Mortgage rates see a significant drop, with the current 30-year rate at 6.12% and the 15-year rate at 5.34%, according to Zillow. Treasury yields have also fallen, impacting mortgage rates. The Federal Reserve is expected to cut interest rates, but mortgage rates are already adjusting.

The spread between 30-year mortgage rates and similar maturities is at its narrowest since 2024. Expectations of Fed balance sheet changes and deregulation could continue the positive trend for mortgages, says loanDepot’s chief investment officer. Current mortgage rates vary, with 15-year rates lower than 30-year.

A mortgage calculator can help visualize how different terms and rates affect monthly payments. Yahoo Finance offers a comprehensive mortgage calculator that considers property taxes and insurance. Opting for a 15-year mortgage saves on interest in the long run, despite higher monthly payments.

Economists predict no significant drops in mortgage rates by the end of 2025. Rates declined in 2024 after Federal Reserve actions but have mostly risen or remained stable since. Future rates hinge on the Fed’s decisions, with potential decreases in the short term.

Zillow data shows today’s 30-year fixed rate at 6.12% for home purchases and 6.18% for refinances, the national averages. Rates are not expected to change significantly by the end of 2025, even with potential Fed rate cuts in September. Any future rate decreases may be modest.

Read more at Yahoo Finance: Why rates are on a deep slide before the Fed meeting