Today's 30-year fixed rate is 6.52%, and the 15-year fixed rate is 5.74%. Almost all mortgage rates have decreased, likely in response to Wednesday's Consumer Price Index (CPI) data. The CPI showed that inflation is slowing down, which is good news for mortgage rates.

It will probably still be months before we see significant drops, though. The Federal Reserve will likely only slash the federal funds rate once in 2024 — the prediction used to be three rate cuts — and it will be late in the year. If the only thing stopping you from buying a house right now is mortgage rates, you have two options: Buy now with a plan to refinance into a lower rate later, or wait until 2025 for rates to decrease.

Learn more: How to buy a house in 2024

Current mortgage rates

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

• 30-year fixed: 6.52%

• 20-year fixed: 6.08%

• 15-year fixed: 5.74%

• 5/1 ARM: 6.58%

• 7/1 ARM: 6.55%

• 30-year FHA: 5.94%

• 15-year FHA: 5.94%

• 30-year VA: 5.76%

• 15-year VA: 5.26%

• 5/1 VA: 6.01%

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

All mortgage rates are down today with the exception of the 30-year FHA loan rate, which is up by just one basis point.

Learn more: 5 strategies to get the lowest mortgage rates

How mortgage interest rates work

A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.

A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you get a 30-year mortgage with a 6.5% interest rate, your rate will stay at 6.5% for the entire 30 years unless you refinance or sell.

An adjustable-rate mortgage locks in your rate for a predetermined amount of time and then changes it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once per year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and housing market.

At the beginning of your mortgage term, most of your monthly payment goes toward interest. Your monthly payment toward mortgage principal and interest stays the same throughout the years — however, less and less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.

Learn more: 5 strategies to get the lowest mortgage rates

Which mortgage term length should you get?

A 30-year fixed-rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term and will result in paying significantly more in interest over the years.

You might like a 15-year fixed-rate mortgage if you want to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot in interest in the long run. But you’ll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.

Read more: How to decide between a 15-year and 30-year fixed-rate mortgage

Typically, an adjustable-rate mortgage could be good if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates are very similar to 30-year fixed rates right now. Before getting an ARM just for a lower rate, compare your rate options from term to term and lender to lender.

When will mortgage rates drop?

It can feel like we've been told interest rates will decrease for months now — so when will mortgage rates finally go down?

No one has a crystal ball, but in Fannie Mae’s latest rate forecast, the government-sponsored enterprise said it expects 30-year fixed rates to end 2024 at 7%. Not exactly comforting.

When the Federal Reserve lowers the federal funds rate, mortgage rates typically go down in response. However, according to the CME FedWatch Tool, there’s roughly an 88% chance that the Fed will not lower its rate at its July meeting. If the central bank does in fact lower its rate once in 2024, that cut will come in its September, November, or December meeting. So we probably won’t see dramatic drops anytime soon.

If you’re ready to buy a house but holding out for rates to plummet first, it might not be worth the wait.