Compare Todays 15-Year Mortgage Rates
National Average Mortgage Rates
Rates data is based on a borrower with good credit, a conforming loan amount (at least $200,000 but less than the national conforming loan amount), and a loan-to-value ratio of less than 80% (For purchase loans, this corresponds to a down payment of 20% or more). © Zillow, Inc., 2006-2016. Use is subject to Terms of Use
U.S. News Expert Insights, Week Ending July 15
Mortgage Rates Surge to Yearly Highs
“The average 30-year fixed mortgage rate is now hovering around 6.75%, compelling summer homebuyers to recalculate their purchase budgets. With mortgage rates now at their highest levels in about a year, and geopolitical uncertainty bleeding into the economy, prospective buyers may not feel motivated to jump into the market.
“New data substantiates this sense of unease as higher borrowing costs weigh on the housing sector. Mortgage applications have waned in recent weeks alongside rising rates, according to the Mortgage Bankers Association. Pending home sales decreased by 5.4% in June, per the National Association of Realtors.
“Today’s high mortgage rates are a result of the resurgence of the U.S. war in Iran. The Middle East conflict has led to higher oil prices, fueling inflation throughout the economy. Mortgage interest rates, which follow 10-year Treasury yields, are highly sensitive to price changes. The bottom line: mortgage rates will stay high due to the inflationary pressures of the war.”
– Erika Giovanetti, U.S. News Consumer Lending Analyst
Average Mortgage Rates, Daily
Data as of: 7/15/2026
Rates data is based on a borrower with good credit, a conforming loan amount (at least $200,000 but less than the national conforming loan amount), and a loan-to-value ratio of less than 80% (For purchase loans, this corresponds to a down payment of 20% or more). © Zillow, Inc., 2006-2016. Use is subject to Terms of Use
A 15-year fixed-rate mortgage is a home loan with a 15-year term, which means its payments are designed to zero its balance in 15 years. And it’s a fixed-rate mortgage, which means its interest rate won’t change during the loan term and neither will its monthly payment. (However, if the payment includes an additional amount for property taxes, homeowners insurance or mortgage insurance, these amounts can change.)
The advantage of a fixed interest rate is its predictability. When your rate and payment stay the same, you can budget more easily, year after year. The disadvantage is that if interest rates fall, your loan won’t change. You’d have to refinance to obtain a better mortgage rate.
Because loans with 15-year terms are less risky for lenders, they tend to have lower interest rates – about 0.5 to 1 percentage point lower than 30-year mortgage rates.
“The current spread between 30-year and 15-year mortgages sits at 81 basis points, a full 25 basis points higher than the long-run average spread dating back to 1991,” says Ralph McLaughlin, senior economist at Realtor.com. “Though there is not a perfect correlation, over the past two decades the spread between the two has tended to rise and fall with mortgage rates. This could be a silver lining for homebuyers in a high-rate environment as the potential savings of choosing a 15-year over a 30-year mortgage increase when rates are at their highest.”
Even though you’re paying off your loan twice as quickly with a 15-year loan, your payment won’t be twice as high. For a $400,000 home loan with a 6% interest rate, your monthly principal and interest payment would be $3,375 for a 15-year term and $2,398 for a 30-year term – $977 more, and you’d save nearly $226,000 over the life of the loan. But remember, 15-year loans have lower interest rates. For a 15-year loan with a 5.25% interest rate, your payment would be $3,216 ($818 more) you’d save about $284,000 in total interest.
Fifteen-year fixed mortgage rates, like 30-year rates, depend on a number of factors, and some are more predictable than others. However, experts can offer a general idea of the direction 15-year mortgage rates will likely take in the near future.
“Fixed-rate mortgages, including the 15-year mortgage, are loosely tied to the 10-year Treasury yield, which is influenced by various economic and geopolitical factors,” says Mark Fleming, chief economist at First American Financial Corp, which specializes in title insurance. “Inflation and labor market conditions are two of the most significant factors in today’s market, and they will drive movements in the 10-year yield and determine the size and pace of the Federal Reserve’s rate cuts. As the Fed continues lowering rates, we are likely to see a modest decline in the 10-year Treasury yield and similarly lower 30- and 15-year fixed mortgage rates. However, the pace and extent of this decline will depend on broader economic conditions and the market’s influence on the 10-year Treasury yield.”
Pros
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Lower interest rates. Lenders are exposed to less risk with shorter-term loans and can offer borrowers lower interest rates. Of course, “The better your credit score, the better the rate you’ll be offered,” says Ray Rodriguez, a regional mortgage sales manager with TD Bank.
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Less interest overall. Because 15-year home loans are paid on a faster amortization schedule, borrowers pay less interest over the life of the loan.
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Builds equity faster. On a shorter loan term, a bigger portion of the monthly payment goes toward the loan principal rather than interest.
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Pays off the home sooner. You could get rid of your loan in half the time of a traditional 30-year mortgage.
Cons
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Higher monthly payments. Make sure you can afford the payments that come with a shorter loan term because they can squeeze your monthly budget.
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Opportunity costs. With higher mortgage payments, you have less money for other financial goals, such as retirement and emergency savings.
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Less affordability. When you take out a mortgage, your lender will check that you can afford the monthly payments. The higher payments of a 15-year loan might limit you to a more modest home than you would be able to buy with a 30-year loan.
Refinancing means replacing your current home loan with a new one. Borrowers usually refinance to get a loan with better terms, like a lower interest rate or monthly payment. Other reasons for refinancing include replacing an adjustable loan with a fixed-rate loan, taking cash out or removing a co-borrower.
You might choose to refinance a 30-year mortgage into a 15-year home loan to zero your balance faster and pay less interest. Check current 15-year mortgage refinance rates and use a mortgage calculator to determine your potential savings. There will probably be closing costs, and your new monthly payment will likely be higher. You’ll want to make sure that the money you save exceeds the refinance loan closing costs and that you can comfortably afford a higher payment.
If you want to save even more on interest, you may consider supercharging your payoff timeline. You can do this by paying more toward the principal of your 15-year mortgage each month.
Looking again at a $400,000 mortgage, you would make $2,700 monthly payments with a 15-year loan term and a 6% interest rate. If you put an extra $2,000 per month toward the principal, you would pay off the mortgage in seven years instead of 15 and save $93,928 in interest over the life of the loan.
The amount you would need to pay on top of your normal principal depends on the size of your mortgage and your interest rate. You can use a mortgage calculator to figure out your extra payment, or ask your lender to help you with the math.
Regardless, “Make sure you can comfortably afford the higher payment, with some wiggle room, in the event that your expenses increase over time,” Rodriguez says.
If this doesn’t work with your budget, you can still reduce your overall interest costs by “making an additional payment each year to decrease the length and cost of the loan,” Rodriguez says.
When it comes to saving money over the long term, a 15-year fixed-rate mortgage is better than a 30-year home loan.
The shorter loan term “is a good option for those who are looking to pay off the loan more quickly and reduce their overall interest expense,” Rodriguez says. “Additionally, if building fast equity is a priority for a borrower, oftentimes a 15-year mortgage can be a quicker way to do it than a 30-year mortgage.”
It’s possible to refinance an FHA loan, and there are several options for doing so:
- FHA streamline refinances. These enable you to refinance an existing FHA mortgage with limited documentation and underwriting.
- FHA simple refinances. These replace your existing FHA loan with a new FHA loan with a fixed or adjustable interest rate. You cannot take cash out with this kind of refinance.
- FHA cash-out refinances. With an FHA cash-out refinance, you take out a new loan for more than you owe on your current loan, pay off your original mortgage and then keep the difference.
- FHA 203(k) refinances. These are also known as rehab loans, and they combine renovation and repair costs into a single loan.
- Conventional refinances. You can convert your FHA loan into a conventional loan by refinancing. This new loan will not be backed by the FHA, but it can eliminate your mortgage insurance if you have at least 20% equity in the home.
