Mortgage rates have increased this week. According to Freddie Mac, 30-year fixed interest rates have increased by 5 basis points 6.81%15 years of fixed interest rates have increased by 3 basis points 5.92%. Therefore, even if the price is higher, the inclination is not very important.

There is more good news: Mortgage rates are still lower than last year’s week. Since mid-May 2024, the average 30-year fixed interest rate has dropped by 28 basis points and the 15-year fixed interest rate has dropped by 46 basis points. So hopeful homebuyers feel a little relieved to know that they are better at the rate today than they were a year ago.

You're even deeper: Housing Market in 2025 - Is it a good time to buy a house?

According to the latest Zillow data, here are the current mortgage rates:

• 30 years fixed: 6.85%

• 20 years fixed: 6.34%

• 15 years fixed: 6.13%

• 5/1 Arm: 7.18%

• 7/1 Arm: 7.38%

• VA 30 years: 6.33%

• VA 15 years: 5.76%

• 5/1 VA: 6.49%

Remember, these are the national averages and go around to the nearest one percent.

learn more: Should you lock in your mortgage rate?

According to the latest Zillow data, these are the mortgage refinancing rates for today:

• 30 years fixed: 6.99%

• 20 years fixed: 6.56%

• 15 years fixed: 6.35%

• 5/1 Arm: 7.26%

• 7/1 Arm: 7.22%

• VA 30 years: 6.46%

• VA 15 years: 5.94%

• 5/1 VA: 6.39%

Likewise, the figures provided are the national average rounded to the most recent one percent. Mortgage refinancing rates are usually higher than the rates you would when you purchased your home, although this is not always the case.

learn more: Want to refinance your mortgage? Here are 7 household refinancing options.

Your mortgage rate plays a big role in how much you pay per month. Use this mortgage calculator to see how your mortgage amount, tax rate and term will affect your monthly payments:

To learn more about your potential monthly payments, use our Yahoo Finance Mortgage Calculator. This is also replaced by your homeowner insurance, property taxes, mortgage insurance and HOA fees.

A mortgage rate is the fee for borrowing money from your lender, which is a percentage. You can choose from two types of prices: fixed or adjustable.

Fixed-rate mortgages lock your interest rates throughout your life. For example, if you get a 30-year mortgage, the interest rate is 6%, and unless you refinance or sell, your interest rate will remain at 6% for the entire 30 years.

Adjustable rate mortgages lock on your rate scheduled time and then change them regularly. Suppose you get a 7/1 arm with an introduction rate of 6%. Your rate is 6% in the first seven years, then the rate for the last 23 years of your term will increase or decrease once a year. Whether your rates rise or fall depends on several factors, such as the economy and the housing market.

At the beginning of your mortgage period, most of your monthly payments are spent on interest. For years, you paid the same monthly payments to the mortgage principal and interest - however, you paid less and more to the principal of the mortgage loan or the amount you originally borrowed.

learn more: Adjustable interest rate and fixed interest rate mortgage

If you want lower mortgage payments and the predictability that fixed interest rates bring, a 30-year fixed-rate mortgage is a great option. Just know that your rate will be higher than the shorter term you choose and will result in more interest payments over the years.

If you want to pay back your home loan quickly and save interest, you may need a 15-year fixed-rate mortgage. These shorter conditions have lower interest rates and since you cut repayment time by half, you will save a lot of interest in the long run. But you need to make sure you can comfortably afford the monthly payments for a 15-year period.

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

Usually, an adjustable rate mortgage may be good if you plan to sell before the entry-level tax rate is over. The adjustable rate is usually lower than a fixed interest rate, and then your rate will change after the scheduled time. However, the ARM rates of 5/1 and 7/1 are similar (or even higher) to the last 30-year fixed interest rates. Compare your rate options from semester to semester and lender to lender before you only get your arms at a lower interest rate.

Mortgage rates have been volatile over the past few weeks, and they are a little higher than last week. Still, they have been declining since this week of 2024.

Even if mortgage rates have fallen over the past year, they may not plummet in the near term. So when will the mortgage rate be reduced enough to significantly reduce your monthly payments? It could be months, if not more than a year. If you are ready to buy a home but stick with it at a lower price, it may not be worth the wait.

According to Freddie Mac, the national average 30-year mortgage rate rose by 5 basis points to 6.81%, and the average 15-year mortgage rate rose by 3 basis points to 5.92%.

According to its April forecast, the Mortgage Bankers Association (MBA) expects a 30-year mortgage rate of 6.8% in 2025 to be 6.7% by the end of the year. Fannie Mae's April forecast is even more optimistic, with forecasts of 6.3% in the third quarter and 6.2% in the fourth quarter.

Mortgage rates may increase here and there in 2025, but by the end of this year, there is a good chance they will be lowered.