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Compare today's 30-year mortgage rates
Interest rates on 30-year mortgage loans have hovered between the mid-6% and low-7% range in 2024. Although rates dropped for a bit in August and September, they are back in this range. Rates have mostly been increasing over the last couple of months, but according to Freddie Mac, the 30-year fixed rate has dropped by 12 basis points this week to 6.69%.
The 30-year mortgage rate is 34 basis points lower than a year ago. Rates are likely dropping this week due to the decreasing 10-year Treasury yield and anticipation of a Fed rate cut at the Federal Reserve's Dec. 18 meeting. If you're ready to get a 30-year mortgage, now might be a good time — even if they inch down here and there, it's unlikely rates will plummet anytime soon.
In this article:
Read more: Should you lock in a mortgage rate — and if so, when?
30-year mortgage rates today
As of the latest data from government-sponsored enterprise Freddie Mac, the average 30-year mortgage rate is now 6.69%. That's 12 basis points lower than last week and below the November high of 6.84%. It's also just below the 52-week average of 6.72%.
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 pay $143 less than you would with the annual high and $8 less than you would if you were paying the 52-week average rate. 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
Current 30-year mortgage and refinance rates
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:
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30-year fixed: 6.32%
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30-year VA: 5.68%
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20-year fixed: 6.15%
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15-year fixed: 5.68%
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15-year VA: 5.30%
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7/1 ARM: 6.56%
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5/1 ARM: 6.57%
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5/1 VA: 6.02%
Here are the current 30-year refinance rates according to Zillow:
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30-year fixed: 6.37%
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30-year VA: 5.75%
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20-year fixed: 6.11%
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15-year fixed: 5.74%
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15-year VA: 5.66%
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7/1 ARM: 6.44%
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5/1 ARM: 6.11%
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5/1 VA: 5.40%
It’s common for mortgage refinance rates to be higher than purchase rates (although that isn't always the case). 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.
Dig deeper: The best mortgage refinance lenders
30-year mortgage rate calculator
You can use the Yahoo Finance 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.
Pros and cons of 30-year fixed-rate mortgages
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.
Pros
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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.
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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.
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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.
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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.
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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.
Cons
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Higher interest rates. Rates on 30-year loans are typically higher than 15-year mortgage rates. The longer your mortgage term, the higher your interest rate will usually be.
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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.
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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.
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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
How to get the best 30-year mortgage rate
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:
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Improve your credit score: The higher your score, the better your rate will usually be.
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Make a larger down payment: When you put more money down to buy your house, 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.
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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.
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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.
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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
30-year mortgage interest rate vs. APR
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
30-year mortgage rate FAQs
What is the average 30-year mortgage interest rate right now?
The average 30-year mortgage rate is 6.69%, according to Freddie Mac. Rates fluctuate daily, and Freddie Mac updates its rate data every Thursday.
What is the lowest rate ever for a 30-year mortgage?
The lowest average 30-year mortgage rate ever recorded was 2.65%, according to Freddie Mac. Borrowers saw these rates in January 2021.
When was the highest 30-year mortgage rate?
The highest average 30-year mortgage rate ever recorded was 18.63%, according to Freddie Mac. Borrowers saw these rates in October 1981.
Will 30-year interest rates drop in 2024?
The 30-year mortgage interest rates probably won't significantly drop in 2024. They will probably be fairly stagnant with the occasional rise and fall.
This article was edited by Laura Grace Tarpley.
