Quite a few major mortgage rates are decreasing. Its still expensive to buy a house, but any dip in rates is good news in the housing market.
Katherine Watt
Writer
Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelors degree in English literature.
Katherine Watt
Writer
Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelors degree in English literature.
Check out CNET Moneys weekly mortgage rate forecast for a more in-depth look at what’s next for Fed rate cuts, labor data and inflation.
With mortgage rates in flux, the housing market remains unaffordable and unpredictable. Lingering inflation, threats of a global trade war and mounting recession fears have driven mortgage rates up and down over the last period.
The average for a 30-year fixed mortgage is 6.78% today, down -0.08% over the last week. The average rate for a 15-year fixed mortgage is 5.95%, which is a decrease of -0.13% since last week.
Most housing economists expect average rates for a 30-year fixed mortgage to hover between 6.5% and 7% throughout the year, which could encourage some homebuyers to enter the market in time for spring. At the same time, high home prices and limited inventory, on top of the loss of purchasing power, remain a challenge.
Waning consumer confidence and potential job losses in a recession could keep some buyers on the sidelines, said Nicole Rueth, SVP of the Rueth Team Powered by Movement Mortgage. But for those who have been waiting for greater affordability and have job security, lower rates will open doors.
When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNETs partner lenders.
About these rates: Bankrates tool features rates from partner lenders that you can use when comparing multiple mortgage rates.
The Federal Reserve has kept interest rates high this year while it assesses the impact of the Trump administrations drastic economic agenda. Lower borrowing costs would gradually trickle down to other parts of the economy, including the housing market. However, the central bank doesnt directly set lenders’ mortgage rates.
The Fed matters, but its not the only player in the game, said Rueth. Home loan rates are closely tied to the bond market, specifically tracking 10-year Treasury yields, and bond yields tend to fall in response to slower economic growth. The bond market moves on inflation, economic data and global events like tariffs or political uncertainty, Rueth said.
While mortgage rates have remained fairly steady despite the administrations turbulent policies, it’s unclear what direction they will take in the coming months. Even if the economy slows and the Fed starts cutting rates in late spring, buyers shouldnt expect rock-bottom pandemic-era rates.
Buyers waiting for 3% rates again are wasting time. Those days are gone, said Rueth.
For a look at mortgage rate movement in recent years, see the chart below.
Check out CNET Moneys mortgage forecast for 2025. Heres a look at where some major housing authorities expect average mortgage rates to land.
Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.
The average interest rate for a standard 30-year fixed mortgage is 6.78% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.
Today, the average rate for a 15-year, fixed mortgage is 5.95%. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.
A 5/1 ARM has an average rate of 6.20% today. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.
Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNETs mortgage calculator below can help homebuyers prepare for monthly mortgage payments.
Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.
Katherine Watt
Writer
Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelors degree in English literature.
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