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Compare today's 30-year mortgage rates

Yahoo Personal Finance· Getty Images
Aly J. Yale
·Freelance writer
Updated 8 min read

Interest rates on 30-year mortgage loans have hovered between the mid-6% and low-7% range in 2024. But in the last few weeks, that trend has started to change. In fact, rates have moved notably lower and have now sat under 6.50% for three straight weeks.

These lower rates mean it’s becoming a better time to buy a house with a 30-year mortgage. You’ll have lower monthly payments and pay less in interest over the years than you would have earlier in the year.

In this article:

Read more: Should you lock in a mortgage rate — and if so, when?

As of the latest data from government-sponsored enterprise Freddie Mac, the average 30-year mortgage rate is now 6.46%. That’s a little lower than last week’s 6.49%, down from the July high of 6.95%, and significantly lower than that almost-8% rate seen last October.

It’s also well below the 52-week average of 6.98%. In fact, if you got a mortgage for $400,000 (which is a little less than the median-priced house in the U.S.), here’s how much mortgage payments would have improved over the last year:

At today’s rates, you’d save about $138 per month compared to the 52-week average and $359 compared to the 12-month high. Keep in mind that the above amounts refer to mortgage principal and interest payments — they do not include homeowners insurance, property taxes, mortgage insurance, or homeowners' association dues, which may also be included in your monthly payments.

Dig deeper: PITI (principal, interest, taxes, insurance) and how it affects your mortgage payments

Below, you can find the 30-year fixed purchase rates and compare them to other terms and types of home loans. These are national averages for home purchases and are based on Zillow data:

  • 30-year fixed: 5.99%

  • 30-year VA: 5.30%

  • 20-year fixed: 5.70%

  • 15-year fixed: 5.28%

  • 5/1 ARM: 6.23%

  • 7/1 ARM: 6.25%

  • 5/1 FHA: 4.90%

  • 15-year VA: 4.77%

  • 5/1 VA: 5.26%

Here are the current 30-year refinance rates according to Zillow:

  • 30-year fixed: 6.06%

  • 30-year VA: 5.54%

  • 20-year fixed: 5.80%

  • 15-year fixed: 5.45%

  • 5/1 ARM: 6.19%

  • 7/1 ARM: 6.23%

  • 5/1 FHA: 4.82%

  • 15-year VA: 5.12%

  • 5/1 VA: 5.04%

It’s common for mortgage refinance rates to be higher than purchase rates. Also, remember that these are national average rates. Your interest rate could differ depending on your location, credit score, debt-to-income ratio (DTI), down payment, and mortgage lender.

The average 30-year rates are down overall, so it could be a good time to buy a house or refinance. The 30-year fixed conventional mortgage rate is below 6% according to Zillow, and the VA 30-year fixed rate is down by 15 basis points. Since this time in July, the 30-year conventional rate has dropped by 51 basis points, and the 30-year VA loan rate has fallen by 44 basis points.

The refinance rate on 30-year conventional mortgages has dropped by 23 basis points since last week and by 1.23% since this time in July. The VA 30-year refinance rate is down seven basis points since this time last week and 48 points since July.

Dig deeper: Is now a good time to refinance my home?

You can use a mortgage calculator to determine what today’s rates mean for your home-buying or refinancing goals. It can also help you determine what price range to focus on, how much to put toward a down payment, and what you can expect to pay in escrow costs on top of your principal and interest payments.

Learn more: How much house can you afford? Use Yahoo Finance’s home affordability calculator.

The 30-year fixed-rate mortgage is, by far, the most popular mortgage product in the country — and for many reasons.

Still, it’s not perfect. Here are the pros and cons you’ll want to consider before taking on a 30-year fixed-rate loan.

  • Low monthly payments: Because you’re spreading out your loan balance over such a long period, you’ll have lower monthly mortgage payments than if you chose a shorter term.

  • Potentially larger home-buying budget: Lower monthly payments mean you could afford to borrow more (depending on your finances). This can expand your home-buying budget and allow you to buy a bigger or nicer house.

  • A steady interest rate: A fixed-rate mortgage means you’ll have the same interest rate and payment for your entire loan term. This makes for easy budgeting and planning.

  • More financial flexibility: Since 30-year mortgages result in lower monthly payments, they offer you more of a financial buffer. For instance, this can help if you have unexpected expenses or get laid off.

  • Tax benefits for longer: You get to write off the interest you pay on mortgage loans (as long as you itemize your tax returns). With 30-year loans, you get this tax deduction for longer.

  • Higher interest rates. Rates on 30-year loans are typically higher than those on 15-year loans. The longer your mortgage term, the higher your interest rate will usually be.

  • Pay more in long-term interest: You’ll be paying interest for a long time on a 30-year loan. This usually means more long-term interest costs compared to other loan options since there are so many years for interest to accumulate.

  • Slow equity build-up: At the beginning of a 30-year mortgage, most of your payments will go toward interest. This means building up equity in your home will take a long time.

  • Temptation to over-borrow: Because 30-year mortgages come with such low payments, taking out a bigger loan can be tempting. This could lead you to borrow more than you can comfortably afford, causing financial strain later.

Read more: Comparing 30-year vs. 15-year mortgages

The interest rates mentioned above are only averages, and the rate you’d get on a 30-year loan could be very different. Rates are highly personalized, and your credit score, loan amount, mortgage lender, down payment, and many other factors can all play a role in your rate.

Here are some ways to get the lowest mortgage rate possible:

  • Improve your credit score: The higher your score, the better your rate will usually be.

  • Make a larger down payment: When you put more down, the lender has to loan you less, reducing the risk it takes on with you as a borrower. Companies will typically reward this with lower rates.

  • Shop around for your lender: Mortgage lenders can offer wildly different rates and fees, so you should compare several options before getting your loan. Freddie Mac estimates that you can save about $1,200 per year just by getting four rate quotes.

  • Buy points: Mortgage points — also called discount points — allow you to pay an up-front fee to get a lower mortgage rate for your entire loan term. These typically cost 1% of your loan amount and reduce your rate by a small percentage.

  • Look for buydowns: In today’s higher-rate environment, some lenders are offering temporary mortgage rate buydowns. This involves the lender charging a reduced rate for the first year or two of the loan. (Just another reason to shop around for your lender.)

You can also consider using a mortgage broker when getting your loan. These intermediaries help you compare various lenders, loan programs, and rates to ensure you’re getting the best deal. They’re typically paid a commission by the lender you eventually choose to work with.

Learn more: How a float-down option lowers your locked-in mortgage rate

When shopping for your mortgage, you might notice some lenders advertising a 30-year mortgage “interest rate” and others an “APR.” While the two are related, they aren’t the same thing.

The mortgage interest rate is just how it sounds: the interest you’ll pay each year to borrow the money. APR (annual percentage rate), on the other hand, is the total annual cost of the loan. It includes interest, for one, but it also adds in points, fees, and other charges from your lender. It’s more of an all-inclusive marker of a home loan’s annual costs.

Dig deeper: Mortgage APR vs. interest rate

The average 30-year mortgage rate is 6.46%, according to Freddie Mac. Rates fluctuate daily, and Freddie Mac updates its rate data every Thursday.

The lowest average 30-year mortgage rate ever recorded was 2.65%, according to Freddie Mac. Borrowers saw these rates in January 2021.

The highest average 30-year mortgage rate ever recorded was 18.63%, according to Freddie Mac. Borrowers saw these rates in October 1981.

The Federal Reserve is expected to cut the federal funds rate in the fall of 2024. This could mean lower mortgage rates (and rates on other financial products) will follow.

This article was edited by Laura Grace Tarpley.