Winter can be a good time to buy

Interest rates on some mortgage terms have decreased today, but most have increased. According to Zillow, the 30-year fixed mortgage rate is up by four basis points to 6.67%, and the 15-year fixed interest rate has risen by five basis points to 5.03%. The 5/1 ARM rate has inclined by three basis points to 6.71%.

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Despite the recent increases, it could be a good time to buy a house. Mortgage rates shouldn’t plunge anytime soon. They’ll probably go down in 2025, but economists expect the declines to be gradual. Winter can be a good time to buy a home because there is less competition, so if you find a house you love, you could get a fair price.

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: 6.67%

• 20-year fixed: 6.52%

• 15-year fixed: 6.03%

• 5/1 ARM: 6.71%

• 7/1 ARM: 6.60%

• 30-year VA: 6.07%

• 15-year VA: 5.57%

• 5/1 VA: 6.32%

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

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Read more: How are mortgage rates determined?

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

• 30-year fixed: 6.71%

• 20-year fixed: 6.33%

• 15-year fixed: 5.95%

• 5/1 ARM: 5.93%

• 7/1 ARM: 6.65%

• 30-year VA: 6.08%

• 15-year VA: 5.84%

• 5/1 VA: 5.67%

Again, the numbers provided are national averages rounded to the nearest hundredth. Although it’s not always the case, mortgage refinance rates tend to be a little higher than purchase rates.

A mortgage calculator can help you see how different mortgage term lengths and interest rates will impact your monthly payments. Use the free Yahoo Finance mortgage calculator to play around with different outcomes.

Our calculator also considers factors like property taxes and homeowners insurance when estimating your monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.

Today’s average 30-year mortgage rate is 6.67%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is relatively low.

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If you had a $300,000 mortgage with a 30-year term and a 6.67% rate, your monthly payment toward the principal and interest would be about $1,930, and you’d pay $394,752 in interest over the life of your loan — on top of that original $300,000.

The average 15-year mortgage rate is 6.03% today. Several factors must be considered when deciding between a 15-year and 30-year mortgage.

A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to compound.

However, because you’re squeezing the same debt payoff into half the time, your monthly payments will be higher.

If you get that same $300,000 mortgage but with a 15-year term and 6.03% rate, your monthly payment would jump up to $2,536 — but you’d only pay $156,558 in interest over the years.

Dig deeper: How much house can I afford? Use our home affordability calculator.

With an adjustable-rate mortgage, your rate is locked in for a set period of time and then increases or decreases periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then changes every year.

Adjustable rates usually start lower than fixed rates, but you run the risk that your rate goes up once the introductory rate-lock period is over. But an ARM could be a good fit if you plan to sell the home before your rate-lock period ends — that way, you pay a lower rate without worrying about it rising later.

ARM rates have also been higher than fixed rates lately. Before dedicating yourself to a fixed or adjustable mortgage rate, be sure to shop around for the best lenders and rates. Some will offer more competitive adjustable rates than others.

Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.

You can also buy down your interest rate permanently by paying for discount points at closing. A temporary interest rate buydown is also an option — for example, maybe you get a 6% rate with a 2-1 buydown. Your rate would start at 4% for year one, increase to 5% for year two, then settle in at 6% for the remainder of your term.

Just consider whether these buydowns are worth the extra money at closing. Ask yourself whether you’ll stay in the home long enough that the amount you save with a lower rate offsets the cost of buying down your rate before making your decision.

Learn more: How to get the lowest mortgage rates

Here are interest rates for the most popular mortgage terms: According to Zillow data, the national average 30-year fixed rate is 6.67%, the 15-year fixed rate is 6.03%, and the 5/1 ARM rate is 6.71%.

A normal mortgage rate on a 30-year fixed loan is 6.67%. However, keep in mind that’s the national average based on Zillow data. The average might be higher or lower depending on where you live in the U.S.

Mortgage rates probably won’t significantly decrease in the last week of 2024, though they could inch down gradually.