Norada Real Estate Investments

Archives for July 2025

Mortgage Rates Today July 24, 2025: Rates Drop Across the Board, 30-Year FRM at 6.86%

by

Mortgage rates today — July 24, 2025 — show a small decrease in the 30-year fixed mortgage rate, down slightly from last week at 6.86%. Refinance rates also dipped, with the national 30-year fixed refinance rate now at 7.06%. However, 15-year fixed rates and some ARM (Adjustable Rate Mortgage) products saw mixed changes. These movements reflect ongoing economic pressures and Federal Reserve policies that continue to influence borrowing costs.

Mortgage Rates Today July 24, 2025: Rates Drop Across the Board, 30-Year FRM at 6.86%

Key Takeaways

  • 30-year fixed mortgage rates edged down to 6.86%, a slight dip from 6.88% the week before.
  • 15-year fixed mortgage rates rose marginally to 5.90%; 5-year ARM rates decreased to 7.63%.
  • Refinance rates followed a similar pattern: 30-year fixed refinance rate at 7.06% (down from 7.11%).
  • Conforming loan rates remain generally lower than government-backed loan rates.
  • Experts forecast mortgage rates to hover around the mid-6% range through 2025, with possible further declines in 2026.
  • Federal Reserve policies and economic factors continue to pressure mortgage rates, with cautious optimism for rate cuts later this year.

Understanding Today’s Mortgage Rates: What’s Happening?

On July 24, 2025, the average national 30-year fixed mortgage rate sits at 6.86%, down 2 basis points from the previous week’s 6.88%. While this may seem like a minor change, it is significant because rates have hovered near their highest levels in years, impacting affordability for homebuyers.

The 15-year fixed mortgage rate ticked up by 3 basis points to 5.90%, and the 5-year ARM rate dropped 6 basis points to 7.63%. ARM loans often attract borrowers seeking lower initial rates but come with the risk of rate adjustments later. These subtle shifts reflect a dynamic market still influenced by inflation concerns, economic policies, and Federal Reserve actions.

Table 1: Current National Average Mortgage Rates (July 24, 2025)

Loan Type Rate Weekly Change APR APR Change
30-Year Fixed 6.86% Down 0.02% 7.31% Down 0.03%
20-Year Fixed 6.28% Down 0.43% 6.76% Down 0.27%
15-Year Fixed 5.90% Down 0.03% 6.19% Down 0.03%
10-Year Fixed 5.72% Down 0.31% 6.09% Down 0.03%
7-Year ARM 6.44% Down 1.13% 7.50% Down 0.46%
5-Year ARM 7.63% Down 0.20% 8.02% Down 0.10%

Source: Zillow Mortgage Data, July 24, 2025

Comparing Conforming Mortgage Rates and Government Loan Rates

Mortgage rates today vary significantly between conforming loans and government-backed loans (FHA, VA):

  • Conforming loans are those that meet the guidelines set by Fannie Mae and Freddie Mac—usually for loan amounts up to $726,200 (in most areas in 2025).
  • Government loans, such as FHA (Federal Housing Administration) and VA (Veterans Affairs) loans, typically serve borrowers with lower credit scores or limited down payments.

Government-backed loan rates are generally higher than conforming loan rates now.

Loan Type Rate Weekly Change APR APR Change
30-Year Fixed FHA 7.75% Up 0.48% 8.79% Up 0.49%
30-Year Fixed VA 6.25% Down 0.11% 6.48% Down 0.10%
15-Year Fixed FHA 5.75% Up 0.28% 6.71% Up 0.24%
15-Year Fixed VA 5.80% Down 0.10% 6.16% Down 0.08%

The higher FHA rates reflect the increased risk lenders associate with these loans, partly due to upfront mortgage insurance fees. Meanwhile, VA loans offer competitive rates close to or better than conforming loans as they carry government guarantees. Borrowers should analyze which programs best suit their financial profile beyond just the rates.

Current Refinance Rates — What You Need to Know

Refinancing can be a strategic move to reduce monthly payments or change loan terms. Today, average national refinance rates stand as follows:

Loan Type Rate Weekly Change APR APR Change
30-Year Fixed Refinance 7.06% Down 0.05% N/A N/A
15-Year Fixed Refinance 5.87% Down 0.02% N/A N/A
5-Year ARM Refinance 7.96% Up 0.03% N/A N/A

Source: Zillow Mortgage Data, July 24, 2025

Even with current rates slightly lower this week, refinance rates are generally higher than purchase mortgage rates. This often happens because refinance loans involve different risk factors and fees.

Calculating What These Rates Mean for Homebuyers

Let’s say you are looking to buy a home priced at $350,000 with a 20% down payment ($70,000), so you finance $280,000.

  • At 6.86%, a 30-year fixed mortgage on $280,000 yields a monthly principal and interest payment of about $1,847.
  • If rates drop by just 0.50% to 6.36%, monthly payments fall to approximately $1,737, nearly $110 less per month.

While that difference might seem small month to month, it adds up to over $1,300 in annual savings — money that could be used for other expenses or investments.

Will Mortgage Rates Drop? Expert Forecasts & Predictions

Several authoritative sources suggest that mortgage rates are expected to ease somewhat during the rest of 2025 and into 2026, but they will likely remain elevated by historical standards:

  • National Association of Realtors (NAR) projects an average mortgage rate around 6.4% in the second half of 2025, dropping to 6.1% in 2026 — tied closely to inflation and Fed policy changes. NAR’s Chief Economist Lawrence Yun describes mortgage rates as a key factor—or “magic bullet”—that will affect housing affordability and sales volumes (NAR Realtors Legislative Meeting, 2025).
  • Realtor.com Housing Forecast anticipates a slow easing of mortgage rates back toward prior-year levels, expecting the rate to dip near 6.4% by year-end 2025, which could fuel slightly improved home sales and a gentle slowdown in price growth.
  • Fannie Mae’s outlook foresees mortgage rates settling around 6.5% in 2025 and dropping to approximately 6.1% in 2026, aligned with mild GDP growth assumptions and inflation expectations.
  • Mortgage Bankers Association expects 30-year mortgage rates to hover near 6.7% through late 2025 and gently ease to about 6.3% by 2026, citing persistent inflation risks as the main factor keeping rates elevated.
  • Morgan Stanley strategists suggest a possible decline in rates linked to anticipated lower Treasury yields if economic growth slows. They highlight how even modest rate drops (e.g., from 7% to 6.25%) can significantly boost housing affordability.
  • Freddie Mac resonates with a similar outlook: While rates have stayed higher than expected during 2024 and early 2025, buyers and sellers may act sooner amid expectations that rates won't fall drastically anytime soon.

The Federal Reserve’s Influence on Mortgage Rates

The Federal Reserve dramatically shapes mortgage rates by setting monetary policy rates and influencing Treasury yields, on which mortgages are often priced.

  • After cutting the federal funds rate by 1% in late 2024, the Fed held rates steady through June 2025.
  • The Fed signals potential rate cuts later in 2025, but timing remains uncertain and controversial among policymakers.
  • The “dot plot” forecasts the federal funds rate falling to about 3.9% by year-end 2025, with further easing expected in 2026 and beyond.
  • Tariffs and inflation remain wild cards influencing policy decisions.
  • The Fed’s next meeting on July 30, 2025, will be closely watched for rate guidance.

Mortgage rates mirror these policies. After peaking around 6.8% in mid-2025, analysts expect rates to decline slowly, potentially reaching the 5% range by 2028 if the Fed consistently cuts rates as anticipated.

Summary Table: Mortgage Rate Trends and Forecasts

Source 2025 Mortgage Rate Outlook 2026 Forecast Notes
National Association of Realtors (NAR) ~6.4% in H2 2025 ~6.1% Linked to inflation and Fed cuts
Realtor.com Dip to ~6.4% by end of 2025 Slow price growth expected Moderate home sales forecast
Fannie Mae Ends 2025 near 6.5% ~6.1% Impact of GDP growth outlook
Mortgage Bankers Association ~6.7% through September 2025 6.3% range for 2026 Persistent inflation concerns
Morgan Stanley Potential slight fall with Treasury yields Further drop if GDP slows Positive for affordability
Freddie Mac Higher than expected, slight easing Moderate price increases, more sales Rate lock-in effect to lessen

Final Thoughts on Today’s Mortgage Rates and Housing Market

From my observation, the current mortgage rates feel like a balancing act between economic uncertainty and buyer optimism. The slight decline in the 30-year fixed rate to 6.86% might not seem dramatic, but it signals that lenders are cautiously responding to evolving economic signals.

Refinance remains a mixed proposition—while rates have eased a bit, they remain high enough to dissuade widespread refinancing unless borrowers have significantly higher original rates or want to switch loan types.

The comparative rate differences between conforming and government loans underscore the complexity each borrower faces: Lower credit scores or smaller down payments often mean higher rates and insurance costs, which can affect a buyer’s ability to close on a home.

Looking ahead, many experts hint at a gradual improvement in affordability, driven mainly by small downward movements in rates and increased home sales volume. But the Federal Reserve’s choices around inflation and rate cuts will be the dominant forces shaping the market.

If you’re watching mortgage rates today and wondering when or how they might move, it’s clear that modest decreases are anticipated, but large drops remain unlikely in 2025. The housing market will continue to adjust slowly rather than leap, making timing and personal finances more critical than ever.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Housing Market Turmoil: Prices Hit an All-Time High, But Sales Drop

by

Home prices hit an all-time high, but sales go down simultaneously. This simply means houses are more expensive than ever, but fewer people are buying them. This situation creates a tricky housing market for everyone involved. Let dive deep into the reasons.

Housing Market Turmoil: Prices Hit an All-Time High, But Sales Drop

The Numbers Don't Lie: A Snapshot of Today's Housing Market

Let's start with the latest information from the National Association of REALTORS® (NAR) and Realtor.com. These experts keep a close watch on the housing market, and here's what their reports are telling us:

  • Home Sales Are Slipping: In the latest NAR Existing-Home Sales Report, existing home sales decreased by 2.7% in June. We’re seeing fewer homes changing hands. According to Realtor.com, sales volume for existing homes is expected to fall 1.5% annually, to just 4 million transactions. That would mark the slowest year for existing-home sales since 1995!
  • Prices Are Sky-High: Despite the drop in sales, the median existing-home price reached a record high of $435,300 in June, a 2% increase from last year. In some areas, the prices are even higher.
  • Inventory Is Up (Slightly): There are more homes available for sale than there were a year ago. The total housing inventory in June was 1.53 million units, up 15.9% from June 2024. This gives buyers more options.
  • Mortgage Rates Remain Elevated: Those seemingly ever-present high mortgage rates are definitely playing a huge role. Freddie Mac reported that the average 30-year fixed-rate mortgage was 6.75% as of July 17th.
  • Homes Are Staying on the Market Longer: The median time a property stays on the market before being sold is now 27 days. This is up from 22 days last year, suggesting homes aren't selling as fast as they used to.

To present this in an easier to read manner, please refer this table.

Metric Change Details
Existing-Home Sales Decrease 2.7% Month-over-month; No change year-over-year
Median Home Price Increase 2% Record high of $435,300
Housing Inventory Up 15.9% 1.53 million units
Mortgage Rate (30-Year) 6.75% As of July 17
Days on Market 27 days Up from 22 days last year; Shows homes are staying longer in the market before getting sold confirming the reduction in sale activity

The Million-Dollar Question: Why This Disconnect?

So, why are these two things – high prices and low sales – happening at the same time? It boils down to a few key factors:

  1. High Mortgage Rates: These rates are the biggest buzzkill for potential buyers right now. When rates are high, it costs more to borrow money, making homes less affordable. A slight increase in the morgage rate will affect the affordability by a wide margin.
  2. Affordability Crisis: Home prices have been climbing for years, outpacing wage growth. Even with slightly more inventory, many people simply can't afford to buy a home, especially with those high mortgage rates.
  3. Inventory Issues: While inventory is up compared to last year, we are still in short supply. The construction of new homes isn't keeping up with the population increase. More homes need to be built to bring prices down and meet the demand.
  4. Sellers Are Hesitant: Some potential sellers are choosing not to list their homes, possibly hoping that the market will improve. We call this the “lock-in effect,” where existing homeowners with low mortgage rates are reluctant to sell and give up those favorable rates.
  5. Economic Uncertainty: People’s confidence has taken a bit of a hit with all the news about inflation, economic downturns, and job security. This situation makes people think twice before spending a fortune on a home.
  6. Homeownership Rate Decline: Due to lack of affordability, and rising prices the homeownership rate is expected to decline to 65.2% this year.

Regional Differences: Where You Live Matters

Here’s the thing – the housing market isn’t the same everywhere. What’s happening in one part of the country might be totally different from what’s happening somewhere else. The NAR report breaks down the numbers by region:

  • Northeast: Sales decreased and prices increased. This area remains a tighter market with steady buyer activity.
  • Midwest: Sales decreased, but prices increased.
  • South: Sales decreased, and prices saw a slight increase. The Southern region has seen the most substantial inventory gains.
  • West: Sales increased slightly, but prices increased. The West is also seeing increased inventory, but affordability is still an issue.

The First-Time Homebuyer Struggle

For those trying to buy their first home, this market is brutal. The median home price is so high, and the down payment needed just keeps getting bigger. Add to that high mortgage rates, and it's easy to see why many first-timers are stuck renting or living with family longer. Remember first-time home buyers accounted for 30% of sales.

The Impact on Renters

Interestingly, while buying a home is getting pricier, the rental market is softening a bit. Asking rents are even expected to decline slightly this year. This could offer some relief for renters who are saving up for a down payment or waiting for the housing market to cool down. Its a small positive change that renters can hang on to.

My Take on What's Next: A Glimmer of Hope?

Okay, so here's where I share my own thoughts on all of this. I think the housing market is at a turning point. While prices are currently high, I don't believe this is sustainable in the long run.

Here's why:

  • Mortgage Rates Can't Stay This High Forever: Eventually, I expect mortgage rates to come down a bit. When that happens, it will give buyers more breathing room and could spur more sales.
  • Increased Inventory Will Eventually Ease Prices: As more homes come onto the market, it will give buyers more negotiating power and, hopefully, put downward pressure on prices.
  • The Economy Will Stabilize: As the economy becomes more predictable, people will feel more confident about making big purchases like homes.

Now, I'm not saying home prices will suddenly crash. But I do think we'll see a more balanced market in the coming years, where buyers have more options and homes are more affordable.

Dr. Lawrence Yun, the chief economist at NAR, believes that if mortgage rates were to decline to 6%, an additional 160,000 renters could become first-time homeowners.

What Should You Do?

So, what does all of this mean for you? Here's my advice, depending on your situation:

  • If You're a Buyer: Don't panic! Take your time, shop around for the best mortgage rates, and don't feel pressured to overpay. It might be worth waiting a bit to see if the market cools down.
  • If You're a Seller: Be realistic about pricing your home. Buyers are more cautious these days, so you might not get as much as you would have a year ago.
  • If You're a Renter: Keep saving! Take advantage of the slightly softer rental market to build up your down payment.

A Balanced Market Will Benefit Everyone

In the end, a healthy housing market is good for everyone. It's not just about high prices benefiting sellers or low prices benefiting buyers. We need a market where people can afford to buy homes, where sellers can get a fair price, and where the housing market contributes to a strong economy. This balance will take years to achieve, which is why the younger generation is finding it difficult to get into the housing market.

Invest in Real Estate in the Booming Markets of the U.S.

Discover high-quality, ready-to-rent properties designed to deliver consistent returns.

Contact us today to expand your real estate portfolio with confidence.

Contact our investment counselors (No Obligation):

(800) 611-3060

Get Started Now 

Chicago Housing Market: Trends and Forecast 2025-2026

by

So, you're curious about the current Chicago housing market trends? You're not alone! Whether you're looking to buy, sell, or just keep an eye on things, understanding the market is key. In short, while things have cooled off a bit from the crazy days of the pandemic, the Chicago market remains relatively stable. Home prices are still appreciating modestly, but inventory remains tight, creating a slightly competitive environment for buyers. Let's dive into the details and see what's really happening in the Chicago real estate scene.

Chicago Housing Market Trends: What's Happening Right Now?

Home Sales

One of the first things to look at when assessing the health of the market is the number of homes being sold.

  • Chicago Metro Area: According to Illinois REALTORS®, in May 2025, we saw 8,689 closed sales, which is a 4.9% decrease compared to May 2024 (9,135). Year-to-date, the Chicago metro area has seen 33,662 closed sales, a 0.8% decrease from the same period last year (33,940).
  • City of Chicago: The City of Chicago saw 12,674 closed sales in May 2025, a 4.7% decrease compared to May 2024 (13,300). Year-to-date, closed sales in the city are at 49,378, a 0.8% decrease from the same period last year (49,788).
  • Illinois: Across the entire state, closed sales in May 2025 totaled 12,674, which is 4.7% less than the previous year’s sales (13,300). So far, in 2025 there have been 49,378 closed sales, a 0.8% decrease compared to the 49,788 sales during the same period last year.

What does this mean? Well, fewer sales could indicate a few things. It might be that fewer people are listing their homes, or perhaps buyers are being more cautious. Let's look at prices to get a clearer picture.

Chicago  Home Prices

Alright, let's talk about what everyone really wants to know: how much are homes going for?

  • Chicago Metro Area: The median sales price in the Chicago metro area in May 2025 was $379,900, a 5.5% increase from $360,000 in May 2024.
  • City of Chicago: In the City of Chicago, the median sales price in May 2025 was $315,000, a 5.0% increase from $300,000 in May 2024.
  • Illinois: The median sales price across the entire state in May 2025 was $315,000, marking a 5.0% increase from $300,000 in May 2024.

Are Home Prices Dropping in Chicago?

No, not exactly. While sales are down slightly, prices are still going up. It's not the crazy double-digit growth we saw a couple of years ago, but it's still appreciation. This suggests that demand is still relatively strong, even with higher mortgage rates.

Housing Supply

Now, let's look at the inventory of homes available. This is a crucial factor in determining whether it's a buyer's or seller's market.

  • Chicago Metro Area: In May 2025, there were 13,195 homes for sale in the Chicago metro area, which is a 3.4% increase compared to May 2024 (12,759).
  • City of Chicago: The city had 19,890 homes on the market in May 2025, which is a 6.0% increase compared to May 2024 (18,758).

An increase in inventory is generally good news for buyers, giving them more options to choose from and potentially more leverage in negotiations.

Days on Market Until Sale

How long are homes sitting on the market before they sell? This is another important indicator.

  • Chicago Metro Area: Homes in the Chicago metro area were on the market for an average of 29 days in May 2025, compared to 28 days in May 2024, a 3.6% increase.
  • City of Chicago: In the City of Chicago, homes were on the market for an average of 33 days in May 2025, compared to 32 days in May 2024, a 3.1% increase.

A slight increase in the days on market suggests that the market is cooling down a bit. Homes aren't flying off the shelves as quickly as they were a year or two ago.

Is Chicago a Buyer's or Seller's Housing Market?

This is the million-dollar question! Based on the data, I'd say it's currently a balanced market, leaning slightly towards a seller's market. Here's why:

  • Prices are still rising: Sellers are still getting more for their homes than they were a year ago.
  • Inventory is increasing: But not dramatically. While there are more homes on the market, supply is still relatively constrained.
  • Days on market are slightly up: But homes are still selling relatively quickly.

Market Trends

So, what are the overarching trends we're seeing in the Chicago housing market?

  • Modest Price Appreciation: Prices are still going up, but at a more sustainable pace. We're not seeing the bidding wars and rapid escalation that characterized the market in 2021 and 2022.
  • Slightly Increased Inventory: More homes are coming onto the market, giving buyers more choices.
  • Longer Time on Market: Homes are taking a bit longer to sell, giving buyers more time to consider their options.
  • Balanced Market: Overall, the market is relatively balanced, with neither buyers nor sellers having a significant advantage.

Here's a quick table summarizing the key data points:

Metric Chicago Metro Area (May 2024) Chicago Metro Area (May 2025) Change (%) City of Chicago (May 2024) City of Chicago (May 2025) Change (%)
Closed Sales 9,135 8,689 -4.9% 13,300 12,674 -4.7%
Median Sales Price $360,000 $379,900 +5.5% $300,000 $315,000 +5.0%
Inventory of Homes for Sale 12,759 13,195 +3.4% 18,758 19,890 +6.0%
Days on Market Until Sale 28 29 +3.6% 32 33 +3.1%

Impact of High Mortgage Rates

Of course, we can't talk about the housing market without mentioning mortgage rates. Currently, U.S. weekly averages as of 07/17/2025, the average 30-year fixed mortgage rate is around 6.75%, and the 15-Year FRM is about 5.92%, according to the Primary Mortgage Market Survey® by Freddie Mac. The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%.

These rates are significantly higher than the sub-3% rates we saw during the pandemic, which has definitely impacted affordability. It makes it more expensive to borrow money, which can deter some buyers.

According to various forecasts, the 30-year FRM rate will end 2025 between 6.0 to 6.5 percent. Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April.

My Take on the Chicago Market

As someone who's been following the Chicago real estate market for years, I think we're in a period of adjustment. The frenzy of the past few years was unsustainable, and the current market is much more balanced and healthy in the long run.

I think that even though mortgage rates are at 6.75%, people will keep buying homes, especially if rates drop to between 6.0% and 6.5% by the end of 2025. While buying a home has become more difficult, stability in mortgage rates will encourage potential buyers. The market is also seeing a slight increase in inventory, meaning buyers have more choices and greater negotiating leverage.

For buyers, this means you have more time to shop around and negotiate. Don't feel pressured to make a snap decision. Take your time, do your research, and find the right property for you. I encourage buyers to focus on how much they can afford per month rather than obsessing over the interest rate and try to buy homes that fits their lifestyle in the long run.

For sellers, it means you need to be realistic about your pricing expectations. You can't expect to get the same prices that homes were fetching a year or two ago. Work with a knowledgeable real estate agent to price your home competitively and make sure it's in top condition.

The Bottom Line

The current Chicago housing market trends show a market that is stabilizing after a period of rapid growth. Prices are still appreciating, but at a more moderate pace. Inventory is increasing slightly, and homes are taking a bit longer to sell. While higher mortgage rates are impacting affordability, the market remains relatively balanced. Whether you're a buyer or a seller, understanding these trends is crucial for making informed decisions.

Chicago Housing Market Forecast 2025-2026: What's Coming Up?

Based on the latest data, the Chicago housing market forecast for 2025 looks promising. We can expect a modest level of sales increase and home prices are likely to continue to grow into next year too! The projected increase is nearly six percent compared to 2024! Keep reading to understand the reasoning behind this and the trends that cause these predictions

Let's break down what's been happening recently in the Chicago area housing market. According to the Institute for Housing Studies at DePaul University, here's a snapshot of May 2025:

  • There were 8,689 closed sales of houses, townhomes, and condos in the entire Chicago metro area.
  • Single-family home prices jumped 6.3% compared to May 2024.
  • However, the number of single-family home sales actually went down 3.5% compared to last year.
  • Here's a bit of good news for buyers: The number of houses for sale increased by 3.9% since last May.
  • Homes are sitting on the market a little longer, about 5.3% (1 day) The market isn't seeing a drastic shift, just a normal fluctuation.

What I gather from these figures is that even though are a little bit highers on the market, the demand is still there, even though there are many reasons why people are hesitant to buy houses.

Chicago vs. the Suburbs: A Tale of Two Markets

It's important to look at how the city of Chicago compares to the rest of the metro area. Here's what's been going on within Chicago itself:

  • In Chicago, there were 2,286 closed sales homes.
  • House prices in the city soared 9.4% since May 2024. That's a big jump!
  • The number of single-family home sales dropped 2.1%, similar to the overall metro trend.
  • Here's where it gets interesting: the number of homes for sale in Chicago plunged nearly 16% compared to last year. That means there's a lot less to choose from, which could be driving up prices.
  • It took a little longer to sell a house 5.1% (2 days)

It seems to me that the city is a hotter market than the suburbs right now, with prices rising faster and fewer homes available.

Condos and Townhomes: A Different Story?

Let's not forget about condos and townhomes in the city. Here's what's been happening with them:

  • Prices for condos and townhomes in Chicago rose 4.4% since May 2024.
  • The number of condo sales fell 10%.
  • The number of condos for sale is down 11.4%.
  • However, condos are selling faster – the time on the market went down 13.4% (3 days).

So, while condo prices are up, fewer people are buying them, and there are fewer available. But when they do sell, they're selling quicker!!

Short-Term Outlook: Summer Sales

What about the next few months? Here's what the Institute for Housing Studies predicts for the Chicago metro area:

  • Sales of single-family homes will probably go up and down, peaking in June which will follow seasonal changes.
  • The total sales for June, July, and August should be around 3.9% heigher than last year.
  • Prices of houses in the Chicago Metropolitan Area are expected to increase slightly before declining throughout the summer months, with overall the price increase being similar to what it was during May.

For Chicago itself:

  • Single-family home prices in Chicago are expected to increase slightly between May and August.

Condo prices are expected to decrease slightly between May and August. This is something to keep your eye on.

2026: Peering into the Crystal Ball

While it's tough to say for sure what 2026 will bring, I can offer some thoughts. If interest rates stay relatively stable or even decrease, this could make homes more affordable and boost sales. We might see a continued increase in home prices, but at a more moderate pace than what we've seen recently.

On the flip side, if the economy slows down significantly, it could put downward pressure on the housing market.* More people could be hesitant to buy. The economy really does dictate everything! I think the Chicago housing market is more than likely very healthy.

Based on current trends and expert forecasts, I believe the Chicago housing market will remain stable with continued price growth.

Is Chicago a Good Place for Real Estate Investment for 2025?

Population Growth and Trends

Chicago, known for its diverse neighborhoods and rich history, has been experiencing steady population growth over the years. The city's population growth is driven by factors such as employment opportunities, higher education institutions, and cultural attractions. The diverse demographic makeup of Chicago provides a broad tenant pool for real estate investors, making it an attractive market.

  • Diverse Demographics: Chicago's diverse population ensures a wide range of tenant preferences and needs, reducing the risk of high vacancy rates.
  • Steady Growth: The city's population growth indicates a consistent demand for housing, especially in well-located neighborhoods.

Rehabbed Homes Fix and Flip Opportunities

Chicago's real estate market offers lucrative opportunities for fix and flip investors. Many older properties in desirable neighborhoods are prime candidates for rehabilitation and resale. This segment of the market can yield significant profits for investors with the right skills and resources.

  • Older Properties: Chicago has a substantial inventory of older homes that can be acquired at competitive prices and then renovated for profit.
  • Increasing Demand: Renovated homes in sought-after neighborhoods are in high demand, allowing for premium pricing.

Economy and Jobs

The strength of the local economy plays a crucial role in real estate market stability. Chicago's diverse economy is bolstered by various industries, including finance, technology, manufacturing, and healthcare. The city offers a robust job market, which is attractive to both renters and potential buyers.

  • Diverse Economy: A mix of industries reduces the risk associated with economic downturns in a specific sector.
  • Job Opportunities: A strong job market ensures a constant influx of renters and potential homebuyers.

Livability and Other Factors

Chicago's livability is a key factor for real estate investors. The city's vibrant cultural scene, excellent public transportation, and diverse dining options contribute to its appeal. Additionally, the city's commitment to infrastructure and public services further enhances its livability.

  • Cultural Attractions: Chicago offers world-class cultural experiences, attracting residents and tourists alike.
  • Public Transportation: An extensive public transit system makes it convenient for residents to commute, reducing the importance of owning a car.

Chicago Rental Property Market Size and Growth

The size and growth of the Chicago rental property market are promising for investors. The city's diverse neighborhoods and housing options cater to a wide range of tenant preferences. This, coupled with population growth, ensures a robust and expanding rental market.

  • Diverse Neighborhoods: Chicago's neighborhoods offer various housing options, from apartments to single-family homes, appealing to a wide range of renters.
  • Growth Potential: With a growing population, the demand for rental properties is likely to continue to rise.

Other Factors Related to Real Estate Investing

When considering real estate investment in Chicago, it's essential to account for various other factors:

  • Local Regulations: Familiarize yourself with Chicago's property regulations and tax laws to ensure compliance and maximize returns.
  • Market Research: Thoroughly research neighborhoods and property types to identify areas with growth potential.
  • Property Management: Whether you plan to manage properties yourself or hire a management company, effective property management is vital for success.

Investing in the Chicago real estate market offers numerous advantages. The city's population growth, diverse demographics, job opportunities, and livability make it an attractive destination for real estate investors. Additionally, the fix and flip opportunities, the size and growth of the rental market, and other related factors provide a solid foundation for potential returns on investment. However, it's crucial to conduct thorough research, stay informed about local regulations, and manage properties effectively to maximize the benefits of investing in Chicago's real estate market.

Highest Appreciating Chicago Neighborhoods

Chicago has witnessed significant changes in its neighborhoods since the year 2000. Here are the neighborhoods that have experienced the highest appreciation in terms of property values, according to Neighborhoodscout.

W Wabansia Ave / N Whipple St

Located in the heart of Chicago, the W Wabansia Ave / N Whipple St neighborhood has seen remarkable property value appreciation. This area's proximity to various amenities and its strong community appeal have contributed to its growth.

Humboldt Park Northeast

The Humboldt Park Northeast neighborhood has seen a steady increase in property values since 2000. The neighborhood's green spaces, cultural attractions, and improving infrastructure have made it an attractive destination for homebuyers and investors.

W Wabansia Ave / N Kimball Ave

This neighborhood, situated near W Wabansia Ave and N Kimball Ave, has experienced substantial property value appreciation. The presence of local businesses, parks, and good public transportation options has boosted its desirability among residents and investors.

Palmer Square East

Palmer Square East is another neighborhood that has seen significant appreciation in property values. Its charming streets, proximity to parks, and vibrant local scene have made it a sought-after area for both residents and real estate investors.

W Wabansia Ave / N Francisco Ave

The W Wabansia Ave / N Francisco Ave neighborhood has been on an upward trajectory in terms of property values. Its location and access to various amenities have attracted homebuyers and investors looking for long-term growth.

Logan Square Northwest

Logan Square Northwest is known for its thriving arts and dining scene. The neighborhood's cultural appeal, coupled with improved public services and transportation, has contributed to its property value appreciation.

W Cortland St / N Mozart St

W Cortland St / N Mozart St is a neighborhood that has experienced remarkable growth in property values. Its accessibility to urban conveniences and a sense of community have made it a desirable place to live and invest.

Palmer Square

Palmer Square, located in Chicago, has seen substantial property value appreciation. The neighborhood's green spaces, historic architecture, and community activities have made it a popular choice for homeowners and real estate investors.

Humboldt Park North

Humboldt Park North, with its green expanses and recreational opportunities, has seen a consistent increase in property values since 2000. The neighborhood's combination of natural beauty and urban amenities has attracted both residents and investors.

W Cortland St / N Albany Ave

W Cortland St / N Albany Ave is another Chicago neighborhood that has experienced substantial appreciation in property values. Its accessibility to city amenities and transportation options have bolstered its appeal to homebuyers and real estate investors.

These neighborhoods have not only appreciated in property values but also offer various amenities, community vibes, and urban conveniences, making them attractive options for both residents and real estate investors seeking long-term growth and value appreciation in Chicago.

Thinking of Real Estate Investment in Chicago?

Discover high-quality, ready-to-rent properties designed to deliver consistent returns.

Contact us today to expand your real estate portfolio with confidence.

Contact our investment counselors (No Obligation):

(800) 611-3060

Get Started Now 

Today’s Mortgage Rates: The States Offering Lowest Rates – July 23, 2025

by

Looking to buy a home and snag the best mortgage rate possible? You're probably wondering: where can I find the lowest mortgage rates today? As of Tuesday, the states boasting the cheapest 30-year new purchase mortgage rates are New York, Colorado, Washington, California, North Carolina, Tennessee, Florida, New Jersey, and Massachusetts, where average rates hover between 6.65% and 6.82%. It's time to dive into why these rates fluctuate and how you can take advantage of these lower numbers.

Today's Mortgage Rates: The States Offering Lowest Rates

Decoding Mortgage Rate Variations Across States

It's fascinating how mortgage rates can differ from state to state. It's not just some random lottery, but rather a cocktail of economic factors and local market conditions. Here’s a breakdown of what's behind these differences:

  • Lender Presence: Not every lender is available in every state. The level of competition among mortgage lenders in each state can significantly impact rates. More competition usually translates to better deals for borrowers as lenders jockey for your business.
  • State-Level Regulations: Each state has its own set of rules and regulations governing the mortgage industry. These regulations can affect the cost of doing business for lenders, which they may then pass on to borrowers in the form of higher interest rates.
  • Credit Score Averages: States with higher average credit scores might see lower rates overall. Lenders see borrowers with better credit as less risky, so they offer them better terms.
  • Average Loan Size: This might seem counterintuitive, but states with smaller loan sizes can sometimes see higher rates. Lenders might need to charge more to make the loan profitable if the loan amount is lower.
  • Risk Management Strategies: Every lender has its own approach to managing risk. This can include things like being more conservative in certain markets or focusing on specific types of borrowers.

Seeing these numbers and understanding the reasons behind them always makes me think of the importance of doing your research. The mortgage process can feel overwhelming, but knowledge is truly power!

Current National Mortgage Rate Trends

Let’s zoom out from the state level and look at the national picture. Mortgage rates seem to be stabilizing after a period of some volatility.

  • The average rate for a 30-year new purchase mortgage is 6.84%, which is down 7 basis points from the previous two days.
  • Last week, the rate was 6.91%, which was a high since mid-June.
  • We’ve come a long way from May 2025, when rates spiked to 7.15%, a one-year high.
  • Thinking back to March 2025, rates were at their lowest average for the year, around 6.50%.
  • And who can forget September 2024, when rates hit a two-year low of 5.89%?

Here's a quick rundown of the national averages for different types of mortgages:

Loan Type New Purchase Rate
30-Year Fixed 6.84%
FHA 30-Year Fixed 7.55%
15-Year Fixed 5.87%
Jumbo 30-Year Fixed 6.78%
5/6 ARM 7.37%

Highest Mortgage Rate States

According to Investopedia's report and Zillow's data, on the other end of the spectrum, here are the states with the highest 30-year new purchase mortgage rates as of July 23, 2025: West Virginia, Alaska, Washington D.C., South Dakota, New Mexico, North Dakota, Oklahoma, Rhode Island, and Wyoming. In these states, the average rates range from 6.90% to 6.97%.

There could be many factors contributing to these slightly higher rates, and it's worth investigating further if you plan to buy property in any of these locations.

What Drives Mortgage Rates? Understanding the Big Picture

To really understand mortgage rates, you need to know what makes them tick. These rates are like dancers following the music of the broader economy. Here are some leading musicians:

  • The Bond Market: Mortgage rates often mirror the movements of the bond market, especially the 10-year Treasury yield. When bond yields rise, mortgage rates usually follow suit.
  • The Federal Reserve (The Fed): The Fed's actions have a huge impact. This includes everything from buying bonds to setting the federal funds rate.
  • Competition Among Lenders: As mentioned before, competition is a key driver. Lenders will often lower rates to attract more borrowers, particularly when demand for mortgages is high.

Thinking back to the economic climate of the past few years, we saw some significant shifts:

  • 2021: The Fed was buying bonds like crazy to combat the economic fallout from the pandemic. This kept mortgage rates artificially low.
  • Late 2021 – 2023: The Fed started pulling back on bond purchases and aggressively raised the federal funds rate to fight high inflation. This caused mortgage rates to rise sharply.

The Federal Reserve's Influence: Present Day

The Fed's policies continue to be important. While the pandemic emergency is over, the Fed is still playing a significant role in the economy.

  • Recent Fed Actions: The Fed cut rates three times in late 2024, bringing the federal funds rate down to a target range of 4.25%–4.5%.
  • Future Rate Cuts: The Fed is projected to cut rates a couple more times in 2025, potentially bringing the federal funds rate down to 3.9% by the end of the year. Of course, there are split opinions as some want cuts sooner and some want to wait longer.
  • Inflation and Tariffs: The dreaded “I” word – Inflation of even the mention of tariffs can have an impact on Fed policy decisions. While the Fed is trying to balance inflation control with economic growth, any big shifts in these areas can affect how they respond.

Mortgage Rates Implication:

  • The 30-year mortgage rate averaged 6.7% in 2024 and is hovering around 6.8% as of late June of 2025. Experts project that rates could potentially fall to 5% by 2028*. Again, this of course depends on rates if the Fed actually follows through on the rumored rate cuts.

Shopping Around for the Best Mortgage Rate

Regardless of the national or state trends, there’s one golden rule: shop around. Mortgage rates can vary significantly from lender to lender, so it pays to do your homework.

  • Compare Rates: Don't just settle for the first rate you see. Get quotes from multiple lenders to see who can offer you the best deal.
  • Factor in Fees: Pay attention to fees as well as the interest rate. Sometimes a slightly higher rate with lower fees can be a better deal in the long run.
  • Understand Points: Some lenders offer lower rates in exchange for paying points upfront. This can be a good option if you plan to stay in the home for a long time, but it might not be worth it if you plan to move soon.
  • Talk to a Mortgage Broker: A mortgage broker can help you compare rates from multiple lenders and guide you through the mortgage process.

Remember, the rates you see advertised online are often “teaser rates” designed to attract your attention. The actual rate you qualify for will depend on your individual circumstances, including your credit score, income, and debt-to-income ratio.

Invest in Real Estate in the Top U.S. Markets

Investing in turnkey real estate can help you secure consistent returns with fluctuating mortgage rates.

Expand your portfolio confidently, even in a shifting interest rate environment.

Speak with our expert investment counselors (No Obligation):

(800) 611-3060

Get Started Now

Also Read:

Mortgage Rates Today July 23, 2025: Rates Go Down Overall Benefiting Homebuyers

by

Mortgage rates today, July 23, 2025, for a 30-year fixed mortgage have slightly decreased to an average of 6.82%, down from 6.83% the previous day and 6.88% a week ago, according to Zillow. This signals a small but steady dip in mortgage rates amid ongoing economic shifts. Similarly, refinance rates for a 30-year fixed loan also decreased to 7.05%.

The 15-year fixed mortgage rate is at 5.87%, with a slight decrease as well. Essentially, while rates remain historically elevated compared to a few years ago, they are showing small declines this week, offering a glimmer of potential relief for homebuyers and those looking to refinance their mortgages.

Mortgage Rates Today July 23, 2025: Rates Go Down Overall Benefiting Homebuyers

Key Takeaways

  • 30-year fixed mortgage rate dropped slightly to 6.82% on July 23, 2025.
  • 30-year fixed refinance rate also decreased to 7.05% this week.
  • 15-year fixed mortgage and refinance rates have edged down, currently 5.87% and 5.88% respectively.
  • Conforming loan rates are marginally lower this week, while some government-insured loan rates have mixed small increases and decreases.
  • Mortgage rate forecasts by major organizations indicate rates may remain elevated or slightly decrease by the end of 2025 and into 2026.
  • Fed policy, inflation, and economic growth projections strongly influence these mortgage rate trends.

Current Mortgage Rates on July 23, 2025

According to Zillow's latest data, here is a summary of the national average mortgage rates for different loan programs:

Loan Type Rate (%) Week Change (%) APR (%) APR Change (%)
30-Year Fixed 6.82 -0.01 7.33 -0.02
20-Year Fixed 6.29 -0.43 6.75 -0.28
15-Year Fixed 5.87 -0.01 6.21 -0.01
10-Year Fixed 6.03 0.00 6.12 0.00
7-Year ARM 7.63 +0.05 7.86 -0.10
5-Year ARM 7.72 -0.11 8.08 -0.04

Government-Backed Loans:

Loan Type Rate (%) Week Change (%) APR (%) APR Change (%)
FHA 30-Year Fixed 7.75 +0.48 8.79 +0.48
VA 30-Year Fixed 6.15 -0.21 6.32 -0.25
FHA 15-Year Fixed 5.98 +0.52 6.95 +0.48
VA 15-Year Fixed 5.78 -0.11 6.23 -0.01

Rates are subject to daily changes and can vary by lender and location.

Conforming vs. Government-Backed Mortgage Rates

Many borrowers encounter two major categories when shopping for a mortgage: Conforming loans and Government-backed loans.

  • Conforming Loans are typical mortgages that meet the criteria set by government-sponsored enterprises like Fannie Mae and Freddie Mac. These usually have stricter credit score and income requirements but tend to offer competitive interest rates for qualified borrowers.
  • Government-backed Loans such as FHA, VA, and USDA loans provide insurance or guarantees to lenders, making them more accessible to borrowers with lower credit scores or smaller down payments. These loans often have slightly higher interest rates, as seen in the current FHA 30-year fixed rate at 7.75%, compared to 6.82% for conforming loans.

The differences in risk to lenders and borrower profiles explain the variation in rates — government loans protect lenders from default risk at the cost of slightly higher rates for borrowers.

Current Refinance Rates – July 23, 2025

Refinance rates have also followed a slight downward adjustment this week. The national average rates for refinance loans are:

Loan Program Rate (%) Weekly Change (%) APR (%) APR Change (%)
30-Year Fixed Refi 7.05 -0.01 7.34 -0.02
15-Year Fixed Refi 5.88 -0.05 6.22 -0.02
5-Year ARM Refi 7.94 +0.02 8.17 +0.01

Refinancing remains a popular option for homeowners to lower monthly payments or take cash out of equity, though higher rates than the standard purchase mortgage suggest cautious appraisal of benefits.

What’s Behind Today’s Mortgage and Refinance Rates?

Mortgage rates are influenced by several factors:

  • Federal Reserve Monetary Policy: The Fed influences short-term interest rates but indirectly affects mortgage rates through bond markets and inflation expectations.
  • Inflation and Economic Growth: Higher inflation tends to push mortgage rates up, while economic slowdowns can reduce pressure on borrowing costs.
  • Housing Market Dynamics: Demand, inventory levels, and home prices impact lenders’ appetite and risk assessments.

The Federal Reserve cut rates by 1% last fall but has held steady in mid-2025, with expectations for gradual rate cuts later this year or in 2026. The Fed’s “dot plot” median forecast shows the federal funds rate dropping to around 3.9% by the end of 2025, which may later reduce mortgage rates. However, inflation from tariffs and other economic variables inject uncertainties in timing.

Mortgage Rate Forecasts and Economic Outlook

Let's analyze what major institutions say about the future of mortgage rates and housing affordability.

  • Fannie Mae: Projects mortgage rates ending 2025 around 6.5%, dropping to 6.1% in 2026. They predict moderate GDP growth (1.4% in 2025, 2.2% in 2026) supporting a balanced economic climate and more stable rates.
  • Mortgage Bankers Association (MBA): Projects 30-year fixed mortgage rates mostly unchanged near 6.8% through September 2025, then slight decline to mid-6% by year's end and steady 6.3% into 2026. Inflation risks continue to influence their outlook.
  • Morgan Stanley: Suggests potential for mortgage rate declines correlating with Treasury yields lowering if GDP slows in 2026. They provide an illustrative example: on a $1 million house, monthly payment at 7% interest is about $5,322; if rates fall to 6.25%, the payment drops to $4,925—a savings of nearly $400 monthly.
  • Freddie Mac: Notes that rates remaining higher than expected may prompt buyers and sellers to act sooner rather than wait for lower rates, increasing market activity but with sales volume below long-term averages.

The forecasts indicate a landscape where rates may hover high in the near term but could ease moderately by 2026, supporting housing affordability improvements.

Mortgage vs. Refinance Rate Example Calculations

To illustrate the impact of today's rates on a typical loan scenario, consider this:

  • Purchase Mortgage Example:
Loan Amount $350,000
Mortgage Rate 6.82%
Loan Term 30 years
Monthly Principal & Interest Payment (approx.) $2,268
  • Refinance Example:

If refinancing $350,000 at 7.05% (30-year fixed):

Loan Amount $350,000
Refinance Rate 7.05%
Loan Term 30 years
Monthly Payment (approx.) $2,363

Difference monthly = $2,363 – $2,268 = $95 more per month if refinancing at current rates compared to a new purchase mortgage rate, showing refinancing might not make sense unless there are other benefits like cash-out or shorter terms.

Impact of Federal Reserve's Policies on Mortgage Rates

The Fed's recent rate cuts in late 2024 brought the federal funds rate down to 4.25%-4.5%, stabilizing since then. In 2025, the Fed signaled potential additional rate cuts, but policymakers remain divided on timing—with some expecting cuts as early as July 2025, and others preferring September or later.

Factors influencing these decisions:

  • Inflation pressures from tariffs and global issues.
  • Economic growth slowing (GDP forecasted at 1.4% for 2025).
  • Rising unemployment slightly above historical lows at 4.5%.
  • Political pressures balanced by Fed’s data-focused approach.

As mortgage rates are closely tied to Treasury yields and overall monetary policy, Fed actions remain a key driver in whether mortgage rates fall or stay elevated in coming months. The Fed’s July 30, 2025 meeting is expected to hold rates steady but could signal adjustments depending on inflation and employment data.

Mortgage and Refinance Rates Summary Table

Rate Type Current Rate (%) Weekly Change (%) Notes
30-Year Fixed Purchase 6.82 -0.01 Slight decrease, still above pre-pandemic averages
15-Year Fixed Purchase 5.87 -0.01 Minor decrease, more affordable option
30-Year Fixed Refinance 7.05 -0.01 Still higher than purchase rates
15-Year Fixed Refinance 5.88 -0.05 Small decrease, competitive for shorter terms
5-Year ARM Purchase 7.72 -0.11 Adjustable rates declining slightly

Every housing market cycle varies, but July 2025 shows a slight cooling in mortgage and refinancing rates compared to recent weeks. Borrowers should keep an eye on Fed announcements and economic indicators to time decisions. With mortgage and refinance rates hovering near 7% for 30-year loans, affordability remains a crucial issue for many Americans trying to enter or move within the housing market.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Today’s Mortgage Rates: The States Offering Lowest Rates – July 22, 2025

by

Looking for the absolute lowest mortgage rates? As of Monday, the states offering the cheapest 30-year new purchase mortgage rates are New York, California, Florida, Washington, North Carolina, and Pennsylvania. In these states, expect to see average rates ranging between 6.64% and 6.83%. Let’s dive deeper into what's driving these rates and how you can snag the best deal possible.

Today’s Mortgage Rates: The States Offering Lowest Rates

Why Do Mortgage Rates Vary By State?

You might be wondering, “Why isn't there just one national mortgage rate?” Great question! Several factors contribute to the state-by-state differences in mortgage rates:

  • Regional Lender Presence: Not all lenders operate in every state. The level of competition among lenders directly impacts rates. More competition usually means lower rates.
  • State-Level regulations: Rules about interest rates and foreclosure processes can add a layer of regulatory-related fees.
  • Credit Score Averages: States with higher average credit scores may see slightly lower rates overall, as lenders perceive less risk. Credit scores are majorly responsible for interest rates applicable to home loans.
  • Average Loan Size: The average home price and subsequent loan amount can play a role. Larger loan portfolios might allow lenders to offer slightly different rates.
  • Risk Management Strategies: Every lender has its own way of assessing risk. Some might be more aggressive in certain states, leading to variations in rates.

Digging into the Numbers:

According to Investopedia's report and Zillow's data, here's a breakdown of the states offering the lowest 30-year fixed mortgage rates for new purchases:

  • Lowest Rate States (6.64% – 6.83%):
    • New York
    • California
    • Florida
    • Washington
    • North Carolina
    • Pennsylvania
    • Georgia
    • Texas
  • Highest Rate States (6.91% – 6.95%):
    • West Virginia
    • Alaska
    • New Mexico
    • Kansas
    • North Dakota
    • Oklahoma
    • Rhode Island
    • South Dakota
    • Washington, D.C.
    • Wyoming

National Averages:

To put things in perspective, here's a glance at the national averages for different loan types:

Loan Type New Purchase Rate
30-Year Fixed 6.84%
FHA 30-Year Fixed 7.55%
15-Year Fixed 5.86%
Jumbo 30-Year Fixed 6.79%
5/6 ARM 7.38%

The Importance of Shopping Around

This can't be overstated: Always shop around for mortgage rates! Just because one lender offers you a certain rate doesn't mean it's the best rate you can get. Comparing rates from multiple lenders is crucial, regardless of the type of home loan you're seeking.

Don't Fall for the Teaser Rate Trick

Be very cautious of advertised mortgage rates you see online. These are often teaser rates designed to grab your attention. The fine print usually reveals that these rates require:

  • Paying points upfront (essentially, pre-paying interest)
  • An ultra-high credit score
  • A smaller-than-typical loan amount

The actual rate you qualify for will depend on your individual financial situation.

Factors Affecting Your Personal Mortgage Rate

When lenders determine your personal mortgage rate, they consider several factors, including:

  • Credit Score: A higher credit score typically results in a lower interest rate.
  • Income and Debt-to-Income Ratio (DTI): Lenders want to ensure you can comfortably repay the loan. A lower DTI is generally favorable.
  • Down Payment: A larger down payment reduces the lender's risk.
  • Loan Type: Different loan types (e.g., fixed-rate, adjustable-rate, FHA, VA) come with varying rates and requirements.
  • Property Type: Is it a single-family home, condo, or investment property? This can affect your rate.

Let's Talk Payment: Understanding Your Monthly Costs

Don't just focus on the interest rate! Understand all the costs that make up your monthly mortgage payment. These typically include:

  • Principal and Interest: The actual loan repayment
  • Property Taxes: A significant expense that varies by location
  • Homeowners Insurance: Protects your property from damage or loss
  • Private Mortgage Insurance (PMI): Required if your down payment is less than 20%

What Makes Mortgage Rates Move? Understanding the Big Picture

Mortgage rates don't exist in a vacuum. They're influenced by a complex interplay of economic forces:

  • The Bond Market: Mortgage rates closely track the movement of 10-year Treasury yields. When yields rise, mortgage rates often follow suit.
  • The Federal Reserve (The Fed): The Fed's monetary policy has a significant impact. Decisions about interest rates and bond buying can directly influence mortgage rates.
  • Inflation: High inflation can lead to higher interest rates as the Fed tries to cool down the economy.
  • Economic Growth: A strong economy can push interest rates higher as demand for credit increases.

Decoding the Fed's Recent Actions

The Federal Reserve's role in shaping mortgage rates is undeniable.

  • Recent Fed Actions and Rate Trajectory:
    • Rate Cuts in Late 2024: The Fed cut rates three times in late 2024 (September to December), reducing the federal funds rate by 1 percentage point to a target range of 4.25%–4.5%, where it has remained through June 2025
    • 2025 Outlook: The Fed’s June 2025 meeting reaffirmed plans for two rate cuts in 2025, with possibilities of officials advocating for cuts by July 2025 or later in September
    • “Dot plot” shows a median projection of the federal funds rate falling to 3.9% by year-end 2025 with more future cuts to happen at 2026-2027
  • Key Influences on Fed Policy:
    • Tariffs and Inflation: Fed Chair Jerome Powell expects “meaningful” inflation from tariffs, The Fed views this as a temporary shock, not requiring rate hikes, but it complicates the timing of cuts.
    • The Fed anticipates a gradual easing cycle, with rates settling near 2.25%–2.5% by 2027.

Putting It All Together: What to Do Next

If you're in the market for a mortgage, here's my advice:

  1. Check Your Credit: Make sure your credit report is accurate and address any errors.
  2. Save for a Down Payment: A larger down payment gives you more options and potentially a lower rate.
  3. Shop Around: Compare rates from multiple lenders, including banks, credit unions, and online mortgage companies.
  4. Get Pre-Approved: A pre-approval gives you a firm idea of how much you can borrow and strengthens your offer on a home.

Final Thoughts

Navigating the mortgage market can feel overwhelming, but understanding the factors that influence rates – both nationally and at the state level – can empower you to make informed decisions. Remember, the lowest rate isn't always the best deal. Focus on finding a loan that fits your budget and long-term financial goals.

Invest in Real Estate in the Top U.S. Markets

Investing in turnkey real estate can help you secure consistent returns with fluctuating mortgage rates.

Expand your portfolio confidently, even in a shifting interest rate environment.

Speak with our expert investment counselors (No Obligation):

(800) 611-3060

Get Started Now

Also Read:

Mortgage Rates Today July 22, 2025: 30-Year FRM and Refinance Rates Go Down

by

Mortgage rates today, July 22, 2025, for a 30-year fixed mortgage have slightly dropped to 6.82% from 6.83% a day before, marking a 6-basis-point decrease from last week's 6.88% average, according to Zillow. This slight dip, while not dramatic, shows a subtle easing in mortgage costs after a period of relative stability. Meanwhile, refinance rates remain steady with the 30-year fixed refinance rate at 7.03%, down 8 basis points from last week.

The 15-year fixed and various adjustable-rate mortgage (ARM) figures show minor fluctuations, reflecting ongoing market adjustments influenced by both economic signals and Federal Reserve policy. For potential homebuyers and those considering refinancing, these data points highlight the current moderately high but slightly improving borrowing landscape.

Mortgage Rates Today July 22, 2025: 30-Year FRM and Refinance Rates Go Down

Key Takeaways

  • 30-year fixed mortgage rates dropped slightly to 6.82%, down 6 basis points from last week.
  • 15-year fixed mortgage rates remain stable at 5.87%.
  • 30-year fixed refinance rates stable at 7.03%, slightly down from last week’s 7.11%.
  • 5-year ARM mortgage rates increased slightly to 7.77%.
  • Federal Reserve has signaled possible rate cuts later in 2025, possibly impacting mortgage rates.
  • Economic factors like inflation, tariffs, and labor markets continue influencing mortgage trends.
  • Analysts forecast mortgage rates may decline moderately by 2026 but remain above historical lows.

Current Mortgage Rates Overview

Understanding today’s mortgage rates requires looking at various loan types and terms. Zillow's latest data indicates small shifts across the board:

Loan Type Rate (%) Change from Last Week APR (%) APR Change
30-Year Fixed 6.83 Down 0.06% 7.30 Down 0.05%
20-Year Fixed 6.54 Down 0.18% 6.85 Down 0.18%
15-Year Fixed 5.87 Down 0.06% 6.18 Down 0.05%
10-Year Fixed 6.03 No Change 6.12 No Change
7-Year ARM 7.96 Up 0.38% 8.36 Up 0.39%
5-Year ARM 7.77 Down 0.06% 8.11 Down 0.01%
3-Year ARM — No Change — No Change

(Source: Zillow, 7/22/2025)

Government-backed loans offer slightly different rates, reflecting loan insurance and risk profiles.

Program Rate (%) Change from Last Week APR (%) APR Change
30-Year Fixed FHA 7.75 Up 0.48% 8.78 Up 0.47%
30-Year Fixed VA 6.33 Down 0.03% 6.56 Down 0.02%
15-Year Fixed FHA 5.44 Down 0.02% 6.44 Down 0.03%
15-Year Fixed VA 5.81 Down 0.08% 6.18 Down 0.06%

What Are Government Mortgage Rates?

Government mortgage rates refer to loans insured or guaranteed by federal agencies such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). These programs make homeownership more accessible by often requiring lower down payments or offering competitive rates to qualified borrowers.

  • FHA Loans: Insured by the FHA, these loans allow lower credit scores and lower down payments, making them popular for first-time homebuyers.
  • VA Loans: Available to eligible veterans and service members, VA loans usually have competitive interest rates and no mortgage insurance premiums.

Because these loans have federal backing, lenders face lower risk, often leading to slightly better terms for borrowers with less-than-perfect credit profiles or smaller down payments.

Refinance Rates Today

For those looking to refinance existing mortgages, Zillow reports the following:

Refinance Loan Type Rate (%) Change From Last Week
30-Year Fixed Refinance 7.03 No Change
15-Year Fixed Refinance 5.88 No Change
5-Year ARM Refinance 7.87 No Change

Although the 30-year fixed refinance rate remains relatively stable around 7.03%, it has dropped 8 basis points notably from the previous week’s 7.11%. This reflects some easing, but rates have remained high relative to historical levels.

Federal Reserve’s Role in Mortgage Rates

The Federal Reserve’s monetary policy plays a critical role in influencing mortgage rates. Although it does not set mortgage rates directly, its policy on interest rates and bond purchases affects lenders’ costs and long-term borrowing rates.

  • Recent Fed Actions: The Fed cut rates three times in late 2024, lowering the federal funds rate to between 4.25% and 4.5%. The rate has remained steady through June 2025.
  • Future Outlook: The Fed is divided on the timing of further cuts in 2025. Some officials want to start cuts as early as July 2025; others are considering September or later.
  • Economic Factors: Inflation pressures from tariffs and slowing economic growth are complicating the Fed’s decisions. The GDP growth forecast is modest, and unemployment is expected to rise slightly.
  • Impact on Mortgage Rates: Markets are pricing in a small chance (~5%) of a July rate cut, with higher odds for September or later. Mortgage rates in 2025 remain higher than historical norms but could gradually decrease if the Fed eases policy.

Forecasts & Predictions: Will Mortgage Rates Drop?

Several key institutions offer forecasts that shape expectations for borrowers and lenders alike:

  • National Association of REALTORS® (NAR):
    • Existing home sales expected to rise by 6% in 2025 and accelerate 11% in 2026.
    • New home sales projected to increase by 10% in 2025 and 5% in 2026.
    • Mortgage rates expected to average 6.4% in the second half of 2025, dropping further to 6.1% in 2026.
    • Lawrence Yun calls mortgage rates a “magic bullet” affecting buyer demand and affordability. [NAR Legislative Meetings 2025]
  • Fannie Mae:
    • Predicts mortgage rates ending 2025 at 6.5%, 6.1% in 2026.
    • GDP growth forecast at 1.4% for 2025, rising to 2.2% in 2026.
  • Mortgage Bankers Association (MBA):
    • Expects 30-year mortgage rates to remain near 6.8% until September 2025.
    • Rates to hold in mid-6% range through 2025, ending the year around 6.7%, stable near 6.3% in 2026.
  • Morgan Stanley:
    • Suggests rates may fall alongside Treasury yields in 2026 amid slowing GDP growth.
    • Even small changes in rates dramatically affect affordability. For example, a $1 million home with a 7% rate means $5,322 monthly payments; at 6.25%, payments drop to $4,925 — a $397 difference monthly.
  • Freddie Mac:
    • Notes rates stayed higher than expected in 2024 and 2025.
    • Suggests that buyers and sellers may act earlier, given less expectation of rates dropping.
    • Expects increased home sales relative to last year but still below historical averages.
    • The amortization effect should reduce the “rate lock-in,” encouraging more property listings.

Mortgage Rate and Refinance Rate Trends: Tables & Analysis

Mortgage Rates Over Recent Weeks

Date 30-Year Fixed Rate (%) 15-Year Fixed Rate (%) 5-Year ARM Rate (%)
July 1, 2025 6.88 5.87 7.74
July 15, 2025 6.88 5.87 7.74
July 22, 2025 6.82 5.87 7.77

Refinance Rates Comparison

Date 30-Year Fixed Refi (%) 15-Year Fixed Refi (%) 5-Year ARM Refi (%)
July 1, 2025 7.11 5.88 7.87
July 15, 2025 7.11 5.88 7.87
July 22, 2025 7.03 5.88 7.87

The data demonstrates a very gradual shift, mainly stability with minor easing in fixed rates and mixed movement in ARMs.

Understanding Mortgage Rate Changes

Mortgage rates are influenced by a complex mix of factors, including:

  • Bond market movements: Treasury yields, especially the 10-year Treasury, have a strong correlation with fixed mortgage rates.
  • Economic indicators: Inflation, unemployment, GDP growth, and consumer spending impact lender risk assessments.
  • Federal Reserve policy: Fed interest rate decisions, quantitative easing or tightening.
  • Housing market dynamics: Supply and demand affect borrower risk and lender pricing.
  • Global events: Trade tariffs, geopolitical tensions, and global inflation can ripple into mortgage pricing.

Today’s slight drop in the 30-year fixed rate to 6.82% reflects a market carefully balancing hopeful economic data, Fed policy signals, and persistent inflation worries.

My Thoughts on Today’s Mortgage Rates

The current rates reflect a housing market that is still wrestling with elevated inflation and economic uncertainty. While the Federal Reserve signals cuts ahead, the cautious approach means mortgage rates won’t plunge soon. For buyers, the subtle easing today is encouraging but not game-changing. If anything, expecting major drops in the short term may be unrealistic given ongoing economic pressures.

The slow but steady decline since peak rates over 7% in recent months supports incremental improvement in access to financing. Government loans still provide a valuable affordable entry path given their competitive rates.

Refinancing remains an option for some, but the premiums on refinance rates today remain high, making this less attractive to many homeowners locked into lower previous mortgages.

Stability in rates also means the housing market can begin to normalize after the turbulence of the last few years, with increased sales and construction activity expected in 2025-2026.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Florida Real Estate: The Hidden Opportunity Amid Market Crash Concerns

by

In 2025, the savvy investor is looking at Florida real estate not just for its sunshine and beaches, but for a unique opportunity that many are overlooking: the chance to acquire high-quality, newly constructed investment properties at favorable prices with strong rental demand. Forget the doomsayers and outdated headlines; Florida is poised for continued long-term growth, and the current market conditions present a golden moment for those who understand where to look and what to build.

I've been following the Florida real estate market closely for years, observing its cycles and shifts. What strikes me now, as we move through 2025, is that the noise surrounding past market fluctuations has created a perception gap. Many are still reacting to news from 2022 or even earlier, missing the critical developments that are making this the ideal time to enter or expand their portfolio in the Sunshine State.

Florida Real Estate: The Hidden Opportunity Amid Market Crash Concerns

Understanding the Florida Real Estate Shift: Beyond the Headlines

It’s easy to get caught up in the sensationalism of real estate news. Just recently, I saw an article painting a bleak picture of Florida’s housing market, echoing sentiments that have been around for a while. But in my experience, this narrative is outdated. Florida has always been a dynamic market, experiencing booms and corrections, but its underlying fundamentals – population growth, a favorable business climate, and a desirable lifestyle – remain incredibly strong.

The days of irrational exuberance and rapid price hikes seen during the pandemic are behind us. Interest rates have adjusted, and the market has naturally recalibrated. While some segments of the market, particularly single-family homes, may have seen a dip in prices (estimates suggest around 10-20% from their peak for certain types of investor-grade properties), this correction is precisely what savvy investors are looking for. It’s a chance to buy into a market with proven long-term appreciation potential.

Key Market Dynamics to Consider:

  • Population Growth: Florida continues to attract new residents, consistently ranking as one of the fastest-growing states in the U.S. This ongoing influx of people directly translates to sustained rental demand.
  • Economic Climate: The state’s business-friendly policies and lack of state income tax remain significant draws for both individuals and companies, reinforcing its economic stability.
  • Correction, Not Collapse: The market has indeed corrected from its overheated highs. However, this is a sign of a healthier, more sustainable market, not a collapse. For those building a long-term portfolio, these moments are opportunities.

The Undervalued Asset: New Construction Built for Investors

This is where the real opportunity lies for 2025 – new construction built with an investor’s mindset. I’ve seen firsthand the difference between properties built for quick resale and those designed for long-term holding. My own investment philosophy, and that of the successful firms I connect with, centers on building assets that will appreciate, generate consistent rental income, and require minimal hassle.

This is precisely what’s happening in the Southwest Florida region, stretching from Naples up to Sarasota. The focus here is on creating something that lasts, something that attracts quality tenants, and something that withstands the elements.

Why New Construction is Key:

  • Durability and Low Maintenance: Properties are being built with materials and techniques designed to last. Think concrete block construction, hurricane impact windows (a game-changer for absent owners), and Luxury Vinyl Plank (LVP) flooring. These features significantly reduce maintenance costs and tenant headaches.
  • Strategic Design: Innovations like placing HVAC air handlers inside the conditioned space, rather than in hot garages, extend the life of these critical systems. Details like ensuring a rain and ice underlayment beneath roofs mean that even if shingles are compromised during a storm, water ingress is minimized. These are the kinds of thoughtful touches that matter when holding property for decades.
  • Modern Appeal: Features like shaker cabinets and quartz countertops provide a modern, desirable aesthetic that appeals to renters, translating to better occupancy rates and potentially higher rental income.

The Rental Demand: Stronger Than You Think, Especially for Quality

The narrative that rental demand in Florida has evaporated is simply not true. While there might have been a period where some property managers pushed rents too high, leading to longer vacancy periods, the market is rebalancing. What I’m seeing is a flight to quality. Tenants, when given the choice, gravitate towards newer, well-maintained properties.

Furthermore, there’s an innovative approach in some parts of Florida that’s significantly boosting returns: renting by the room. This strategy takes a standard duplex or even a single-family home and maximizes its income potential. Instead of collecting one lump sum for the entire property, units are rented to multiple individuals, each on an annual lease.

The Power of Rent by the Room:

  • Enhanced Cash Flow: For a typical duplex, market rent might be around $1,900 per month. With a rent-by-the-room strategy, where each room rents for approximately $900, a duplex can generate upwards of $5,400 per month. After accounting for utilities and some property management, this is a substantial increase in net cash flow, potentially boosting returns by 10-13% or more annually.
  • Guaranteed Income: Often, these programs are backed by agencies that guarantee full rental income and handle the complexities of managing multiple tenants. This translates to a more passive investment experience for the owner.
  • Resilience: Even if the rent-by-the-room programs were to scale back, the property still commands strong market rents. This provides a built-in safety net, ensuring that the investment remains profitable under standard rental agreements. A duplex still fetches around $1,900-$2,100 in market rents in key areas, providing a solid 8% return before considering appreciation.

Tackling a Major Hurdle: Insurance Costs Demystified

One of the most talked-about concerns in Florida real estate is insurance. Many assume it’s prohibitively expensive, driving investors away. However, this is another area where the perception is often misaligned with reality, especially for new construction.

In my interactions with industry professionals, a common point of confusion exists. For new, well-built properties, insurance has arguably never been cheaper relative to rental income. While the absolute dollar amount might seem higher than in other states, when you compare it to the rental income and the robust building codes in Florida, the cost-effectiveness becomes clear.

  • Replacement Cost Estimates: Builders who focus on investor product often have precise replacement cost estimates for their properties. This data is crucial for negotiating with insurance companies. In Florida, the cost of rebuilding has actually decreased on average over the past year due to efficiency and builder expertise.
  • Reduced Premiums for New Construction: Properties built to current Florida building codes, including impact windows and enhanced roofing, are often rewarded with lower insurance premiums. This is a stark contrast to older properties that may require costly retrofitting or face higher risk assessments.
  • Avoiding Flood Zones: A critical strategy is to focus on properties outside of flood zones. Flood insurance can be a significant expense, and by selecting higher ground or working with builders who navigate the process of getting properties out of flood zones, investors can avoid this cost entirely.

The Financial Opportunity: Rates, Returns, and Long-Term Wealth

The current financial climate presents a compelling case for Florida real estate. We're seeing lenders offering attractive rates, with 30-year fixed DSCR loans available in the mid-6% range. When combined with the strong rental income potential, both through traditional leases and innovative rent-by-the-room models, the returns are highly attractive.

  • Attractive Interest Rates: Access to 30-year fixed-rate financing at competitive rates significantly enhances cash flow and predictability for investors.
  • High ROI Potential: The rent-by-the-room strategy, in particular, can yield annual returns in the 13-14% range, a figure that is hard to match in other markets or asset classes, especially with the added benefit of new construction. Even traditional leases on quality new builds offer robust returns, often in the 8% range, which is a strong performance in today's market.
  • Long-Term Appreciation: Beyond immediate cash flow, Florida’s consistent population growth and economic development trajectory suggest strong potential for long-term property appreciation. This is not about quick flips; it's about building generational wealth.

Comparing Florida to Other Markets:

I’ve looked at markets across the country, including Texas. While Texas also has strong growth, its high property taxes (often around 2% annually) can significantly eat into rental income, making it difficult to achieve the same level of cash-on-cash return that Florida offers, particularly when comparing a new duplex in Florida to a similar property in Texas. Florida’s lack of state income tax, coupled with more manageable property taxes (especially when spread across higher rental income), creates a far more lucrative environment for long-term buy-and-hold investors.

Why This Opportunity is Being Missed

The reason this Florida real estate opportunity is overlooked in 2025 boils down to a few key factors:

  1. Outdated Information: Media cycles are fast, but the real estate market’s recovery and evolution can outpace headlines. Those still focused on past downturns are missing the current reality.
  2. Fear of Florida’s Risks: Concerns about hurricanes or past builder issues deter some. However, focusing on new construction built to withstand these risks, and working with reputable, vertically integrated firms, mitigates these concerns significantly.
  3. Complacency or Lack of Due Diligence: Many investors stick to what they know or fail to perform the deep due diligence required to identify the quality opportunities within a seemingly complex market.

My Personal Take and Call to Action

As someone who has invested in real estate for years, and who believes in creating assets that stand the test of time, I find the current Florida market incredibly compelling. The combination of strong fundamentals, a correction that has made prices more accessible, and innovative approaches to maximizing rental income through quality new construction creates a powerful synergy.

This isn’t about chasing a trend; it’s about understanding the fundamental drivers of a market and capitalizing on them during opportune moments. The people who built their wealth in real estate often did so by being contrarian, by buying when others were fearful, and by focusing on long-term value. That’s precisely what Southwest Florida offers right now.

If you’re looking to build real, sustainable wealth through real estate, 2025 is the year to seriously consider Florida. Don’t let outdated information or fear hold you back from an opportunity that is largely being missed. Connect with reputable teams that understand the market, focus on quality new construction, and can guide you through the process. This is how you position yourself for success in the long run.

Florida Real Estate: Hidden Opportunities in 2025

As headlines warn of market crashes, savvy investors see what others don't—Florida’s fundamentals remain strong, especially in the new construction and build-to-rent sectors.

While others react to outdated fears, Norada clients are leveraging today’s soft pricing, surging rental demand, and demographic momentum to build long-term equity in Florida’s most promising metro areas.

DON'T LET OLD NEWS COST YOU NEW GAINS

Contact our investment counselors (No Obligation):

(800) 611-3060

Start Building Wealth in Florida

Read More:

Mortgage Rates Today July 21, 2025: Purchase Rates Stable, Refinance Rates Rise

by

As of today, July 21, 2025, mortgage rates show a slight decrease or stability in most categories, with the national average 30-year fixed mortgage rate holding steady at 6.87%, down just 0.01% from the previous week. However, refinance rates have inched up somewhat, with the 30-year fixed refinance rate climbing slightly to 7.17%, up 0.04% from last week. These figures indicate a market where purchase mortgage rates are steady or slightly improving, but refinancing has grown a bit more costly recently.

Mortgage Rates Today July 21, 2025: Purchase Rates Stable, Refinance Rates Rise

Key Takeaways

  • 30-Year Fixed Mortgage Rate: Stable at 6.87%, minor decrease from last week.
  • 15-Year Fixed Mortgage Rate: Stable around 5.90%.
  • 5-Year ARM Mortgage Rate: Slight decrease to 7.76%.
  • 30-Year Fixed Refinance Rate: Increased to 7.17%.
  • 15-Year Fixed Refinance Rate: Increased to 5.98%.
  • Market Outlook: Experts predict mortgage rates may slightly drop in late 2025 and 2026.
  • Loan Types: Government-backed loans typically offer lower rates than conforming loans.
  • Rates Impact: Slight increases in refinance rates may affect homeowners looking to tap equity.

Overview of Current Mortgage Rates

Mortgage rates are a critical factor for homebuyers and those looking to refinance. Today’s mortgage environment reflects some stability in purchase mortgage rates but a mild rise in refinance costs.

Loan Type Rate (July 21, 2025) Weekly Change APR APR Change
30-Year Fixed (Conforming) 6.87% Down 0.01% 7.32% Down 0.02%
20-Year Fixed (Conforming) 6.87% Up 0.16% 7.36% Up 0.33%
15-Year Fixed (Conforming) 5.90% Down 0.03% 6.19% Down 0.03%
10-Year Fixed (Conforming) 6.03% No change 6.12% No change
7-Year ARM (Conforming) 7.96% Up 0.38% 8.36% Up 0.39%
5-Year ARM (Conforming) 7.76% Down 0.07% 8.10% Down 0.02%

Source: Zillow (July 21, 2025)

Government-backed loans, such as FHA and VA loans, generally offer slightly lower interest rates.

Government Loan Type Rate (July 21, 2025) Weekly Change APR APR Change
FHA 30-Year Fixed 6.58% Down 0.69% 7.63% Down 0.68%
VA 30-Year Fixed 6.32% Down 0.05% 6.54% Down 0.04%
FHA 15-Year Fixed 5.44% Down 0.02% 6.46% Down 0.01%
VA 15-Year Fixed 5.81% Down 0.08% 6.17% Down 0.07%

Understanding Why Government Loan Rates Tend to Be Lower Than Conforming Loans

Government loans such as FHA and VA loans generally have lower rates because:

  • They are insured or guaranteed by the government, which reduces lender risk.
  • They often target first-time homebuyers or veterans, groups that may have less access to traditional credit.
  • They come with limits on loan amounts and borrower criteria which affect risk profiles.

This lower risk to lenders translates to more favorable interest rates for borrowers.

Current Refinance Rates Overview

Refinancing allows homeowners to replace their existing mortgage with a new one, often to benefit from lower rates or tap into home equity. Recent trends show a modest increase in refinance rates:

Refinance Loan Type Rate (July 21, 2025) Weekly Change
30-Year Fixed Refinance 7.17% Up 0.04%
15-Year Fixed Refinance 5.98% Up 0.05%
5-Year ARM Refinance 7.91% Up 0.02%

This rise is noteworthy because refinancing costs more even as purchase mortgage rates are steady or slightly lower. Homeowners will need to weigh these differences carefully.

Example: Impact of Mortgage Rate Changes on Monthly Payments

Let’s consider a $350,000 loan for a home purchase with a 30-year fixed mortgage:

  • At today's rate of 6.87%, the monthly principal and interest payment is roughly $2,306.
  • If rates drop to the predicted 6.4% later this year, monthly payments could decrease to about $2,197, saving $109 per month.
  • Conversely, if refinancing rates climb to 7.17%, the monthly payment on the same amount would be around $2,371, costing $65 more than the current purchase mortgage rate.

Long-Term Mortgage Rate Predictions and Market Insights

Several industry experts and organizations have put forward forecasts based on economic data, inflation trends, and housing market conditions.

  • National Association of Realtors (NAR): Chief Economist Lawrence Yun forecasts mortgage rates to average 6.4% in the second half of 2025 and fall to 6.1% in 2026. This optimistic forecast is tied to expectations of increased home sales and supply improvements.
  • Fannie Mae: Predicts rates will top out near 6.5% in 2025 and decrease slightly to 6.1% in 2026, paralleling GDP growth projections.
  • Mortgage Bankers Association (MBA): Expects mortgage rates to stay in the mid-6% range through 2025, ending near 6.7%, and stabilizing around 6.3% in 2026.
  • Morgan Stanley: Suggests that mortgage rates might drop with Treasury yields if the U.S. GDP slows down, offering potential improvement in affordability, especially if rates fall closer to 6.25%.

The consensus is that while rates have stabilized somewhat, the potential for moderate declines exists, benefiting homebuyers in the near future.

How Mortgage Rates Affect the Housing Market

Mortgage rates influence buying power and market dynamics profoundly:

  • Higher rates tend to reduce affordability, slowing home sales.
  • Rate declines can stimulate demand, boosting sales and construction.
  • Continued stable or slightly dropping rates may encourage more buyers off the sidelines compared to last year when buyers waited for rate drops.
  • Refinance rate increases may limit homeowners' appetite to tap home equity or reduce monthly payments.

These dynamics interact with broader economic factors like inflation, wage growth, and housing supply to shape the market landscape.

Conforming vs. Government Loans: APR Differences

In addition to interest rates, APR (annual percentage rate) includes fees and points, offering a fuller picture of borrowing cost.

Loan Type Interest Rate Typical APR Difference Reason
Conforming 30-Year Fixed ~6.87% ~+0.40% More fees, broader lender risk
FHA 30-Year Fixed ~6.58% ~+1.00% Upfront mortgage insurance
VA 30-Year Fixed ~6.32% ~+0.22% Funding fees vary by case

Note: FHA loans often have lower interest rates but higher APR due to mortgage insurance costs.

Refinancing Trends and Why Refinance Rates May Rise While Purchase Rates Stay Steady

Refinancing involves different risks and market factors than purchase mortgages:

  • Lenders price refinance loans higher due to increased risk of borrower default.
  • Homeowners refinancing today may have older mortgages with lower locked-in rates, reducing their incentive to refinance unless rates drop significantly.
  • Market liquidity and mortgage-backed securities demand affect refinance rate pricing.
  • Inflation and Fed policy changes impact borrowing costs differently over time.

Final Thoughts on Mortgage Rates Today

The mortgage market as of July 21, 2025, presents a mixed picture: purchase mortgage rates show slight improvements or stability, while refinance rates have edged upward. The data suggest a market still influenced by economic variables but moving toward a phase of rate moderation.

Those monitoring mortgage and refinance rates today will want to stay informed of economic indicators, Federal Reserve signals, and housing inventory trends, as these will continue shaping mortgage rate movements going forward.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

How Much Did Housing Prices Drop in 2008?

by

If you were around in 2008, you probably remember the sheer panic in the air. The financial world seemed to be teetering on the brink, and housing prices took a major hit. The definitive answer is that, on average, housing prices in the U.S. fell by about 15-20% in 2008, according to major indices like the S&P/Case-Shiller. However, this is just an average, and the true impact varied wildly depending on where you lived.

I remember watching the news reports back then, seeing foreclosure signs popping up everywhere, and feeling a sense of unease about the future. The real estate market, once a seemingly unstoppable force, was suddenly in freefall. But let's dig deeper into the numbers and understand what really happened in 2008.

How Much Did Housing Prices Drop in 2008?

Before we dive into specific numbers, it's important to understand why housing prices plummeted. It wasn't just bad luck; it was a confluence of factors that created a perfect storm:

  • Subprime Mortgages: Banks were handing out mortgages like candy, even to people who couldn't really afford them. These “subprime” mortgages often had low initial rates that would later balloon, leaving borrowers unable to pay.
  • Mortgage-Backed Securities: These mortgages were bundled together and sold to investors as seemingly safe investments. But when homeowners started defaulting, these securities became toxic.
  • Lack of Regulation: Regulators weren't paying close enough attention to the risks being taken by banks and other financial institutions.
  • Overbuilding: In many areas, there was simply too much housing supply, leading to a glut on the market.
  • Fear and Panic: As the crisis unfolded, fear gripped the market. People stopped buying homes, and those who had them started selling, further driving down prices.

The Numbers Don't Lie: A Look at the Data

So, how much did housing prices actually drop? Let's look at some key data points from different sources:

  • National Association of Realtors (NAR):
    • Reported a 9.5% drop in the median existing-home price for the entire year of 2008, landing at $197,100, compared to $217,900 in 2007.
    • The fourth quarter of 2008 saw a record 12.4% decline compared to the same period in 2007.
  • S&P/Case-Shiller Home Price Indices:
    • Showed an 18.2% decline in home prices in 20 major metropolitan areas in November 2008 compared to November 2007.
    • The entire year of 2008 saw a 15.3% drop compared to 2007.
  • Nationwide Building Society (UK):
    • House prices in the UK fell by 15.9% in 2008.
  • Investopedia:
    • Estimates an average 10% drop across developed countries, with some countries experiencing far steeper declines.
  • Statistics Canada:
    • New house prices fell by 3.1% year-over-year nationally in August 2009, following a peak in September 2008.

Here's a table summarizing the data for easier comparison:

Source Measure Drop in 2008
National Association of Realtors (NAR) Median Existing-Home Price (Full Year) 9.5%
National Association of Realtors (NAR) Median Existing-Home Price (Q4 2008) 12.4%
S&P/Case-Shiller Home Price Indices Home Prices (20 Major Metro Areas, Nov) 18.2%
S&P/Case-Shiller Home Price Indices Home Prices (Full Year) 15.3%
Nationwide Building Society (UK) House Prices (Full Year) 15.9%
Investopedia Average Across Developed Countries 10%
Statistics Canada New House Prices (Aug 2009 from Sept 2008 Peak) 3.1% (Canada)

As you can see, the numbers vary depending on the source and the way they calculate the data. The Case-Shiller Index, which focuses on major metropolitan areas, shows a more dramatic decline than the NAR data, which covers the entire U.S.

Beyond the Averages: Regional Differences Mattered

One of the most important things to understand about the housing market crash of 2008 is that it wasn't uniform. Some areas were hit much harder than others. States like Nevada, Florida, Arizona, and California, which had experienced massive housing bubbles, saw some of the steepest declines.

I remember reading stories about entire neighborhoods in Las Vegas and Phoenix being filled with foreclosed homes. Prices in those areas plummeted, leaving many homeowners underwater – meaning they owed more on their mortgages than their homes were worth.

Other areas, particularly those with more stable economies and less speculative building, fared relatively better. For example, some markets in the Northeast and Midwest saw smaller price declines or even modest gains during certain periods.

Even within a single state, there could be huge differences. Coastal areas, where land was scarce and demand was high, often held up better than inland areas with more available land.

The key takeaway is that you can't just look at national averages. You need to consider the specific local market to understand the true impact of the housing crisis.

The Ripple Effect: Consequences of the Crash

The housing price drop in 2008 wasn't just a financial statistic; it had profound consequences for individuals, families, and the entire economy:

  • Foreclosures: Millions of homeowners lost their homes to foreclosure, leading to displacement, financial hardship, and emotional distress. I personally knew people who lost their homes and had to start over.
  • Underwater Mortgages: Many homeowners found themselves owing more on their mortgages than their homes were worth, making it difficult to sell or refinance.
  • Economic Recession: The housing crisis triggered a broader economic recession, with job losses, business failures, and a decline in consumer spending. The domino effect was devastating.
  • Bank Failures: Some banks and financial institutions that were heavily invested in mortgage-backed securities went bankrupt or required government bailouts. Lehman Brothers' collapse was a watershed moment.
  • Stricter Lending Standards: In the wake of the crisis, lenders tightened their lending standards, making it harder for people to get mortgages, even those with good credit.

Lessons Learned (and Hopefully Not Forgotten)

The housing crisis of 2008 was a painful lesson in the dangers of unregulated financial markets, excessive risk-taking, and unsustainable housing bubbles. While there have been some reforms since then, it's important to remember the lessons of 2008 to prevent a similar crisis from happening again.

For me, the biggest takeaway is the importance of financial literacy and responsible borrowing. It's crucial to understand the terms of your mortgage and to only borrow what you can truly afford. It's also important to be aware of the risks involved in investing in real estate and to diversify your investments.

The housing market has recovered significantly since 2008, but the scars of the crisis remain. By understanding what happened and learning from our mistakes, we can hopefully build a more stable and sustainable housing market for the future.

Blog Posts

Contact

Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
BBB