The average 30-year fixed mortgage rate is 6.94% this week, and the 15-year fixed rate is 6.24%. These are both down from last week, totaling three straight weeks of rate decreases.

“Spring homebuyers received an unexpected windfall this week, as mortgage rates fell below the seven percent threshold for the first time in over a month,” said Freddie Mac chief economist Sam Khater in a press release. “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing homes is up. Greater supply coupled with the recent downward trend in rates is an encouraging sign for the housing market.”

What does this mean if you want to buy a house? Rates are ticking down, and more homes are for sale. This means you have options, and depending on your situation, it could be good to start house hunting before the spring home-buying season ends.

Dig deeper: What is the best time of year to buy a house?

Today’s mortgage rates

According to Freddie Mac, the national average 30-year mortgage fixed rate this week is 6.94%, down eight basis points from the previous week. This is the third consecutive week of decreases, following five straight weeks of rate increases.

The average 15-year fixed rate inched down too. It is 6.24%, a four-basis-point drop from the week prior.

30-year vs. 15-year fixed mortgage rates

As a rule of thumb, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15- versus 30-year mortgage rates, know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you’re paying off the same loan amount in half the time.

For example, with a $400,000 30-year mortgage and a 6.94% rate, you’ll make a monthly payment of about $2,645 toward your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $552,240 in interest.

If you get a $400,000 15-year mortgage with a 6.24% rate, you’ll pay about $3,428nmonthly toward your principal and interest. However, you’ll only pay $216,952 in interest over the years.

To play around with rates, term lengths, and more, use our free Yahoo Finance mortgage calculator and see what you would pay each month in different scenarios.

Learn more: How much money do I need to buy a house?

Fixed-rate vs. adjustable-rate mortgages

With a fixed-rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage.

An adjustable-rate mortgage keeps your rate the same for a set period of time. Then the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remainder of your term.

Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up.

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

When will mortgage rates finally drop?

Mortgage rates have been going down for the past few weeks, but the decreases have been minimal. Many people are wondering when rates will drop significantly.

The answer: probably not in 2024.

In Fannie Mae’s May housing forecast, the government-sponsored enterprise said it expects 30-year fixed rates to end 2024 at 7% and 2025 at 6.6%. The Mortgage Bankers Association predicts the rate will drop to 6.5% by the end of the year and 5.9% by the end of 2025.

The trajectory of future mortgage rates will largely depend on the Federal Reserve’s decision on whether or not to cut the federal funds rate at its meetings throughout the year. The federal funds rate doesn’t directly impact mortgage rates, but it is a good indicator of how the economy is doing overall. So when the Fed rate drops, mortgage rates typically go down too. The next Federal Reserve meeting is in mid-June.

Learn more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards