Mortgage and refinance rates today, January 3, 2025: Rates keep rising

Mortgage rates have increased for three consecutive weeks and are now at their highest points since July 2024. According to Freddie Mac, the average 30-year fixed mortgage rate is up by six basis points to 6.91%, and the 15-year fixed rate has risen by 13 basis points to 6.13%.

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It could be good to wait until spring to buy a home — housing inventory usually goes up in spring, and mortgage interest rates could be lower by then. However, these perks often bring more competition and even higher prices along with them. If you want to have a calmer buying experience, consider starting the process now. Remember, you can always refinance in a few years when rates are better.

Dig deeper: What is the best time of year to buy a house?

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

• 30-year fixed: 6.68%

• 20-year fixed: 6.53%

• 15-year fixed: 6.04%

• 5/1 ARM: 6.74%

• 7/1 ARM: 6.68%

• 30-year VA: 6.10%

• 15-year VA: 5.62%

• 5/1 VA: 6.21%

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

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Learn more: 5 strategies to get the lowest mortgage rates

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

• 30-year fixed: 6.64%

• 20-year fixed: 6.57%

• 15-year fixed: 5.95%

• 5/1 ARM: 6.14%

• 7/1 ARM: 6.59%

• 30-year VA: 6.06%

• 15-year VA: 5.77%

• 5/1 VA: 5.93%

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.

Learn more: Want to refinance your mortgage? Here are 7 home refinance options.

Yahoo Finance has a free mortgage payment calculator. Use the calculator to see how various mortgage rates and loan terms could affect your monthly payments.

Our calculator also considers homeowners insurance, property taxes, and other expenses that affect your monthly payment. This will give you a better idea of what you’d realistically pay in a month than if you just look at the mortgage principal and interest.

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A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.

A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you get a 30-year mortgage with a 6% interest rate, your rate will stay at 6% for the entire 30 years unless you refinance or sell.

An adjustable-rate mortgage locks in your rate for a predetermined amount of time and then changes it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once per year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and housing market.

At the beginning of your mortgage term, most of your monthly payment goes toward interest. Your monthly payment toward mortgage principal and interest stays the same throughout the years — however, less and less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.

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

A 30-year fixed-rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term and will result in paying significantly more in interest over the years.

You might like a 15-year fixed-rate mortgage if you want to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot in interest in the long run. But you’ll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.

Read more: How to decide between a 15-year and 30-year fixed-rate mortgage

Typically, an adjustable-rate mortgage could be good if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates are very similar to 30-year fixed rates right now. Before getting an ARM just for a lower rate, compare your rate options from term to term and lender to lender.

Mortgage rates started dropping in August and the beginning of September — but as of mid-September, they’ve been holding stagnant or increasing for the most part.

In fact, they’ve gone up for three straight weeks.

Mortgage rates will probably decrease throughout 2025, but due to the uncertainty of how Trump’s presidency will impact the economy, it’s unclear how drastically they will fall. We can expect to see rates stay above 6%.

Read more: When will the housing market crash again?

According to Freddie Mac, this week’s national average 30-year mortgage rate is up six basis points to 6.91%, and the average 15-year mortgage rate has increased by 13 basis points to 6.13%.

According to its December housing forecast, Fannie Mae expects the 30-year mortgage rate to end 2025 at 6.20%. The Mortgage Bankers Association (MBA) December forecast is less optimistic, putting the 30-year rate at 6.40% in Q4 2025.

There’s a decent chance mortgage rates will decrease overall in 2025, not up. However, we will have to see how the next few months shake out as the markets react to Trump’s upcoming presidential term and when the Fed decides to cut its rate.