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Yahoo
09-07-2025
- Business
- Yahoo
Mortgage and refinance interest rates today, July 9, 2025: Higher on longer-term loans, unchanged on shorter
Mortgage interest rates are mixed today, with a bump higher on longer-term rates and no change on the shorter. According to Zillow, the average 30-year fixed rate rose nine basis points to 6.71%. The 15-year mortgage remained steady at 5.83%. Following last week's positive jobs report, bond traders have been readjusting their bearish positions. That has moved yields higher, including on the 10-year Treasury, a benchmark for mortgage rates. However, mixed sentiment is the enemy of momentum, and Wall Street is scrambling to decode the various signals between possible future interest rate cuts — and Trump tariffs. As a result, the bond market and mortgage rates are likely to be choppy this week. Read more: Housing costs are still the stickiest part of an otherwise cool inflation report Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.71% 20-year fixed: 6.31% 15-year fixed: 5.83% 5/1 ARM: 7.68% 7/1 ARM: 7.45% 30-year VA: 6.21% 15-year VA: 5.61% 5/1 VA: 6.38% Remember, these are the national averages and rounded to the nearest hundredth. Learn more: Here's how mortgage rates are determined These are today's mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.78% 20-year fixed: 6.37% 15-year fixed: 5.98% 5/1 ARM: 7.72% 7/1 ARM: 7.58% 30-year VA: 6.22% 15-year VA: 5.94% 5/1 VA: 6.33% 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. Use the mortgage calculator below to see how various interest rates and loan amounts will affect your monthly payments. It also shows how the term length plays into things. To dive deeper, use the Yahoo Finance mortgage calculator, which includes homeowners insurance and property taxes in your monthly payment estimate. You even have the option to enter costs for private mortgage insurance (PMI) and homeowners' association dues if those apply to you. These details result in a more accurate monthly payment estimate than if you simply calculated your mortgage principal and interest. There are two main advantages to a 30-year fixed mortgage: Your payments are lower, and your monthly payments are predictable. A 30-year fixed-rate mortgage has relatively low monthly payments because you're spreading your repayment out over a longer period of time than with, say, a 15-year mortgage. Your payments are predictable because, unlike with an adjustable-rate mortgage (ARM), your rate isn't going to change from year to year. Most years, the only things that might affect your monthly payment are any changes to your homeowners insurance or property taxes. The main disadvantage to 30-year fixed mortgage rates is mortgage interest — both in the short and long term. A 30-year fixed term comes with a higher rate than a shorter fixed term, and it's higher than the intro rate to a 30-year ARM. The higher your rate, the higher your monthly payment. You'll also pay much more in interest over the life of your loan due to both the higher rate and the longer term. The pros and cons of 15-year fixed mortgage rates are basically swapped from the 30-year rates. Yes, your monthly payments will still be predictable, but another advantage is that shorter terms come with lower interest rates. Not to mention, you'll pay off your mortgage 15 years sooner. So you'll save potentially hundreds of thousands of dollars in interest over the course of your loan. However, because you're paying off the same amount in half the time, your monthly payments will be higher than if you choose a 30-year term. Dig deeper: 15-year vs. 30-year mortgages Adjustable-rate mortgages lock in your rate for a predetermined amount of time, then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years and then goes up or down once per year for the remaining 25 years. The main advantage is that the introductory rate is usually lower than what you'll get with a 30-year fixed rate, so your monthly payments will be lower. (Current average rates don't reflect this, though — fixed rates are actually lower. Talk to your lender before deciding between a fixed or adjustable rate.) With an ARM, you have no idea what mortgage rates will be like once the intro-rate period ends, so you risk your rate increasing later. This could ultimately end up costing more, and your monthly payments are unpredictable from year to year. But if you plan to move before the intro-rate period is over, you could reap the benefits of a low rate without risking a rate increase down the road. Learn more: Adjustable-rate vs. fixed-rate mortgage The national average 30-year mortgage rate is 6.71% right now, according to Zillow. But keep in mind that averages can vary depending on where you live. For example, if you're buying in a city with a high cost of living, rates could be even higher. Mortgage rates will likely remain in a tight range over the next few months. There are many questions regarding the economy, inflation, and the job market. Don't look for big moves in interest rates unless bad economic news develops. Not significantly. Mortgage rates continue to be about where they were one year ago. In many ways, securing a low mortgage refinance rate is similar to when you bought your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing into a shorter term will also land you a lower rate, though your monthly mortgage payments will be higher.
Yahoo
09-07-2025
- Business
- Yahoo
Mortgage and refinance interest rates today, July 9, 2025: Higher on longer-term loans, unchanged on shorter
Mortgage interest rates are mixed today, with a bump higher on longer-term rates and no change on the shorter. According to Zillow, the average 30-year fixed rate rose nine basis points to 6.71%. The 15-year mortgage remained steady at 5.83%. Following last week's positive jobs report, bond traders have been readjusting their bearish positions. That has moved yields higher, including on the 10-year Treasury, a benchmark for mortgage rates. However, mixed sentiment is the enemy of momentum, and Wall Street is scrambling to decode the various signals between possible future interest rate cuts — and Trump tariffs. As a result, the bond market and mortgage rates are likely to be choppy this week. Read more: Housing costs are still the stickiest part of an otherwise cool inflation report Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.71% 20-year fixed: 6.31% 15-year fixed: 5.83% 5/1 ARM: 7.68% 7/1 ARM: 7.45% 30-year VA: 6.21% 15-year VA: 5.61% 5/1 VA: 6.38% Remember, these are the national averages and rounded to the nearest hundredth. Learn more: Here's how mortgage rates are determined These are today's mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.78% 20-year fixed: 6.37% 15-year fixed: 5.98% 5/1 ARM: 7.72% 7/1 ARM: 7.58% 30-year VA: 6.22% 15-year VA: 5.94% 5/1 VA: 6.33% 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. Use the mortgage calculator below to see how various interest rates and loan amounts will affect your monthly payments. It also shows how the term length plays into things. To dive deeper, use the Yahoo Finance mortgage calculator, which includes homeowners insurance and property taxes in your monthly payment estimate. You even have the option to enter costs for private mortgage insurance (PMI) and homeowners' association dues if those apply to you. These details result in a more accurate monthly payment estimate than if you simply calculated your mortgage principal and interest. There are two main advantages to a 30-year fixed mortgage: Your payments are lower, and your monthly payments are predictable. A 30-year fixed-rate mortgage has relatively low monthly payments because you're spreading your repayment out over a longer period of time than with, say, a 15-year mortgage. Your payments are predictable because, unlike with an adjustable-rate mortgage (ARM), your rate isn't going to change from year to year. Most years, the only things that might affect your monthly payment are any changes to your homeowners insurance or property taxes. The main disadvantage to 30-year fixed mortgage rates is mortgage interest — both in the short and long term. A 30-year fixed term comes with a higher rate than a shorter fixed term, and it's higher than the intro rate to a 30-year ARM. The higher your rate, the higher your monthly payment. You'll also pay much more in interest over the life of your loan due to both the higher rate and the longer term. The pros and cons of 15-year fixed mortgage rates are basically swapped from the 30-year rates. Yes, your monthly payments will still be predictable, but another advantage is that shorter terms come with lower interest rates. Not to mention, you'll pay off your mortgage 15 years sooner. So you'll save potentially hundreds of thousands of dollars in interest over the course of your loan. However, because you're paying off the same amount in half the time, your monthly payments will be higher than if you choose a 30-year term. Dig deeper: 15-year vs. 30-year mortgages Adjustable-rate mortgages lock in your rate for a predetermined amount of time, then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years and then goes up or down once per year for the remaining 25 years. The main advantage is that the introductory rate is usually lower than what you'll get with a 30-year fixed rate, so your monthly payments will be lower. (Current average rates don't reflect this, though — fixed rates are actually lower. Talk to your lender before deciding between a fixed or adjustable rate.) With an ARM, you have no idea what mortgage rates will be like once the intro-rate period ends, so you risk your rate increasing later. This could ultimately end up costing more, and your monthly payments are unpredictable from year to year. But if you plan to move before the intro-rate period is over, you could reap the benefits of a low rate without risking a rate increase down the road. Learn more: Adjustable-rate vs. fixed-rate mortgage The national average 30-year mortgage rate is 6.71% right now, according to Zillow. But keep in mind that averages can vary depending on where you live. For example, if you're buying in a city with a high cost of living, rates could be even higher. Mortgage rates will likely remain in a tight range over the next few months. There are many questions regarding the economy, inflation, and the job market. Don't look for big moves in interest rates unless bad economic news develops. Not significantly. Mortgage rates continue to be about where they were one year ago. In many ways, securing a low mortgage refinance rate is similar to when you bought your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing into a shorter term will also land you a lower rate, though your monthly mortgage payments will be higher.
Yahoo
26-06-2025
- Business
- Yahoo
What happens if mortgage rates go up to 8%?
The most common question among prospective home buyers these days is, "When will mortgage rates go down?" However, rates can do three things: stay the same, move lower — and go even higher than they are now. What if you wait to buy a house only for mortgage rates to rise to 8% or even more? This embedded content is not available in your region. Mortgage rates are closely interconnected with the bond market. Bonds, particularly government Treasurys, have been a go-to investment for investors seeking safety and a guaranteed, if meager, return. Now, consider a series of circumstances that, within the past few months, may seem more plausible than ever. Imagine a scenario where the trade war suddenly goes off the rails. Tariffs upon tariffs cause consumer costs to skyrocket. Combined with rising international tensions, the price of oil skyrockets. The stock market goes into a deep correction. Now, add to the mix rising U.S. debt. Government spending continues to expand, despite the pleas of fiscal conservatives. And as JPMorgan CEO Jamie Dimon recently predicted at the Reagan National Economic Forum in California, the bond market "cracks," a sell-off begins, prices slide, and yields soar. The 10-year Treasury yield jumps from the current low-to-mid 4% range to 6% — or higher. The result? Mortgage rates in the 8% range. Dig deeper: How are mortgage rates determined? It's complicated. Chris Whalen is an investment banker in New York and chairman of Whalen Global Advisors. In an interview with Yahoo Finance in November, he predicted that mortgage rates could increase to 8% in 2025. These days, his rate prediction is not quite as dire. Yet as the nation waits for the Federal Reserve to cut short-term interest rates, he thinks the combination of the federal deficit and the prospect of Congress's "big, beautiful bill" adding to the U.S. debt might render a Fed rate cut unlikely to lower mortgage rates. "Those two factors, I think, are weighing on the markets a lot," he told Yahoo Finance in a phone interview. "When people look at the U.S., they look at the dollar, and they look at some of the other factors — the economy — it's really hard to get them excited about buying that long-dated Treasury paper. So, imagine if [Fed Chairman Jerome] Powell gave Trump what he wants tomorrow, and dropped the fed funds rate half a point. I'm not sure that would help." Whalen believed a Fed rate cut simply wouldn't be enough to force mortgage rates down significantly. That was the case near the end of 2024, when, after three Fed rate cuts, mortgage rates actually rose. Keep learning: How the Fed rate decision impacts mortgage rates Research conducted by the National Association of Home Builders found that with 30-year mortgage rates around 7%, 31.5 million American households could afford a median-priced home of about $460,000. That would require a household income of more than $147,000. However, as rates climb to 8%, affordability is even further impacted. Just a quarter-point rate increase from 7.75% to 8% would remove about 850,000 households from the market. Learn more: How much house can you afford? Use Yahoo Finance's home affordability calculator. When was the last time mortgage rates touched 8%? According to Mortgage News Daily data, it was less than two years ago, on Oct. 19, 2023. But for just one day. However, if a series of events — perhaps a variation of what has been described above, were to become reality — we might see 8% or higher mortgage rates for much longer than one day. Mortgage loan originator Dan Frio said that, yes, clients still ask when rates will fall back to 3%. "But we're starting to see a shift. More people are adjusting their expectations and focusing on what they can afford now rather than waiting for the perfect rate," Frio told Yahoo Finance in an email. For example, he remembered September 2024 when mortgage rates fell close to 6% and loan activity spiked for both purchase applications and refinancing. "That shows that buyers are willing to act when the market gives them a window, even in the 6% range," Frio said. "It's no longer about chasing 3%, it's about recognizing opportunity when it comes." He said he helps clients shift their focus from just the interest rate to the bigger financial picture. "We talk about affordability, monthly payments, and long-term wealth-building through equity," Frio noted. "My advice to buyers today: If the home fits your life and the payment fits your budget, make the move. Rates will always fluctuate, but opportunities — especially in real estate — don't wait forever." Read more: Which is more important, your interest rate or house price? This embedded content is not available in your region. With a fixed-rate mortgage, your monthly principal and interest payment won't change due to rising interest rates. However, if you have an adjustable-rate mortgage and are beyond your introductory rate period, your payment is likely to move higher according to the terms of your loan. Many people do, often thinking they may have the opportunity to refinance their mortgage later. However, deciding to buy a house is based on several factors beyond interest rates. Affordability is determined by the price of the home you want to purchase, the down payment you have saved, and the debt you currently carry. In addition, you'll want to consider the number of years you want to remain in the city and the house you are considering. That can be related to employment, children, and other personal considerations. The highest mortgage rate recorded by Freddie Mac was 18.63% in October 1981, and that was with more than two discount points applied. The 54-year average for a 30-year fixed mortgage is about 7.75%. From a historical point of view, a high mortgage rate would be somewhere between the two. From a practical standpoint, and for prospective home buyers, a high mortgage rate is likely any interest rate that makes their monthly loan payment unaffordable. Laura Grace Tarpley edited this article.
Bloomberg
25-06-2025
- Business
- Bloomberg
Treasury Yields Rebound From Monthly Lows as Oil Stabilizes
Treasury yields edged higher from the lowest levels of the past month as oil prices rebounded, and investors braced for a $70 billion sale of five-year notes Wednesday. Longer-term bonds led the selloff, pushing the yield curve steeper. Yields on 30-year bonds climbed about 2 basis points while five-year yields were little change. The yield gap between the two securities is approaching levels last seen in 2021.
Bloomberg
24-06-2025
- Business
- Bloomberg
Bill Gross Warns on 10-Year Treasury Bonds, But Is Optimistic on Stocks
Bill Gross has bad news for Treasury bulls, and good news for stock investors. The bond-market legend warns that the 10-year Treasury yield will struggle to dip below 4.25% as ballooning fiscal deficits and a weaker dollar conspire to keep inflation elevated.
