Today’s Mortgage Rates – April 24, 2025: Rates Drop Amid Potential Tariff Relief on China

Today's mortgage rates (April 24, 2025) show a slight dip, with the average 30-year fixed mortgage rate at 6.81% according to Zillow. This decrease is a welcome sign, but understanding the factors influencing these rates is crucial for making informed decisions. Let's dive into the details and explore what's driving these changes.

Today's Mortgage Rates – April 24, 2025: Rates Drop Amid Potential Tariff Relief on China

The Big News: Rates Edge Down

Okay, so the headline is good news. We're seeing a slight decrease in mortgage rates today. According to Zillow's latest data, the average rates are:

• 30-year fixed: 6.81% (down 6 basis points)
• 15-year fixed: 6.10% (down 8 basis points)

This is a positive shift, especially considering the recent volatility in the market. But why the change?

Trump's Comments and the Market's Reaction

The primary driver behind this dip seems to be related to comments made by former President Donald Trump. His indication that he wouldn't fire Federal Reserve Chair Jerome Powell and potential easing of tariffs on China have calmed the markets, leading to a drop in Treasury yields. Mortgage rates often track the 10-year Treasury yield, so any movement there typically affects mortgage rates as well.

Why Are Mortgage Rates Important?

Mortgage rates dictate the cost of borrowing money to buy a home. Even small fluctuations can significantly impact your monthly payments and the total amount you pay over the life of the loan. Keeping a close eye on these rates is vital, especially if you're actively looking to enter the housing market or refinance an existing mortgage.

A Deeper Dive: What's Influencing the Market?

Here's a breakdown of factors influencing today's mortgage rates:

• Presidential Rhetoric: As we saw, comments from prominent political figures can have an immediate impact on market sentiment and, subsequently, interest rates. Uncertainty breeds volatility.
• Trade Wars: Trade disputes, like the one with China, inject uncertainty into the economy, often impacting Treasury yields and mortgage rates.
• Federal Reserve Policy: The Fed's actions, particularly regarding interest rates and monetary policy, are a significant driver of mortgage rates.
• Overall Economic Health: Factors like employment rates, inflation, and GDP growth all play a role in shaping the economic landscape and influencing mortgage rates.

The Flip Side: Rates Still High

While the recent dip is encouraging, it's important to remember that rates are still relatively high compared to where they were a few years ago. They're hovering around the same levels as this time last year, meaning affordability remains a challenge for many potential homebuyers.

Don't Forget Adjustable-Rate Mortgages (ARMs)

It's also worth noting that adjustable-rate mortgages (ARMs) are behaving differently. Today, the 5/1 ARM rate is up 27 basis points to 7.39%. In the past, ARMs were seen as a way to get a lower initial rate, but that's not necessarily the case right now.

• 5/1 ARM: 7.39%
• 7/1 ARM: 7.38%

Important Note: Be cautious with ARMs. While the initial rate might be tempting, it can adjust upwards after the fixed-rate period, potentially leading to higher monthly payments down the road.

Here's a full table of today's mortgage rates as per the Zillow data:

Mortgage Type	Rate
30-Year Fixed	6.81%
20-Year Fixed	6.56%
15-Year Fixed	6.10%
5/1 ARM	7.39%
7/1 ARM	7.38%
30-Year VA	6.39%
15-Year VA	5.85%
5/1 VA	6.34%

Refinancing? Here's What You Need to Know

If you're considering refinancing your mortgage, you'll want to pay attention to refinance rates. Refinance rates are often slightly higher than purchase rates, but that's not always the case. Here's a snapshot of today's refinance rates:

Mortgage Type	Rate
30-Year Fixed	6.83%
20-Year Fixed	6.58%
15-Year Fixed	6.16%
5/1 ARM	7.45%
7/1 ARM	7.48%
30-Year VA	6.39%
15-Year VA	6.03%
5/1 VA	6.49%

What Can You Do? Take Control!

While you can't control the broader economic factors influencing mortgage rates, there are things you can do to improve your chances of getting a better rate:

• Shop Around: This is the most important thing! Get quotes from multiple lenders. Don't settle for the first offer you receive. Different lenders have different rates and fees.
• Improve Your Credit Score: A higher credit score demonstrates lower risk to lenders and can result in a lower interest rate.
• Lower Your Debt-to-Income Ratio (DTI): Lenders want to see that you have a manageable debt load. Paying down debt can improve your DTI and potentially lower your rate.
• Increase Your Down Payment: A larger down payment reduces the amount you need to borrow and can also lead to a better interest rate.

30-Year vs. 15-Year Fixed: Which is Right for You?

Choosing between a 30-year and a 15-year fixed-rate mortgage is a big decision. Here's a quick rundown:

• 30-Year Fixed:
  • Lower monthly payments
  • Higher interest rate over the life of the loan
  • Good for those prioritizing affordability each month
• 15-Year Fixed:
  • Higher monthly payments
  • Lower interest rate over the life of the loan
  • Pay off your mortgage faster
  • Good for those who can afford higher payments and want to save on interest

Personally, I like the idea of paying off a mortgage faster, but I also understand that the higher monthly payments of a 15-year loan aren't feasible for everyone. Consider your financial situation and goals carefully.

The VA Loan Option

For eligible veterans, VA loans offer fantastic benefits, often including lower interest rates and no down payment requirements. As you can see from the tables above, VA rates are generally lower than conventional rates. If you're a veteran, exploring this option is definitely worth your time.

Final Thoughts

The mortgage market is dynamic and influenced by a complex web of factors. While today's mortgage rates show a slight decrease, it's essential to stay informed and consider your individual circumstances when making decisions about buying or refinancing a home. Don't be afraid to ask questions, shop around, and seek professional advice to find the best mortgage solution for you.