Core Insights - Mortgage rates are currently decreasing, with the 30-year fixed mortgage rate at 6.15% and the 15-year fixed rate at 5.48% [1] - The 30-year rate has dropped by more than a quarter point in just three weeks, indicating a potential opportunity for locking in rates [1] Current Mortgage Rates - The current national average mortgage rates include: - 30-year fixed: 6.15% - 20-year fixed: 5.75% - 15-year fixed: 5.48% - 5/1 ARM: 6.30% - 7/1 ARM: 6.35% [5] Refinance Rates - Current refinance rates are generally higher than purchase rates, with the 30-year fixed refinance rate at 6.24% [16] Comparison of Mortgage Types - A $400,000 mortgage with a 30-year term at 6.15% results in a monthly payment of approximately $2,437, leading to $477,289 in interest over the term [8] - A 15-year mortgage at 5.48% for the same amount results in a monthly payment of about $3,264, with total interest paid being $187,536 [8] Adjustable vs. Fixed-Rate Mortgages - Fixed-rate mortgages lock in the interest rate from the start, while adjustable-rate mortgages (ARMs) have a fixed rate for an initial period before adjusting based on market conditions [10][11] - ARMs may start with lower rates but carry the risk of increases after the initial period [12] Future Rate Expectations - Economists do not anticipate significant drops in mortgage rates before the end of 2025, despite recent Federal Reserve rate cuts [13][17] - The Federal Reserve is expected to implement additional rate cuts, which may influence mortgage rates slightly lower in 2026 [14][18]
Mortgage and refinance interest rates today, October 21, 2025: A small move lower