From Yahoo Finance: 2025-05-25 06:00:00

Mortgage rates are fluctuating today, with the average 30-year fixed rate at 6.91% and the 15-year fixed rate at 6.10%. Understanding the volatility of the bond market is crucial when setting your target home loan interest rate to navigate the home-buying process effectively.

Current mortgage rates, according to Zillow, show variations across different loan terms like 30-year fixed at 6.91%, 20-year fixed at 6.58%, and 15-year fixed at 6.10%. It’s essential to note that these figures are national averages rounded to the nearest hundredth.

For those considering mortgage refinancing, today’s rates are slightly different, with the 30-year fixed rate at 6.89% and the 15-year fixed rate at 6.08%. Refinance rates are generally higher than purchase rates, but it’s important to explore all options before making a decision.

Choosing between a 15-year and a 30-year mortgage involves weighing short-term versus long-term goals. A 15-year mortgage typically offers lower interest rates, enabling borrowers to pay off their loan sooner and accumulate less interest over time, despite higher monthly payments.

When comparing mortgage options, consider fixed-rate mortgages where the interest rate remains unchanged throughout the loan term, or adjustable-rate mortgages where rates fluctuate after an initial fixed period. Factors like economy and rate caps influence adjustable rates, so assess your risk tolerance before deciding.

To secure the best mortgage rate, focus on improving credit scores, reducing debt-to-income ratios, and saving for a higher down payment. Instead of waiting for rates to drop, take active steps to strengthen your financial profile and increase your chances of qualifying for lower rates.

When selecting a lender, don’t solely focus on interest rates. Compare the mortgage annual percentage rate (APR), which encompasses interest rates, discount points, and fees, to determine the true cost of borrowing. Understanding the APR is crucial for making informed decisions when choosing a lender.

While national averages provide a general idea of mortgage rates, local variations exist based on regional factors. Factors like property values can influence rates, with more expensive areas typically having higher rates compared to less costly regions.

Read more: Rates remain volatile in light of mixed economic news