Mortgage rates today: 30-year, 15-year, ARM rates and refinance rates on August 17

Mortgage rates for home buyers and refinancers are slightly lower today, according to Zillow data reported by Yahoo Finance. The average 30-year fixed purchase mortgage rate is 6.54%, which is 5 basis points lower than the 6.59% 30-year refinance rate. Meanwhile, the average 15-year fixed purchase mortgage rate is 5.86%, 2 basis points lower than the 5.88% 15-year refinance rate.

Adjustable-rate mortgages (ARMs) show a difference of 20 basis points between purchase rates and refinance rates, with the average 5/1 ARM purchase rate at 6.24% and the refinance rate at 6.44%.

Mortgage refinance rates are often higher than purchase rates, but this isn't always the case. The 30-year fixed mortgage remains the most popular type of home loan, with an average purchase rate of 6.54%. Over a 30-year loan term, the monthly payment for a $300,000 mortgage at this rate would be around $1,935.04, resulting in total payments of approximately $696,614, including $396,614 in interest.

In contrast, a 15-year mortgage typically has a lower interest rate and allows borrowers to pay off the loan 15 years earlier. For a $300,000 mortgage at a 5.86% rate, the monthly payment would be around $2,537.41, with total interest paid being about $156,734 over the loan's lifetime.

ARMs have a fixed rate for an initial period, after which it can change annually. While they may start with lower rates than fixed mortgages, there's a risk that rates could increase after the initial fixed period ends. Borrowers should compare both options before deciding. Factors like down payment size, credit score, and debt-to-income ratio can influence mortgage rates, with better rates generally offered to borrowers with strong financial profiles.

Additional options like buydowns and mortgage calculators can help borrowers find the best rate and understand the total cost of a loan.