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Mortgage and refinance rates today, September 10, 2024: 30-year rates finally under 5.75%

Laura Grace Tarpley
·Lead Editor and Content Strategist, Mortgages
5 min read

Almost all mortgage rates are down today. According to Zillow data, the 30-year mortgage rate has finally dropped below 5.75% and sits at 5.73%. The 15-year mortgage rate is now under 5% at 4.97%.

Rates have been steadily decreasing in anticipation of the Federal Reserve cutting the federal funds rate at its meeting next Wednesday. Inflation is one of the main economic factors the Fed uses to decide whether to slash the rate. All eyes will be on the Consumer Price Index (CPI) that comes out tomorrow. The CPI is a key measure of inflation. If this report shows that inflation is slowing, mortgage rates could decrease even more.

Learn more: How the Federal Reserve impacts mortgage rates

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

  • 30-year fixed: 5.73%

  • 20-year fixed: 5.46%

  • 15-year fixed: 4.97%

  • 5/1 ARM: 6.04%

  • 7/1 ARM: 6.17%

  • 5/1 FHA: 4.62%

  • 30-year VA: 5.12%

  • 15-year VA: 4.57%

  • 5/1 VA: 5.61%

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

Dig deeper: Is it a good time to buy a house?

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

  • 30-year fixed: 5.91%

  • 20-year fixed: 5.67%

  • 15-year fixed: 5.18%

  • 5/1 ARM: 6.04%

  • 7/1 ARM: 6.12%

  • 5/1 FHA: 4.63%

  • 30-year VA: 5.26%

  • 15-year VA: 4.93%

  • 5/1 VA: 5.56%

Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates, but they're lower than or similar to today's purchase rates, so it may be a good time to refinance your mortgage.

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

Our 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 rule of thumb, 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 5.73% rate, you'll make a monthly payment of about $2,329 toward your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $438,516 in interest.

If you get a $400,000 15-year mortgage with a 4.97% rate, you’ll pay about $3,157 monthly toward your principal and interest. However, you’ll only pay $168,247 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. Fixed rates are also starting lower than adjustable rates right now.

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

Mortgage rates have been trending downward for weeks. However, many expect them to decrease even more later in 2024 and into 2025.

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 meetings throughout this year and next year. The federal funds rate doesn’t directly impact mortgage rates, but it is a good indicator of how the economy is doing overall. So when the Fed rate drops, mortgage rates typically go down too. The next Federal Reserve announcement will be Sept. 18, but anticipation of a 25-basis-point cut is already causing rates to trend downward gradually.

Read more: When will mortgage rates go down? A look at 2024 and 2025.

According to Zillow data, today's 30-year fixed rate is 5.73%, and the 30-year refinance rate is 5.91%. 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.

Yes, mortgage rates are expected to decrease in 2024, specifically after the Sept. 18 Federal Reserve meeting. However, we likely won't see more aggressive rate drops until 2025.

Mortgage rates will likely continue to go down in 2024, then more significantly in 2025.