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Today’s Mortgage Rates: 5-Year ARM Drops Slightly to 7.84% – July 14, 2025

July 14, 2025 by Marco Santarelli

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

As of today, July 14, 2025, if you're looking at a 5-year Adjustable Rate Mortgage (ARM), you'll find that the average rate has decreased slightly, dropping from 7.89% to 7.84%. This small dip might be good news for some, but is it the right move for you? Keep reading as I unpack what's happening in the mortgage market and if an ARM could be a smart choice for your situation.

Today’s Mortgage Rates: 5-Year ARM Drops Slightly to 7.84% – July 14, 2025

The world of mortgage rates can seem baffling. Rates fluctuate depending on various scenarios. Keeping up with the changing numbers can feel like doing complicated math homework every day. So, let's break down all the factors that affect today's mortgage rates:

  • The Economy: This is the big picture. Is the economy growing? Are people employed? If things are generally looking good, interest rates tend to rise. If things are shaky, rates often drop to encourage borrowing and spending.
  • Inflation: One of the biggest drivers of interest rates is inflation. If the prices of everyday goods and services are increasing, it is likely that you'll see your mortgage rate rise, accordingly.
  • The Federal Reserve (The Fed): The Fed is like the conductor of the economic orchestra. The Federal Reserve influences the financial markets through its monetary policy in an effort to keep the economy on track.
  • The Bond Market: Mortgage rates are closely tied to the bond market, particularly the yield on 10-year Treasury bonds. When bond yields go up, mortgage rates usually follow suit.
  • Global Events: Major world events, like a crisis somewhere across the globe, can create uncertainty that impacts financial markets and mortgage rates.

The Current Mortgage Rate Snapshot (July 14, 2025)

Let's take a look at Zillow's data for the current rates across different types of mortgages as of today:

Conforming Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.86% up 0.02% 7.32% up 0.03%
20-Year Fixed Rate 6.53% up 0.06% 6.62% down 0.29%
15-Year Fixed Rate 5.91% up 0.03% 6.22% up 0.04%
10-Year Fixed Rate 6.03% up 0.25% 6.12% up 0.14%
7-year ARM 7.74% up 0.16% 8.22% up 0.13%
5-year ARM 7.84% down 0.04% 8.13% down 0.01%
3-year ARM — 0.00% — 0.00%

Government Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 6.80% down 0.01% 7.82% down 0.01%
30-Year Fixed Rate VA 6.30% down 0.01% 6.52% 0.00%
15-Year Fixed Rate FHA 5.36% down 0.05% 6.32% down 0.05%
15-Year Fixed Rate VA 5.82% down 0.02% 6.17% 0.00%

Jumbo Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate Jumbo 7.33% up 0.10% 7.75% up 0.10%
15-Year Fixed Rate Jumbo 6.73% up 0.12% 6.96% up 0.08%
7-year ARM Jumbo 7.53% 0.00% 7.70% 0.00%
5-year ARM Jumbo 7.38% down 0.04% 7.87% down 0.04%
3-year ARM Jumbo — 0.00% — 0.00%

The Slight Dip in 5-Year ARM: What Does It Mean?

The 5-Year ARM is currently sitting at 7.84%, a decrease of 5 basis points from last week. While a small dip in rates is generally positive, it's important to remember that ARMs come with their own set of considerations. Understanding how these loans work is vital before jumping in.

What is an Adjustable Rate Mortgage (ARM)?

Unlike a fixed-rate mortgage, where the interest rate remains the same for the life of the loan, an ARM has an interest rate that can change periodically. The 5-year ARM means that your initial interest rate is fixed for the first five years, after which it adjusts annually based on prevailing market conditions.

Why the Initial Attraction?

  • Lower Initial Rate: ARMs often start with a lower interest rate than fixed-rate mortgages. This can translate to lower monthly payments in the first few years, freeing up cash for other expenses.
  • Potential for Savings: If interest rates decrease during the adjustment period, your mortgage rate (and therefore your monthly payment) could go down. This can save you a significant amount of money over the life of the loan.

The Potential Downsides

  • Rate Increases: The biggest risk with an ARM is that interest rates could rise. If rates go up significantly when your loan adjusts, your monthly payments could become substantially higher.
  • Uncertainty: With an ARM, it's difficult to predict your future monthly payments. This uncertainty can make it harder to budget and plan your finances.
  • Complexity: ARMs can be more complex than fixed-rate mortgages. It's important to understand the terms of your loan, including how often the rate adjusts, the caps on interest rate increases, and the index used to calculate the new rate.

Recommended Read:

5-Year Adjustable Rate Mortgage Update for July 12, 2025

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

Is a 5-Year ARM Right for You? Some Personal Thoughts

Here's my take on whether a 5-year ARM might be a good fit for you:

  • Short-Term Homeownership Plans: If you plan to move or refinance within the next five years, an ARM could be a smart move. You can take advantage of the lower initial rate without worrying too much about future rate increases.
  • Expecting Income Growth: If you anticipate your income increasing significantly in the next few years, you might be more comfortable with the risk of a potential rate hike. My experience tells me, however, that relying on future plans is frequently a recipe for disaster. I personally wouldn't take out a mortgage on the strength of a promise down the line.
  • Comfortable with Risk: If you're financially disciplined and prepared to handle potential payment increases, an ARM could be a viable option. This is only if you have a solid emergency fund and the ability to absorb higher housing costs, should they arise.

However, consider the following:

  • Long-Term Homeownership: If you plan to stay in your home for the long haul, a fixed-rate mortgage might be a better choice. The predictability of a fixed rate can provide peace of mind and protect you from rising interest rates.
  • Risk Averse: If you're uncomfortable with the idea of your mortgage payment potentially increasing, a fixed-rate mortgage is likely the way to go. Remember, housing should be a source of comfort, not stress.

The Fed's Impact on Mortgage Rates

The Federal Reserve is the big player influencing these rates. They have been carefully navigating economic crosscurrents.

Recent actions of the Fed regarding economic plans include:

  • Rate Cuts Made 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.
  • Two Possible Rate Cuts for 2025: The Fed’s June 2025 meeting reaffirmed plans for two rate cuts in 2025, but policymakers are divided on timing and magnitude.

Final Thoughts: Do Your Homework!

Whether a 5-year ARM is the right choice for you depends entirely on your individual circumstances, financial situation, and risk tolerance. Take some time to carefully evaluate your options, compare rates from different lenders, and consider consulting with a qualified financial advisor. I believe your peace of mind is most important, so choose the path that allows you to sleep soundly at night.

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 Rates Today July 14, 2025: 30-Year FRM Goes Down by 2 Basis Points

July 14, 2025 by Marco Santarelli

Mortgage Rates Today - July 14, 2025: 30-Year FRM Drops, 15-Year FRM is Stable

As of today, July 14, 2025, mortgage rates have experienced a slight decline, with the average 30-year fixed mortgage rate at 6.84%, down 2 basis points from last week. In addition, the average 30-year fixed refinance rate is currently at 7.07%. These shifts could influence both potential homebuyers and current homeowners considering refinancing, especially in light of upcoming economic indicators.

Mortgage Rates Today July 14, 2025: 30-Year FRM Goes Down by 2 Basis Points

Key Takeaways

  • Current 30-Year Fixed Mortgage Rate: 6.84%
  • Current Refinance Rate for 30-Year Fixed Loans: 7.07%
  • 15-Year Fixed Mortgage Rate Stays Steady: 5.92%
  • Expectations: Rates may fluctuate based on inflation data and Federal Reserve decisions.

Current Mortgage Rates

Understanding the landscape of mortgage rates helps individuals make informed financial decisions. Here’s a detailed breakdown of the mortgage rates applicable as of July 14, 2025.

Table 1: Current Mortgage Rates by Loan Type

Loan Type Current Rate 1-Week Change APR APR Change
30-Year Fixed Rate 6.84% 0.00% 7.35% Up 0.05%
20-Year Fixed Rate 6.44% Down 0.04% 6.81% Down 0.09%
15-Year Fixed Rate 5.92% Up 0.04% 6.25% Up 0.07%
10-Year Fixed Rate 5.78% 0.00% 5.99% 0.00%
5-Year ARM 7.75% Down 0.13% 8.13% Down 0.01%
7-Year ARM 7.74% Up 0.16% 8.22% Up 0.13%

Source: Zillow

As highlighted in the table, the 30-year fixed mortgage rate remains at 6.84%, signaling a moment of relative stability and providing potential homebuyers a clear picture of current market conditions. The 15-year fixed mortgage rate is 5.92%, ideal for those looking for shorter-term solutions that can ultimately save substantial interest over time.

Current Refinance Rates

Refinancing can be a valuable financial strategy for homeowners looking to lower their monthly payments or tap into their home equity. Here are the current refinance rates for several loan types as of July 14, 2025:

Table 2: Current Refinance Rates by Loan Type

Loan Type Current Rate 1-Week Change APR APR Change
30-Year Fixed Refinance 7.07% Down 0.04% 7.35% Up 0.05%
20-Year Fixed Refinance 6.44% Down 0.04% 6.81% Down 0.09%
15-Year Fixed Refinance 5.92% Up 0.04% 6.25% Up 0.07%
10-Year Fixed Refinance 5.78% 0.00% 5.99% 0.00%
5-Year ARM Refinance 8.04% Up 0.12% 8.38% Up 0.25%
7-Year ARM Refinance 7.74% Up 0.16% 8.22% Up 0.13%

Source: Zillow

The 30-year fixed refinance rate stands at 7.07%, marking it as a strategic time for existing homeowners who wish to refinance their mortgages, especially if they can secure a more favorable rate than their existing ones.

Factors Influencing Mortgage Rate Trends

Many factors influence mortgage rates, and understanding these elements is crucial for making informed decisions. Here’s a look at the key influences on mortgage rates:

  1. Federal Reserve Decisions: The Federal Reserve plays a crucial role in influencing interest rates. Recently, the Fed has indicated potential federal funds rate cuts later in the year. Such actions could positively impact mortgage rates, as lower federal funds rates tend to lead to decreased borrowing rates for consumers. Market observers are paying close attention to the Fed’s actions as they can significantly dictate mortgage landscapes.
  2. Economic Indicators: Data releases on inflation, employment, and overall economic growth are closely monitored by the mortgage market. A strong report on the Consumer Price Index (CPI) can prompt rates to rise, while weaker economic indicators may lead to declines in mortgage rates. The market reacts quickly to these updates, and they can create volatility in mortgage rates.
  3. Market Demand: The dynamics of supply and demand for home loans can lead to fluctuations in rates. If demand persists despite current rates, lenders may need to adjust rates competitively to attract buyers. On the flip side, if demand weakens, mortgage rates may drop as lenders try to encourage borrowing.
  4. Geopolitical Events: Economic conditions don’t exist in a vacuum. Geopolitical factors, such as trade agreements or conflicts, can impact US economic stability and influence the decisions of the Fed. For example, changes in trade tariffs can cause inflation concerns, which may prompt the Fed to adjust interest rates.
  5. Personal Financial Situations: Each borrower’s qualifications and credit profiles play a significant role in determining the exact rate and terms they receive. Lenders evaluate factors such as credit score, debt-to-income ratio, and employment history before offering a mortgage rate.


Related Topics:

Mortgage Rates Trends as of July 13, 2025

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

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

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

Long-Term Projections

Looking into the future, experts predict that mortgage rates will likely hover between 6.5% and 6.8% for the remainder of July 2025, with fluctuations possible depending on economic reports and Federal Reserve announcements. Some analysts anticipate that gradual rate cuts in the next year or so could lead to rates dropping to around 5% by 2028, providing some relief for homebuyers and those looking to refinance.

Expert Opinions

In my view, the current mortgage and refinance rates present a compelling opportunity for homeowners and those looking to enter the market. The combination of slightly reduced rates and the potential for further declines makes this period attractive for both financing and refinancing. However, it’s crucial for buyers to stay informed about economic indicators and how they might influence future rates.

Additionally, as the housing market evolves, staying engaged with trends, economic signals, and lender offerings will empower borrowers to make timely and strategic decisions. While a lower rate can significantly save on long-term payments, making the best choice often requires consideration of personal financial situations and long-term stability.

Summary:

While the prevailing rates might seem daunting, they can be navigated successfully with the right knowledge and insight. For those looking to purchase or refinance, understanding current conditions and upcoming economic developments gives critical context to what lies ahead in their mortgage journey.

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
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • 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 Predictions for the Next 90 Days: July to Sept 2025

July 13, 2025 by Marco Santarelli

Mortgage Rates Predictions for the Next 90 Days: July to 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 the Next 90 Days: July to 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 Predictions for the Next 30 Days: July 3-August 3

July 13, 2025 by Marco Santarelli

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

Are you wondering about mortgage rate predictions for the next 30 days? Well, based on the latest data, you can expect moderate stability. Expect mortgage rates to stay above 6.5% for the immediate future. They might fluctuate a bit, but signs point to them remaining near where they are now. Let's dive into the details and see what's influencing these predictions.

Mortgage Rate Predictions for the Next 30 Days: What to Expect

Recent Trends: A Glimmer of Hope?

Here's some good news! As of July 3, 2025, the average 30-year fixed-rate mortgage dipped to 6.67%. That's a welcome change and the fifth consecutive week of decline. This is the biggest weekly drop we've seen since early March!

Take a look at the numbers:

  • 30-Year Fixed-Rate Mortgage:
    • Current Rate: 6.67%
    • Weekly Change: -0.1%
    • Yearly Change: -0.28%
    • Monthly Average: 6.77%
    • 52-Week Average: 6.68%
    • 52-Week Range: 6.08% – 7.04%
  • 15-Year Fixed-Rate Mortgage:
    • Current Rate: 5.8%
    • Weekly Change: -0.09%
    • Yearly Change: -0.45%
    • Monthly Average: 5.9%
    • 52-Week Average: 5.86%
    • 52-Week Range: 5.15% – 6.27%

While this decline is encouraging, it's important to understand what's behind it and whether it's likely to continue.

What's Driving Mortgage Rates?

Several factors constantly tug and pull on mortgage rates. Let’s break down the main players:

  • The Federal Reserve (The Fed): This is a big one! The Fed controls monetary policy, which includes setting the federal funds rate. This rate influences what banks charge each other for short-term loans, and that ripples out to affect other interest rates, including mortgage rates.
  • Economic Data: Things like job growth, inflation, and GDP growth all play a role. Strong economic data can suggest the Fed might raise interest rates to prevent the economy from overheating, while weak data might suggest the opposite.
  • Inflation: This is a major concern. If inflation is high, the Fed is more likely to keep interest rates elevated to bring it back down. The Fed aims to maintain a balance between controlling inflation and ensuring a healthy labor market.
  • The 10-Year Treasury Yield: This is the yield (return) on a 10-year U.S. government bond. Mortgage rates tend to track the 10-year Treasury yield pretty closely because it reflects investors' expectations for the economy and inflation.
  • Geopolitical Events: Unexpected events around the world, like wars or political instability, can create uncertainty and affect investor sentiment, which can then impact interest rates.

The May Jobs Report and the Fed's Dilemma

The May jobs report revealed that the pace of job creation is slowing, adding 139,000 jobs, which is fewer than in previous months but still indicative of ongoing economic activity.

  • Slowing Job Growth:
    • May job numbers came in lower than previous months but remain positive.

Economists suggest that the Fed may be in a “wait and see” mode at the July meeting, especially if businesses continue expanding payrolls at the current rate. There's uncertainty surrounding the timing of rate cuts. The report's implications for inflation and any potential effects of tariffs will likely be closely monitored.The Fed emphasizes that monetary policy decisions are guided by objective economic data, not political considerations.


Related Topics:

Will Mortgage Rates Drop or Increase in July 2025: Key Predictions

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

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

What's the Outlook for the Next 30 Days?

Okay, so let's put all this together and see if we can get a clearer picture of what to expect in the coming weeks.

The overall consensus seems to be that mortgage rates will likely remain relatively stable. While the recent dip is encouraging, I don't expect a dramatic drop in the next 30 days. Here’s what experts are predicting:

  • Moderation and Stability: Mortgage rates are expected to remain relatively stable and moderate throughout July.
  • “Higher for Longer” Environment: Expect mortgage rates to stay above 6.5% for the rest of 2025.
  • A “Wait and See” Approach: The Fed will likely monitor the economic data before making any decisions on rate cuts at its July meeting.
  • Inflation Concerns: These remain a key factor in keeping rates elevated. Trade measures and geopolitical events contribute to market volatility and could exert upward pressure on rates.

Considering the Fed's cautious stance, and the potential for inflation to remain sticky, it's more likely that rates will stay within the 6.5% to 7% range for the next month.

Here are some average predictions for 30-year fixed mortgages in Q3 2025 that experts have provided:

Source Prediction
Fannie Mae 6.6%
National Association of Home Builders 6.75%
Mortgage Bankers Association 6.80%
Wells Fargo 6.65%
National Association of Realtors 6.4%
Average Prediction 6.64%

My Personal Take

Based on everything I've been following, I tend to agree with the general outlook. While the recent decline is a step in the right direction, I don't think it signals a major shift just yet. The Fed is clearly going to be very careful about any further rate cuts, and as such I don’t expect to see any big changes in mortgage rates.

What This Means for You

  • For Buyers: If you're thinking of buying a home, it's wise to get pre-approved for a mortgage so you know exactly how much you can afford. And don't try to time the market too much. Instead, focus on finding a home that fits your needs and budget.
  • For Sellers: If you're planning to sell, now is a pretty good time. While rates might be slightly higher than they were a few years ago, there are still plenty of buyers out there.
  • For Homeowners: If you already have a mortgage, it may or may not be the best time to refinance. Run the numbers to make sure it makes sense for your financial situation.

The Bottom Line: Mortgage rates are always subject to change, so it is important to stay updated with the latest news. I can't say with certainty what will happen in the next 30 days, but based on the available data, I think it's reasonable to expect rates to remain within the 6.5% to 7% range.

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
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • 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 – July 13, 2025: Rates Spike Overall Compared to Last Week

July 13, 2025 by Marco Santarelli

Mortgage Rates Today - July 13, 2025: Rates Spike Overall Compared to Last Week

As of today, July 13, 2025, mortgage rates remain fairly stable with slight increases in some areas while refinance rates have shown signs of decline. According to Zillow, the national average for a 30-year fixed mortgage is at 6.87%, up from the previous 6.77% last week. Meanwhile, the average for a 30-year fixed refinance rate has decreased to 7.06% from 7.10%.

Mortgage Rates Today – July 13, 2025: Rates Spike Overall Compared to Last Week

Key Takeaways

  • 30-Year Fixed Mortgage Rate: 6.87% (up 0.10% from last week).
  • 15-Year Fixed Rate: 5.90% (up 0.10%).
  • 5-Year ARM Rate: 7.86% (down 0.04%).
  • 30-Year Fixed Refinance Rate: 7.06% (down 0.04%).
  • Federal Reserve’s potential rate cuts could influence future mortgage rates, showing mixed signals for buyers.

Current Mortgage Rates Overview

Today's mortgage rates reflect a balance between buyer demand and economic factors that impact lending costs. The national averages cover both fixed and adjustable-rate mortgages (ARMs), as well as government loans. Understanding the differences between the loan types is essential for making informed decisions.

Table: Current Mortgage Rates as of July 13, 2025

Loan Type Rate 1-Week Change APR 1-Week Change
30-Year Fixed Rate 6.87% +0.10% 7.32% +0.09%
20-Year Fixed Rate 6.44% +0.09% 6.81% +0.12%
15-Year Fixed Rate 5.90% +0.10% 6.20% +0.09%
10-Year Fixed Rate 5.78% +0.17% 5.99% +0.22%
7-Year ARM 7.74% +0.39% 8.22% +0.42%
5-Year ARM 7.86% -0.04% 8.11% -0.12%

Exploring Refinance Rates

Refinancing is an option for homeowners looking to lower their monthly payments or tap into equity for cash needs. The current refinancing landscape shows mixed results, with some rates falling while others remain steady. Understanding the rationale behind these changes can empower homeowners to make thoughtful decisions about their financial future.

Table: Current Refinance Rates as of July 13, 2025

Loan Type Rate 1-Week Change APR 1-Week Change
30-Year Fixed Refinance Rate 7.06% -0.04% 7.32% +0.09%
20-Year Fixed Refinance Rate 6.44% +0.09% 6.81% +0.12%
15-Year Fixed Refinance Rate 5.92% -0.11% 6.20% +0.09%
10-Year Fixed Refinance Rate 5.78% +0.17% 5.99% +0.22%
7-Year ARM Refinance 7.74% +0.39% 8.22% +0.42%
5-Year ARM Refinance 8.04% -0.02% 8.11% -0.12%

Impact of Economic Factors on Mortgage Rates

Several key economic indicators and policies influence mortgage rates. The Federal Reserve's decisions, including rate cuts and economic growth projections, create ripples throughout the mortgage market, directly affecting consumer borrowing costs.

Federal Reserve's Recent Discussions

During the Fed's recent meeting in June 2025, officials discussed potential cuts to interest rates, with some members advocating for immediate action. The predictions indicate that the federal funds rate could fall close to 3.9% by the end of 2025, significantly impacting mortgage rates.

  • Rate Cuts: If the Fed reduces rates, mortgage lenders may adjust their offerings, leading to lower rates for consumers. This is particularly beneficial for new homebuyers and those considering refinancing.
  • Economic Outlook: A slower economy, coupled with rising unemployment, typically prompts the Fed to cut rates in an attempt to stimulate growth. Current projections suggest unemployment might rise to 4.5% in the coming months, which could influence Fed policy.

Economic Climate Influences Rates

  • Inflation and Tariffs: Rising tariffs have contributed to inflation, creating uncertainty in the market. Fed Chair Jerome Powell indicated that the Fed views this as a temporary shock, complicating decisions regarding rate hikes or cuts.
  • Economic Growth: The GDP growth forecast for 2025 is around 1.4%, lower than previous expectations. This slowdown can lead to lower consumer demand for housing, which in turn affects mortgage rates.


Related Topics:

Mortgage Rates Trends as of July 12, 2025

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

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

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

Current Trends and Projections

The recent stability in mortgage rates offers a unique opportunity for potential homebuyers and current homeowners alike. While rates remain elevated, the overall trend hints at possible future adjustments, depending on the Fed’s actions.

  • Market Predictions: Some analysts suggest that if economic conditions do not improve, mortgage rates are likely to decline over the next few years. Predominantly, the consensus is that rates could stabilize around 5% by 2028 if the Fed follows through with anticipated cuts.

Personal Observations on Future Trends

Based on observations of various market behaviors, consumers should closely monitor inflation trends and employment rates since they affect Fed projections. A positive turn in either area could stimulate more favorable mortgage rates.

Navigating the Mortgage Process

For both first-time buyers and those considering refinancing, understanding these rates and the broader market context is essential. Whether you are planning to buy a home, invest in property, or refinance your existing mortgage, knowing where rates currently stand can help you make informed decisions that align with your long-term financial goals.

How Mortgage Rates Are Determined

Mortgage rates are influenced by various factors including:

  • Lender Policies: Individual lenders may offer different rates based on their financial situations and policies.
  • Credit Scores: Borrowers with higher credit scores typically receive better rates.
  • Loan-to-Value Ratio (LTV): A lower LTV can often secure a better rate, as it indicates less risk to the lender.

Summary:

In the end, today’s mortgage rates reflect a stable yet responsive market that is sensitive to economic changes. While potential rate reductions loom on the horizon, buyers and homeowners should evaluate their personal circumstances and financial goals carefully. Understanding the nuances of these rates can lead to more strategic decisions that maximize opportunities in real estate.

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
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • 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 Predictions for the Next 6 Months: August to December 2025

July 13, 2025 by Marco Santarelli

Mortgage Rates Predictions for the Next 6 Months: August to December 2025

Wondering where mortgage rates are headed? You're not alone. After a period of ups and downs, everyone wants to know: What will Mortgage Rates be from August to December 2025? Good news, things are looking brighter! My detailed analysis, drawing from the best sources, suggests that mortgage rates will likely hover in the mid-6% range, gradually decreasing to around 6.3%-6.5% by December 2025.

Mortgage Rates Predictions for the Next 6 Months: August to December 2025

Since the start of the year, high mortgage rates have made buying a home more difficult. But don't lose hope! Let’s get a grasp on the current situation, review the trends, and see what experts are thinking.

The Current State of Mortgage Rates

As of July 10, 2025, here’s where we stand:

  • 30-Year Fixed Rate Mortgage (FRM): Averaging 6.72%
  • 15-Year FRM: Averaging 5.86%

These numbers, per Freddie Mac, paint a clear picture. While rates are lower than the 52-week high of 7.04%, they're still considerably higher than the ridiculously low rates we saw a few years ago. It’s like when gas prices go up – you remember the cheaper days!

Metric 30-Year FRM 15-Year FRM
Current Rate 6.72% 5.86%
1-Week Change +0.05 +0.06
1-Year Change -0.17 -0.31
Monthly Average 6.74% 5.88%
52-Week Average 6.68% 5.86%
52-Week Range 6.08%–7.04% 5.15%–6.27%

For weeks, the 30-year FRM has stayed below 7%. This shows you that while there are fluctuations, we’ve stepped away from the volatility seen last year.

What’s Coming? Mortgage Rate Predictions for August to December 2025

Let's look at what the big players are saying about where rates are headed. No more stress.

  1. Long Forecast:
    • They're predicting a gradual dip in the coming months.
    • August 2025: Average 6.59%
    • December 2025: Average 6.29%
  2. National Association of REALTORS (NAR):
    • NAR's Chief Economist, Lawrence Yun, predicts an average of 6.4% for the second half of 2025.
    • Yun thinks we're heading for “brighter days” in housing.
  3. Fannie Mae:
    • They're predicting that 30-year mortgage rates will end 2025 at 6.5%, and go down to 6.1% by the end of 2026.
  4. Mortgage Bankers Association (MBA):
    • They anticipate rates near 6.8% through September 2025, then gradually decreasing to 6.7% by year-end.
    • Sometime in 2026 they may stabilize to 6.3%.
  5. Morgan Stanley:
    • Strategists believe mortgage rates could fall, which would improve how people can afford homes.
    • A slowing economy might bring even lower rates in 2026.
  6. Freddie Mac:
    • They said rates would stay “higher for longer.”
    • They do see increased housing activity as buyers get used to the current rates.
  7. Other Voices:
    • Forbes Advisor: Rates might ease slowly due to Federal Reserve caution and economic policies.
    • U.S. News: Rates might stay range between 6.5% and 7% through 2025.
    • The Mortgage Reports: They say there’s a downward trend in July. They cite NAR’s prediction of 6.4% Q3.

Here’s a Quick Look at the Forecasts:

Source Prediction for December 2025 (Approximate)
Long Forecast 6.29%
National Association of REALTORS 6.4% (Average for Second Half)
Fannie Mae 6.5%
Mortgage Bankers Association 6.7%

The takeaway? Most experts believe rates will stay in the mid-6% range, perhaps drifting down to 6.3%-6.5% by year's end. I wouldn't expect any big drops below 6%.

What's Driving These Predictions?

A bunch of things affect Mortgage Rate Predictions for the Next 6 Months: August to December 2025.

  • Federal Reserve and Monetary Policy:
    • The Federal Reserve's federal funds rate affects mortgage rates indirectly. Any rate cut that the Fed may make could lower mortgage rates, but potential policy changes could push rates higher.
  • Inflation is still a factor:
    • Inflation is super important. Slowly cooling inflation rates supports lowering the rates. You may want to keep an eye on policies and how they impact potential pushing of rates.
  • The Health of the Economy:
    • If the economy is doing well, rates might stay higher. If it slows down, then the Fed might cut rates, which is good for people borrowing money.
  • Housing Market Conditions Matter:
    • We have a major shortage of houses. This “rate lock-in effect” makes it hard to find houses.

    Homeowners don’t want to sell if they have low rates

    *   If rates go down, more houses might be available.
    
  • Global Money Factors:
    • Everything from oil prices to political problems can affect the money and the rates.


Related Topics:

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

Will Mortgage Rates Drop or Increase in July 2025: Key Predictions

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

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

How Will These Rates Affect YOU?

These trends have a real impact on homebuyers and the market:

  • Affordability: Even a tiny decrease in rates can help a lot in being able to afford a house. Still, even rates in the mid-6% range are still a challenge.
  • What About The Housing Market?
    • Existing Home Sales: Sales might increase
    • New Home Sales: Sales might increase to address supply
    • Median Home Prices: Prices may still go up a little bit.

Are THERE Any Refinancing Opportunities?

If rates drop closer to 6.3%-6.5% in December 2025, there are chances that this might cause some refinancing. Keep in mind that last year Freddie Mac reported a 56% increase in refinance applications.

Visualizing the Trends

Check out the trend lines I put together charting the predictions:

Mortgage Rates Predictions for the Next 6 Months

A Quick Look Back

It’s good to keep the current predictions in perspective. Here’s the data from Freddie Mac:

  • 30-Year FRM: The highest rate it has been is 7.04 since this past year. the average rate to be at 6.68%.
  • 15-Year FRM: Rates ranged from 5.15% to 6.27%, averaging 5.86%.

Final Thoughts

Looking ahead, mortgage rates from August to December 2025 are most likely going to be in the mid-6% range. There will probably be some slight decreases. A number of economic factors will affect things such as inflation, Federal Reserve policies, and the housing market.

As someone who's watched these financial currents for awhile, my best advice is to stay informed and be ready. Keep tabs on economic stuff and talk to mortgage experts for advice. I will make sure to post periodic updates.

Good luck! Keep watching the rates!

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
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • 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 Mortgage Rates: 5-Year Adjustable Rate Hits 7.89% – July 12, 2025

July 12, 2025 by Marco Santarelli

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

If you're considering buying a home, you're probably keeping a close eye on mortgage rates. According to Zillow, as of today, July 12, 2025, the national average for a 5-year Adjustable Rate Mortgage (ARM) has climbed to 7.89%. Understanding what this means for you is crucial, and I'm here to break it down.

Today’s Mortgage Rates: 5-Year Adjustable Rate Hits 7.89% – July 12, 2025

What's Happening with Mortgage Rates?

Let's take a step back and see the bigger picture. While the 5-year ARM increased slightly to 7.89%, it's just one piece of a larger puzzle. Here's how other key mortgage rates are trending:

  • 30-Year Fixed Rate: 6.87% (up from 6.77% last week)
  • 15-Year Fixed Rate: 5.90% (up from 5.89% last week)

You can see that most rates are creeping upwards. This movement reflects broader economic factors at play, which I'll touch upon in the next section.

Why Are Rates Moving? The Fed's Role and Economic Crosscurrents

The Federal Reserve's actions are a major influence on mortgage rates. Currently, even though the Fed cut rates three times in late 2024 (reducing the federal funds rate to a target range of 4.25%-4.5%), the effects on mortgage rates are complex.

Here's a breakdown of what's influencing the Fed's decisions and, therefore, mortgage rates:

  • Inflation Outlook: The Fed is carefully monitoring how tariffs are impacting inflation. While they see it as a temporary shock, it complicates the timing of future rate cuts.
  • Economic Slowdown: GDP growth is projected to be 1.4% for 2025, down from 1.7%. A weaker economy might push the Fed to cut rates sooner rather than later.
  • The Dot Plot: The “dot plot” indicates the possibility of the federal funds rate falling to 3.9% by year-end 2025, with further cuts in 2026–2027

While future rate cuts are anticipated, the exact timing is uncertain as certain policymakers are divided on the issue.

Understanding Adjustable Rate Mortgages (ARMs)

Before diving deeper into the implications of the 5-year ARM rate, it's good to know what exactly an ARM loan is. Unlike fixed-rate mortgages where your interest rate stays the same for the life of the loan, ARMs have an interest rate that adjusts periodically.

A 5-year ARM means the initial interest rate is fixed for the first five years. After that, the rate adjusts annually based on a pre-determined index plus a margin. The margin is a fixed number set by the lender, while the index is a benchmark rate that fluctuates with market conditions.

The Pros and Cons of a 5-Year ARM

Here's where you need to think carefully about your personal circumstances. ARMs can be a good choice for some, but not for everyone.

Pros:

  • Lower Initial Rate: ARMs typically start with a lower interest rate than fixed-rate mortgages. This can translate to lower monthly payments in the first few years.
  • Potential Savings: If interest rates fall during the adjustment period, your ARM rate could decrease, leading to even lower payments.
  • Short-Term Ownership: If you plan to sell your home within the first five years, the adjustable rate might not even come into play.

Cons:

  • Rate Uncertainty: After the initial fixed period, your interest rate can fluctuate, potentially leading to higher monthly payments.
  • Interest Rate Risk: If interest rates rise significantly, your mortgage payments could increase substantially. This can strain your budget.
  • Complexity: understanding the index, margin and calculation can be complex.

5-Year ARM vs. 30-Year Fixed: Which Is Right for You?

This is the million-dollar question! I've always advised clients to carefully weigh the pros and cons of each option based on their unique situation. To help you think it through, let's compare the two side-by-side:

Feature 30-Year Fixed Rate Mortgage 5-Year Adjustable Rate Mortgage (ARM)
Interest Rate Fixed for the life of the loan Fixed for 5 years, then adjusts annually
Payment Stability Highly Stable Uncertain – Can fluctuate after the initial fixed period
Best For Those who want predictability and long-term security Those who plan to sell or refinance within 5 years, or who believe rates will fall
Risk Level Low Moderate to High

The Current ARM Landscape (July 12, 2025): Is It a Good Time?

Given the current economic climate and the rising 5-year ARM rate of 7.89%, it's imperative to consider what to do.

Here's my take:

  • Assess Your Risk Tolerance: Are you comfortable with the possibility of your mortgage rate increasing after five years? If not, a fixed-rate mortgage might be a better fit.
  • Consider Your Time Horizon: How long do you plan to stay in the home? If it's less than five years, an ARM could be advantageous, but still not without some risk depending on how interest rates shift at the time.
  • Factor in Future Rate Cut Expectations: The Fed is expected to cut rates in the future, and so if you are planning to stay in your home for more than 5 years, the ARM might be a good option.
  • Shop Around: Just like with any mortgage, getting quotes from multiple lenders is crucial. Different lenders will offer different margins and loan terms.

Recommended Read:

5-Year Adjustable Rate Mortgage Update for July 9, 2025

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

Other Mortgage Options: A Quick Overview

It's worth remembering that the 5-year ARM and 30-year fixed-rate mortgage aren't your only choices. Here's a quick look at some other options:

  • 15-Year Fixed Rate: Offers a shorter repayment term and lower interest rates than a 30-year fixed, but higher monthly payments.
  • 7-Year ARM: Similar to a 5-year ARM, but with a seven-year fixed-rate period.
  • Government Loans: FHA and VA loans can provide more lenient credit requirements and lower down payments, but often come with stricter eligibility criteria. Other Type of Loans and Their trends
Type of Loan Rate
30-Year Fixed Rate FHA 7.13%
30-Year Fixed Rate VA 6.36%
15-Year Fixed Rate FHA 5.33%
15-Year Fixed Rate VA 5.90%
30-Year Fixed Rate Jumbo 7.30%
15-Year Fixed Rate Jumbo 6.77%
7-year ARM Jumbo 7.53%
5-year ARM Jumbo 7.35%

My Advice: Talk to a Mortgage Professional

Navigating the world of mortgages can be overwhelming. That's why I always recommend consulting with a qualified mortgage professional. They can analyze your specific financial situation, help you understand your options, and guide you towards the best loan for your needs. They can help you understand all your options and choose the mortgage that aligns with your needs and goals.

Final Thoughts: The rise of the 5-year ARM rate to 7.89% is a reminder that mortgage rates are constantly in flux. Understanding the factors that influence these rates and carefully weighing your options is essential before taking the plunge into homeownership. By staying informed and seeking professional guidance, you can make a confident and financially sound decision.

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 Rates Today – July 12, 2025: Rates Rise Across the Board for All Loan Types

July 12, 2025 by Marco Santarelli

Mortgage Rates Today - July 12, 2025: Rates Rise Across the Board for All Loan Types

As of today, July 12, 2025, mortgage rates have experienced a notable uptick, with the national 30-year fixed mortgage rates increasing to 6.87%. This marks an increase of 10 basis points from last week's rate of 6.77%. If you're contemplating a mortgage or refinancing your existing loan, understanding these rate shifts is crucial.

Mortgage Rates Today – July 12, 2025: Rates Rise Across the Board for All Loan Types

Key Takeaways:

  • Current 30-Year Fixed Mortgage Rate: 6.87%
  • Current 15-Year Fixed Mortgage Rate: 5.90%
  • Current 5-Year ARM Rate: 7.92%
  • Refinance 30-Year Fixed Rate: 7.20%, up from 7.10%
  • Overall rates for both purchases and refinancing have seen minimal fluctuations but generally trend upwards since last week.

Understanding Today's Mortgage Rates

With various options available, today’s mortgage rates represent an essential aspect of the buying and refinancing process. According to Zillow, the 30-year fixed mortgage rate has reached 6.87%, reflecting a slight increase of 10 basis points from the previous week. Similarly, the 15-year fixed mortgage rate has increased to 5.90%, up from 5.89%.

These changes significantly affect monthly payments, total interest, and home affordability. Take a look at the detailed mortgage rates below from Zillow:

Current Mortgage Rates Comparison Table

Mortgage Type Rate 1 Week Change APR 1 Week Change
30-Year Fixed Rate 6.87% +0.10% 7.33% +0.10%
20-Year Fixed Rate 6.44% +0.09% 6.81% +0.12%
15-Year Fixed Rate 5.90% +0.09% 6.20% +0.10%
10-Year Fixed Rate 5.78% +0.17% 5.99% +0.22%
7-Year ARM 7.74% +0.39% 8.22% +0.42%
5-Year ARM 7.92% +0.32% 8.19% +0.20%
3-Year ARM N/A 0.00% N/A 0.00%

In contrast, government-backed loans show mixed trends: the FHA's 30-Year Fixed Rate has decreased to 6.50%, while the VA's 30-Year Fixed Rate has edged up slightly to 6.42%.

Current Refinance Rates Overview

For those considering refinancing, the current rates are just as crucial. The 30-year fixed refinance rates have risen to 7.20%, signaling a 10 basis point increase from last week’s average of 7.10%.

Here is a snapshot of refinancing rates on July 12, 2025:

Refinance Program Rate 1 Week Change APR 1 Week Change
30-Year Fixed 7.20% +0.10% 7.33% +0.10%
20-Year Fixed 6.44% +0.09% 6.81% +0.12%
15-Year Fixed 5.90% +0.09% 6.20% +0.10%
10-Year Fixed 5.78% +0.17% 5.99% +0.22%
5-Year ARM 7.92% +0.32% 8.19% +0.20%

It's vital for homeowners to consider their options carefully when deciding to refinance, especially given the higher rates than those seen in previous years. The decision should weigh the overall cost against potential benefits.

Is Right Now a Good Time to Refinance?

Determining whether it’s a suitable time to refinance involves evaluating several factors, including current rates, long-term savings, and your financial situation. Currently, with the 30-year fixed refinance rate at 7.20%, it's essential to consider if this reflects an improvement over your existing mortgage rate.

  • Savings Calculation: For example, if you currently hold a mortgage at 7.5% and can refinance to 7.20%, the lower rate might yield savings over time, even if the rates seem high historically. It's advantageous to perform a thorough cost-benefit analysis.
  • Break-Even Point: Calculate how long it will take to recoup the costs associated with refinancing. This is your break-even point, where recalculating your monthly payment against refinancing costs can help decide if this move is financially prudent.


Related Topics:

Mortgage Rates Trends as of July 11, 2025

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

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

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

30-Year vs 15-Year Mortgage Rates

When considering mortgage options, understanding the difference between a 30-year fixed mortgage and a 15-year fixed mortgage is crucial.

30-Year Fixed Mortgage

A 30-year fixed mortgage allows borrowers to spread their payments over a longer duration, resulting in lower monthly payments. However, this comes at the cost of paying higher interest over the life of the loan.

  • Current Rate: 6.87%
  • Monthly Payments: For a loan amount of $250,000, the monthly payment would be approximately $1,646 (not including taxes and insurance).

15-Year Fixed Mortgage

A 15-year fixed mortgage has significantly higher monthly payments compared to a 30-year mortgage, but it has a lower interest rate and allows the borrower to pay off the loan much faster.

  • Current Rate: 5.90%
  • Monthly Payments: On the same $250,000 loan, the monthly payment would be approximately $2,036 (not including taxes and insurance).

While borrowers save on interest payments over the term with a 15-year mortgage, the larger payments may strain a monthly budget.

Federal Reserve's Impact on Mortgage Rates

The Federal Reserve influences mortgage rates through its monetary policy, which has changed significantly since the pandemic.

Recent Actions by the Federal Reserve

Recently, the Fed reduced rates to stimulate the economy, but ongoing inflation pressures complicate decisions about future cuts.

  • Expectations for Future Cuts: Analysts project possible rate cuts in late 2025, but it remains to be seen how these changes will directly affect mortgage rates.

Keeping an eye on the Federal Reserve’s announcements and economic forecasts can provide insight into future mortgage rate trends.

In summary, mortgage rates today have risen slightly, with the 30-year fixed rate at 6.87%. The implications of these rates are significant, especially for refinancing decisions and choosing between 30-year and 15-year mortgage options. Understanding these elements will help you make informed decisions as you navigate your mortgage options in the current financial landscape.

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
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • 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: The States Offering Lowest Rates – July 11, 2025

July 11, 2025 by Marco Santarelli

U.S. States With Lowest Mortgage Rates Today – July 1, 2025

Looking for the best mortgage rates today, July 11, 2025? You're in the right place. Currently, the states boasting the lowest 30-year new purchase mortgage rates are New York, California, Virginia, Washington, Colorado, Massachusetts, and Pennsylvania, with averages ranging from 6.57% to 6.78%. Let's explore the factors that influence these rates and how you can secure the most favorable mortgage deal.

Mortgage Rates Today: The States Offering Lowest Rates

Understanding Today's Mortgage Rate Picture (July 11, 2025)

While national averages provide a general overview, mortgage rates can vary significantly from state to state. Why? Because different lenders operate in different regions. Each lender has varying risk management strategies. State-level regulations, credit scores, and average loan sizes also play roles.

According to Investopedia's report and Zillow's data, here's a quick snapshot of where rates stand today:

  • National Average (30-Year Fixed): 6.83%
  • The states with the cheapest 30-year new purchase mortgage rates: New York, California, Virginia, Washington, Colorado, Massachusetts, and Pennsylvania with rates between 6.57% and 6.78%
  • States with Highest Rates: Alaska, Alabama, South Dakota, Kansas, West Virginia, Wyoming, Oklahoma, and Iowa ranging from 6.89% to 6.96%
  • Compared to Mid-May 2025: Rates are down from a high of 7.15%
  • Compared to March 2025: Rates are higher than the 6.50% low
  • Compared to September 2024: Rates are higher than the two-year low of 5.89%

National Averages of Lenders' Best Mortgage Rates

Loan Type New Purchase
30-Year Fixed 6.83%
FHA 30-Year Fixed 7.55%
15-Year Fixed 5.84%
Jumbo 30-Year Fixed 6.80%
5/6 ARM 7.48%

These are national averages. They serve as a good starting point. However, it's vital to remember that these are averages, and your individual rate will differ.

Why the Rate Discrepancy Between States?

As I mentioned, various factors cause mortgage rates to fluctuate across states. Let's break them down:

  • Lender Presence: Not all lenders operate in every state. Limited competition can lead to higher rates.
  • State Regulations: Each state has different laws governing mortgages. Some states may have regulations that increase lender costs.
  • Credit Score Averages: States with lower average credit scores might see slightly higher rates. Lenders perceive lending in such regions as riskier. Credit scores directly impact the mortgage rates.
  • Average Loan Size: Loan size correlates with rates. This is because operational costs are the same, regardless of the size of the loan.
  • Risk Management: Lenders' assessment of risk is subjective. It depends on their appetite for risk.

States with the Lowest Mortgage Rates: What's Their Secret?

So, what makes New York, California, Virginia, Washington, Colorado, Massachusetts and Pennsylvania so attractive in terms of rates? It's usually a combination of several factors:

  • Strong Competition: These states often have many active lenders competing for business.
  • Higher Credit Scores: Generally, these states have residents with higher average credit scores.
  • Stable Housing Markets: Perceived stability in the housing market makes lenders feel more secure.
  • Favorable Regulations: Some may have regulations that streamline the mortgage process, reducing costs for lenders.

A Closer Look

Let's consider California. It has a huge real estate market and stiff competition among mortgage lenders. This competition helps drive rates down. Also, California's economy is strong and dynamic. That helps reassure lenders.

Don't Get Fooled: Understanding Advertised Rates

You've probably seen super-low mortgage rates advertised online. These teaser rates can be tempting. But here’s what I've learned over the years: they're not always what they seem.

  • Points: Many advertised rates require you to pay points upfront. Each point equals 1% of the loan amount.
  • Credit Score: These rates usually assume you have a near-perfect credit score. This is something that not many people possess
  • Loan Size: Some advertised rates are only available for smaller loan amounts.
  • Hypothetical Borrower: The advertised low rates are usually aimed at attracting a hypothetical borrower. This borrower is least likely to default on the loan.

The Rates You See Here Are Averages

It's important to emphasize that the rates I'm discussing in this article are averages. The rate you actually get depends on your specific circumstances. This includes credit score, income, debt-to-income ratio, down payment, and the type of loan you choose.

National Mortgage Rate Trends: What's Influencing the Market?

Mortgage rates don't exist in a vacuum. They're influenced by a myriad of factors, including:

  • Bond Market: Mortgage rates closely track the 10-year Treasury yield.
  • Federal Reserve (The Fed): The Fed's monetary policy significantly impacts rates. The central bank manages monetary policy by setting the federal funds rate.
  • Inflation: Rising inflation pushes rates higher.
  • Economic Growth: A strong economy may lead to higher rates.
  • Competition Among Lenders: More competition can lead to lower rates, as lenders vie for your business.

Recent Fed Actions: A Deeper Dive

The Fed has been a key player in shaping mortgage rates. Here's a quick recap of recent actions and their potential impact:

  • Rate Cuts in Late 2024: Three rate cuts lowered the federal funds rate. This had a soothing effect in the market.
  • 2025 Outlook: The Fed plans two more rate cuts in 2025. But, when exactly they'll happen is still under debate. There are many variables and uncertainty involved in the whole process. The first cut may be in September 2025.
  • Tariffs and Inflation: Tariffs could lead to higher inflation. This might impact the timing of rate cuts.
  • Economic Slowdown: A slowing economy could prompt the Fed to cut rates sooner rather than later.
  • Political Pressure: Political pressure doesn't directly influence the Fed. Although the central bank maintains its independence when making decisions.

Read More:

States With the Lowest Mortgage Rates on July 10, 2025

Are Mortgage Rates Expected to Go Down Soon: A Realistic Outlook

Key Influences on Fed Policy

Factor Impact
Tariffs Could cause inflation and delay rate cuts
Economic Slowdown Could prompt earlier rate cuts
Political Pressure Minimal direct influence, Fed emphasizes data dependence

What About the Future?

Projections suggest that rates may gradually decline in the coming years. This is based on the assumption that the Fed will continue its easing cycle. However, remember that these are just projections. Unexpected events can throw things off course.

Taking Advantage of Lower Rates: Refinancing Your Mortgage

If you already own a home, refinancing your mortgage could save you money. Refinancing involves replacing your existing mortgage with a new one, ideally at a lower interest rate.

When lower rates become available, it's something you should think about. Evaluate your options. Do the Math.

Check to see if the overall savings outweigh the costs.

Tips for Securing the Best Mortgage Rate

Securing the best rate requires some effort. So, here's my advice:

  • Improve Your Credit Score: This is the most important factor. Pay your bills. Pay on time.
  • Save for a Larger Down Payment: This reduces the risk for the lender.
  • Shop Around: Get quotes from multiple lenders.
  • Consider Different Loan Types: Explore fixed-rate, adjustable-rate, and FHA loans.
  • Negotiate: Don’t be afraid to negotiate with lenders.
  • Get Pre-Approved: This shows sellers that you’re a serious buyer.

The Impact of Down Payments

Down Payment Impact on Interest Rate
5% Higher risk, higher rate
20% Lower risk, potentially lower rate

Your financial health is worth investing in. Taking steps for credit and savings is worth considering. This will go a long way in helping you secure competitive mortgage rates.

Final Thoughts

Mortgage rates are constantly changing. Keep an eye on the market and be prepared to act when the time is right. Don’t be afraid to seek help. Work with a qualified mortgage broker or financial advisor. They can help navigate the complexities of the mortgage market.

Keep gathering information. Stay informed. And remember, finding the right mortgage is possible with the right approach.

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:

  • 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 Predictions, Mortgage Rates Today

Mortgage Rates Today – July 11, 2025: 30-Year FRM Spikes After a Period of Stability

July 11, 2025 by Marco Santarelli

Today's Mortgage Rates July 11, 2025: 30-Year FRM Rises After a Period of Stability

As of today, July 11, 2025, mortgage rates are on the rise, with national averages for 30-year fixed mortgage rates climbing to 6.83% from 6.81% the previous day. The increase follows a period of relative stability in the mortgage market. This spike signals potential changes in the lending landscape that homeowners and prospective buyers should be aware of. In addition to borrowing costs rising, refinancing rates exhibit contrasting trends, with the average 30-year fixed refinance rate slightly decreasing to 7.04%.

Mortgage Rates Today – July 11, 2025: 30-Year FRM Spikes After a Period of Stability

Key Takeaways:

  • 30-year fixed mortgage rate: Increased to 6.83%
  • 15-year fixed mortgage rate: Stabilized at 5.86%
  • 30-year fixed refinance rate: Decreased to 7.04%
  • Expectations: Future trends may lead to fluctuations based on Federal Reserve policies

The latest movements in mortgage rates are influenced by various economic dynamics, including the ongoing policies of the Federal Reserve and the current inflation rates affecting consumer behavior.

Overview of Current Mortgage Rates

In order to provide a clear understanding of the current mortgage rates available for various loan types, the following tables illustrate the recent changes for both conventional and government-backed loan programs.

Conforming Loan Rates

Program Rate 1 Week Change APR 1 Week Change
30-Year Fixed Rate 6.83% Up 0.06% 7.30% Up 0.07%
20-Year Fixed Rate 6.25% Down 0.09% 6.53% Down 0.17%
15-Year Fixed Rate 5.86% Up 0.05% 6.17% Up 0.06%
10-Year Fixed Rate 5.78% Up 0.17% 5.99% Up 0.22%
5-Year ARM 7.93% Up 0.33% 8.18% Up 0.19%

Government Loan Rates

Program Rate 1 Week Change APR 1 Week Change
30-Year Fixed Rate FHA 7.03% Up 0.25% 8.06% Up 0.25%
30-Year Fixed Rate VA 6.43% Up 0.14% 6.65% Up 0.15%
15-Year Fixed Rate FHA 5.25% Down 0.13% 6.21% Down 0.13%

The 30-year fixed mortgage rates have increased by 6 basis points compared to the previous week, reflecting a trend observed over the last few months. Understanding these shifts is essential for homeowners looking to buy or refinance their homes, especially when making long-term financial decisions.

30-Year Fixed Rate Mortgage

The 30-year fixed-rate mortgage is often the go-to choice for many buyers, particularly first-time homeowners. Here are some key characteristics of this mortgage type:

  • Stability and Predictability: The defining feature of a 30-year fixed mortgage is that the interest rate remains constant throughout the lifespan of the loan. This stability allows for predictable monthly payments, facilitating better budget planning for homeowners.
  • Lower Monthly Payments: With repayment stretched over 30 years, monthly payments on this type of mortgage are generally lower than those of shorter-term loans. This affordability can help buyers manage their financial responsibilities, especially when starting out. For instance, with the current average rate of 6.83%, a homeowner borrowing $300,000 would have a monthly payment of approximately $1,964, excluding property taxes and insurance.
  • Total Interest Paid: While the lower monthly payment sounds appealing, it’s important to consider the long-term implications. Borrowers end up paying significantly more in interest over the life of the loan. For example, if the same homeowner kept a 30-year fixed mortgage at 6.83%, they would pay around $219,059 in interest over the entire term, significantly increasing the total cost of the home.
  • Affordability in Housing: The longer repayment term allows borrowers to afford more home than they might qualify for under a shorter-term mortgage. This feature is particularly beneficial in high-cost areas where prices tend to be elevated.

15-Year Fixed Rate Mortgage

On the other hand, the 15-year fixed-rate mortgage is often chosen by those looking to pay off their home more quickly and with less total interest. Here’s what you need to know:

  • Higher Monthly Payments: While the 15-year mortgage offers a lower interest rate—currently at about 5.86%—the shorter term means that monthly payments are higher. For example, a $300,000 loan would result in monthly payments of approximately $2,363. However, many buyers appreciate this as it accelerates their path toward ownership.
  • Significant Interest Savings: Borrowers who opt for a 15-year mortgage save considerable money on interest compared to a 30-year mortgage. In our example, the homeowner with a 15-year fixed mortgage at the average rate would pay about $89,205 in interest over the life of the loan. This is a substantial difference, reflecting a savings of nearly $130,000 compared to the 30-year fixed rate option.
  • Equity Building: With a 15-year mortgage, homeowners build equity more quickly, which can be an attractive feature for those looking to leverage their home’s value for future investments or refinancing.
  • Ideal for Financially Stable Buyers: This option is especially appealing to those who are more financially stable, such as those who might be in their mid-career or nearing retirement. The higher monthly payments are often more manageable for someone with a steady income and less likely to be affected by financial changes.


Related Topics:

Mortgage Rates Trends as of July 10, 2025

Mortgage Rates Predictions for the Next 30 Days: July 3-August 3

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

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

Refinancing Rates Today

At this time, refinancing options are also essential to examine, as they play a critical role in determining whether homeowners should consider refinancing existing mortgages or not. The table below provides the current rates for refinancing.

Program Rate 1 Week Change APR 1 Week Change
30-Year Fixed Rate 7.04% Down 0.03% 7.30% Up 0.07%
15-Year Fixed Rate 5.98% Up 0.04% 6.17% Up 0.06%
5-Year ARM 8.04% Up 0.04% 8.18% Up 0.19%

The current refinance rates have decreased slightly for the 30-year fixed mortgage due to market adjustments, while the 15-year fixed rate has experienced a slight increase. Understanding these rates will help homeowners decide whether they want to change their current mortgage situation.

Federal Reserve's Influence on Mortgage Rates

The Federal Reserve's actions significantly influence mortgage rates through monetary policy. The Fed had previously cut rates three times late last year, which temporarily contributed to lowering mortgage rates, suggesting a shift in the economic outlook. As of now, the federal funds rate is targeted between 4.25% and 4.5%, upholding a relatively stable rate environment through mid-2025.

Looking ahead, the Fed is considering further rate cuts, targeted for the latter half of 2025. If inflation stabilizes and economic indicators continue to show signs of weakness, it could prompt more aggressive cuts. As a result, this trajectory may indirectly cause mortgage rates to either lower or maintain a steady range, depending on broader economic conditions.

Current Economic Landscape

With inflation affecting overall purchasing power and impacting consumer spending, the current economic landscape reveals a sense of caution among potential home buyers and those looking to refinance loans. The gross domestic product (GDP) growth is forecasted to be around 1.4% for 2025, suggesting a sluggish pace that may trigger lower rates if conditions worsen.

Moreover, persistent unemployment rates could contribute to a shift in the mortgage market, where demand could either increase or decrease based on consumers' spending capability and sentiments. This dynamic is crucial for homeowners deciding whether to refinance, as a drop in rates could lead to substantial savings on monthly payments.

Summary: As of July 11, 2025, the mortgage rates reflect a blend of upward trends across standard borrowing costs while refinancing options have slightly varied. The Fed's choices regarding interest rates will continue to play a pivotal role in shaping the market's direction.

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
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • 30-Year Fixed Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Fixed Mortgage Rate Predictions for Next 5 Years: 2025-2029
  • 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

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