Mortgage Rates for January 27, 2025: Fed Meeting Could Impact Rates | Current Rates Update

Mortgage rates are on the rise. According to Zillow, the 30-year fixed mortgage rate has increased to 6.74%, up by two basis points, while the 15-year fixed mortgage rate has climbed to 6.03%, rising by five basis points.

This week, the Federal Reserve meets and is expected to keep the federal funds rate unchanged. However, any comments or decisions regarding the outlook for the economy could influence mortgage rates moving forward.

Today's Mortgage Rates

Here are the latest mortgage rates based on Zillow data:

• 30-year fixed mortgage: 6.74%

• 20-year fixed mortgage: 6.49%

• 15-year fixed mortgage: 6.03%

• 5/1 ARM: 6.69%

• 7/1 ARM: 6.74%

• 30-year VA loan: 6.17%

• 15-year VA loan: 5.66%

• 5/1 VA loan: 6.07%

• 30-year FHA loan: 6.29%

Current Refinance Rates

Here are the current refinance rates based on the latest Zillow data:

• 30-year fixed refinance: 6.75%

• 20-year fixed refinance: 6.45%

• 15-year fixed refinance: 6.08%

• 5/1 ARM refinance: 6.68%

• 7/1 ARM refinance: 6.64%

• 30-year VA refinance: 6.16%

• 15-year VA refinance: 5.89%

• 5/1 VA refinance: 6.08%

Refinance rates tend to be slightly higher than rates for purchasing a new home.

How a Mortgage Calculator Can Help

Using a mortgage calculator can help you figure out how different mortgage rates and loan terms affect your monthly payment. The Yahoo Finance mortgage calculator also takes property taxes and homeowners insurance into account, so you can see the total cost of your monthly mortgage.

Current 30-Year Mortgage Rates

The average 30-year mortgage rate today is 6.74%. This is the most common loan term because it spreads out payments over 30 years, making your monthly payment more affordable.

For example, on a $300,000 mortgage with a 30-year loan at 6.74%, your monthly payment for principal and interest would be about $1,944. Over the life of the loan, you would pay $399,768 in interest on top of the original $300,000.

Current 15-Year Mortgage Rates

The average 15-year mortgage rate today is 6.03%. With a 15-year mortgage, you can pay off your loan faster and save money on interest, but your monthly payments will be higher.

For the same $300,000 loan, a 15-year mortgage at 6.03% would require monthly payments of $2,536. You’d pay only $156,558 in interest over the life of the loan.

Adjustable-Rate Mortgages (ARMs)

An adjustable-rate mortgage (ARM) has an interest rate that’s fixed for a certain period, then adjusts periodically. For example, with a 5/1 ARM, your rate stays fixed for the first five years, and then it adjusts every year after that.

ARMs typically start with lower interest rates than fixed-rate mortgages, but your rate could increase after the initial period. ARMs might be a good option if you plan to sell or refinance before the rate adjusts.

Tips to Get a Lower Mortgage Rate

If you want a lower mortgage rate, consider saving for a larger down payment, improving your credit score, or paying down your debt. Mortgage lenders prefer borrowers with strong financial profiles.

You can also lower your interest rate by paying for discount points at closing, which reduce your rate over the life of the loan. Another option is a temporary rate buydown, where your rate is reduced for the first few years of your mortgage. However, you’ll need to decide if the upfront cost is worth the savings.

Also Read: Trump to Tackle Housing Crisis in 2025 Amid High Prices and Mortgage Rates