Today's fixed mortgage rates have increased. According to Zillow, current 30-year fixed mortgage rates have increased 10 basis points to 6.88%the 15-year fixed rate rose 9 basis points to 6.16%. Interest rates on adjustable-rate mortgages (ARMs) have mostly fallen, but ARM rates are still similar to or higher than fixed rates right now, so they're not necessarily a better deal.

When looking for a mortgage lender, ask them what types of home loans you qualify for. For example, you may find that you qualify for both a conventional loan and an FHA loan. Then, discuss with your loan officer which deal is better for you in the short and long term.

Dig deeper: Best Mortgage Lenders for First Time Home Buyers

Based on our latest Zillow data, here are the current mortgage rates:

• 30 years fixed: 6.88%

• 20 years fixed: 6.76%

• 15 years fixed: 6.16%

• 5/1 Arm: 6.81%

• 7/1 Arm: 6.98%

• 30 years VA: 6.36%

• 15 years VA: 5.75%

• 5/1 Virginia: 6.50%

• 30 years FHA: 6.33%

• May 1 FHA: 6.39%

Remember, these are national averages and rounded to the nearest percentile.

Read more: How to get the lowest mortgage rate possible

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

• 30 years fixed: 6.92%

• 20 years fixed: 6.97%

• 15 years fixed: 6.19%

• 5/1 Arm: 6.85%

• 7/1 Arm: 7.15%

• 30 years VA: 6.28%

• 15 years VA: 5.97%

• 5/1 Virginia: 6.27%

• May 1 FHA: 6.50%

Again, the numbers provided are national averages, rounded to the nearest percentile. Refinance rates are typically higher than purchase rates.

A mortgage calculator can help you understand how different mortgage terms and interest rates will affect your monthly payment. Use the free Yahoo Finance mortgage calculator to calculate the different results.

Our calculator also considers factors like property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This can give you a better idea of ​​your total monthly payment than just looking at your mortgage principal and interest.

As a rule of thumb, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15-year mortgage rates versus 30-year mortgage rates, keep in mind that the shorter term will save you money in interest in the long run. However, your monthly payments will be higher because you'll pay off the same loan amount in half the time.

For example, for a $400,000 mortgage with a 30-year term and an interest rate of 6.88%, your monthly payment would be approximately $2,629 USD Your mortgage principal and interest. As interest accumulates over decades, you will eventually pay $546,459 USD interested.

If you get a $400,000 15-year mortgage with an interest rate of 6.16%, you will pay approximately $3,410 Make your principal and interest payments each month. However, you only need to pay $213,818 interest over the years.

If your monthly payments on a 15-year mortgage are too high, keep in mind that you can always make extra mortgage payments on a 30-year loan to pay off your mortgage faster and ultimately pay less interest.

With a fixed-rate mortgage, your interest rate is locked in from day one. However, if you refinance your mortgage, you will get a new interest rate.

An adjustable-rate mortgage allows your interest rate to remain the same for a period of time. Rates will then go up or down based on a variety of factors, such as the state of the economy and the maximum amount your rates can change under your contract. For example, with a 7/1 ARM, your rate is locked in for the first seven years and then changes every year for the remaining term.

Adjustable rates are sometimes lower than fixed rates, but you run the risk of an increase in interest rates once the initial rate lock period is over. Lately, ARM rates have also started to be higher than fixed rates, so they're not as good a deal as usual.

Dig deeper: Adjustable-rate mortgages vs. fixed-rate mortgages—which one should you choose?

In 2024, mortgage rates trended downward from early August until the September 18 Fed meeting, when the central bank announced it would cut the federal funds rate by 50 basis points. Mortgage rates have mostly increased or remained stable since the announcement.

The Fed cut interest rates again (by 25 basis points each) at its November and December meetings. The future direction of mortgage rates will largely depend on the Federal Reserve's decision to lower the federal funds rate at its 2025 meeting.

When economists expect the Federal Reserve to cut interest rates at its upcoming meeting, mortgage rates typically fall before the meeting rather than after. The next Federal Reserve meeting is still nearly a month away, but the federal funds rate is likely to remain unchanged at the January meeting, according to the CME FedWatch tool. This means interest rates may not fall significantly in the coming months.

Dig deeper: How Fed rate decisions affect mortgage rates

Today's 30-year fixed rate is 6.88% and the 30-year refinance rate is 6.92%, according to Zillow data. These are national averages, so keep in mind that your state or city's averages may vary. Your rates will also vary based on your personal financial situation.

Mortgage rates may gradually decline in 2025, but are unlikely to plummet anytime soon.

Mortgage rates should fall in 2025, but probably not as much as previously expected. Depending on what happens with the economy, inflation and the Fed, any reductions are likely to be relatively small.