Check out CNET Money’s 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 interest rate for a standard 30-year fixed mortgage is 6.90% today, down -0.01% compared to one week ago. The average rate for a 15-year fixed mortgage is 6.11%, which is a decrease of -0.02% from the same time 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.”
Today’s mortgage rates
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 CNET’s partner lenders.
About these rates: Bankrate’s tool features rates from partner lenders that you can use when comparing multiple mortgage rates.
What’s behind today’s high mortgage rates?
The Federal Reserve has kept interest rates high this year while it assesses the impact of the Trump administration’s drastic economic agenda. Lower borrowing costs would gradually trickle down to other parts of the economy, including the housing market. However, the central bank doesn’t directly set lenders’ mortgage rates.
“The Fed matters, but it’s 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 administration’s 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 shouldn’t 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.
Will mortgage rates go down in 2025?
Check out CNET Money’s mortgage forecast for 2025. Here’s a look at where some major housing authorities expect average mortgage rates to land.
How can I choose a mortgage term?
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.
30-year fixed-rate mortgages
For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 6.90% 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.
15-year fixed-rate mortgages
Today, the average rate for a 15-year, fixed mortgage is 6.11%. 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.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 6.04% 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.
Calculate your monthly mortgage payment
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. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.
Where can I find the best mortgage rates?
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.
- Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
- Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
- Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
- Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
- Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.
