The 30-year fixed mortgage rate has ticked down this week — according to Freddie Mac, it is down three basis points to 6.81%. However, the 15-year fixed mortgage rate has increased by eight basis points to 6.10%.

"Rates have been relatively flat over the last few weeks as the market waits for more clarity on specific economic policies," Sam Khater, chief economist at Freddie Mac, said in a press release. "Potential homebuyers are also waiting on the sidelines, causing demand to be lackluster."

Mortgage interest rates probably won't drastically change in the near future. If you're itching to buy a home, now could be as good a time as any — home-buying demand is usually slow near the holidays, so you could face less competition if you find a house you love.

Dig deeper: Is now a good time to buy a house?

Today's mortgage rates

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

• 30-year fixed: 6.45%

• 20-year fixed: 6.35%

• 15-year fixed: 5.80%

• 5/1 ARM: 6.59%

• 7/1 ARM: 6.53%

• 30-year VA: 5.87%

• 15-year VA: 5.44%

• 5/1 VA: 6.08%

• 30-year FHA: 5.58%

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

Learn more: 5 strategies to get the lowest mortgage rates

Today's mortgage refinance rates

Here are today's mortgage refinance interest rates, according to the latest Zillow data:

• 30-year fixed: 6.47%

• 20-year fixed: 6.44%

• 15-year fixed: 5.82%

• 5/1 ARM: 6.04%

• 7/1 ARM: 6.18%

• 30-year VA: 5.91%

• 15-year VA: 5.82%

• 5/1 VA: 5.49%

As with the purchase mortgage rates, these are national averages we've rounded to the nearest hundredth. Refinance rates can be higher than purchase mortgage rates, but as you can see above, that isn't always the case.

Monthly mortgage payment calculator

Yahoo Finance has a free mortgage payment calculator to help you see how various mortgage rates will impact your monthly payments.

Our calculator goes even deeper by including factors like homeowners insurance and property taxes in your calculation. You can even add private mortgage insurance costs and HOA dues if they apply to you. These monthly expenses, along with your mortgage principal and interest rate, will give you a realistic idea of what your monthly payment could be.

How do mortgage rates work?

A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. There are two basic types of mortgage rates: fixed and adjustable rates.

A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you get a 30-year mortgage with a 6% interest rate, your rate will stay at 6% for the entire 30 years. (Unless you refinance or sell the home.)

An adjustable-rate mortgage keeps your rate the same for the first few years, then changes it periodically. Let’s say you get a 5/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first five years and then the rate would increase or decrease once per year for the last 25 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and U.S. housing market.

At the beginning of your mortgage term, most of your monthly payment goes toward interest. As time passes, less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.

Dig deeper: Adjustable-rate vs. fixed-rate mortgage — Which should you choose?

How are mortgage rates determined?

Two categories determine mortgage rates: ones you can control and ones you cannot control.

What factors can you control? First, you can compare the best mortgage lenders to find the one that gives you the lowest rate and fees.

Second, lenders typically extend lower rates to people with higher credit scores, lower debt-to-income (DTI) ratios, and considerable down payments. If you can save more or pay down debt before securing a mortgage, a lender will probably give you a better interest rate.

What factors can you not control? In short, the economy.

The list of ways the economy impacts mortgage rates is long, but here are the basic details. If the economy — think employment rates, for example — is struggling, mortgage rates go down to encourage borrowing, which helps boost the economy. If the economy is strong, mortgage rates go up to temper spending.

With all other things being equal, mortgage refinance rates are usually a little higher than purchase rates. So don't be surprised if your refinance rate is higher than you may have expected.

30-year vs. 15-year fixed mortgage rates

Two of the most common mortgage terms are 30-year and 15-year fixed-rate mortgages. Both lock in your rate for the entire loan term.

A 30-year mortgage is popular because it has relatively low monthly payments. But it comes with a higher interest rate than shorter terms, and because you’re accumulating interest for three decades, you’ll pay a lot of interest in the long run.

A 15-year mortgage can be great because it has a lower rate than you’ll get with longer terms, so you’ll pay less in interest over the years. You’ll also pay off your mortgage much faster. But your monthly payments will be higher because you’re paying off the same loan amount in half the time.

Basically, 30-year mortgages are more affordable from month to month, while 15-year mortgages are cheaper in the long run.

Current mortgage rates: FAQs

What bank is offering the lowest mortgage rates?

According to 2023 Home Mortgage Disclosure Act (HMDA) data, some of the banks with the lowest median mortgage rates are Citibank, Wells Fargo, and USAA. However, it's a good idea to shop around for the best rate with not just banks, but also credit unions and companies specializing in mortgage lending.

Is 2.75% a good mortgage rate?

Yes, 2.75% is a fantastic mortgage rate. You're unlikely to get a 2.75% rate in today's market unless you take on an assumable mortgage from a seller who locked in this rate in 2020 or 2021, when rates were at all-time lows.

What is the lowest-ever mortgage rate?

According to Freddie Mac, the lowest-ever 30-year fixed mortgage rate was 2.65%. This was the national average in January 2021. It is extremely unlikely that rates will dip this low again anytime soon.

At what rate should you refinance your mortgage?

Some experts say it's worth refinancing when you can lock in a rate that's 2% less than your current mortgage rate. Others say 1% is the magic number. It all depends on what your financial goals are when refinancing and when your break-even point would be after paying refinance closing costs.