Mortgage rates have significantly dropped, making it a good time for buyers to consider.

From Yahoo Finance: 2025-06-28 06:00:00

Mortgage rates have dropped significantly this week, with the average 30-year fixed rate at 6.53% and the 15-year fixed rate at 5.71%. Economists expect rates to stay over 6% through 2026, making any decrease good news for buyers. Now might be a good time to start applying for preapproval and house shopping.

Current mortgage rates are as follows: 30-year fixed: 6.53%, 20-year fixed: 6.08%, 15-year fixed: 5.71%, 5/1 ARM: 7.00%, 7/1 ARM: 7.08%, 30-year VA: 6.12%, 15-year VA: 5.45%, 5/1 VA: 6.16%. These rates are national averages rounded to the nearest hundredth.

Mortgage refinance rates are also down, with rates like 30-year fixed at 6.61% and 15-year fixed at 5.86%. Refinance rates tend to be higher than rates for buying a house. Use a mortgage calculator to see how these rates could affect your monthly payments.

Consider the advantages of a 30-year fixed mortgage, such as lower and predictable monthly payments. However, the main disadvantage is the higher mortgage interest over the long term compared to shorter terms.

15-year fixed mortgage rates offer lower interest rates and the ability to pay off your mortgage sooner. Monthly payments are higher than with a 30-year term due to the shorter repayment period.

Adjustable-rate mortgages (ARMs) offer lower introductory rates than fixed-rate mortgages, resulting in lower initial monthly payments. However, the rate can change periodically, leading to unpredictable monthly payments in the future.

Now is a relatively good time to buy a house, as home prices are not spiking. Mortgage rates are unpredictable, but experts don’t anticipate a significant drop in 2025. It’s best to buy when it makes sense for your life stage, rather than trying to time the market.

Overall, mortgage rates are expected to decrease slightly in 2025. However, rates can vary depending on location and are still well above 6% on average. Focusing on improving credit score and debt-to-income ratio can help secure a lower refinance rate.



Read more at Yahoo Finance: Rates nosedive since last weekend