Lowest 30-Year Mortgage Rates Since October
The 30-year fixed mortgage rate has been on a steady decline for two weeks, and today marks another milestone. According to Zillow, the average 30-year rate has dropped by seven basis points to 6.19%, the lowest it’s been since October 2024. Additionally, the 20-year fixed rate has decreased by eight basis points to 5.86%, and the 15-year fixed rate has fallen by ten basis points to 5.48%.
This drop in rates comes just in time for the spring home-buying season, but experts caution that these low rates may not last long. If you’re considering buying a home or refinancing, now might be the perfect time to start exploring your options with mortgage lenders and real estate agents.
Today’s Mortgage Rates
Here’s a breakdown of the latest mortgage rates as of March 5, 2025, based on Zillow data:
- 30-year fixed: 6.19%
- 20-year fixed: 5.86%
- 15-year fixed: 5.48%
- 5/1 ARM: 5.97%
- 7/1 ARM: 5.98%
- 30-year VA: 5.66%
- 15-year VA: 5.13%
- 5/1 VA: 5.83%
Note: These rates are national averages, rounded to the nearest hundredth.
Today’s Refinance Rates
If you’re looking to refinance, here are the current rates:
- 30-year fixed: 6.25%
- 20-year fixed: 5.89%
- 15-year fixed: 5.53%
- 5/1 ARM: 6.11%
- 7/1 ARM: 6.32%
- 30-year VA: 5.68%
- 15-year VA: 5.40%
- 5/1 VA: 5.91%
- 30-year FHA: 5.96%
- 15-year FHA: 5.24%
Refinance rates are often slightly higher than purchase rates, but this isn’t always the case. Be sure to compare offers from multiple lenders to secure the best deal.
Understanding Mortgage Options
30-Year Fixed Mortgage Rates
Pros:
- Reduced monthly payments because of a longer repayment term.
- Predictable payments, as the interest rate remains constant.
Cons:
- Higher interest rates compared to shorter-term loans.
- Higher total interest paid over the loan’s duration.
A 30-year fixed mortgage is ideal for buyers who prioritize lower monthly payments and long-term stability.
15-Year Fixed Mortgage Rates
Pros:
- Lower interest rates compared to 30-year loans.
- Pay off your mortgage 15 years sooner.
- Save significantly on interest over the life of the loan.
Cons:
- Higher monthly payments due to the shorter repayment term.
A 15-year fixed mortgage is a great choice for those who can afford higher monthly payments and want to build equity faster.
Adjustable-Rate Mortgages (ARMs)
How They Work:
ARMs offer a fixed rate for an initial period (e.g., 5 or 7 years), after which the rate adjusts annually based on market conditions.
Pros:
- Lower introductory rates compared to fixed-rate mortgages.
- Ideal for those planning to sell or refinance before the rate adjusts.
Cons:
- Rates can increase significantly after the introductory period.
- Monthly payments become unpredictable.
ARMs are best suited for buyers who don’t plan to stay in their home long-term.
Frequently Asked Questions
What is the current 30-year mortgage rate?
As of March 5, 2025, the national average 30-year mortgage rate is 6.19%, the lowest since October 2024.
Will interest rates continue to drop?
While rates have been declining, experts predict any further decreases will be gradual.
How can I secure the lowest refinance rate?
To get the best refinance rate:
- Improve your credit score.
- Lower your debt-to-income ratio (DTI).
- Consider refinancing into a shorter-term loan.
Key Takeaways
- Mortgage rates are at their lowest since October 2024, making this an excellent time to buy or refinance.
- Compare rates from multiple lenders to find the best deal.
- Consider your financial goals when choosing between fixed-rate and adjustable-rate mortgages.
Reference Yahoo Finance
