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5 Least Affordable Housing Markets for Buyers to Buy a House in 2025

June 30, 2025 by Marco Santarelli

5 Least Affordable Cities Which Require Over 60% of Your Income to Buy a House in 2025

Finding an affordable place to live can feel like a Herculean task these days. With home prices stubbornly high, especially when viewed in comparison to incomes, the dream of homeownership is becoming increasingly elusive for many. Based on a recent report from Realtor.com, the 5 least affordable housing markets in 2025, where the typical home costs an overwhelming portion of the median household income, are Los Angeles, San Diego, San Jose, New York and Boston.

I felt compelled to dive deeper into this issue, providing you with more insights in a way that's easier to grasp. So, let’s explore why these markets are so expensive and what factors contribute to this growing affordability crisis.

5 Least Affordable Housing Markets for Buyers to Buy a House in 2025

Let's take a detailed look at the five markets where the squeeze is the most intense. The data is based on Realtor.com's May 2025 report, which considered median home prices, mortgage rates (6.82%), a 20% down payment, and estimated taxes and insurance.

1. Los Angeles-Long Beach-Anaheim, CA

  • Median List Price: $1,195,000
  • Annual Mortgage Payment + Tax & Ins.: $95,496
  • 2025 Median Household Income: $91,380
  • Share of Income Required: 104.5%

Los Angeles takes the top spot as the least affordable market, with a staggering 104.5% of the median household income needed to cover housing costs. That means the typical homeowner in LA is spending more than they make on their home and the expense is greater than the income! The housing crisis in LA is driven by a severe supply shortage, high demand, and a strong economy that attracts high-income earners.

In fact, owning versus renting is almost parity due to this high expense, with 51% of homes rented and 49% owned.

2. San Diego-Chula Vista-Carlsbad, CA

  • Median List Price: $995,000
  • Annual Mortgage Payment + Tax & Ins.: $79,513
  • 2025 Median Household Income: $103,066
  • Share of Income Required: 77.1%

San Diego's idyllic climate and strong job market make it a desirable place to live. As a result, housing costs are astronomical. Nearly 77.1% of the median household income is required to afford a median-priced home. The home prices are almost 10X of the median income.

3. San Jose-Sunnyvale-Santa Clara, CA

  • Median List Price: $1,419,500
  • Annual Mortgage Payment + Tax & Ins.: $113,436
  • 2025 Median Household Income: $156,664
  • Share of Income Required: 72.4%

Despite having the highest median household income among the 50 largest U.S. metros, San Jose residents face immense housing affordability challenges. With world-class technology jobs, that drive up the cost of homes, the median list price is nearly $1.5M! Approximately $113k would be the yearly expense to afford the typical home that consumes 72.4% of the median income.

4. New York-Newark-Jersey City, NY-NJ

  • Median List Price: $795,000
  • Annual Mortgage Payment + Tax & Ins.: $63,531
  • 2025 Median Household Income: $94,960
  • Share of Income Required: 66.9%

New York City remains a global hub, but its high cost of living (particularly housing) is a major burden for many residents. The market is very competitive! Nearly $64k would be the yearly expense to afford the typical home that consumes 66.9% of the median income. That's almost 4/5 of their income!

5. Boston-Cambridge-Newton, MA-NH

  • Median List Price: $879,000
  • Annual Mortgage Payment + Tax & Ins.: $70,243
  • 2025 Median Household Income: $109,295
  • Share of Income Required: 64.3%

Boston is another expensive market due to having robust industry for healthcare and for education. These industries drive high earnings and demand. Nearly $70k would be the yearly expense to afford the typical home that consumes 64.3% of the median income.

Understanding the 30% Affordability Rule (And Why It's Often a Myth)

The traditional benchmark for housing affordability is the 30% rule: the idea that you shouldn't spend more than 30% of your pre-tax income on housing costs (including mortgage payments, property taxes, and insurance). This rule is based on the premise that it leaves enough money for other essential expenses like food, transportation, and healthcare, as well as saving for the future.

However, in many major U.S. cities, sticking to the 30% rule has become virtually impossible for the average household. This affordability crunch doesn't just affect lower-income families; it increasingly squeezes the middle class, delaying homeownership and making it harder to build wealth.

The Dire State of Home Affordability in 2025

As of May 2025, a shocking 47 out of the 50 largest U.S. metros require households to spend more than 30% of their income on housing to afford the median-priced home. This underscores a systemic problem: home prices have risen far faster than wages, creating a significant affordability gap.

Nationally, the typical home priced at $440,000 would require 44.6% of the median household income to afford. This paints a grim picture for prospective homebuyers across the nation.

Why Are These Markets So Expensive?

Several factors contribute to the extreme unaffordability of these markets:

  • Limited Housing Supply: Restrictive zoning regulations, geographical constraints (e.g., being surrounded by water or mountains), and lengthy permitting processes can limit the construction of new homes, exacerbating supply shortages.
  • High Demand: Strong local economies, desirable lifestyles, and proximity to job centers attract large numbers of people, driving up demand for housing.
  • High Land Costs: The scarcity of land in desirable locations pushes up property values, making it more expensive to build and buy homes.
  • Rising Construction Costs: The cost of labor, materials, and regulatory compliance can make new construction more expensive, further limiting the supply of affordable options.
  • Mortgage Rates: When mortgages are cheaper, homes get more expensive because they can be afforded by the masses, and vice-versa.

The Ripple Effect of Unaffordable Housing

The unaffordability crisis has far-reaching consequences:

  • Delayed Homeownership: Young adults and families are forced to delay buying homes, putting off important life milestones like starting families.
  • Increased Renting: More people are stuck renting for longer periods, which can make it harder to save for a down payment on a home.
  • Longer Commutes: People may be forced to move further away from job centers to find affordable housing, resulting in longer and more expensive commutes.
  • Economic Inequality: The growing gap between home prices and wages exacerbates income inequality, making it harder for lower- and middle-income families to build wealth.
  • Brain Drain: Some talented individuals and businesses may choose to relocate to more affordable regions, potentially stifling economic growth in the expensive markets.

What Can Be Done? Potential Solutions

Addressing the housing affordability crisis requires a multi-faceted approach:

  • Increase Housing Supply: Streamlining zoning regulations, incentivizing the construction of affordable housing, and encouraging density can help increase the supply of homes.
  • Reduce Construction Costs: Streamlining permitting processes, cutting red tape, and exploring innovative building technologies can help lower construction costs.
  • Promote Mixed-Income Housing: Encouraging the development of mixed-income communities can help prevent the concentration of poverty and promote economic diversity.
  • Increase Wages: Policies that support wage growth, such as raising the minimum wage and strengthening unions, can help make housing more affordable relative to income.
  • Offer Financial Assistance: Providing down payment assistance, tax credits, and other forms of financial support can help first-time homebuyers overcome the affordability barrier.

Potential Positive Impact

Fortunately, there are a couple of levers that authorities could move to make home ownership more feasible. This includes rapid wage growth, lowering mortgage rates, increasing supply and new construction. Each of these levers, including increased supply, will make housing prices more reasonable.

Concluding Thoughts

The reality is harsh: housing affordability is a growing crisis in many major U.S. metros. Although home prices stay high and incomes do not rise congruently, the dream of owning a home will sadly become an unachievable aspiration for many families. By understanding the underlying causes and implementing effective solutions, we can work towards a future where housing is more accessible and affordable for everyone.

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Filed Under: Real Estate Investing, Real Estate Market Tagged With: Housing Affordability, Housing Crisis, Housing Market

Housing Market Boom Predictions for 2025 and 2026 by NAR

June 29, 2025 by Marco Santarelli

Housing Market Boom Predictions for 2025 and 2026 by NAR

Are you keeping a close eye on the housing market? The National Association of Realtors (NAR) recently shared their forecast, and it looks like they're predicting a 3% growth in national median home prices in 2025. In short, while the market has seen some ups and downs lately, experts at NAR believe home prices will see a modest increase next year.

Housing Market Boom Predictions for 2025 and 2026 by NAR

Now, I know what you might be thinking. We've seen some pretty wild swings in the housing market over the past few years. Interest rates have gone up, and for a bit, it felt like things might really cool down. But according to NAR Chief Economist Lawrence Yun, a “nuclear crash” in home prices isn't on the horizon. Speaking at a recent Realtors Legislative Meetings event, Yun pointed to a few key reasons why he expects this moderate growth.

Why the Optimism? Digging Deeper into the NAR Forecast

It's never enough to just hear a number, right? We want to know the “why” behind it. Yun's forecast for this 3% median home price increase in 2025 isn't pulled out of thin air. It's based on a combination of factors that he anticipates will shape the market in the coming year. Let's break down some of the key elements of his prediction:

  • Anticipated Rebound in Home Sales: Despite a slower start to 2025 than initially expected, Yun believes that both existing-home sales and new-home sales will pick up steam. His forecast suggests a 6% increase in existing-home sales and a significant 10% jump in new-home sales compared to 2024. This increase in activity can naturally put some upward pressure on prices.
  • Easing Mortgage Rates: This is a big one. For many potential homebuyers, mortgage rates are the make-or-break factor. Yun is predicting that mortgage rates will ease to around 6.4% by the end of 2025. This slight decrease from the higher rates we've seen could make buying a home more affordable for some, drawing more buyers into the market. As someone who remembers the impact of fluctuating interest rates firsthand, even a small dip can make a real difference in monthly payments.
  • Continued Job Growth: A healthy economy often translates to a healthy housing market. NAR's forecast also includes an expectation of 1.6 million new jobs being added to the economy in 2025. More people with jobs generally means more people with the financial stability to consider buying a home.
  • Low Levels of Distressed Sales: One of the biggest fears after a housing downturn is a flood of foreclosures driving down prices. However, Yun highlights that serious mortgage delinquencies remain low. This suggests that most homeowners are in a good position to continue paying their mortgages, reducing the likelihood of a large number of distressed properties hitting the market and significantly impacting prices negatively.

The Missing Piece: The Mortgage Rate Puzzle

As Yun himself pointed out, “The mortgage rate is the magic bullet, and we are just waiting and waiting as to when that could come down.” This really resonates with me. We've seen that even though other economic factors might be in place, higher mortgage rates can act as a significant barrier for potential buyers. The pace and extent to which these rates actually decrease will be crucial in determining if NAR's sales forecast, and consequently the price growth, materializes.

Inventory Still a Key Factor

While the NAR forecast focuses on price growth, it's impossible to ignore the ongoing issue of housing inventory. Realtor.com Chief Economist Danielle Hale, speaking at the same event, highlighted that the nation faces a housing shortage of nearly 4 million homes. In my opinion, this persistent undersupply is a fundamental factor supporting price stability and even modest growth in many markets. If there aren't enough homes to meet demand, prices are less likely to plummet.

Hale also brought up an interesting point about newly built homes often having slightly lower interest rates due to builder incentives. This is something potential buyers should definitely keep in mind. Sometimes exploring new construction can offer a bit of an edge when it comes to financing.

My Two Cents: A Cautiously Optimistic Outlook

Based on the NAR data and my own observations of the market, a 3% price growth in 2025 seems like a reasonable and cautiously optimistic prediction. The anticipated easing of mortgage rates and continued job growth are definitely positive indicators. However, the actual trajectory of mortgage rates remains the biggest uncertainty. If rates stay stubbornly high, the predicted rebound in sales might not be as strong, which could temper price growth.

Furthermore, the housing market is hyper-local. What's happening nationally might not perfectly reflect what's going on in your specific city or town. Local economic conditions, inventory levels, and buyer demand will all play a significant role in determining price movements at the local level.

What Does This Mean for You?

  • For Potential Buyers: Don't panic about a sudden price surge, but also don't necessarily expect significant price drops. Keep a close eye on mortgage rate trends. If rates do start to come down, it could be a good time to jump into the market, but be prepared for potential increased competition. Explore all your options, including new constructions that might offer rate incentives. And as Danielle Hale wisely advised, shop around for a mortgage – it can really save you money in the long run.
  • For Current Homeowners: A modest price increase is generally good news for your home equity. However, remember that real estate is a long-term investment. Don't make rash decisions based on short-term forecasts.
  • For Sellers: If you're planning to sell in 2025, the forecast suggests a potentially more active market with modest price growth. However, it's still crucial to price your home competitively based on local market conditions.

Final Thoughts

Predicting the future of the housing market is never an exact science. There are so many interconnected factors at play. However, the latest forecast from the National Association of Realtors provides a valuable insight into what the experts are expecting. While a 3% price growth in 2025 might not be earth-shattering, it suggests a degree of stability and continued moderate appreciation in the housing market. As always, staying informed about your local market and understanding the broader economic trends will be key to making informed decisions.

Plan Ahead with 2025-2026 Housing Market Insights

The housing market is shifting—some regions are cooling while others remain resilient. Stay ahead of national trends by focusing on stable investment areas with long-term growth potential.

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Also Read:

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Filed Under: Housing Market, Real Estate Market Tagged With: home prices, Housing Market, Housing Market Forecast, housing market predictions

Today’s Mortgage Rates: 5-Year ARM Jumps to 7.59% on June 29, 2025

June 29, 2025 by Marco Santarelli

Today's 5-Year Adjustable Rate Mortgage Drops from 7.56% to 7.54% - June 28, 2025

Buying a home is a huge decision! When interest rates start moving, especially on adjustable-rate mortgages (ARMs), it can feel like navigating a maze. So, let's cut to the chase: According to Zillow, as of June 29, 2025, the average national rate for a 5-Year Adjustable Rate Mortgage has increased from 7.54% to 7.59%.

Today's Mortgage Rates: 5-Year ARM Jumps to 7.59% on June 29, 2025

Mortgage rates are constantly changing. It feels like you need a crystal ball to predict where they're headed next! These fluctuations are based on various economic factors, including inflation, the Federal Reserve's monetary policy, and overall market sentiment. It is important to keep an eye out for the changes so as to reap the benefits.

What's Happening with Mortgage Rates on June 29, 2025?

Let's take a look at the mortgage rates from Zillow as of today.

Loan Program Rate 1 Week Change APR 1 Week Change
Conforming Loans
30-Year Fixed Rate 6.76% Down 0.16% 7.19% Down 0.18%
20-Year Fixed Rate 6.32% Down 0.26% 6.67% Down 0.29%
15-Year Fixed Rate 5.75% Down 0.21% 6.04% Down 0.22%
10-Year Fixed Rate 5.78% Down 0.15% 6.04% Down 0.03%
7-Year ARM 7.29% Down 0.15% 7.80% Down 0.01%
5-Year ARM 7.59% Up 0.39% 7.96% Up 0.17%
3-Year ARM — 0.00% — 0.00%
Government Loans
30-Year Fixed Rate FHA 7.25% Down 0.07% 8.30% Down 0.06%
30-Year Fixed Rate VA 6.26% Down 0.15% 6.44% Down 0.16%
15-Year Fixed Rate FHA 5.58% Down 0.01% 6.55% Down 0.02%
15-Year Fixed Rate VA 5.73% Down 0.19% 6.02% Down 0.22%
Jumbo Loans
30-Year Fixed Rate Jumbo 7.09% Down 0.18% 7.50% Down 0.17%
15-Year Fixed Rate Jumbo 6.46% Down 0.14% 6.71% Down 0.14%
7-Year ARM Jumbo 7.42% Down 0.10% 8.00% Down 0.06%
5-Year ARM Jumbo 7.55% Down 0.17% 7.94% Down 0.15%
3-Year ARM Jumbo — 0.00% — 0.00%

Key Takeaways from Today's Mortgage Rate Update:

  • 30-Year Fixed Mortgage Rates: The most popular 30-year fixed mortgage rate saw a slight increase of 1 basis point, climbing to 6.76%. This is still lower than the previous week’s average of 6.91%.
  • 15-Year Fixed Mortgage Rates: The 15-year fixed mortgage rate remained stable at 5.75%.
  • 5-Year ARM: This is the focus! The rate increased by 5 basis points, moving from 7.54% to 7.59%.

Diving Deeper: What is an Adjustable-Rate Mortgage (ARM)?

An ARM is a type of mortgage where the interest rate is fixed for an initial period, then adjusts periodically based on a benchmark index. The 5-year ARM has a fixed rate for the first five years. After that, the rate can change, typically annually, based on the market's performance, usually tied to indexes like the Secured Overnight Financing Rate, SOFR.

Why Are ARMs Attractive?

  • Lower Initial Interest Rates: ARMs often start with lower interest rates than fixed-rate mortgages. This can result in lower monthly payments during the initial fixed-rate period.
  • Ideal for Short-Term Homeownership: If you plan to move or refinance within the first five years, an ARM can be a smart choice. Since you're in the fixed-rate period, you benefit from the lower rate without worrying about adjustments.
  • Potential Savings: If interest rates stay low or decrease after the fixed-rate period, you could save money over the life of the loan.

The Risks of ARMs

  • Interest Rate Risk: The biggest risk is that interest rates could rise after the fixed-rate period. This would increase your monthly payments, potentially straining your budget.
  • Payment Shock: If rates rise significantly, you could face a “payment shock” when your mortgage payment jumps substantially.
  • Complexity: ARMs can be more complex than fixed-rate mortgages, making it harder to understand the terms and conditions.

Why Did the 5-Year ARM Rate Go Up?

Several factors could contribute to this increase:

  • Economic Conditions: Positive economic data such as strong employment numbers or rising consumer confidence can indicate inflationary pressures, causing interest rates to rise.
  • Federal Reserve Policy: The Federal Reserve's decisions on interest rates greatly influence mortgage rates. Any signals of tightening monetary policy usually lead to higher mortgage rates.
  • Market Sentiment: Investor confidence and expectations about future economic conditions play a role. If investors anticipate higher inflation, they may demand higher yields on mortgage-backed securities, pushing mortgage rates up.

Recommended Read:

5-Year Adjustable Rate Mortgage Update for June 28, 2025?

Fixed vs. Adjustable Rate Mortgage in 2025: Which is Best for You

My Take: Weighing the Pros and Cons

I've seen many people benefit from ARMs over the years, but it's essential to be realistic about your financial situation and risk tolerance. A 5-year ARM can be a good option if the initial rate is substantially lower than a comparable fixed-rate mortgage and if you don't plan to stay in the home for more than five years.

However, I always advise people to consider the worst-case scenario. Can you afford higher monthly payments if interest rates go up significantly? Do you have a plan to refinance or sell the home before the rate adjusts? If you're unsure or uncomfortable with these risks, a fixed-rate mortgage might be a better choice.

Fixed vs. Adjustable: Choosing What's Right for You

Here is a comparison between Fixed Rate Mortgages and ARM

Feature Fixed-Rate Mortgage Adjustable-Rate Mortgage (ARM)
Interest Rate Remains constant throughout the loan term. Fixed for an initial period, then adjusts periodically.
Payment Stability Predictable, consistent monthly payments. Payments can change after the initial fixed-rate period.
Risk Level Lower risk due to stable payments. Higher risk due to potential rate increases.
Ideal For Long-term homeowners who value stability and predictability. Short-term homeowners or those expecting income growth.
Initial Rate Can be higher than ARM's initial rate. Often starts with a lower rate compared to fixed-rate mortgages.
Complexity Simpler to understand. More complex due to variable interest rates.

Other Mortgage Rate Trends

While the 5-year ARM saw an increase, it's worth noting that most other mortgage rates experienced slight decreases over the past week:

  • 30-Year Fixed Rate: Decreased to 6.76%.
  • 15-Year Fixed Rate: Remained steady at 5.75%.

This mixed bag of movements underscores the complexity of the current mortgage market.

The Bottom Line:

The slight increase in the 5-year ARM rate on June 29, 2025, is a snapshot of the ever-changing mortgage market. Stay informed, consider your personal circumstances, and seek expert advice to make smart choices whether you already have a mortgage or are looking to have one. Although the economy may feel like a game of chess, with careful planning and research you can strategically checkmate the perfect deal for you.

Capitalize on ARM Rates Before They Rise Even Higher

With fluctuating adjustable-rate mortgages (ARMs), savvy investors are exploring flexible financing options to maximize returns.

Norada offers a curated selection of ready-to-rent properties in top markets, helping you capitalize on current mortgage trends and build long-term wealth.

HOT NEW LISTINGS JUST ADDED!

Connect with an investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Adjustable Rate Mortgage, Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates

Will AI Take Your Job: Fed Chair Jerome Powell’s Cautious Warning

June 29, 2025 by Marco Santarelli

Will AI Take Your Job: Fed Chair Jerome Powell's Cautious Warning

Is artificial intelligence (AI) poised to steal our jobs? That's the burning question on many minds, and Federal Reserve Chair Jerome Powell has weighed in. While the full impact remains uncertain, Powell warns that AI will make “significant changes” to the economy and labor market, potentially displacing jobs before creating new opportunities. So, it's not a simple yes or no, but rather a complex shift we need to understand and prepare for.

The rise of AI isn't just some sci-fi fantasy anymore; it's rapidly becoming a reality across various industries. We're seeing AI tools automating tasks once done by humans, from writing articles to analyzing data. But what does this mean for our future work prospects? Are we all destined to be replaced by robots? Let's dive into what Powell said and what others in the industry are observing.

Will AI Take Your Job: Fed Chair Jerome Powell's Cautious Warning

Powell's Cautious Warning: AI is Coming, But When and How?

During a recent testimony before the Senate Banking Committee, Fed Chair Jerome Powell acknowledged AI's potential to reshape the workforce. He noted that while the impact to date is “probably not great,” significant changes are on the horizon.

Here's a breakdown of Powell's key points:

  • Limited Current Impact: Powell stated that AI's effects on the job market haven't been substantial yet.
  • Potential for Job Displacement: He cautioned that in the initial stages, AI could “replace a lot of jobs, rather than just augmenting people's labor.” This means we might see some industries experience job losses before new AI-related positions emerge.
  • Uncertain Timeline and Consequences: Powell emphasized that the timing and magnitude of AI's impact remain uncertain. It's hard to predict exactly when we'll see these changes and what they'll look like.
  • Long-Term Optimism: Despite the potential for job displacement, Powell expressed optimism about AI's long-term potential to enhance productivity and create greater employment opportunities. He thinks, just like many people, that AI will create new opportunities down the road.

Powell's remarks were sparked by concerns raised by lawmakers about AI's potential to eliminate jobs. Senator Lisa Blunt Rochester cited Anthropic CEO Dario Amodei's prediction that AI could wipe out up to 50% of entry-level white-collar jobs within five years, potentially leading to a 10-20% increase in unemployment. That's a scary thought, but as Powell pointed out, it's still an “open question” how big AI's impact will be and how fast it will happen.

Beyond Powell: Industry Leaders Echo Concerns and Highlight Real-World Impacts

It's not just Powell sounding the alarm. Other industry leaders are seeing the effects of AI firsthand. Here's what some of them are saying:

  • Dario Amodei (Anthropic CEO): As mentioned earlier, Amodei believes AI could disrupt up to 20% of the broader labor force, significantly impacting entry-level roles.
  • Marc Benioff (Salesforce CEO): Benioff revealed that AI is already performing 30 to 50% of the work at Salesforce, leading to expectations of ongoing workforce reductions and productivity gains in areas like engineering, coding, and support.
  • BT (UK Telecommunications Company): BT plans to cut its workforce by 42% (approximately 55,000 jobs) by 2030, with AI potentially enabling even greater reductions. This shows companies are seriously considering AI as a means to cut costs and increase efficiency.

Real World Examples of AI Impact

Source Insight
Jerome Powell (Fed Chair) AI's current impact is limited but could cause significant job market changes.
Recent Study AI is not yet replacing jobs or depressing wages significantly.
BT (UK Telecom) Plans to cut 42% of workforce (55,000 jobs) by 2030, with AI enabling more cuts.
Anthropic CEO Dario Amodei AI could eliminate 50% of entry-level white-collar jobs in 5 years.
Salesforce CEO Marc Benioff AI handles 30-50% of Salesforce's work, leading to workforce reductions.

These examples highlight that we're not just talking about hypothetical scenarios. AI is already impacting the job market in tangible ways. Companies are using AI to automate tasks, reduce their workforce, and increase productivity.

What Can the Fed Do? The Limits of Monetary Policy

While the Federal Reserve plays a crucial role in the economy, Powell admitted that the Fed has limited tools to address the challenges posed by AI-driven labor market disruptions. He stated that the Fed's primary tool – interest rates – is not designed to tackle the complexities of technological change.

The Fed's main focus is on maintaining stable prices and maximum employment. But if AI causes widespread job displacement, it could be difficult for the Fed to achieve its employment goals. This underscores how AI brings in complex elements, such as unemployment.

This means that other solutions are needed. Powell suggests that broader policy interventions involving Congress, industry leaders, and labor experts are necessary to help workers adapt to AI and ensure a smooth transition.

So AI will take my job?

Well, I can't say it certainly won't. However, I think this situation needs to be viewed as an opportunity. Here's a balanced view.

The Pessimistic View

  • Job Loss: Automation through AI can lead to significant job losses, particularly in roles involving repetitive tasks. This could mean displacement for workers in sectors like manufacturing, data entry, and even customer service.
  • Skills Gap: The skills required in the future workforce will likely be heavily tech-focused, potentially leaving many workers with outdated skills behind. Those who aren't tech-savvy may find themselves at a disadvantage.
  • Wage Stagnation: Increased automation and a surplus of available workers could lead to lower wages, especially for those in lower-skilled positions. Companies could have more leverage to pay less as demand for labor decreases.

The Optimistic View

  • New Job Creation: AI is expected to create new types of jobs, particularly in fields like AI development, data science, and AI maintenance. The demand for professionals who can build, manage, and troubleshoot AI systems is likely to grow.
  • Increased Productivity: AI can assist workers, making them more productive and efficient. This could lead to economic growth and higher overall living standards.
  • Better Work Conditions: Automation can take over mundane and dangerous tasks, freeing up workers for more creative and fulfilling work. Workers can focus on strategy, innovation, and customer relations, improving job satisfaction.
  • Enhanced Innovation: AI can analyze vast amounts of data to uncover new insights and drive innovation across various industries. This could lead to breakthroughs in healthcare, transportation, and other fields, creating more opportunities.

Policy Considerations: Adapting to the AI Revolution

As AI continues to evolve, policymakers are starting to think about the right strategies to adapt.

  • Upskilling and Reskilling: Investing in upskilling and reskilling programs to help workers acquire the skills needed for AI-related jobs is critical. This could involve government-funded training programs, partnerships with educational institutions, and industry-led initiatives.
  • Four-Day Workweek: Some lawmakers are exploring the possibility of a four-day workweek to address potential job displacement and promote work-life balance.
  • Regulatory Frameworks: Developing regulatory frameworks to ensure that AI is used ethically and responsibly is also important. This could involve regulations around data privacy, algorithmic transparency, and bias detection.
  • Social Safety Net: Strengthening social safety nets, such as unemployment benefits and job placement services, can help workers transition between jobs and provide support during periods of unemployment.

My Take on the Situation

Well, I believe that AI is going to have a profound impact on the job market. While there are definitely reasons to be concerned about job displacement, I also see a lot of potential for AI to enhance our lives and create new opportunities.

I believe that AI will initially have a more disruptive effect in the short term, particularly for routine-based, automatable tasks. However, in the long run, once the technology becomes more widespread and roles have been redefined, AI has the potential to create new jobs by increasing overall organizational productivity and efficiency.

The key is to be proactive. We need to invest in education and training to ensure that workers have the skills they need to thrive in the AI-driven economy. We also need to create policies that support workers during this transition and ensure that the benefits of AI are shared broadly.

Ultimately, the future of work in the age of AI depends on how we choose to shape it. By working together, we can ensure that AI enhances rather than undermines the workforce.

Future-Proof Your Wealth—Even Amid AI Disruption

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Filed Under: Economy Tagged With: Artificial Intelligence, Economic Crisis, Economy, Jobs

Interest Rate Predictions for the Next 2 Years Ending 2027

June 29, 2025 by Marco Santarelli

Interest Rate Predictions for the Next 2 Years

Are you wondering where interest rates are heading? You're not alone! The Federal Reserve's (the Fed's) interest rate decisions affect everything from your mortgage payments to the growth of your investments. So, what's the scoop for the next two years? Expert predictions suggest a gradual decrease in interest rates.

As of June 2025, the federal funds rate sits at 4.25%-4.50%. Experts at the Federal Reserve and major financial institutions anticipate rates moving downward, although the pace and extent of these cuts remain uncertain, driven by factors like inflation, economic growth, and global events. Let's dive deep into what's influencing these predictions and what they mean for you.

Interest Rate Predictions for the Next 2 Years Ending 2027

Before we get into the nitty-gritty, let's remember why paying attention to interest rates is so important. Think of them as the price of borrowing money.

  • For You: They affect how much you pay for mortgages, car loans, credit cards, and how much you earn on your savings. Lower rates mean cheaper loans but smaller returns on your savings.
  • For Businesses: They influence how much it costs companies to borrow money to invest and expand.
  • For the Economy: They help control inflation (rising prices) and support economic growth.

Basically, they are a big deal for all.

June 2025: Where Interest Rates Stand Right Now

As I write this in June 2025, the Federal Reserve (the Fed, for short) has kept the federal funds rate steady at a range of 4.25% to 4.50%. This federal funds rate is the benchmark interest rate for the US economy. It's what banks charge each other for overnight lending. It affects things like mortgages, credit cards, and savings accounts. The Fed put a hold on hiking interest rates after raising it many times in the recent past to try to curb inflation.

The Fed’s trying to balance controlling inflation, while making sure the economy keeps growing. It's a tough balancing act! The Fed's aiming for 2% inflation over the long term, and it's watching the data like a hawk before making any more moves.

Decoding the Fed's Crystal Ball: The SEP Projections

To get a sense of where the central bankers think rates are headed, you look at the Fed's Summary of Economic Projections (SEP). This report, updated every few months, gives us clues on what the Fed thinks will happen with interest rates, inflation, the economy, and jobs. I like to think of it as the Fed's way of saying, “Here's what we think will happen if we do what we think we should do.” It’s not a guarantee, but it's the best insight we've got.

Interest Rate Projections (according to the Summary of Economic Projections):

Here’s what the Fed's Summary of Economic Projections says it expects:

Year Median Projection Central Tendency Range Implication
2025 3.9% 3.9%–4.4% 3.6%–4.4% Two 0.25% cuts from current levels (4.25%–4.50%)
2026 3.4% 3.1%–3.9% 2.9%–4.1% One additional 0.25% cut
2027 3.1% 2.9%–3.6% 2.6%–3.9% Another 0.25% cut

In plain English, the Fed thinks it will be able to cut rates slowly over the next few years as inflation cools down and the economy stays steady.

Inflation Forecasts:

Since controlling inflation is job number one for the Fed, let's look at what they think will happen with prices. The Fed focuses on something called PCE inflation, which is a way of measuring how much prices are changing.

PCE Inflation:

Year Median Central Tendency Range
2025 2.7% 2.6%–2.9% 2.5%–3.4%
2026 2.2% 2.1%–2.3% 2.0%–3.1%
2027 2.0% 2.0%–2.1% 1.9%–2.8%

Core PCE Inflation:

Year Median Central Tendency Range
2025 2.8% 2.7%–3.0% 2.5%–3.5%
2026 2.2% 2.1%–2.4% 2.1%–3.2%
2027 2.0% 2.0%–2.1% 2.0%–2.9%

These forecasts paint a picture of inflation gradually falling back to the Fed's 2% target by 2027. It is predicted they will begin cutting rates as inflationary pressures ease

Economic Growth and Unemployment:

The Fed is looking at these factors:

Real GDP Growth:

Year Median Central Tendency Range
2025 1.7% 1.5%–1.9% 1.0%–2.4%
2026 1.8% 1.6%–1.9% 0.6%–2.5%
2027 1.8% 1.6%–2.0% 0.6%–2.5%

Unemployment Rate:

Year Median Central Tendency Range
2025 4.4% 4.3%–4.4% 4.1%–4.6%
2026 4.3% 4.2%–4.5% 4.1%–4.7%
2027 4.3% 4.1%–4.4% 3.9%–4.7%

It looks pretty stable. The Fed sees the economy growing a bit each year, and they think the job market will stay pretty tight.

What the Big Banks Are Saying

Graph Showing Interest Rate Predictions for the Next 2 Years

The Fed projections are only one piece of the puzzle. It’s always good to check out what other big players in the financial world are thinking. Here's a snapshot of interest rate predictions from some major institutions:

Institution 2025 Prediction 2026 Prediction 2027 Prediction
Federal Reserve 3.9% 3.4% 3.1%
BlackRock ~4% – –
Goldman Sachs 3.5%–3.75% – –
Morningstar 3.5%–3.75% – 2.25%–2.5%
Fannie Mae (30-yr) 6.3%–6.8% (mortgage) – –
Mortgage Bankers Association 6.8% (early) (mortgage) 6.4% –

A few things stand out to me here:

  • The Consensus: Most experts agree that interest rates will come down over the next two years, but they have a difference on how fast and how far.
  • The Cautious View: BlackRock seems a bit more reserved. They mention things like possible trade wars and other global issues, which could make the Fed think twice about slashing rates too quickly.
  • The Optimists: Morningstar is a bit more bullish, thinking rates could fall more dramatically if inflation cools off faster than most people expect.

Mortgage Rate Predictions:

If you're keeping an eye on mortgage rates:

  • Fannie Mae sees the 30-year fixed rate starting at 6.8% in early 2025 and then dropping to 6.3% later in the year.
  • The Mortgage Bankers Association predicts a drop from 6.8% to 6.4% throughout 2026.

What Could Throw a Wrench in the Works? The Global and Policy Wildcards

Making interest rate predictions is more than just crunching numbers. You need to think about the bigger picture like global events and government policies. Here are a few things that could shake things up:

  • Global Economic Conditions: What's happening in Europe, China, and other parts of the world matters too. If other countries are struggling, it could pull down the U.S. economy.
  • Trade and Tariffs: If the government starts slapping tariffs on goods from other countries, prices could go up!
  • Fiscal Policy: Tax cuts or big government spending could fire up the economy. If the economy grows too quickly, inflation could come roaring back.
  • Geopolitical Events: Wars, political instability, or unexpected crises can send shock waves through the economy, making it harder for the Fed to predict what's going to happen.

What It All Means for You: Consumers and Investors

So, how do these interest rate predictions impact your wallet?

For Consumers:

  • Borrowing Costs: Lower rates mean you'll pay less for mortgages, car loans, and anything else you borrow money for. This could make it easier to buy a home or a new car.
  • Savings Returns: The downside? You'll probably earn less on your savings accounts and CDs.

For Investors:

  • Bonds: When rates fall, bond prices tend to rise. So, if you already own bonds, you could see some gains. But remember, new bonds will pay lower interest rates.
  • Stocks: Lower rates can be good for stocks because they make it cheaper for companies to borrow money and grow. But if the Fed is cutting rates because the economy is faltering, that could temper the optimism.
  • Real Estate: Lower mortgage rates could fire up the housing market, potentially pushing home prices up.

Here’s a quick cheat sheet:

Financial Decision Impact of Lower Rates (2025-2027)
Buying a Home Cheaper mortgages, increased affordability
Savings Accounts Lower returns, reduced interest earnings
Stock Investments Potential gains, but risks remain
Bond Investments Higher prices for existing bonds, lower new yields

The Bottom Line and My Two Cents

The interest rate predictions for 2025-2027 point to a gradual easing, but the road ahead is anything but smooth. The Fed, along with financial institutions, anticipates rates declining from the current 4.25%–4.50% range to around 3.1% by 2027. I believe this path is reasonable because inflation is very hot now. But the Fed might cut more or less.

As I watch this situation of rate cuts unfold, there is a risk of some external factors blowing it all off course.

So, what should you do? Stay informed, be realistic, and remember that nobody has a crystal ball.

Recommended Read:

  • Fed Projects Two Interest Rate Cuts Later in 2025
  • Federal Reserve Holds Interest Rates Steady in June 2025
  • When is Fed's Next Meeting on Interest Rate Decision in 2025?
  • Fed Indicates No Rush to Cut Interest Rates as Policy Shifts Loom in 2025
  • Fed's Powell Hints of Slow Interest Rate Cuts Amid Stubborn Inflation
  • Fed Funds Rate Forecast 2025-2026: What to Expect?
  • Interest Rate Predictions for 2025 and 2026 by NAR Chief
  • Market Reactions: How Investors Should Prepare for Interest Rate Cut
  • Interest Rate Predictions for the Next 3 Years
  • Impact of Interest Rate Cut on Mortgages, Car Loans, and Your Wallet
  • Interest Rate Predictions for Next 10 Years: Long-Term Outlook
  • When is the Next Fed Meeting on Interest Rates?
  • Interest Rate Cuts: Citi vs. JP Morgan – Who is Right on Predictions?
  • More Predictions Point Towards Higher for Longer Interest Rates

Filed Under: Economy, Financing Tagged With: Fed, Interest Rate, Interest Rate Predictions, mortgage

Fed Projects Two Interest Rate Cuts Later in 2025

June 29, 2025 by Marco Santarelli

Fed Projects Two Interest Rate Cuts Later in 2025

Today's news from the Federal Reserve (also known as the Fed) might sound a little complicated, but let's break it down. On June 18, 2025, the Fed did not cut interest rates. They left them where they were, in the range of 4.25% to 4.5%. However, the central bank's updated forecast, or their projections, is the real headline-grabber. They're expecting to cut rates twice by the end of 2025. This means that while things seem status quo right now, the Fed is hinting strongly that relief for consumers and businesses is on the horizon.

As someone who's been following economic trends for quite some time now, I can tell you that this is a delicate balancing act. The Fed wants to keep inflation under control while also encouraging economic growth. This is always a tightrope walk, and these projections show they're trying to find the right balance.

Fed Projects Two Interest Rate Cuts Later in 2025

A Steady Hand Today, A Cautious Hope for Tomorrow

The decision to hold rates steady wasn't exactly a surprise. It's the fourth meeting in a row they've kept things the same, following a series of cuts in late 2024 that knocked rates down by 1%. The Fed is all about following the data, and this time, it's telling them to hold steady. The big news, though, is what they think will happen later. They're estimating the benchmark rate could drop to about 3.75%–4% by the end of 2025, which pencils out to two quarter-point cuts.

Now, it's not like everyone on the Fed board is singing the same tune. Here's a quick look at how the Fed's policymakers are leaning:

  • 7 officials: Think there won't be any cuts in 2025.
  • 2 officials: Expect only one cut.
  • 8 officials: Are looking for two cuts.
  • 2 officials: Envision three cuts.

As you can see, there's some disagreement. This shows the complexity of the situation and how the Fed is trying to gauge the future. The majority are playing it safe, signaling they'll ease up gradually in 2025.

What's Driving These Projections? The Economic Outlook

The Fed's forecasts give us some clues as to why they're leaning towards rate cuts. Here’s a brief rundown:

  • Core PCE Inflation: The Fed thinks this will hit 3.1% by the end of 2025 (up from 2.8% in March) before cooling to 2.4% in 2026. This means inflation is still a worry.
  • GDP Growth: They're forecasting 1.4% growth for 2025, slightly lower than their previous prediction of 1.7%. The economy might be slowing down a bit.
  • Unemployment Rate: The Fed projects that it will rise to 4.5% by the end of 2025, from the current 4.2%. This suggests that the labor market might cool off.

These numbers paint a picture. The Fed sees inflation sticking around for a while, which means holding rates steady now. However, with slower growth and a slight uptick in unemployment, they think they can afford to lower rates later without letting inflation get out of control.

Why the Wait? Unpacking the Fed's Reasoning

Why the delay in cutting rates? Several factors are influencing the Fed's patience:

  1. Persistent Inflation: There are ongoing price pressures. Tariffs, especially from measures such as the ones implemented by President Trump on goods from China, drive up the cost of things like electronics. Although the Fed expects this to peak over the summer, additional pressure is possible as a tariff pause expires.
  2. Geopolitical Tensions: The ongoing tensions in the Middle East, and the war between Russia and Ukraine, continue to impact commodities markets, especially oil. They push up prices and complicate the situation regarding inflation regulation.
  3. Balanced Labor Market: According to Fed Chair Jerome Powell, the labor market generally is stable. It isn’t particularly adding to inflation at the moment, which reduces the urgent need to lower rates.

Essentially, the Fed is trying to be proactive. By projecting cuts for later in 2025, they acknowledge that the underlying inflationary pressures are likely to ease, allowing them to shift to a more accommodating stance without triggering a fresh wave of inflation.

When Might the Cuts Actually Happen?

The Fed didn't give specific dates, but markets are offering some predictions. Experts believe a cut is unlikely at the late-July meeting, with a better chance at the September meeting, around September 17. A second cut could arrive in November or December.

The fact that the Fed is being so cautious is crucial. They’re showing they want to be sure before making any major moves.

Two Cuts: What It Means for You

The expectation of two interest rate cuts is a big deal for people like you and me. Here's what it could mean:

  • Borrowers: High borrowing costs mean more pain for now. Credit cards might still have APRs around 20%, new car loans about 7.3%, and 30-year mortgages around 6.91%. If cuts happen, these figures may drop by 0.5% or more.
  • Savers: High-yield savings accounts are still looking good. If you’re getting over 4% on your savings, it’ll stay attractive for a while.
  • Businesses: If businesses are dealing with high loan costs and uncertainty over tariffs, they might hold off on investing. Lower rates could be just what they need.

In other words, if you are currently struggling with costs, two anticipated cuts mean you can be hopeful.

Market Reactions and Broader Context

The markets' reaction to the Fed's combined message of “no cut now, two later” was more or less neutral. Stocks saw some interesting changes: the S&P 500 increased, while the Dow dipped slightly, and so did the Nasdaq.

The broader context includes factors like the potential impact of the tariff policies and political pressures on the Fed. The Middle East situation is also an important factor that can potentially upset energy markets.

Looking Ahead

The Federal Reserve's projections give us a cautious sense of hope after today's decision. The focus remains on keeping inflation under control while keeping an eye on risks. As the Fed navigates these challenges, keep in mind that any real shift will probably occur later in 2025.

So, what's my take? As someone in the business of keeping tabs on the market, I think the Fed is doing what it needs to do. They're signaling that they're aware of the challenges facing both consumers and businesses. It’s a balancing act, but the potential for two rate cuts later this year shows they're thinking long-term. It’s a matter of being patient until we see the economy improving.

Position Your Portfolio Ahead of the Fed’s Next Move

The Federal Reserve’s next rate decision could shape real estate returns through the rest of 2025. Whether or not a rate cut happens tomorrow, smart investors are acting now.

Norada Real Estate helps you secure cash-flowing properties in stable markets—shielding your investments from volatility and interest rate swings.

HOT NEW LISTINGS JUST ADDED!

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Recommended Read:

  • Federal Reserve Holds Interest Rates Steady on June 18, 2025
  • What are the Odds of a Fed Rate Cut Today, June 18, 2025?
  • Interest Rate Predictions for the Next 3 Years: 2025, 2026, 2027
  • When is Fed's Next Meeting on Interest Rate Decision in 2025?
  • Interest Rate Predictions for the Next 10 Years: 2025-2035
  • Will the Bond Market Panic Keep Interest Rates High in 2025?
  • Interest Rate Predictions for 2025 by JP Morgan Strategists
  • Interest Rate Predictions for Next 2 Years: Expert Forecast
  • Fed Holds Interest Rates But Lowers Economic Forecast for 2025
  • Fed Indicates No Rush to Cut Interest Rates as Policy Shifts Loom in 2025
  • Fed Funds Rate Forecast 2025-2026: What to Expect?
  • Interest Rate Predictions for 2025 and 2026 by NAR Chief
  • Market Reactions: How Investors Should Prepare for Interest Rate Cut
  • Impact of Interest Rate Cut on Mortgages, Car Loans, and Your Wallet

Filed Under: Economy, Financing Tagged With: Economy, Fed, Fed Rate Cut, Federal Reserve, inflation, Interest Rate

Mortgage Rates Predictions for Next 90 Days: July-Sept 2025

June 29, 2025 by Marco Santarelli

Mortgage Rates Predictions for Next 90 Days: July-Sept 2025

Are you thinking about buying a house or refinancing your mortgage? I know how important it is to keep a close eye on mortgage rates. Getting a good rate can save you a lot of money in the long run! So, what's the likely story for the next three months?

Based on current data and expert forecasts, I predict mortgage rates will likely stay in a fairly stable range between 6.5% and 6.8% for a 30-year fixed loan over the next 90 days (July to September 2025). There might be a slight dip, but don't expect any major changes. Let’s dive deeper into what’s driving these predictions and what it means for you.

Mortgage Rates Predictions for Next 90 Days: July-Sept 2025

Where Mortgage Rates Stand Right Now

As we head into the summer of 2025, things are pretty interesting. If you look at the data from June 2025, the average 30-year fixed mortgage rate is bouncing around 6.8% to 7%. Sources like Freddie Mac reported a rate of 6.81% around mid-June. We saw some ups and downs earlier in the year, but lately, things have calmed down a bit.

The 15-year fixed mortgage rate is usually lower, and it's hovering around 6.0% to 6.2%. This one's also seen similar back-and-forth movements but seems to have found a stable level.

Now, a key thing to watch is the 10-year Treasury yield. It's a benchmark that strongly influences mortgage rates. As of late June 2025, it’s at 4.38%. Generally, mortgage rates are about 1.5 to 2 percentage points higher than this yield. The difference between Treasury yields and mortgage rates has widened a bit because of some uncertainties in the market.

Mortgage Rate Forecast: July, August, and September 2025

I've looked at several different forecasts from reliable sources to give you a good overview. Here's what they're saying about mortgage rates for the next 90 days:

30-Year Fixed Mortgage Rate Estimates

  • Long Forecast: This source expects a slight decrease each month.
    • July 2025: Average of 6.84%
    • August 2025: Average of 6.79%
    • September 2025: Average of 6.74%
  • Mortgage Bankers Association (MBA): Predicts an average of 6.7% for the third quarter of 2025.
  • Fannie Mae: Foresees a rate of 6.8% early in 2025, dropping down to 6.1% by the end. That’s a pretty gradual decline.
  • National Association of Home Builders (NAHB): They're looking at an annual average of 6.7% for 2025 and expecting things to stay steady through the summer.
  • National Association of Realtors (NAR): They’re a bit more optimistic, forecasting an annual average of 6.4% for 2025.
  • Realtor.com: Similar to NAR, they anticipate rates falling to 6.2% by the year's end, with an average of 6.3%.
  • Wells Fargo: They believe rates will stay consistent through the summer but might dip slightly by the end of the year, landing around 6.5%.

15-Year Fixed Mortgage Rate Estimates

  • Long Forecast:
    • July 2025: Average of 6.01%
    • August 2025: Average of 5.90%
    • September 2025: Average of 5.88%

Here's a quick summary in a table for easy reference:

Month 30-Year Fixed Rate (Average) 15-Year Fixed Rate (Average) Source
July 2025 6.84% 6.01% Long Forecast
August 2025 6.79% 5.90% Long Forecast
September 2025 6.74% 5.88% Long Forecast
Q3 2025 6.7% Not specified Mortgage Bankers Association

So, to sum it up, the predictions suggest that 30-year fixed mortgage rates will probably hang around 6.5% to 6.8%. The 15-year fixed rates should be a bit lower, around 5.88% to 6.01%. These forecasts line up with the current 10-year Treasury yield of 4.38%.

Related Topics:

Will Mortgage Rates Go Down After No Cut by Fed in June 2025?

What's Causing These Mortgage Rate Projections?

A bunch of things play a role in where mortgage rates are headed. Let's take a look:

  1. The Federal Reserve's Actions: The Federal Reserve has held its federal funds rate steady at 4.25%-4.5% for a while. This indicates they're being cautious, watching inflation closely. Although some anticipate potential rate cuts later in the year, the Fed's decision to hold steady suggests mortgage rates won't dramatically decrease in the near future.
  2. Inflation: Inflation has cooled a bit, but it's still a concern. The Fed wants to get it down to 2%, so any unexpected inflation spikes could prevent them from cutting rates and keep mortgage rates high.
  3. Economic Growth: Although the US economy is pretty tough, with a good job market, there are signs of it slowing down. Slower growth might eventually lead to lower interest rates, but for now, we're in a balancing act.
  4. Global Events: Things happening around the world, like geopolitical tensions or changes in trade policies, can affect oil prices and inflation, which in turn impact mortgage rates.
  5. Treasury Yields: The 10-year Treasury yield is a major influence. If it changes significantly, it could directly impact mortgage rates.

What Should You Do If You're Buying a Home or Refinancing?

For Homebuyers:

Given the expected stability in mortgage rates, waiting for big drops might not be the best plan in the next three months. If you find a good rate, it might be worth locking it in. This protects you in case rates unexpectedly go up. Don’t forget to shop around with different lenders to find the best deal. Even small differences in rates can lead to significant savings over the life of the loan. I've seen people save thousands of dollars simply by doing a bit of comparison shopping.

For Homeowners Considering Refinancing:

Think about whether the current rates (6.5% to 6.8%) would save you a significant amount compared to your current mortgage rate. If your current rate is quite a bit higher, refinancing could be a good idea. Just remember to factor in closing costs and how long you plan on staying in the home. There are some great mortgage calculators online that can help you figure out potential savings. Also, keep an eye on what the Federal Reserve announces, and stay updated on economic indicators like inflation.

My Two Cents

Honestly, I believe the key here is patience and careful planning. If you're a potential homebuyer, don’t get too caught up waiting for the “perfect” rate, because chasing that elusive goal can sometimes lead to missed opportunities. And if you're a homeowner considering refinancing, crunch the numbers and see if it makes sense for your specific financial situation.

It also might be good to consult a trusted Mortgage broker. They can help you navigate the complexities of the mortgage market and find the best options for your unique circumstances.

Final Thoughts: In short, mortgage rates are expected to stay relatively consistent between July and September 2025. But remember, things can change, so staying informed is crucial.

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 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Today

Mortgage Rates Today June 29, 2025: Rates Dip Slightly But Remain Elevated

June 29, 2025 by Marco Santarelli

Mortgage Rates Today June 29, 2025: Rates Dip Slightly But Remain Elevated

Are you curious about the prevailing mortgage rates today? As of June 29, 2025, the national average for a 30-year fixed mortgage is holding steady at 6.75%, according to Zillow. While there's a slight decrease in mortgage rates from last week, rates remain relatively high. Here's a breakdown of everything you need to know.

Mortgage Rates Today, June 29, 2025: Rates Dip Slightly But Remain Elevated

Key Takeaways:

  • 30-Year Fixed Mortgage Rate: Averaging 6.75%, a decrease of 0.16 percentage points from last week.
  • Refinance Rates: 30-Year Fixed Refinance Rates also dipped, going down to 6.99%.
  • 15-Year Fixed Mortgage Rate: Holding at 5.75%.
  • 5-Year ARM: Increased slightly to 7.58%.

It's important to keep a close eye on the current mortgage rates as you make your financial decisions, whether you're buying a home or refinancing.

Mortgage Rates on June 29, 2025: A Closer Look

As of today, June 29, 2025, mortgage rates show a slight downward trend compared to last week. The average 30-year fixed mortgage rate is 6.75%. This is a decrease of 16 basis points (0.16%) from the previous week's average of 6.91%.

The 15-year fixed mortgage rate remains steady at 5.75%. Meanwhile, the 5-year Adjustable-Rate Mortgage (ARM) saw a slight increase, going up 4 basis points to 7.58%. It will be interesting to see any mortgage rate predictions for the rest of the year. I think a lot of people are hoping for rates to go down.

Here's a summary of the current national average mortgage rates according to Zillow:

  • 30-Year Fixed: 6.75%
  • 15-Year Fixed: 5.75%
  • 5-Year ARM: 7.58%

Current Mortgage Rates by Loan Type

To provide a more detailed picture, here's a table comparing current mortgage rates for various loan types. This data is updated daily, so you can stay informed about week-over-week changes.

Conforming Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.75% down 0.17% 7.20% down 0.17%
20-Year Fixed Rate 6.32% down 0.26% 6.67% down 0.29%
15-Year Fixed Rate 5.75% down 0.22% 6.04% down 0.22%
10-Year Fixed Rate 5.78% down 0.15% 6.04% down 0.03%
7-year ARM 7.29% down 0.15% 7.80% down 0.01%
5-year ARM 7.58% up 0.38% 7.97% up 0.18%
3-year ARM – 0.00% – 0.00%

Government Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 6.96% down 0.37% 7.99% down 0.37%
30-Year Fixed Rate VA 6.23% down 0.17% 6.45% down 0.16%
15-Year Fixed Rate FHA 5.50% down 0.09% 6.46% down 0.10%
15-Year Fixed Rate VA 5.64% down 0.28% 5.99% down 0.25%

Understanding APR

You'll notice both mortgage rates and APR (Annual Percentage Rate) are listed. The APR is more than just the interest rate; it includes other costs like lender fees, points, and other charges. The APR gives you a better overall picture of the cost of the loan. I think paying close attention to that number is important!

Current Refinance Rates on June 29, 2025: Is Now a Good Time to Refinance?

If you're considering refinancing your home, it's crucial to stay informed about current refinance rates. As of June 29, 2025, the national average 30-year fixed refinance rate is 6.99%, a decrease of 6 basis points from 7.05% on Sunday.

The 30-year fixed refinance rate is down 17 basis points from the previous week's average of 7.16%. The 15-year fixed refinance rate decreased slightly, going from 5.84% to 5.83%. However, the 5-year ARM refinance rate increased by 8 basis points, from 7.74% to 7.82%.

Here's a table comparing refinance mortgage rates for different loan types, including week-over-week changes.

Conforming Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.75% down 0.17% 7.20% down 0.17%
20-Year Fixed Rate 6.32% down 0.26% 6.67% down 0.29%
15-Year Fixed Rate 5.75% down 0.22% 6.04% down 0.22%
10-Year Fixed Rate 5.78% down 0.15% 6.04% down 0.03%
7-year ARM 7.29% down 0.15% 7.80% down 0.01%
5-year ARM 7.58% up 0.38% 7.97% up 0.18%
3-year ARM – 0.00% – 0.00%


Related Topics:

Mortgage Rates Trends as of June 28, 2025

Mortgage Rate Predictions for the Next 3 Years: 2026, 2027, 2028

Mortgage Rates Predictions for Next 90 Days: July-Sept 2025

Do Mortgage Rates Go Down During an Economic Recession?

Is Refinancing Right for You?

Refinancing can be a smart move if you can lower your interest rate, shorten your loan term, or switch from an adjustable-rate mortgage to a fixed-rate mortgage. However, it's important to consider closing costs and other fees. Always do the math to see if the long-term savings outweigh the upfront expenses. Everyone's situation is different.

Why Are Mortgage Rates So High in 2025?

Even though we're seeing slight decreases this week, many people are wondering, “Why are today's mortgage rates so stubbornly high in 2025?” It's a complex question with several factors at play. Here are a few key reasons:

  • Lingering Inflation and Federal Reserve Caution: Inflation continues to be a concern, and the Federal Reserve is being very careful about cutting interest rates too quickly. They don't want to risk inflation spiking again! This cautious approach means we're likely in a “higher-for-longer” interest rate environment. Higher interest rates translate to higher mortgage rates.
  • Bond Market Dynamics: Mortgage rates are closely tied to the yields on 10-year Treasury bonds. When those yields go up, so do mortgage rates.
  • Economic and Political Factors: Global events, like geopolitical tensions, and uncertainty around economic policies can also influence mortgage rates. Investors may demand higher returns on bonds due to economic uncertainty, which can push rates higher.
  • Housing Market Headwinds: Many homeowners are “locked in” to low mortgage rates from previous years, making them reluctant to sell. This reduces the available housing inventory, which can keep prices high. High prices and high mortgage interest rates create affordability challenges for many potential buyers.

Will Mortgage Rates Drop in 2025?

  • No Ultra-Low Rates Reappearing: Those super-low rates we saw during the pandemic? Don't expect them to come back. We're talking about the historical rates like 2% to 3%, so it's unlikely to happen anytime soon.
  • “Higher-for-Longer” is the Name of the Game: Experts are saying we're in a “higher-for-longer” interest rate situation. This means rates will probably stay higher for a while.
  • Expect Gradual Drops: The Federal Reserve (the Fed) might make some cuts to interest rates, but these will likely happen slowly.
  • Mortgage Rates Follow the Fed's Lead: Mortgage Rates tend to mirror the Federal Reserve's actions, so if the Fed cuts its benchmark rate, mortgage rates are likely to follow suit. That's just how it goes.
  • Bond Market Matters: Mortgage rates are also heavily influenced by the yield on 10-year Treasury bonds. Currently, those bonds are showing a slight upward trend, which can impact mortgage rates.

In a nutshell, there's a chance mortgage rates could go down a bit in 2025, but it's not a sure thing. Whether they drop and how much they drop depends on what happens with the economy, the Fed's decisions, and what's going on around the world. It's a waiting game!

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 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Today

Today’s 5-Year Adjustable Rate Mortgage Drops from 7.56% to 7.54% – June 28, 2025

June 28, 2025 by Marco Santarelli

Today's 5-Year Adjustable Rate Mortgage Drops from 7.56% to 7.54% - June 28, 2025

Are you thinking about buying a home or refinancing your mortgage? Keeping an eye on mortgage rates is crucial! As of today, June 28, 2025, the national average 5-year Adjustable Rate Mortgage (ARM) has seen a slight decrease, settling at 7.54%. This article will dive into the details of today's mortgage rates, particularly focusing on the significance of this dip in the 5-year ARM, and what it could mean for you.

Today's 5-Year Adjustable Rate Mortgage Drops – June 28, 2025

Mortgage Rate Snapshot:

Let's take a look at where different mortgage rates stand today, according to Zillow's latest update:

  • 30-Year Fixed Mortgage Rate: 6.75%
  • 15-Year Fixed Mortgage Rate: 5.75%
  • 5-Year ARM Mortgage Rate: 7.54%

While the 30-year and 15-year fixed rates remain relatively stable, the slight drop in the 5-year ARM is something to pay attention to. It's a small change, down 2 basis points but in the world of mortgages, every little bit counts! Now, let's explore the bigger picture and dive deeper into ARMs.

Understanding Adjustable Rate Mortgages (ARMs)

Before we get too far ahead, let's quickly review what an Adjustable Rate Mortgage (ARM) actually is. Unlike fixed-rate mortgages, where your interest rate stays the same for the life of the loan, ARMs have an interest rate that can change periodically.

The 5-year ARM is the most common and usually works like this: you get a set interest rate for the initial 5-year period. After those five years are up, the interest rate adjusts, typically once a year, based on a specific index (like the Secured Overnight Financing Rate (SOFR)) plus a margin.

Why the Drop in the 5-Year ARM Matters

While a decrease of 2 basis points might seem insignificant, it can still be meaningful for potential homebuyers.

  • Potentially Lower Initial Payments: A lower rate, even slightly lower, can translate to smaller monthly mortgage payments during the initial 5-year period. This can free up cash flow for other expenses or investments.
  • Opportunity for Refinancing: Some people take out an ARM hoping that rates will drop in the future, allowing them to refinance into a more stable, long-term fixed-rate mortgage. While it's impossible to predict the future, a lower initial rate gives you some breathing room to wait for the right refinancing opportunity.

However, it's crucial to remember that ARMs come with risk. If interest rates rise after the initial fixed-rate period, your monthly payments could increase significantly.

Who Should Consider a 5-Year ARM?

ARMs aren't for everyone. They are most suitable for borrowers who:

  • Plan to Move Soon: If you only plan to stay in the home for a few years before moving, an ARM can be a good option. You'll benefit from the lower initial rate without being exposed to the risk of long-term rate adjustments.
  • Expect Their Income to Increase: If you anticipate a significant increase in income in the future, you might be comfortable taking on the risk of potentially higher mortgage payments down the road.
  • Are Comfortable with Market Fluctuations: If you understand how interest rates work and are comfortable with the possibility of your mortgage payment changing, an ARM might be a reasonable choice.
  • Looking for Lower Interest Rates: When compared to the 30 year fixed interest rate, the interest rate offered by a 5-year ARM is comparatively lower.

It's also very important to remember that if you consider an ARM, you must be disciplined and watch rates very closely so that if the rates start to creep upward, you have ample time to refinance.

A Deeper Dive into Today's Mortgage Rate Trends

Beyond the 5-year ARM, let's examine the broader mortgage rate trends as of June 28, 2025:

Conforming Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.75% down 0.17% 7.20% down 0.17%
20-Year Fixed Rate 6.37% down 0.21% 6.81% down 0.14%
15-Year Fixed Rate 5.75% down 0.22% 6.05% down 0.22%
10-Year Fixed Rate 5.78% down 0.15% 6.04% down 0.03%
7-year ARM 7.29% down 0.15% 7.80% down 0.01%
5-year ARM 7.54% up 0.33% 7.97% up 0.17%
3-year ARM — 0.00% — 0.00%

Government Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 7.04% down 0.28% 8.07% down 0.29%
30-Year Fixed Rate VA 6.26% down 0.15% 6.47% down 0.13%
15-Year Fixed Rate FHA 5.91% up 0.32% 6.88% up 0.31%
15-Year Fixed Rate VA 5.74% down 0.18% 6.09% down 0.16%

Jumbo Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate Jumbo 7.13% down 0.14% 7.50% down 0.18%
15-Year Fixed Rate Jumbo 6.60% 0.00% 6.83% down 0.02%
7-year ARM Jumbo 7.42% down 0.10% 8.00% down 0.06%
5-year ARM Jumbo 7.33% down 0.39% 7.85% down 0.24%
3-year ARM Jumbo — 0.00% — 0.00%

Here are a few key observations:

The change in rates vary by program. In comparing those that are fixed to those that are adjustable only underscore the nature of risk and reward to making such a decision.

  • Slight Downward Trend: Overall, we're seeing a generally downward trend in mortgage rates across different loan types. This could be influenced by various economic factors, such as inflation, the Federal Reserve's monetary policy, and overall economic growth.
  • Government Loans Remain Competitive: VA loans continue to offer attractive rates, especially for eligible veterans. FHA loans also provide an option for borrowers with lower credit scores or smaller down payments.
  • Jumbo Loans Still Higher: Jumbo loans, which are for larger loan amounts, typically have higher interest rates than conforming loans.

Recommended Read:

5-Year Adjustable Rate Mortgage Update for June 27, 2025?

Fixed vs. Adjustable Rate Mortgage in 2025: Which is Best for You

Factors Influencing Mortgage Rates

Understanding the factors that influence mortgage rates can help you make informed decisions about when to buy or refinance. Here are some of the key drivers:

  • The Economy: The overall health of the economy plays a significant role. Strong economic growth can lead to higher interest rates, while a weaker economy may result in lower rates.
    • Inflation: Inflation erodes the purchasing power of money, so lenders demand higher interest rates to compensate for this risk.
    • The Federal Reserve: The Federal Reserve (also known as the Fed) sets monetary policy, which directly impacts interest rates. The Fed can raise or lower the federal funds rate, which influences other interest rates, including mortgage rates.
  • The Bond Market: Mortgage rates are often tied to the yield on 10-year Treasury bonds. When bond yields rise, mortgage rates tend to follow suit.
  • Investor Sentiment: Investor confidence and risk appetite can also affect mortgage rates. During times of uncertainty, investors may flock to safer assets like Treasury bonds, which can push yields down and lower mortgage rates.
    • Global Events: Major global events, such as geopolitical tensions or economic crises, can also have an impact on mortgage rates.
    • Housing Market Conditions: The forces of supply and demand affecting available homes affects interest rates and affordability.

My Take on the Current Market

Personally, as someone who's followed the housing market for a while, I believe we're in a period of moderate opportunity. While rates aren't at historic lows, the recent dip is a welcome sign for potential homebuyers. However, it's essential to do your homework, compare rates from multiple lenders, and carefully consider your own financial situation before making a decision. Also, be sure to consult with a trusted financial adviser.

Remember, buying a home is a significant financial commitment. Don't rush into it. Take your time, do your research, and make a decision that aligns with your long-term financial goals.

The Bottom Line

Today's slight decrease in the 5-year ARM rate offers a small window of opportunity for some borrowers. However, it's crucial to understand the risks associated with ARMs and carefully weigh your options before making a decision. Stay informed, consult with professionals, and make the choice that's right for you.

Capitalize on ARM Rates Before They Rise Even Higher

With fluctuating adjustable-rate mortgages (ARMs), savvy investors are exploring flexible financing options to maximize returns.

Norada offers a curated selection of ready-to-rent properties in top markets, helping you capitalize on current mortgage trends and build long-term wealth.

HOT NEW LISTINGS JUST ADDED!

Connect with an investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Adjustable Rate Mortgage, Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates

Mortgage Refinance Rates Today Jump by 7 Basis Points – June 28, 2025

June 28, 2025 by Marco Santarelli

Mortgage Refinance Rates Today Jump by 7 Basis Points – June 28, 2025

Are you thinking about refinancing your mortgage? It's a big decision, and keeping up with rate changes is critical. As of today, June 28, 2025, the national average for a 30-year fixed refinance rate has edged up. According to the latest data, we're seeing an increase of 7 basis points, bringing the average rate to 7.07%. While this figure may seem small, even minor fluctuations can impact your monthly payments and overall savings.

Mortgage Refinance Rates Today Jump by 7 Basis Points

Current Refinance Rate Overview – June 28, 2025

Okay, so what exactly do these numbers mean for you? Let's break down the current refinance rate scenario to see exactly how these changes impact homeowners like yourself.

According to the most recent data from Zillow, here's a quick snapshot of where refinance rates stand today:

  • 30-Year Fixed Refinance Rate: 7.07% (Up 7 basis points from 7.00%)
  • 15-Year Fixed Refinance Rate: 5.87% (Up 3 basis points from 5.84%)
  • 5-Year ARM Refinance Rate: 7.74% (Down 2 basis points from 7.76%)

This week's movement shows a mixed bag. While the popular 30-year fixed rate has increased slightly, other terms like the 5-year ARM have seen a dip. This highlights the importance of considering your specific circumstances and risk tolerance when deciding on a refinance strategy.

Why Did Refinance Rates Go Up?

Understanding why rates move is crucial for making informed decisions. Several factors influence mortgage refinance rates, including:

  • Economic conditions: The overall health of the economy, including inflation, employment, and GDP growth, plays a big role. Strong economic data can sometimes push rates higher.
  • Federal Reserve policy: The Fed's decisions on interest rates directly affect mortgage rates. Any hints about future rate hikes or cuts can send ripples through the market.
  • Bond market activity: Mortgage rates are closely tied to the yield on the 10-year Treasury bond. When bond yields rise, mortgage rates typically follow suit.
  • Investor sentiment: Uncertainty and volatility in the market can also affect rates. When investors are nervous, they tend to flock to safer assets like bonds, which can push yields lower and, consequently, mortgage rates.

Comparing Refinance Rates by Loan Type

It's not just about the 30-year fixed rate. Different loan types have their own dynamics. Here's a look at how various refinance options are trending. These rates are conforming and may also depend on your existing loan program as well.

Conforming Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.75% Down 0.17% 7.21% Down 0.17%
20-Year Fixed Rate 6.37% Down 0.21% 6.81% Down 0.14%
15-Year Fixed Rate 5.75% Down 0.22% 6.05% Down 0.21%
10-Year Fixed Rate 5.78% Down 0.15% 6.04% Down 0.03%
7-year ARM 7.29% Down 0.15% 7.80% Down 0.01%
5-year ARM 7.53% Up 0.33% 7.97% Up 0.17%
3-year ARM — 0.00% — 0.00%

Government Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 6.13% Down 0.68% 7.14% Down 0.69%
30-Year Fixed Rate VA 6.36% Down 0.25% 6.58% Down 0.24%
15-Year Fixed Rate FHA 5.63% Down 0.30% 6.59% Down 0.30%
15-Year Fixed Rate VA 5.83% Down 0.22% 6.18% Down 0.20%

Jumbo Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate Jumbo 7.67% Up 0.30% 8.05% Up 0.37%
15-Year Fixed Rate Jumbo 7.50% Up 0.74% 7.58% Up 0.62%
7-year ARM Jumbo — 0.00% — 0.00%
5-year ARM Jumbo 8.63% Down 0.36% 8.51% Down 0.26%
3-year ARM Jumbo — 0.00% — 0.00%

Is Refinancing Right for You?

Even with these rate fluctuations, refinancing can still be a smart move for many homeowners. Here are a few scenarios where it might make sense:

  • Lowering your interest rate: This is the most obvious benefit. Even a small reduction in your rate can save you thousands of dollars over the life of your loan.
  • Shortening your loan term: Switching from a 30-year to a 15-year mortgage can help you pay off your home faster and save on interest.
  • Switching from an ARM to a fixed-rate mortgage: If you're concerned about rising interest rates, refinancing to a fixed-rate loan can provide stability and peace of mind.
  • Consolidating debt: You can roll other high-interest debts, like credit card balances, into your mortgage, potentially saving you money on interest payments.
  • Taking out cash: A cash-out refinance allows you to borrow against your home equity to fund major expenses like home renovations or education.

Recommended Read:

Best Time to Refinance Your Mortgage: Expert Insights

Should I Refinance My Mortgage Now or Wait Until 2026? 

Mortgage Refinance Rates on June 23, 2025

Factors to Consider Before Refinancing

Before you jump into refinancing, consider these crucial factors:

  • Closing costs: Refinancing involves costs similar to those you paid when you originally bought your home, such as appraisal fees, title insurance, and origination fees.
  • Break-even point: Calculate how long it will take you to recoup the closing costs through your monthly savings. If you don't plan to stay in your home long enough to reach the break-even point, refinancing might not be worth it.
  • Credit score: A good credit score is essential for securing the best refinance rates. Check your credit report and address any issues before applying.
  • Loan-to-value ratio (LTV): Your LTV is the amount of your mortgage divided by the appraised value of your home. A lower LTV (meaning you have more equity) typically qualifies you for better rates.
  • Personal Circumstances: Don't look at just the numbers. Consider your personal and financial situations. As an example, I wouldn't take an adjustable-rate mortgage loan if my income stream wasn't also floating with it as that'd create a mismatch that could increase the risk of default in the future.

Why This Increase Matters in the Bigger Picture

Okay, so rates went up by a few basis points. Big deal, right? Well, yes and no. While a single day's movement might seem insignificant, it's essential to look at the broader trend. Are rates generally rising, falling, or staying stable? This helps you gauge whether it's a good time to lock in a rate.

Also, consider your personal financial goals. If you're on the fence about refinancing, even a small increase could nudge you to act sooner rather than later.

My Take: Don't Panic, But Pay Attention

As someone who's been following the mortgage market for a while (and, let's be honest, has a mortgage of my own!), I can tell you that it's crucial to stay informed but also avoid getting caught up in day-to-day fluctuations. Focus on the bigger picture:

  • Assess your needs: What are you hoping to achieve by refinancing? Lower payments? Shorter loan term? Debt consolidation?
  • Shop around: Don't settle for the first offer you receive. Get quotes from multiple lenders to compare rates and fees. Online quote comparison tools can come in handy.
  • Consult with a professional: Talk to a mortgage broker or financial advisor to get personalized advice based on your financial situation.

The Bottom Line

While the Mortgage Refinance Rates Today Jump by 7 Basis Points – June 28, 2025, it's one piece of a larger puzzle. Stay informed, assess your needs, and make a decision that aligns with your long-term financial goals. Don't let daily fluctuations scare you, but don't ignore them either. Do your research, and you'll be well-equipped to navigate the refinance market.

Maximize Your Mortgage Decisions in 2025

Thinking about whether to refinance now? Timing is critical, and having the right strategy can save you thousands over the life of your loan.

Norada's team can guide you through current market dynamics and help you position your investments wisely—whether you're looking to reduce rates, pull out equity, or expand your portfolio.

HOT NEW LISTINGS JUST ADDED!

Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Recommended Read:

  • When You Refinance a Mortgage Do the 30 Years Start Over?
  • Should You Refinance as Mortgage Rates Reach Lowest Level in Over a Year?
  • NAR Predicts 6% Mortgage Rates in 2025 Will Boost Housing Market
  • Mortgage Rates Predictions for 2025: Expert Forecast
  • Half of Recent Home Buyers Got Mortgage Rates Below 5%
  • Mortgage Rates Need to Drop by 2% Before Buying Spree Begins
  • Will Mortgage Rates Ever Be 3% Again: Future Outlook
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions for 2025: Expert Forecast

Filed Under: Financing, Mortgage Tagged With: mortgage, mortgage rates, Mortgage Refinance Rates

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