Latest news with #ZillowData
Yahoo
26-05-2025
- Business
- Yahoo
Mortgage and refinance interest rates today, May 26, 2025: Slight changes as bond market on holiday
Current mortgage interest rates for today, Memorial Day 2025, are lower. According to Zillow data, the average 30-year fixed mortgage rate fell by three basis points to 6.89%, while the 15-year fixed interest rate crept higher by one basis point to 6.11%. With the bond market closed over the holiday weekend, rates are fluctuating slightly only in response to retail mortgage rate demand. When the bond market reopens this week, it will be interesting to see how it reacts to last week's volatility. Continuing concerns about tariffs and a growing national debt have been pushing bond yields higher — contrary to a normal "flight to safety" to fixed income investments in uncertain times. Dig deeper: The best time of year to buy a house Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.89% 20-year fixed: 6.62% 15-year fixed: 6.11% 5/1 ARM: 6.89% 7/1 ARM: 7.16% 30-year VA: 6.50% 15-year VA: 5.94% 5/1 VA: 6.43% Remember, these are the national averages and rounded to the nearest hundredth. Read more: How are mortgage rates determined? These are the current mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.91% 20-year fixed: 6.60% 15-year fixed: 6.12% 5/1 ARM: 7.36% 7/1 ARM: 7.52% 30-year VA: 6.46% 15-year VA: 6.00% 5/1 VA: 6.40% Again, the numbers provided are national averages rounded to the nearest hundredth. Although it's not always the case, mortgage refinance rates tend to be a little higher than purchase rates. You can use the free Yahoo Finance mortgage calculator to play around with how different terms and rates will affect your monthly payment. Our calculator considers factors like property taxes and homeowners insurance when estimating your monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest. But if you want a quick, simple way to see how today's rates would impact your monthly mortgage payment, try out the calculator below: Today's average 30-year mortgage rate is 6.89%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is relatively low. If you had a $300,000 mortgage with a 30-year term and a 6.89% rate, your monthly payment toward the principal and interest would be about $1,974, and you'd pay $410,566 in interest over the life of your loan — on top of that original $300,000. The average 15-year mortgage rate is 6.11% today. Several factors must be considered when deciding between a 15-year and 30-year mortgage. 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 compound. However, your monthly payments will be higher because you're squeezing the same debt payoff into half the time. If you get that same $300,000 mortgage but with a 15-year term and a 6.11% rate, your monthly payment would jump up to $2,549 — but you'd only pay $158,898 in interest over the years. Dig deeper: How much house can I afford? Use our home affordability calculator. With an adjustable-rate mortgage, your rate is locked in for a set period of time and then increases or decreases periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then changes every year. Adjustable rates usually start lower than fixed rates, but you run the risk that your rate goes up once the introductory rate-lock period is over. But an ARM could be a good fit if you plan to sell the home before your rate-lock period ends — that way, you pay a lower rate without worrying about it rising later. Lately, ARM rates have occasionally been similar to or higher than fixed rates. Before dedicating yourself to a fixed or adjustable mortgage rate, be sure to shop around for the best lenders and rates. Some will offer more competitive adjustable rates than others. Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, 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. You can also buy down your interest rate permanently by paying for discount points at closing. A temporary interest rate buydown is also an option — for example, maybe you get a 6.5% rate with a 2-1 buydown. Your rate would start at 4.5% for year one, increase to 5.5% for year two, then settle in at 6.5% for the remainder of your term. Just consider whether these buydowns are worth the extra money at closing. Ask yourself whether you'll stay in the home long enough that the amount you save with a lower rate offsets the cost of buying down your rate before making your decision. Here are interest rates for some of the most popular mortgage terms: According to Zillow data, the national average 30-year fixed rate is 6.89%, the 15-year fixed rate is 6.11%, and the 5/1 ARM rate is 6.89%. A normal mortgage rate on a 30-year fixed loan is 6.89%. However, keep in mind that's the national average based on Zillow data. The average might be higher or lower depending on where you live in the U.S. Mortgage rates probably won't drop significantly in 2025 — especially over the next several weeks while economists keep an eye on inflation and Trump's tariff policies.
Yahoo
24-05-2025
- Business
- Yahoo
Mortgage and refinance interest rates today, May 24, 2025: A surprise move downward
Mortgage rates are slightly lower today. That's welcome news after three days of rates stepping higher. According to Zillow, today's 30-year fixed mortgage rate dipped by two basis points to 6.94%, and the 15-year fixed rate fell by three basis points to 6.09%. No, it's not a huge move downward, but we'll take any clue that the momentum for higher rates is easing. After the wild ride in the bond market in recent days, the fact that mortgage rates are going down is a little surprising. Read more: What determines mortgage rates? It's complicated. Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.94% 20-year fixed: 6.68% 15-year fixed: 6.09% 5/1 ARM: 7.35% 7/1 ARM: 7.33% 30-year VA: 6.41% 15-year VA: 5.69% 5/1 VA: 6.33% 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: 7.06% 20-year fixed: 6.84% 15-year fixed: 6.15% 5/1 ARM: 7.85% 7/1 ARM: 7.39% 30-year VA: 6.50% 15-year VA: 5.91% 5/1 VA: 6.26% 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 6.94% 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 are down slightly today and lower than where they were 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.
