Mortgage and refinance rates today, December 28, 2024: Now may be the time to lock in your rate

Mortgage rate movements are a bit unsteady today. For example, according to Zillow, the average 30-year fixed rate has decreased by one basis point to 6.72%, while the 15-year fixed rate is up three basis points to 6.12%. The 20-year fixed interest rate has decreased by three basis points to 6.55%.

This could be the trend for a while — occasional ups and downs with few drastic changes. Mortgage rates aren’t expected to plummet anytime soon, so if you’re otherwise ready to buy a house, consider shopping for homes now. Remember, you can always refinance your loan in a few years if rates fall more significantly.

Dig deeper: Should you buy a house? How to know if you’re ready.

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

• 30-year fixed: 6.72%

• 20-year fixed: 6.55%

• 15-year fixed: 6.12%

• 5/1 ARM: 6.73%

• 7/1 ARM: 6.54%

• 30-year VA: 6.15%

• 15-year VA: 5.66%

• 5/1 VA: 6.38%

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

Learn more: 5 strategies for getting the lowest mortgage rates

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

• 30-year fixed: 6.70%

• 20-year fixed: 6.53%

• 15-year fixed: 5.99%

• 5/1 ARM: 6.05%

• 7/1 ARM: 6.70%

• 30-year VA: 6.04%

• 15-year VA: 5.83%

• 5/1 VA: 5.84%

Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.

Use Yahoo Finance’s free mortgage calculator to see how various interest rates and term lengths will impact your monthly mortgage payment. It also shows how the home price and down payment amount play into things.

Our calculator includes homeowners insurance and property taxes in your monthly payment estimate. You even have the option to enter costs for private mortgage insurance (PMI) and homeowners’ association dues if those apply to you. These details result in a more accurate monthly payment estimate than if you simply calculated your mortgage principal and interest.

There are two main advantages to a 30-year fixed mortgage: 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 repayment out over a longer period of time than with, say, a 15-year mortgage. Your payments are predictable because, unlike with an adjustable-rate mortgage (ARM), your rate isn’t going to change from year to year. Most years, the only things that might affect your monthly payment are any changes to your homeowners insurance or property taxes.

The main disadvantage to 30-year fixed mortgage rates is mortgage interest — both in the short and long term.

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

The pros and cons of 15-year fixed mortgage rates are basically swapped from the 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. So you’ll save potentially hundreds of thousands of dollars in interest over the course of your loan.

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

Dig deeper: 15-year vs. 30-year mortgages

Adjustable-rate mortgages lock in your rate for a predetermined amount 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’ll get with a 30-year fixed rate, so your monthly payments will be lower. (Current average rates don’t necessarily 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 have no idea what mortgage rates will be like once the intro-rate period ends, so you risk your rate increasing later. This could 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 is over, you could reap the benefits of a low rate without risking a rate increase down the road.

Learn more: Adjustable-rate vs. fixed-rate mortgage

First of all, now is a relatively good time to buy a house compared to the last couple of years. Home prices aren’t spiking like they were during the height of the COVID-19 pandemic. So, if you want or need to buy a house soon, you should feel pretty good about the current climate.

Also, mortgage rates aren’t predicted to fall drastically throughout 2025 like people were expecting a few months ago. Since rates are wobbling now — and competition tends to be less fierce in winter months — it could be a good time to buy.

Read more: Which is more important, your home price or mortgage rate?

According to Zillow, the national average 30-year mortgage rate is 6.72% right now. But keep in mind that averages can vary depending on where you live. For example, if you’re buying in a city with a high cost of living, rates could be higher.

Mortgage rates aren’t expected to go down significantly before the end of 2024, though they may tick down here and there.

Some mortgage rates are decreasing while others are increasing. Either way, the changes aren’t significant today.

In many ways, securing a low mortgage refinance rate is similar to when you bought your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing into a shorter term will also land you a lower rate, though your monthly mortgage payments will be higher.