Rates on 15-year mortgages are usually lower than 30-year mortgage rates, which means you can save a lot by simply choosing a 15-year loan term. Lenders consider a shorter loan term less risky, which is why they’re willing to offer lower mortgage rates.
Beginning in late October 2023, 15-year fixed mortgage rates began to decline and, according to the mortgage rates forecast, aren’t expected to rise significantly in the near future. Rates on 30-year loans, moving roughly in tandem, finally dipped below 7% in mid-December. That’s good news for potential homebuyers, who have been weathering a storm of high interest rates and low housing stock since at least August.
How to check mortgage rates
Checking mortgage rates daily or weekly is a great way to get a feel for the market and what interest rates you’re likely to see when you apply for a home loan. Unsure of where to look? A good source for weekly rates is Freddie Mac’s Primary Mortgage Market Survey, which releases national averages every Thursday and collects historical rates going back to 1971. For daily rates, try the St. Louis Fed, which has both 15- and 30-year rate data.