Mortgage rates have decreased, potential long-term impacts of tariffs noted by Federal Reserve Chair Powell

From Yahoo Finance: 2025-04-06 06:00:00

Mortgage interest rates have decreased this weekend, with the average 30-year fixed rate at 6.39% and the 15-year fixed rate at 5.72%. Federal Reserve Chair Powell noted potential long-term impacts of Trump’s tariffs on the economy, leading to falling rates. It might be a good time to consider preapproval and locking in rates.

Current national average mortgage rates are as follows: 30-year fixed: 6.39%, 15-year fixed: 5.72%, 5/1 ARM: 6.48%, 7/1 ARM: 6.42%, 30-year VA: 5.91%, 15-year VA: 5.54%, 5/1 VA: 5.93%, 30-year FHA: 5.95%, 5/1 FHA: 5.69%. Remember, these rates are rounded to the nearest hundredth.

Today’s mortgage refinance rates are slightly higher than purchase rates, with the 30-year fixed rate at 6.43%. Refinance rates are often higher than purchase rates but can vary. It may be a good time to consider refinancing your mortgage.

When deciding between a 15-year and 30-year mortgage, consider your goals. A 15-year mortgage offers lower interest rates but higher monthly payments. With a $300,000 mortgage, the 15-year term could save you significantly on interest payments over time.

Fixed-rate mortgages lock in your rate for the entire loan term, while adjustable-rate mortgages have a fixed period then adjust. Adjustable rates can start lower but may increase over time. Lately, fixed rates have sometimes been lower than adjustable rates.

To get the lowest mortgage rate, aim for a higher down payment, good credit score, and low debt-to-income ratio. Rates aren’t expected to drop significantly soon. Focus on personal finances to secure the best rate. Apply for preapproval with multiple lenders to compare offers.

Remember to consider APR when comparing lenders, as it reflects the true cost of borrowing money. Local area averages may differ from national rates, especially in expensive regions. Excellent credit, a large down payment, and a low DTI can help secure a better rate.



Read more at Yahoo Finance: Rates drop in response to struggling economy