Most mortgage rates today have gone down. According to Zillow, the average 30-year fixed interest rate is down five basis points 6.67%and the 15-year fixed rate has dropped four basis points to 5.95%.

Mortgage rates are still high and likely won’t fall dramatically in 2025. This could be a good time to buy a house as waiting for lower rates may not be very helpful. But if you want to refinance your existing mortgage at a better rate, you might want to hold on a little longer.

Deepen: 6 times when it makes sense to refinance your mortgage

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

• Fixed at 30 years: 6.67%

• Fixed at 20 years: 6.45%

• Fixed at 15 years: 5.95%

• 5/1 ARM: 6.94%

• 7/1 ARM: 6.91%

• VA of 30 years: 6.12%

• 15-year VA: 5.56%

• 5/1 GO: 6.16%

• 30-year FHA: 6.33%

• 5/1 FHA: 6.38%

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

Read more: How to get the lowest mortgage rates possible

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

• Fixed at 30 years: 6.67%

• Fixed at 20 years: 6.46%

• Fixed at 15 years: 5.92%

• 5/1 ARM: 7.24%

• 7/1 ARM: 7.45%

• VA of 30 years: 6.10%

• 15-year VA: 5.72%

• 5/1 GO: 6.04%

• 5/1 FHA: 6.50%

Again, the figures provided are national averages rounded to the nearest hundredth. Refinancing rates are usually higher than purchase rates.

A mortgage calculator can help you see how different mortgage terms and interest rates will affect your monthly payments. Use the free one Yahoo Finance Mortgage Calculator to play with different results.

Our calculator also takes into account factors like 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 were just looking at the mortgage principal and interest.

As a general rule, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing Mortgage rates for 15 and 30 yearsyou know that in the short term it will save you money in interest in the long term. However, your monthly payments will be higher because you pay off the same loan in half the time.

For example, with a $400,000 mortgage with a 30-year term and a rate of 6.67%, you will make a monthly payment of approx $2,573 towards your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $526,337 in interest

If you get a $400,000 15-year mortgage at 5.95%, you’ll pay about $3,365 monthly for principal and interest. However, you will only pay $205,634 in interest over the years.

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

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

An adjustable rate mortgage keeps the rate the same for a certain period of time. The rate will then go up or down based on a number of factors, including the economy and the maximum amount your rate can change under your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the rest of your term.

Adjustable rates sometimes start lower than fixed rates, but once the initial rate lock-in period ends, you risk your interest rate going up. ARM rates have also started to be higher than fixed rates recently, so they’re not as good as they used to be.

Deepen: Adjustable Rate Mortgage vs. Fixed Rate Mortgage — Which Should I Choose?

In 2024, 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 that announcement, mortgage rates have either risen or remained mostly flat.

The Fed cut rates again at its November and December meetings (by 25 bps each time). The trajectory of future mortgage rates will largely depend on the Federal Reserve’s decision on whether or not to cut the federal funds rate at their 2025 meetings.

When economists expect a rate cut from the Fed at its next meeting, mortgage interest rates tend to decline before the meeting, not after. There is still almost a month until the Fed’s next meeting, but according to the CME FedWatch toolit is all but guaranteed that the fed funds rate will remain unchanged at the January meeting. That means rates probably won’t drop significantly in the next couple of months.

Deepen: How the Federal Reserve rate decision affects mortgage rates

According to Zillow data, today’s 30-year fixed rate for both purchases and refinances is 6.67%. These are national averages, so keep in mind that the average for your state or city may be different. Your rate will also vary based on your personal finances.

Mortgage rates will likely gradually decline throughout 2025, but are unlikely to plummet anytime soon.

Mortgage rates should fall in 2025, although probably not as dramatically as previously expected. Depending on what happens with the economy, inflation and the Fed, any decrease could be relatively small.