The offers on this page are from advertisers who pay us. That may influence which products we write about, but it does not affect what we write about them. Here's an explanation of how we make money.

Mortgage rates today, July 9, 2024: Fixed rates drop

Laura Grace Tarpley
ยทLead Editor and Content Strategist, Mortgages
4 min read

Mortgage rates fell across the board over the weekend and yesterday. According to Zillow data, the average 30-year fixed rate is down 17 basis points to 6.59%. The 15-year fixed rate decreased by six basis points to 5.92%.

With rates inching down, the best thing you can do to get the lowest mortgage rate possible is to shop around with multiple lenders. Narrow your search down to three to five mortgage lenders and apply for preapproval with each. This gives you a straightforward way to compare mortgage rates and fees so you can get the best deal on your home loan.

Learn more: How to get a mortgage preapproval

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

  • 30-year fixed: 6.59%

  • 20-year fixed: 6.17%

  • 15-year fixed: 5.92%

  • 5/1 ARM: 6.58%

  • 7/1 ARM: 6.56%

  • 30-year VA: 5.85%

  • 15-year VA: 5.36%

  • 5/1 VA ARM: 6.09%

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

Almost all mortgage rates have dropped. The one exception is the 5/1 ARM rate, which has risen by eight basis points.

Dig deeper: When will mortgage rates go down? A look at 2024 and 2025.

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 youโ€™re paying off the same loan amount in half the time.

For example, with a $400,000 30-year mortgage and a 6.59% rate, you'll make a monthly payment of about $2,552 toward your mortgage principal and interest. As interest accumulates over decades, youโ€™ll end up paying $518,718 in interest.

If you get a $400,000 15-year mortgage with a 5.92% rate, youโ€™ll pay about $3,358 monthly toward your principal and interest. However, youโ€™ll only pay $204,469 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.

Dig deeper: Adjustable-rate vs. fixed-rate mortgage โ€” Which should you choose?

In Fannie Maeโ€™s Housing Forecast for June, the government-sponsored enterprise said it expects 30-year fixed rates to end 2024 at 6.7%. The Mortgage Bankers Association predicted a slightly lower rate of 6.6% by Q4 2024. So while rates may drop later this year, they probably won't fall as drastically as many people had initially expected.

The trajectory of future mortgage rates will largely depend on the Federal Reserveโ€™s decision on whether or not to cut the federal funds rate at its meetings throughout the year. The federal funds rate doesnโ€™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 on July 31.

Learn more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards

According to Zillow data, today's 30-year fixed rate is 6.59%. This is the national average, so keep in mind the average in your state or city could be different.

Yes, mortgage rates are expected to inch down in 2024. However, we likely won't see more aggressive rate drops until 2025.

Mortgage rates will likely go down a bit in 2024, but not significantly.