Mortgage rates had been rising for a few days, but today they finally came back down. According to Zillow, the average 30-year fixed mortgage rate has fallen by one basis point 6.45%. The 20-year fixed rate has fallen by 12 basis points 6.30%and the 15-year fixed rate is down two basis points 5.82%.

The Federal Reserve’s last meeting of the year took place today. The central bank announced its decision to cut the key interest rate by 25 basis points. Many economists predicted that the Fed would cut its interest rate. So the expectation of the reduction means that associated mortgage rate reductions have likely already occurred. It’s unclear when the Fed will cut rates again, so mortgage rates could remain high for a while.

Dig Deeper: How the Federal Reserve’s interest rate decision affects mortgage rates

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

• 30 years fixed: 6.45%

• 20 years fixed: 6.30%

• 15 years fixed: 5.82%

• 5/1 ARM: 6.62%

• 7/1 ARM: 6.54%

• 30 year old VA: 5.91%

• 15 year old VA: 5.48%

• 5/1 VA: 6.13%

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

Learn more: 5 Strategies to Get the Lowest Mortgage Rates

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

• 30 years fixed: 6.50%

• 20 years fixed: 6.27%

• 15 years fixed: 5.83%

• 5/1 ARM: 6.11%

• 7/1 ARM: 6.56%

• 30 year old VA: 5.79%

• 15 year old VA: 5.52%

• 5/1 VA: 5.36%

Here too, the figures given are national average values ​​rounded to the nearest hundredth. Mortgage refinance interest rates are often higher than interest rates when purchasing a home, although this is not always the case.

Use Yahoo Finance’s free mortgage calculator to find out how different interest rates and terms affect your monthly mortgage payment. It also shows how the price of the house and the size of the down payment play a role.

Our calculator factors homeowners insurance and property taxes into your monthly payment estimate. You even have the option to enter private mortgage insurance (PMI) costs and homeowners association contributions if they apply to you. This information results in a more accurate monthly payment estimate than if you simply calculated the principal and interest on your mortgage.

A 30-year fixed-rate mortgage offers two main benefits: your payments are lower and your monthly payments are predictable.

With a 30-year fixed-rate mortgage, the monthly payments are relatively low because you spread the repayment over a longer period of time than, for example, with a 15-year mortgage. Your payments are predictable because, unlike an adjustable-rate mortgage (ARM), your interest rate doesn’t change from year to year. Most years, only changes to your home insurance or property taxes can affect your monthly payment.

The main disadvantage of 30-year fixed mortgage rates is the mortgage interest rates – both short and long term.

A 30-year fixed term comes with a higher interest rate than a shorter fixed term and higher than the introductory interest rate for a 30-year ARM. The higher your plan, the higher your monthly payment will be. Due to the higher interest rate and longer term, you will also pay significantly higher interest over the life of your loan.

The advantages and disadvantages of 15-year fixed mortgage rates are basically reversed compared to 30-year rates. Yes, your monthly payments will still be predictable, but another benefit is that shorter terms come with lower interest rates. Not to mention, you’ll pay off your mortgage 15 years early. This will potentially save you hundreds of thousands of dollars in interest over the course of your loan.

However, since you pay off the same amount in half the time, your monthly payments will be higher than if you opt for a 30-year term.

Dig Deeper: 15-year vs. 30-year mortgages

Adjustable rate mortgages fix your interest rate for a predetermined period of time and then change it periodically. For example, with a 5/1 ARM, your interest rate stays the same for the first five years and then increases or decreases once per year for the remaining 25 years.

The main advantage is that the introductory interest rate is typically lower than what you would get with a 30-year fixed rate, so your monthly payments will be lower. (However, current average interest rates do not reflect this – fixed interest rates are actually lower. Talk to your lender before deciding between a fixed or adjustable interest rate.)

With an ARM, you have no idea what the mortgage interest rate will be when the introductory period ends, so you risk your interest rates increasing later. This can ultimately lead to higher costs and your monthly payments will be unpredictable from year to year.

However, if you plan to move before the rate introductory period ends, you can reap the benefits of a low rate without risking a rate increase later.

Learn more: Variable Rate Mortgage vs. Fixed Rate Mortgage

According to Zillow, the national average 30-year mortgage rate is currently 6.45%. However, keep in mind that averages may vary depending on where you live. For example, if you buy in a city with a high cost of living, prices may be even higher.

Mortgage rates could fall somewhat by the end of 2024, but a crash is not expected. They are likely to fall in 2025, but as the country waits to see how Trump’s presidency will affect the economy, it is unclear how much interest rates could fall next year.

With some exceptions, mortgage rates have fallen in recent weeks in anticipation of today’s Fed meeting and rate cut.

In many ways, securing a low interest rate on your mortgage refinance is similar to buying your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing to a shorter term will also give you a lower interest rate, even though your monthly mortgage payments will be higher.