Today’s mortgage rates have seen an increase, with Zillow reporting that the 30-year fixed mortgage rate has risen by nine basis points to 6.70%, and the 15-year fixed rate has increased by five basis points to 5.95%.
Economists anticipate that mortgage rates may slightly decrease by the end of 2025, but they are not expected to drop significantly. It is likely that national 30-year rates will remain above 6%. In a high-rate environment, it is crucial to diligently research and compare mortgage lenders to secure the best possible rates. Obtaining preapproval letters from three or four companies and comparing their rates and lender fees can help borrowers identify the most favorable options.
According to the latest data from Zillow, here are the current mortgage rates:
– 30-year fixed: 6.70%
– 20-year fixed: 6.28%
– 15-year fixed: 5.95%
– 5/1 ARM: 6.88%
– 7/1 ARM: 7.13%
– 30-year VA: 6.24%
– 15-year VA: 5.66%
– 5/1 VA: 6.32%
Refinancing rates are also on the rise, with Zillow reporting the following rates:
– 30-year fixed: 6.75%
– 20-year fixed: 6.49%
– 15-year fixed: 6.08%
– 5/1 ARM: 7.37%
– 7/1 ARM: 7.47%
– 30-year VA: 6.33%
– 15-year VA: 6.07%
– 5/1 VA: 6.43%
It is important to note that these rates are national averages and are rounded to the nearest hundredth. Mortgage refinance rates are typically higher than rates for purchasing a home, although this may vary.
When considering mortgage terms and interest rates, using a mortgage calculator can help estimate monthly payments accurately. Factors such as property taxes and homeowners insurance are also taken into account to provide a realistic view of the total monthly payment.
Choosing between a 15-year and 30-year mortgage depends on individual goals and financial circumstances. While a 15-year mortgage offers a lower interest rate and allows for quicker loan repayment, it also results in higher monthly payments. Comparing the total interest paid over the life of the loan can help borrowers make an informed decision.
Fixed-rate mortgages lock in the interest rate for the entire loan term, while adjustable-rate mortgages offer a fixed rate for a set period before potentially adjusting based on market conditions. It is essential to consider all factors before choosing between fixed and adjustable rates.
Lenders typically offer lower rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios. Improving personal finances, such as saving more, boosting credit scores, and reducing debt, can help secure better mortgage rates.
While waiting for rates to drop may not be the most effective strategy, focusing on personal financial health can lead to better rate offers. Comparing mortgage lenders based on interest rates, lender fees, and annual percentage rates (APR) can help borrowers find the most competitive options.
In conclusion, mortgage rates have increased, and while slight fluctuations may occur, significant drops are not expected in the near future. It is advisable to research and compare lenders thoroughly to secure the best possible mortgage rates.
