From Yahoo Finance: 2025-04-25 06:00:00

Mortgage interest rates have dropped this week, with the average 30-year fixed rate at 6.81% and the 15-year fixed rate at 5.94%. Rates are lower compared to last year, offering hope for potential home buyers. National averages for various mortgage terms are also provided by Zillow, rounding to the nearest hundredth.

Mortgage refinance rates are slightly higher than rates for purchasing a home. According to Zillow data, the current rates are provided for different terms. Refinance rates are often fluctuating and can vary between lenders. It’s essential to compare rates for different terms to determine the best option for your situation.

Understanding mortgage rates is crucial when buying a home. Fixed-rate mortgages offer stability with consistent payments, while adjustable-rate mortgages have fluctuating rates after an initial period. The monthly payment initially consists mostly of interest, transitioning over time to paying off the principal amount borrowed.

Different mortgage terms suit various financial goals. A 30-year fixed-rate mortgage provides lower monthly payments but higher total interest paid over time. In contrast, a 15-year fixed-rate mortgage allows for quicker loan payoff with less interest paid. Adjustable-rate mortgages can be beneficial if planning to sell before the rate adjusts.

Mortgage rates are impacted by economic and political factors, leading to volatility. While rates have decreased recently, significant drops may not occur soon. Predictions suggest slight fluctuations throughout the year, with a possible decrease by the end of 2025. The Mortgage Bankers Association estimates rates to be around 6.8% in Q3 2025.

Read more: Rates drop 36 basis points in a year