Mortgage and refinance rates today, December 10, 2024: Fixed rates are falling

Although most variable mortgage rates are up today, fixed rates are falling slightly. According to Zillow, the average 30-year fixed mortgage rate is down three basis points 6.21%and the 15-year fixed rate is down 10 basis points 5.53%.

Overall, fixed plans are currently better deals than customizable plans. ARM interest rates start out higher than fixed interest rates, so you’ll face a higher monthly payment during the introductory period. However, every mortgage lender is different. Be sure to research all of your mortgage lender options before choosing a loan type.

Dig Deeper: The best mortgage lenders currently

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

• 30 years fixed: 6.21%

• 20 years fixed: 6.01%

• 15 years fixed: 5.53%

• 5/1 ARM: 6.45%

• 7/1 ARM: 6.50%

• 30 year old VA: 5.64%

• 15 year old VA: 5.25%

• 5/1VA: 5.93%

Remember, these are national averages rounded to the nearest hundredth.

Read more: This will help you get the lowest possible mortgage interest rates

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

• 30 years fixed: 6.30%

• 20 years fixed: 6.07%

• 15 years fixed: 5.67%

• 5/1 ARM: 5.92%

• 7/1 ARM: 6.42%

• 30 year old VA: 5.70%

• 15 year old VA: 5.58%

• 5/1 VA: 5.70%

Here too, the figures given are national average values ​​rounded to the nearest hundredth. The refinancing interest rates are usually higher than the purchase interest rates.

You can use a mortgage calculator to determine how different mortgage terms and interest rates affect your monthly payments. Use Yahoo Finance’s free mortgage calculator to play around with different outcomes.

Our calculator also takes factors like property taxes and home insurance into account when calculating your estimated monthly mortgage payment. This will give you a better overview of your total monthly payment than if you just looked at the mortgage amount and interest.

As a rule of thumb, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15-year or 30-year mortgage rates, keep in mind that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you pay off the same loan amount in half the time.

For example, a $400,000, 30-year mortgage with an interest rate of 6.21% would require you to make a monthly payment of approximately $2,452 on your mortgage amount and interest. Because interest accumulates over decades, you end up paying $482,890 in interest.

If you take out a $400,000, 15-year mortgage with an interest rate of 5.53%, you’ll pay approximately $3,275 monthly on your capital and interest. However, you only pay $189,447 interest over the years.

If the 15-year monthly mortgage payment is too high, remember that you can always 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 interest rate is fixed from day one. However, you will receive a new interest rate when you refinance your mortgage.

With an adjustable rate mortgage, your interest rate stays the same for a specific period of time. Then the tariff increases or decreases depending on several factors, such as: B. the economic situation and the maximum amount that your tariff can change depending on the contract. For example, with a 7/1 ARM, your rate would be fixed for the first seven years and then change every year for the remainder of your term.

Adjustable interest rates sometimes start lower than fixed interest rates, but once the initial rate lock-in period ends, you risk seeing your interest rate rise. ARM rates have also been higher than fixed rates lately, so they’re not as cheap as usual.

Dig Deeper: Variable or fixed rate mortgage – which should you choose?

Mortgage rates trended downward from early August until the Federal Reserve meeting on September 18, when the central bank announced a 50 basis point cut in the federal funds rate. Since this announcement, mortgage rates have largely increased. (With occasional exceptions, like today.)

The Fed cut its key interest rate again at its November meeting. The trajectory of future mortgage rates will largely depend on the Federal Reserve’s decision whether or not to cut interest rates at its future meetings. The federal funds rate has no direct impact on mortgage rates, but it is a good indicator of how the economy as a whole is doing. So when the Fed interest rate goes down, mortgage rates typically go down as well.

Learn more: How the Federal Reserve Affects Mortgage Rates

According to Zillow data, today’s 30-year fixed rate is 6.21% and the 30-year refinance rate is 6.30%. These are the national averages. So keep in mind that the average may vary in your state or city. Your rate will also vary depending on your personal finances.

Mortgage rates are falling ahead of the Federal Reserve meeting next Wednesday. Interest rates could gradually decline in 2025, but there is no guarantee.

Mortgage rates are unlikely to fall significantly in 2024. However, they could decline during 2025.