Latest news with #rates
CNET
8 hours ago
- Business
- CNET
Refinance Rates Tick Higher: Current Refinance Rates on July 23, 2025
So far this year, average mortgage rates have stayed stubbornly high, bouncing between 6.5% and 7%, as financial markets weigh the risks of both higher inflation and an economic slowdown. Most homeowners, unable to save money by refinancing, are holding out for bigger rate drops. "If rates fall below 6%, we could see a big jump in refinance activity," said Jeb Smith, licensed real estate agent and member of CNET Money's expert review board. Yet economists and housing market experts don't predict a dramatic drop-off in rates in the immediate future. Mortgage refinance rates fluctuate daily based on a range of economic and political factors. For more insights on where rates might be headed, check out our weekly mortgage rate forecast. When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNET's partner lenders. About these rates: Bankrate's tool features rates from partner lenders that you can use when comparing multiple mortgage rates. Today's refinance rate trends Early-year projections for mortgage refinance rates were cautiously optimistic. Experts outlined a gradual improvement in housing affordability driven by easing inflation and a series of Federal Reserve rate cuts. However, after three interest rate reductions in 2024, the Fed has left borrowing rates unchanged this year to assess the economic fallout from President Trump's policies on trade, immigration and government spending. The central bank is expected to resume cutting rates as early as September, but this will not immediately result in lower mortgage rates. While the Fed's policy decisions guide borrowing costs across the economy, they don't have a 1:1 relationship with mortgage rates, which are set in the bond market. As of now, the Fed is expected to make two 0.25% rate reductions this year. If inflation increases due to tariffs, policymakers may hold off on easing borrowing costs until later, which would keep upward pressure on mortgage refinance rates. Where will refinance rates end up in 2025? Most housing forecasts still call for a modest decline in mortgage rates, with average 30-year fixed rates expected to end the year around below 6.5%. For refinancing to become significantly more affordable, though, we need to see multiple interest rate cuts and weaker economic data. Overall, it's unlikely we'll see another refinancing boom like the one in 2020-21 when mortgage rates were exceptionally low around 3%. Nevertheless, refinancing might be beneficial for other reasons, like changing the type of home loan, term length or taking someone off the mortgage. What does it mean to refinance? When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you'll tap into your equity with a new loan that's bigger than your existing mortgage balance, allowing you to pocket the difference in cash. Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it's the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly. But refinancing your mortgage isn't free. Since you're taking out a whole new home loan, you'll need to pay another set of closing costs. If you fall into that pool of homeowners who purchased property when rates were high, consider reaching out to your lender and running the numbers to see whether a mortgage refinance makes sense for your budget, said Logan Mohtashami, lead analyst at HousingWire. How to find the best refinance rates The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. 30-year fixed-rate refinance The current average interest rate for a 30-year refinance is 6.87%, an increase of 6 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term. 15-year fixed-rate refinance The average 15-year fixed refinance rate right now is 6.24%, an increase of 10 basis points over last week. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you'll save more money over time because you're paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run. 10-year fixed-rate refinance The current average interest rate for a 10-year refinance is 6.37%, an increase of 26 basis points compared to one week ago. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment. To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don't forget to speak with multiple lenders and shop around. Does refinancing make sense? Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance: To get a lower interest rate: If you can secure a rate that's at least 1% lower than the one on your current mortgage, it could make sense to refinance. If you can secure a rate that's at least 1% lower than the one on your current mortgage, it could make sense to refinance. To switch the type of mortgage: If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage. If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage. To eliminate mortgage insurance: If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity. If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity. To change the length of a loan term: Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run. Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run. To tap into your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense. If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense. To take someone off the mortgage: In case of divorce, you can apply for a new home loan in just your name and use the funds to pay off your existing mortgage.
Yahoo
11 hours ago
- Business
- Yahoo
Fed Should Not Cut Rates, Says DoubleLine's Sherman
Jeffrey Sherman, deputy chief investment officer at DoubeLine, says US Federal Reserve Chair Jerome Powell shouldn't cut rates today. He is on "Bloomberg ETF IQ." 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
RNZ News
a day ago
- Business
- RNZ News
New Plymouth District Council credits property owners $3.1 million to fix rates bungle
New Plymouth District Council chief executive Gareth Green. Photo: Taupō District Council / Supplied New Plymouth councillors have agreed to credit residential ratepayers an average of $102 each after a gaffe in its annual plan meant property owners faced a 12.8 percent rates hike rather than the 9.9 percent advertised. At an extra-ordinary meeting on 22 July, councillors decided to try to find $3.1 million in savings to absorb the cost of the mistake. In a chamber filled with members of the New Plymouth Ratepayers Alliance wearing black T-shirts with "Respect Our Rates" emblazoned on them, council chief executive Gareth Green kicked proceedings off with a lengthy apology. "I stand before you today to introduce this paper for your decision making, but more importantly to own on behalf of this organisation an error which has let each of you, the community and ourselves down. "Standing here having to introduce this matter brings me no joy, however, as your chief executive it is my responsibility to own what is a significant failing of this organisation." The residential rates error was discovered as part of an internal review called for following an earlier GST bungle which could've cost council $20 million in lost revenue. The GST mistake - which had been characterised as a "typo" and "cut and paste" error - was corrected earlier this month. As well as ironing out the average residential rates glitch, councillors also corrected an annual plan wording error relating to industrial water use which could've cost council a further $1.4 million in lost revenue. An external Simpson Grierson review, which ran concurrently with the internal investigation, found council lacked financial reporting and modelling capability which "strongly suggests a need for training, and possibly recruitment / restructure and training". Green was not sure exactly how the rates error occurred but said it involved an incorrect assumption about the average value of residential land. "I put it into the context that there was a lot of pressure about getting rates down and being able to keep them down and that potentially could've contributed. "We were going through a restructure process which adds stress and pressure into any organisation and there were a lot of other processes going on nationally and locally at the time. "Just like in the airline sector a plane doesn't crash because one engine stops, it does when a number of things line up and we had a number of things lining up here which created this issue." Councillors had to decide whether to offer the automatic rates remission, go ahead and charge the full 12.8 percent or initiate a Rates Replacement Proposal to increase the commercial / industrial differential rate for 2025/26 which would've required a round of consultation. New Plymouth mayor Neil Holdom. Photo: RNZ / Robin Martin Mayor Neil Holdom's recommended councillors opt for the rates remission. He acknowledged councillor Amanda Clinton-Ghodes for repeatedly raising the issue of risk when council lost two senior finance leaders - one through a resignation - during the restructure period. "Today's meeting is about transparency and finding a way forward. We've published the details of the errors and the external report including a suite of recommendations developed to ensure we are legally compliant and square these issues with the community in a fully transparent manner. The motion before you does that." Deputy mayor David Bublitz said corrosion of the public trust the gaffes caused couldn't be overstated. "The first thing we have to do is restore the trust of the public and we restore the trust of the public by doing what we said we were going to do which is rate them at the right number. "We've got no choice. We then need to ... whoever is back [after the local body elections] ... needs to work hard to ensure that our council is a little bit leaner, a little bit more efficient and a little bit more innovative, so we can make that money back. We have to get it back." Councillor Murray Chong wanted to be done with it and charge the full 12.8 percent. "The real rate is 12.8 percent. That's it. We weren't being honest or we didn't realise we weren't being honest, but it wasn't 9.9 percent at all. "So what do we do? Do we give you a remission or do we face the reality and pay it this year because the reality is because if we don't pay it this year we will have to pay it next year or we make cuts and how are we going to make cuts? We already tried to make cuts." Chong didn't believe $3.1 million in savings could be found before June next year so council would end up borrowing to pay the shortfall. Outgoing councillor Anneka Carlson-Matthews admitted she didn't often agree with councillor Chong, but she wasn't comfortable with lumping more debt on the incoming council either. "To be fair I can't leave in good faith with a $3.1 million deficit for the [incoming] council on our mistake. That doesn't sit well. "All the talk about us being able to find it [the money] and we're going to cut service levels and we're going to reign [spending] in. We reigned it in. "And we heard from the CEO today that part of that reigning it in and restructure - which was great and we saved $10 million - was actually part of potentially why we're in the situation we are now." Carlson-Matthews didn't believe council could find the savings without making significant sacrifices. Councillors voted 13-2 in favour of the rates remission. Rates bills for the first of four quarterly instalments were expected to be sent out at the end of this month as normal. The amount owed showing on the bill would reflect the resolution in adopting the Annual Plan, but an "adjustment" or credit would be applied to each bill to reflect the decision made by the council on 22 July. The credit would be spread across the year.
Yahoo
a day ago
- Business
- Yahoo
Mortgage and refinance interest rates today, July 22, 2025: Mortgage rates trend downward
Today, mortgage rates saw a noticeable drop from the previous week. According to Zillow, the 30-year fixed mortgage rate dropped by six basis points to 6.66% while the 15-year fixed rate fell 15 basis points to 5.82%. With stock market analysts gaining cautious optimism as equities begin to rise, traders are adding to bond positions, including the 10-Year Treasury, causing prices to rise and yields to drop. Treasury yields fell 1.35% yesterday, and if this trend continues, mortgage rates could closely follow. Dig deeper: What determines mortgage rates? Today's mortgage rates Here are the current mortgage rates, according to our latest Zillow data: 30-year fixed: 6.66% 20-year fixed: 6.36% 15-year fixed: 5.82% 5/1 ARM: 7.22% 7/1 ARM: 7.08% 30-year VA: 6.21% 15-year VA: 5.67% 5/1 VA: 6.15% Remember that these are the national averages and rounded to the nearest hundredth. Have questions about buying, owning, or selling a house? Submit your question to Yahoo's panel of Realtors using this Google form. Today's mortgage refinance rates These are the current mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.78% 20-year fixed: 6.61% 15-year fixed: 5.94% 5/1 ARM: 7.58% 7/1 ARM: 7.80% 30-year VA: 6.32% 15-year VA: 6.17% 5/1 VA: 6.28% Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates. Refinance interest rates Up Next Up Next Yahoo Finance mortgage calculator A mortgage calculator can help you see how various mortgage term lengths and interest rates will affect your monthly payments. Use this mortgage calculator to play around with different outcomes. The Yahoo Finance mortgage calculator also considers factors like property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest. 30-year vs. 15-year fixed mortgage rates As a general rule, 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 mortgage with a 30-year term and a 6.66% rate, you'll make a monthly payment of about $2,571 toward your mortgage principal and interest. As interest accumulates over decades, you'll end up paying $525,383 in interest. If you get a $400,000 15-year mortgage with a 5.82% rate, you'll pay about $3,337 monthly toward your principal and interest. However, you'll only pay $200,597 in interest over the years. If that 15-year mortgage monthly payment is too high, remember you can always make extra mortgage payments on your 30-year loan to pay off your mortgage faster and ultimately pay less interest. 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 sometimes start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up. ARM rates have also been starting higher than fixed rates recently, so sometimes you don't get a rate break. Dig deeper: Adjustable-rate vs. fixed-rate mortgage — Which should you choose? When will mortgage rates finally drop? Economists don't expect drastic mortgage rate drops before the end of 2025. In 2024, mortgage rates trended downward from early August to the Sept. 18 Federal Reserve meeting, when the central bank announced a 50-basis-point slash to the federal funds rate. Since that announcement, mortgage rates have mostly increased or held steady. The Fed decreased its rate again at its November and December meetings (by 25 bps each time). 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 2025 meetings. The Fed has not cut its rate at any of its 2025 meetings so far. According to the CME FedWatch tool, there's a 95% chance that the rate will remain unchanged at the Fed's next meeting on July 30. This means rates probably won't significantly drop in the next couple of months. A sudden financial setback could change that. Dig deeper: Understanding the Fed's rate decisions — Do we want high or low interest rates? Mortgage rates today: FAQs What is today's 30-year fixed rate? According to Zillow data, today's 30-year fixed rate is 6.66% for home purchases and 6.78% for refinances. These are the national averages, so keep in mind the average in your state or city could be different. Your rate will also vary depending on your personal finances. Are mortgage rates expected to drop? Mortgage rates may be slightly lower by the end of 2025, but they're unlikely to drop drastically anytime soon. Will mortgage rates go down in 2025? Mortgage rates may ease a bit lower before the end of 2025, though probably not as sharply as many expected a few months ago. Depending on the economy, inflation, and the Fed, any decreases may be relatively small.
Bloomberg
2 days ago
- Business
- Bloomberg
A Top Indian Pension Fund Manager Is Betting on 30-Year Bonds
A top private pension fund in India is doubling down on 30-year government bonds after a recent selloff. The yield gap between India's 30- and 10-year sovereign notes has widened to levels last seen four years ago, after the central bank in June signaled that it may not cut rates further soon. This makes long-tenor bonds attractive for pension funds, which typically seek to lock in higher returns for longer periods.
