lead to an $1,871 monthly payment for the first five years of your refinanced mortgage. Then, your rate will go up or down annually for the last 25 years of your mortgage.
7/1 ARM refinance rates stay stagnant (+0.00%)
The 7/1 ARM refinance rate is 6.50% today, so it hasn’t changed since last week.
If you get a 7/1 ARM mortgage with a 6.50% rate, your monthly payment will be $1,896 on a $300,000 loan. After the first seven years, your rate will adjust annually for the remaining 23 years.
30-year FHA refinance rates barely move (+0.01%)
The current 30-year FHA refinance rate is 5.30%, which is up just one basis point from last week.
By refinancing into a 30-year FHA loan with a $300,000 balance and 5.30% rate, you’ll pay $1,666 each month.
Learn more: Best FHA lenders
30-year VA refinance rates tick up (+0.04%)
The 30-year VA refinance rate is 5.81% today, up four basis points since last week.
A 30-year $300,000 mortgage with a 5.81% rate will result in a $1,762 monthly payment toward your principal and interest.
15-year VA refinance rates skyrocket (+0.28%)
Today’s 15-year VA refinance rate is 5.23%, up significantly over the last week.
A 15-year refinanced mortgage for $300,000 with a 5.23% rate would cost you $2,408.
5/1 ARM refinance rates rise slightly (+0.03%)
The 5/1 ARM refinance rate is 5.71%, up three basis points from last week’s 5.68%.
A 5/1 ARM with a 5.71% rate and $300,000 mortgage will result in a $1,743 monthly payment for the first five years. Then, your rate will increase or decrease for the remaining 25 years of your term.
Dig deeper: How soon can you refinance your mortgage after buying a home?
Today’s mortgage rates: FAQsWhat are mortgage interest rates doing today?
Mortgage rate trends are inconsistent today — some have increased since last week while others have decreased. The 30-year fixed rate when you buy a house is 6.35% today, and the 30-year fixed rate on a refinanced mortgage is 7.13%.
Are refinance rates dropping?
Most mortgage refinance rates have increased over the last week. There are a couple exceptions, though: The 20-year fixed refinance rate has dropped by 21 basis points, and the 7/1 ARM refinance rate hasn’t changed.
How do you get the lowest mortgage rate?
To get the lowest mortgage rate in the current housing market, make a sizable down payment, have an excellent credit score, and keep your debt-to-income ratio (DTI) low. The stronger your personal finances, the lower your interest rate should be.
Should I lock in my mortgage rate today or wait?
It’s impossible to predict the best day for a mortgage rate lock because rates shift from day to day. But locking in your rate early can be helpful so you can know what your monthly budget as a homeowner will be as soon as possible.
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