Mortgage rates continue a substantial decline. According to Zillow, the current 30-year mortgage rate is 6.12%, down eight basis points since Friday. The 15-year fixed interest rate fell four basis points to 5.34%.

Treasury yields have fallen since Labor Day, and not gently. The 10-year Treasury note, a benchmark for mortgage rates, is down a quarter point in one week. Mortgage rates tracked by Zillow are down even more than that.

The Federal Reserve is likely to cut interest rates next week, but mortgage rates are already making their move.

“The spread between 30-year mortgage rates and similar maturities has reached its tightest level since September of 2024,” Jeff DerGurahian, loanDepot’s chief investment officer and head economist, said in an analysis. “Expectations that the Fed will slow or end its balance sheet runoff (quantitative tightening), along with further deregulation supportive of bank demand, could help continue this favorable trend for mortgages.”

Dig deeper: The best mortgage lenders right now

Here are the current mortgage rates, according to our latest Zillow data:

30-year fixed: 6.12%

20-year fixed: 5.68%

15-year fixed: 5.34%

5/1 ARM: 6.26%

7/1 ARM: 6.14%

30-year VA: 5.65%

15-year VA: 5.23%

5/1 VA: 5.71%

Remember that these are the national averages and rounded to the nearest hundredth.

These are the current mortgage refinance rates, according to the latest Zillow data:

30-year fixed: 6.18%

20-year fixed: 5.66%

15-year fixed: 5.42%

5/1 ARM: 6.37%

7/1 ARM: 6.34%

30-year VA: 5.67%

15-year VA: 5.19%

5/1 VA: 5.62%

Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates.

A mortgage calculator can help you see how various mortgage term lengths and interest rates will affect your monthly payments. Use this mortgage calculator to play around with different outcomes.

The Yahoo Finance mortgage calculator also considers factors like property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.

As a general rule, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15- versus 30-year mortgage rates, know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you’re paying off the same loan amount in half the time.

For example, with a $400,000 mortgage with a 30-year term and a 6.12% rate, you’ll make a monthly payment of about $2,429 toward your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $474,494 in interest.

If you get a $400,000 15-year mortgage with a 5.34% rate, you’ll pay about $3,234 monthly toward your principal and interest. However, you’ll only pay $182,205 in interest over the years.

If that 15-year mortgage monthly payment is too high, remember you can always make extra mortgage payments on your 30-year loan to pay off your mortgage faster and ultimately pay less interest.

With a fixed-rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage.

An adjustable-rate mortgage keeps your rate the same for a set period of time. Then the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remainder of your term.

Adjustable rates sometimes start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up. ARM rates have also been starting higher than fixed rates recently, so sometimes you don’t get a rate break.

Dig deeper: Adjustable-rate vs. fixed-rate mortgage — Which should you choose?

Economists don’t expect drastic mortgage rate drops before the end of 2025.

In 2024, mortgage rates trended downward from early August to the Sept. 18 Federal Reserve meeting, when the central bank announced a 50-basis-point slash to the federal funds rate. Since that announcement, mortgage rates have mostly increased or held steady.

The Fed decreased its rate again at its November and December meetings (by 25 bps each time). The trajectory of future mortgage rates will largely depend on the Federal Reserve’s decision on whether or not to cut the federal funds rate at its September meeting.

The Fed has not cut its rate at any of its 2025 meetings so far, including its July 30 meeting. Currently, the CME FedWatch tool predicts an 89% chance that the rate will decrease at the Fed’s meeting next week. Mortgage rates have been falling since the first of September, so they may or may not react to a Fed short-term interest rate cut.

Dig deeper: Understanding the Fed’s rate decisions — Do we want high or low interest rates?

According to Zillow data, today’s 30-year fixed rate is 6.12% for home purchases and 6.18% for refinances. These are the national averages, so keep in mind the average in your state or city could be different. Your rate will also vary depending on your personal finances.

Mortgage rates aren’t expected to move much by the end of 2025. Even with a fed funds rate cut in September, other financial factors are likely to keep rates steady.

Mortgage rates might ease a bit lower next year. Depending on the economy, inflation, and the Fed, any decreases may be relatively small.