Latest news with #MortgageBankersAssociation
Yahoo
a day ago
- Business
- Yahoo
Mortgage and refinance interest rates today, July 20, 2025: Economists expect rates to stay high
Mortgage rates are consistently fluctuating, but even so, the changes are pretty small. According to Zillow, the average 30-year fixed rate has only shifted up one basis points to 6.72%. Meanwhile, the 20-year fixed rate has inched down by four basis points to 6.52%, and the 15-year fixed rate has increased by seven basis points to 5.97%. According to the Mortgage Bankers Association's July forecast, the 30-year fixed mortgage rate is set to decrease to 6.7% by the end of the year and 6.6% halfway through 2026, so there is no expectation that mortgage interest rates will plummet in the near future. Prioritize buying a house when it makes the most sense for your situation, rather than relying on lower future interest rates. Dig deeper: 2025 housing market — Is it a good time to buy a house? Current mortgage rates Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.72% 20-year fixed: 6.52% 15-year fixed: 5.97% 5/1 ARM: 7.42% 7/1 ARM: 7.4% 30-year VA: 6.33% 15-year VA: 5.69% 5/1 VA: 6.49% Remember, these are the national averages and rounded to the nearest hundredth. Current mortgage refinance rates These are today's mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.70% 20-year fixed: 6.60% 15-year fixed: 5.67% 5/1 ARM: 7.59% 7/1 ARM: 7.46% 30-year VA: 6.32% 15-year VA: 6.15% 5/1 VA: 6.43% Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that's not always the case. Read more: Is now a good time to refinance your mortgage? Refinance interest rates A continuación A continuación Monthly mortgage payment calculator Use the mortgage calculator below to see how various mortgage terms and interest rates will impact your monthly payments. Our free mortgage calculator also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest. 30-year vs. 15-year fixed mortgage rates The average 30-year mortgage rate today is 6.72%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is lower than with a shorter-term loan. The average 15-year mortgage rate is 5.97% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals. A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you'll pay off your loan 15 years sooner, and that's 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher as you pay off the same amount in half the time. Let's say you get a $300,000 mortgage. With a 30-year term and a 6.72% rate, your monthly payment toward the principal and interest would be about $1,940, and you'd pay $398,334 in interest over the life of your loan — on top of that original $300,000. If you get that same $300,000 mortgage with a 15-year term and a 5.97% rate, your monthly payment would jump to $2,527. But you'd only pay $154,808 in interest over the years. Fixed-rate vs. adjustable-rate mortgages With a fixed-rate mortgage, your rate is locked in for the entire life of your loan. You will get a new rate if you refinance your mortgage, though. An adjustable-rate mortgage keeps your rate the same for a predetermined 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 remaining 23 years of your term. Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, it's possible your rate will go up. Lately, though, some fixed rates have been starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other. Dig deeper: Fixed-rate vs. adjustable-rate mortgages How to get a low mortgage rate Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes. Waiting for rates to drop probably isn't the best method to get the lowest mortgage rate right now. If you're ready to buy, focusing on your personal finances is probably the best way to lower your rate. How to choose a mortgage lender To find the best mortgage lender for your situation, apply for mortgage preapproval with three or four companies. Just be sure to apply to all of them within a short time frame — doing so will give you the most accurate comparisons and have less of an impact on your credit score. When choosing a lender, don't just compare interest rates. Look at the mortgage annual percentage rate (APR) — this factors in the interest rate, any discount points, and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders. Learn more: Best mortgage lenders for first-time home buyers Current mortgage rates: FAQs What is a mortgage interest rate at right now? According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.72%, and the average 15-year mortgage rate is 5.97%. But these are national averages, so the average in your area could be different. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas. What's a good mortgage rate right now? The average 30-year fixed mortgage rate is 6.72% right now, according to Zillow. However, you might get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI). Are mortgage rates expected to drop? Mortgage rates aren't expected to drop drastically in the near future, though they may inch down now and then.
Yahoo
4 days ago
- Business
- Yahoo
Mortgage rates move higher again
Mortgage rates increased for the second straight week. The average rate on a 30-year fixed mortgage was 6.75% through Wednesday, up from 6.68% the week prior, according to Freddie Mac data. The average 15-year fixed mortgage rate was 5.92%, up from 5.86% last week. 'The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%. While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act,' Sam Khater, Freddie Mac chief economist, said in a statement. Learn more: Will mortgage rates go down? Predictions after two weeks of increases. Mortgage rates continued to climb following a rise in 10-year Treasury yields last week on uncertainty about tariffs. According to data from the Mortgage Bankers' Association, the volume of mortgage applications fell by 10% compared to a week earlier, marking the sharpest decline in nearly three months and erasing the 9.4% increase from the previous week. Applications for home refinancing options also decreased. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 'Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates and declined to the slowest pace since May,' said MBA Deputy Chief Economist Joel Kan. With the June jobs report from the Bureau of Labor Statistics pointing to strong employment and a lower chance of a Fed rate cut in July, mortgage rates are expected to remain within the 6% to 7% range through 2025. Read more: Where and how to find the lowest mortgage rates right now Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Mortgage rates move higher again
Mortgage rates increased for the second straight week. The average rate on a 30-year fixed mortgage was 6.75% through Wednesday, up from 6.68% the week prior, according to Freddie Mac data. The average 15-year fixed mortgage rate was 5.92%, up from 5.86% last week. 'The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%. While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act,' Sam Khater, Freddie Mac chief economist, said in a statement. Learn more: Will mortgage rates go down? Predictions after two weeks of increases. Mortgage rates continued to climb following a rise in 10-year Treasury yields last week on uncertainty about tariffs. According to data from the Mortgage Bankers' Association, the volume of mortgage applications fell by 10% compared to a week earlier, marking the sharpest decline in nearly three months and erasing the 9.4% increase from the previous week. Applications for home refinancing options also decreased. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 'Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates and declined to the slowest pace since May,' said MBA Deputy Chief Economist Joel Kan. With the June jobs report from the Bureau of Labor Statistics pointing to strong employment and a lower chance of a Fed rate cut in July, mortgage rates are expected to remain within the 6% to 7% range through 2025. Read more: Where and how to find the lowest mortgage rates right now Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
5 days ago
- Business
- CNBC
Weekly mortgage demand plummets 10%, as rates and economic concerns rise
Renewed concerns over tariffs and the broader economy drove treasury yields higher last week, and mortgage rates followed. As a result, total mortgage application volume dropped 10% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.82% from 6.77%, with points remaining unchanged at 0.62, including the origination fee, for loans with a 20% down payment. "Treasury yields finished higher last week on average despite an intra-week drop, driven partly by renewed concerns of the impact of tariffs on the economy. As a result, mortgage rates rose after two weeks of declines, which contributed to slower application activity," said Joel Kan, MBA's vice president and deputy chief economist. Applications for a mortgage to purchase a home dropped 12% for the week and were 13% higher than the same week one year ago. That was the slowest pace since May. The housing market has seen inventory climb since the start of the year, but even potential sellers are starting to pull back, as buyer demand retreats and home prices soften. Jumbo rates were lower than conventional rates for the third straight week, as some depositories may be positioning themselves for growth in balance sheet lending, according to Kan. Applications to refinance a home loan dropped 7% for the week and were 25% higher than the same week one year ago. "Refinance applications also dipped because of higher rates, with refinance applications falling, led by VA refinances partially reversing their previous week's gain, dropping 22 percent," said Kan. Mortgage rates continued to move higher to start this week, despite a slightly hotter-than-expected read on inflation. "We knew there was a possibility of two separate reactions--one for the top line CPI numbers and one for a deeper look at the internal components. Those internals show that tariffs are having an impact even though it was a smaller impact than many forecasters were expecting," wrote Matthew Graham, chief operating officer at Mortgage News Daily.
Bloomberg
5 days ago
- Business
- Bloomberg
US Home Purchase Applications Fall After Prior Week's Surge
US mortgage applications to buy a home declined last week to the lowest level since late May as borrowing costs remained elevated. The Mortgage Bankers Association's index of home-purchase applications slumped 11.8% in the week ended July 11, data from the group showed Wednesday. While that marked the biggest drop since 2022, it followed a 9.4% jump in the previous week that included Independence Day. The figures are prone to wide swings around holidays even though the data are adjusted for seasonal effects.
