Mortgage and refinance interest rates today for October 20, 2025: Weekly rates drop

Core Insights - Mortgage rates have decreased, with the average 30-year fixed mortgage rate dropping to 6.18% and the 15-year fixed rate to 5.51%, indicating a potential opportunity for homebuyers [1][18][19] Current Mortgage Rates - The current national average mortgage rates are as follows: - 30-year fixed: 6.18% - 15-year fixed: 5.51% - 5/1 ARM: 6.38% [1][18] Refinance Rates - Today's mortgage refinance rates are generally higher than purchase rates, although this is not always the case [3] Adjustable Mortgage Rates - Adjustable-rate mortgages (ARMs) typically start with lower rates than fixed-rate mortgages but carry the risk of rate increases after the initial period [12][13] - The 5/1 ARM has a fixed rate for the first five years, after which it adjusts annually [12] Strategies for Lower Rates - To secure lower mortgage rates, borrowers should aim for higher down payments, excellent credit scores, and low debt-to-income ratios [15] - Options such as buying down the interest rate through discount points at closing can also be considered [16][17] Monthly Payment Examples - For a $300,000 mortgage at a 30-year term with a 6.18% rate, the monthly payment would be approximately $1,834, with total interest paid over the loan's life amounting to $360,066 [9] - For the same mortgage amount at a 15-year term with a 5.51% rate, the monthly payment would increase to $2,453, with total interest paid being $141,512 [11] Market Outlook - Mortgage rates are not expected to drop significantly before the end of the year, as various economic factors are being monitored [20]