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Yahoo
2 days ago
- Business
- Yahoo
Mortgage and refinance interest rates today, June 1, 2025: The 30-year drops while the 15-year edges higher
Mortgage rates are lower on the long end and slightly higher on the short. According to Zillow, the average 30-year fixed interest rate is down seven basis points to 6.77%, while the 15-year fixed rate gained three basis points to 6.02%. The Mortgage Bankers Association forecasts 30-year rates to stay near 6.7% through September and end the year near 6.6%. If that's the case, then home loan interest rates won't be moving much in the coming months. Only an unexpected shock to the nation's economy could change that outlook. If you're looking to buy in 2025, you'll want to work to earn the lowest mortgage rate you deserve. Dig deeper: 6 steps to choosing the right mortgage lender Have questions about buying, owning, or selling a house? Submit your question to Yahoo's panel of Realtors using this Google form. 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: 6.02% 5/1 ARM: 6.74% 7/1 ARM: 6.73% 30-year VA: 6.34% 15-year VA: 6.34% 5/1 VA: 6.34% Remember, these are the national averages and rounded to the nearest hundredth. These are today's mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.89% 20-year fixed: 6.85% 15-year fixed: 6.15% 5/1 ARM: 7.25% 7/1 ARM: 7.40% 30-year VA: 6.41% 15-year VA: 6.41% 5/1 VA: 5.98% 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? 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. The average 30-year mortgage rate today is 6.77%. 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 6.02% 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 6.77% rate, your monthly payment toward the principal and interest would be about $1,950, and you'd pay $401,922 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 6.02% rate, your monthly payment would jump to $2,535. But you'd only pay $156,266 in interest over the years. 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 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. 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 According to Zillow, the national average 30-year mortgage rate is 6.77%, and the average 15-year mortgage rate is 6.02%. 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. The average 30-year fixed mortgage rate is 6.77% 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). Mortgage rates aren't expected to drop drastically in the near future, though they may inch down now and then.
NBC News
6 days ago
- Business
- NBC News
Mortgage rates rose to the highest level since January, but demand from homebuyers still grew. Here's why.
Mortgage rates rose for the third straight week last week to the highest level since January, but some homebuyers were undeterred. Mortgage applications to purchase a home climbed 2% compared with the previous week and were 18% percent higher than the same week one year ago, according to the Mortgage Bankers Association's seasonally adjusted index. This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.98% from 6.92%, with points decreasing to 0.67 from 0.69, including the origination fee, for loans with a 20% down payment. 'Purchase applications were up over the week and continue to run ahead of last year's pace as increased housing inventory in many markets has been supporting some transaction volume, despite the economic uncertainty,' said Joel Kan, an MBA economist. Applications to refinance a home loan took the rate increase harder, falling 7% for the week. Refinance demand was, however, still 37% higher than the same week one year ago. 'Conventional refinances were down 6%, and VA refinances dropped 16%,' added Kan. Mortgage rates edged slightly lower to start this holiday-shortened week, after a monthly report on consumer confidence. 'The Consumer Confidence Index was stronger than expected, but one of its components raised concern over the labor market,' wrote Matthew Graham, chief operating officer at Mortgage News Daily. 'Weaker labor conditions tend to push rates lower, all else equal. The underlying bond market improved after that and several mortgage lenders issued revised rates in response.'
Bloomberg
6 days ago
- Business
- Bloomberg
US Home-Refinancing Gauge Falls to Three-Month Low as Rates Near 7%
US home-refinance applications slipped last week to a three-month low as mortgage rates neared 7%. The Mortgage Bankers Association's measure of refinancing dropped 7.1% to 634.1 in the week ended May 23. The contract rate on a 30-year mortgage climbed 6 basis points to 6.98%, according to the data released Wednesday. The rate on five-year adjustable mortgage rose to the highest since January.
CNBC
6 days ago
- Business
- CNBC
Mortgage rates rose to the highest level since January, but demand from homebuyers still grew. Here's why.
Mortgage rates rose for the third straight week last week to the highest level since January, but some homebuyers were undeterred. Mortgage applications to purchase a home rose 2% compared with the previous week and were 18% percent higher than the same week one year ago, according to the Mortgage Bankers Association's seasonally adjusted index. This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.98% from 6.92%, with points decreasing to 0.67 from 0.69, including the origination fee, for loans with a 20% down payment. "Purchase applications were up over the week and continue to run ahead of last year's pace as increased housing inventory in many markets has been supporting some transaction volume, despite the economic uncertainty," said Joel Kan, an MBA economist. Applications to refinance a home loan took the rate increase harder, falling 7% for the week. Refinance demand was, however, still 37% higher than the same week one year ago. "Conventional refinances were down 6%, and VA refinances dropped 16%," added Kan. Mortgage rates edged slightly lower to start this holiday-shortened week, after a monthly report on consumer confidence. "The Consumer Confidence Index was stronger than expected, but one of its components raised concern over the labor market," wrote Matthew Graham, chief operating officer at Mortgage News Daily. "Weaker labor conditions tend to push rates lower, all else equal. The underlying bond market improved after that and several mortgage lenders issued revised rates in response."
Yahoo
20-05-2025
- Business
- Yahoo
Are home sales entering a buyers market? What these real estate changes show in Tennessee
Ever since the COVID-19 pandemic, the housing market has had its ups and downs, but it seems to be changing again. Ahead of the 2025 summer selling season, home prices are expected to slow, low mortgage lock-ins will ease and the power may transition from the sellers to the buyers. It's still early in the season to say precisely what will happen, but this is what the experts predict to see in the coming months. Here is what the experts say about the summer real estate market. In general, homes are more expensive than in the past decade or so. Homeowners had record levels of home equity in 2024, but it's increasingly challenging for buyers, especially first-timers, to break into the market. But prices are falling back to earth now, and this may continue. The Mortgage Bankers Association expects prices to rise only 1.3% in 2025, while Fannie Mae economists forecast a 4.1% price gain. It is also expected that previous buyers who avoided purchasing new homes due to high mortgage rates will be less reluctant to take on a new mortgage. As of the fourth quarter of 2024, the most recent national data available, 72% of all outstanding mortgages had a rate below 6%, and more than half had a rate below 4%. For many people, moving and taking on a new mortgage at the prevailing rates of 6%-7% was hard to contemplate unless necessary. Whatever the reason, buyers have a lot more options now. data shows that there were 28,370 Tennessee active listings in April, almost 40% higher than April last year. The median home price had also dropped 1.9% from April last year. Data from and Redfin show that sellers are making more price cuts due to homes staying on the market longer. In April, 18% of home listings had price reductions, the highest April share in data going back to at least 2016. According to Redfin, the market in Tennessee is changing much like the analysis expects. Median house sales prices are up 3.2% compared to last year, but sales are down 4%. In February last year, houses sold for a median price of $368,500, and now they are selling for a median price of $380,200. Last February, 5,911 homes were sold in Tennessee, and 5,675 homes were sold in 2025. showed the median home price dropping 1.9% year over year in April to $434,950. This same price is up 1.7% from March. Redfin found another increase for homes in Tennessee was the amount of time spent on the market, which just hit a five-year high. In February, homes sold spent a median of 78 days on the market. The most recent peak for time spent on the market was in February 2024, when homes spent a median of 73 days. found that homes spent a median of 52 days on the market in April, which was down 7% from March and up 22% from April 2024. In Tennessee, Redfin found the number of homes for sale is up 13.2% year over year, with a total of 35,657 homes for sale in February. showed a 38% increase in the year over year active listings at 28,370. This article originally appeared on Memphis Commercial Appeal: Real estate turning into a buyers market in 2025? What to know in TN
