Latest news with #MikeFratantoni
Yahoo
19 hours ago
- Business
- Yahoo
Mortgage and refinance interest rates today, June 21, 2025: 30-year home loan rates dip slightly
Mortgage rates today are lower on the longer term but higher on the shorter. According to Zillow, today's 30-year fixed mortgage rate slipped lower by four basis points to 6.77%, while the 15-year fixed rate moved higher by nine basis points to 6.05%. Home loan interest rates continue to waver back and forth, and with the Federal Reserve holding off on a rate cut this week, we can expect to see more of the same. "A Fed on hold aligns with our forecast for little change in mortgage rates for the time being. MBA data continue to show modest increases in purchase application activity relative to last year, and we expect that trend to continue for the remainder of 2025 and into 2026," Mortgage Bankers Association chief economist Mike Fratantoni said in a press statement. Read more: What determines mortgage rates? It's complicated. Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.77% 20-year fixed: 6.51% 15-year fixed: 6.05% 5/1 ARM: 6.93% 7/1 ARM: 6.83% 30-year VA: 6.28% 15-year VA: 5.87% 5/1 VA: 6.46% Remember, these are the national averages and rounded to the nearest hundredth. Learn more: 8 strategies for getting the lowest mortgage rates These are today's mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.70% 20-year fixed: 6.46% 15-year fixed: 6.03% 5/1 ARM: 7.36% 7/1 ARM: 7.42% 30-year VA: 6.43% 15-year VA: 6.12% 5/1 VA: 6.22% 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 today's interest rates would affect your monthly mortgage payments. For a deeper dive, you can use Yahoo's free mortgage calculator to see how homeowners insurance and property taxes factor into 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 necessarily reflect this, though — in some cases, 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 First of all, now is a relatively good time to buy a house compared to a couple of years ago. Home prices aren't spiking like they were during the height of the COVID-19 pandemic. So, if you want or need to buy a house soon, you should feel pretty good about the current housing market. However, mortgage rates are unpredictable right now due to the political and economic climate. Experts don't think rates will plummet in 2025, so you might not want to base your decision on whether to buy strictly on interest rates. Recent news that home price gains are slowing, with predictions that house values may actually ease lower this year, can be part of your home buying decision. The best time to buy is typically whenever it makes sense for your stage of life. Trying to time the real estate market can be as futile as timing the stock market — buy when it's the right time for you. Read more: Which is more important, your home price or mortgage rate? Have questions about buying, owning, or selling a house? Submit your question to Yahoo's panel of Realtors using this Google form. According to Zillow, the national average 30-year mortgage rate is 6.77% right now. 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 higher. Overall, mortgage rates are expected to remain mostly steady in 2025. They probably won't drop significantly anytime soon. Mortgage rates were mixed today, but are slightly lower than where they were when they last peaked in mid-January. 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
20 hours ago
- Business
- Yahoo
Mortgage and refinance interest rates today, June 21, 2025: 30-year home loan rates dip slightly
Mortgage rates today are lower on the longer term but higher on the shorter. According to Zillow, today's 30-year fixed mortgage rate slipped lower by four basis points to 6.77%, while the 15-year fixed rate moved higher by nine basis points to 6.05%. Home loan interest rates continue to waver back and forth, and with the Federal Reserve holding off on a rate cut this week, we can expect to see more of the same. "A Fed on hold aligns with our forecast for little change in mortgage rates for the time being. MBA data continue to show modest increases in purchase application activity relative to last year, and we expect that trend to continue for the remainder of 2025 and into 2026," Mortgage Bankers Association chief economist Mike Fratantoni said in a press statement. Read more: What determines mortgage rates? It's complicated. Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.77% 20-year fixed: 6.51% 15-year fixed: 6.05% 5/1 ARM: 6.93% 7/1 ARM: 6.83% 30-year VA: 6.28% 15-year VA: 5.87% 5/1 VA: 6.46% Remember, these are the national averages and rounded to the nearest hundredth. Learn more: 8 strategies for getting the lowest mortgage rates These are today's mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.70% 20-year fixed: 6.46% 15-year fixed: 6.03% 5/1 ARM: 7.36% 7/1 ARM: 7.42% 30-year VA: 6.43% 15-year VA: 6.12% 5/1 VA: 6.22% 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 today's interest rates would affect your monthly mortgage payments. For a deeper dive, you can use Yahoo's free mortgage calculator to see how homeowners insurance and property taxes factor into 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 necessarily reflect this, though — in some cases, 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 First of all, now is a relatively good time to buy a house compared to a couple of years ago. Home prices aren't spiking like they were during the height of the COVID-19 pandemic. So, if you want or need to buy a house soon, you should feel pretty good about the current housing market. However, mortgage rates are unpredictable right now due to the political and economic climate. Experts don't think rates will plummet in 2025, so you might not want to base your decision on whether to buy strictly on interest rates. Recent news that home price gains are slowing, with predictions that house values may actually ease lower this year, can be part of your home buying decision. The best time to buy is typically whenever it makes sense for your stage of life. Trying to time the real estate market can be as futile as timing the stock market — buy when it's the right time for you. Read more: Which is more important, your home price or mortgage rate? Have questions about buying, owning, or selling a house? Submit your question to Yahoo's panel of Realtors using this Google form. According to Zillow, the national average 30-year mortgage rate is 6.77% right now. 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 higher. Overall, mortgage rates are expected to remain mostly steady in 2025. They probably won't drop significantly anytime soon. Mortgage rates were mixed today, but are slightly lower than where they were when they last peaked in mid-January. 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
16-04-2025
- Business
- Yahoo
Mortgage applications dropped last week as rates shot up
Tariff-sparked turmoil is starting to show up in the housing market. Mortgage applications for new home purchases and refinancings dropped sharply last week after stock and bond market volatility sent mortgage rates higher. Applications to purchase a home fell 5% through Friday compared to a week earlier, according to the Mortgage Bankers Association. Refinancing applications dropped 12% in the same period. 'Purchase volume remains almost 13 percent above last year's level, but economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move forward with a purchase,' Mike Fratantoni, MBA's chief economist, said in a statement. Read more: Mortgage rates history — see how rates have changed over time After a period of stability around 6.6%, average 30-year fixed mortgage rates jumped 20 basis points last week to 6.81%, according to the MBA. Mortgage rates followed 10-year Treasury yields higher after investors dumped stocks and bonds amid fears about President Trump's tariff policies. Trump later delayed higher tariffs on some countries, citing concerns over the bond market's reaction. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy As of Tuesday, the average 30-year fixed mortgage rate was 6.88%, according to Mortgage News Daily. As mortgage rates rose, more homebuyers opted for adjustable-rate mortgages, which carry initial rates closer to 6%. ARMs made up 9.6% of application activity last week, the highest level since November 2023, when average 30-year mortgage rates were north of 7%. Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter
Yahoo
23-03-2025
- Business
- Yahoo
How the US housing market is pricing in Trump's tariffs
US existing home sales unexpectedly surged by 4.2% in February, as reported by the National Association of Realtors (NAR), when the figure was expected to fall by 3.2% month-over-month. Uncertainty continues to loom around the housing market over elevated mortgage rates and the threat of President Trump's tariffs on homebuilding materials. Mortgage Bankers Association (MBA) chief economist Mike Fratantoni explains the pressures tariff policies is putting on homebuilders and homebuyers alike. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Sign in to access your portfolio
The Hill
07-02-2025
- Business
- The Hill
Inflation expectations pop to highest level in a year
Consumer expectations for inflation popped to their highest levels in more than a year, threatening to become unanchored on the heels of strong economic performance in recent months. Inflation expectations for the year ahead increased to 4.3 percent in February from 3.3 percent in January, according to the University of Michigan consumer sentiment survey released Friday. Pollsters said it was the highest reading since November 2023 and constituted 'two consecutive months of unusually large increases.' 'This is only the fifth time in 14 years we have seen such a large one-month rise (one percentage point or more) in year-ahead inflation expectations,' survey director Joanne Hsu noted in a commentary. Consumer sentiment in the survey dropped for the second month in a row, falling about 5 percent to hit the lowest level since last July. Longer run consumer inflation expectations increased to 3.3 percent this month compared to 3.2 percent last month. The Federal Reserve's longer run expectation inflation in the personal consumption expenditures (PCE) price index is 2 percent. The increase follows three months of rising price growth in the consumer price index (CPI). The CPI increased in October, November and December, rising from a 2.4-percent annual increase up to 2.9-percent increase in the fourth quarter. The Fed started cutting interest rates in September after the job market flashed a warning sign over the summer and inflation seemed to complete its drop toward 2-percent after hitting a high of 9-percent in 2022. While the disinflation over the past few years has been attributed to the unwinding of supply shocks and the absorption of trillions of stimulus into the economy, economists noted the role of the Fed and other central banks in keeping consumer expectations around inflation well anchored. 'Monetary policy played an important role … by helping to keep inflation expectations anchored, avoiding deleterious wage-price spirals and a repeat of the disastrous inflation experience of the 1970s,' International Monetary Fund (IMF) economists noted in October. At the most recent meeting of its rate-setting committee, the Fed paused on its rate cuts and expects to make only two quarter point cuts this year. Economists saw strong payroll, wage and labor force data in the January jobs report as bolstering the likelihood of a pause. 'Job market data are likely to keep the Fed on hold with respect to any further rate cuts,' Mike Fratantoni, economist with the Mortgage Bankers Association, said in a commentary. 'With inflation still above target, and no appreciable signs of weakening in the job market, MBA's forecast is that the Fed will make at most one more cut this cycle.'
