Mortgage & refinance rates today drop to lowest level since October 2024: 30-year fixed at 6%, 15-year fixed at 5.50% – should you lock in now?

Core Insights - Mortgage rates have declined again this week, reaching their lowest level since October 2024, with both the average 30-year fixed mortgage rate and 15-year fixed rate moving lower compared to last week and the same time last year [1][16] Mortgage Rate Trends - The average 30-year fixed mortgage rate is currently at 6.23%, down 3 basis points from last week, and down from 6.81% a year ago [3] - The average 15-year fixed mortgage rate is at 5.51%, also down 3 basis points from last week, and down from 6.10% a year ago [3] - Zillow's national averages show similar trends across various loan types, indicating a consistent decline in mortgage rates [2][16] Current Refinance Rates - Current refinance rates include a 30-year fixed refinance at 6.14%, a 20-year fixed refinance at 6.05%, and a 15-year fixed refinance at 5.60% [7] - Adjustable-rate mortgages (ARMs) such as the 5/1 ARM refinance are at 6.55%, while the 7/1 ARM refinance is at 6.72% [7] Understanding Mortgage Rates - Mortgage interest rates are the cost of borrowing money, expressed as a percentage, and fall into two categories: fixed rates and adjustable rates [8] - Fixed-rate mortgages maintain the same rate for the entire loan term, while adjustable-rate mortgages can change after an initial fixed period [9][10] Factors Influencing Mortgage Rates - Several factors influence mortgage rates, including borrower characteristics such as credit scores and debt-to-income ratios, as well as broader economic conditions [11][12] - Economic struggles typically lead to lower mortgage rates to encourage borrowing, while a strong economy may result in higher rates [12] Comparison of Mortgage Terms - Borrowers often compare 30-year and 15-year fixed mortgages; the 30-year option is popular for lower monthly payments but results in more interest paid over time, while the 15-year option has higher monthly payments but a lower rate and faster payoff [13][14]