Mortgage rates have hit their lowest point since September 2022, according to Freddie Mac. The average 30-year fixed rate fell by eight basis points to 6.01%, while the 15-year fixed-rate dropped by nine basis points to 5.35%. This decrease in rates is expected to drive both purchase and refinance demand in the housing market.
If you are planning to get a new home loan soon, whether to purchase a new home or refinance your existing mortgage, it may be a good time to start exploring different lenders to secure the best offer available. With rates at a low point, now is the opportune moment to take advantage of the favorable conditions in the market.
Here are the current mortgage rates based on the latest data from Zillow:
– 30-year fixed: 5.81%
– 20-year fixed: 5.81%
– 15-year fixed: 5.35%
– 5/1 ARM: 5.86%
– 7/1 ARM: 5.98%
– 30-year VA: 5.49%
– 15-year VA: 5.07%
– 5/1 VA: 5.20%
It is important to note that these rates are national averages and have been rounded to the nearest hundredth. Mortgage refinance rates are often slightly higher than rates for home purchases, although this may vary depending on individual circumstances.
When considering a mortgage, it’s essential to understand the different types of rates available. A fixed-rate mortgage locks in your interest rate for the entire duration of the loan, providing stability and predictability in your monthly payments. On the other hand, an adjustable-rate mortgage offers an introductory fixed rate for a set period before adjusting periodically based on market conditions.
The choice between a 30-year fixed-rate mortgage and a 15-year fixed-rate mortgage depends on your financial goals. A 30-year term typically results in lower monthly payments but higher overall interest payments, while a 15-year term can save you significant money on interest over the life of the loan but comes with higher monthly payments.
Adjustable-rate mortgages can be a good option for those planning to sell their home before the introductory rate period ends. However, recent trends have seen 5/1 and 7/1 ARM rates similar to or even higher than 30-year fixed rates, so it’s important to compare your options carefully.
Overall, mortgage rates have been on a downward trend since last May and are now at their lowest level in months. Economists predict that rates are unlikely to see significant declines through the end of 2026, providing favorable conditions for potential homebuyers and refinancers.
Looking ahead, the Mortgage Bankers Association expects the 30-year mortgage rate to hover around 6.1% through 2026, with Fannie Mae also predicting rates near 6% in the coming year. As we move into 2027, mortgage rates are expected to remain relatively stable, with forecasts from the MBA and Fannie Mae indicating rates near 6% for the full year.
In conclusion, with mortgage rates at historic lows, now is a great time to explore your options and secure a favorable rate for your home loan. Whether you are looking to purchase a new home or refinance your existing mortgage, taking advantage of the current market conditions can help you save money in the long run.
