Mortgage rates have shifted today, with the average 30-year fixed rate dropping to 6.18%. While not a significant drop, it is the lowest point of 2025. Rates are not expected to drastically decrease this year, making it a good time to lock in a rate if you plan to buy a house soon.

Current mortgage rates, rounded to the nearest hundredth, are: 30-year fixed: 6.18%, 20-year fixed: 5.62%, 15-year fixed: 5.51%, 5/1 ARM: 6.38%, 7/1 ARM: 6.35%, 30-year VA: 5.62%, 15-year VA: 5.09%, 5/1 VA: 5.31%. Refinance rates are slightly higher than purchase rates.

When considering a 30-year fixed mortgage, understand that payments are lower and predictable. However, interest payments are higher due to the longer term. In contrast, a 15-year fixed mortgage offers lower interest rates, faster payoff, and potential savings in interest. Monthly payments, though, are higher.

Adjustable-rate mortgages (ARMs) offer lower initial rates for a set period, but rates can change yearly afterward. Monthly payments are lower initially, but they can increase later. Timing the real estate market is challenging, so buy when it’s right for you.

National average mortgage rates are at 6.18%, but rates vary by state and even ZIP code. Economists don’t anticipate significant drops in rates by year-end. Overall, rates have gradually declined, with the 30-year fixed rate dropping over half a point since July.

To secure a low mortgage refinance rate, focus on improving credit score, lowering debt-to-income ratio, and considering a shorter term for a lower rate. Refinancing may lead to higher monthly payments but lower overall interest payments.

Read more at Yahoo Finance: Rates hit their lowest point of 2025