High rates may be here to stay

Bynewspules
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Most of today’s mortgage rates are stagnant. According to Zillow, both the 30-year and 15-year fixed interest rates have not been reduced and are set at this point. 6.67% And 5.95%respectively.

Unless a severe financial meltdown occurs, 30-year mortgage rates are likely to remain in the 6.5%-7% range for some time. Do you have a down payment in the bank and feel ready to buy? Then you might want to start house hunting now.

Have questions about buying, owning or selling a home? Submit your question to Yahoo’s panel of Realtors using This Google form.

Here are current mortgage rates, according to the latest Zillow data:

  • 30 years fixed; 6.67%

  • 20 years fixed; 6.44%

  • 15 years fixed; 5.95%

  • 5/1 Arm: 6.66%

  • 7/1 Arm: 6.81%

  • 30-year VA: 6.12%

  • 15-year VA: 5.55%

  • 5/1 VA: 6.12%

  • 30 years FAA: 6.29%

Remember, these are national averages and rounded to the nearest percent.

Learn more: Here’s how mortgage rates are determined

These are today’s mortgage refinance rates, according to the latest Zillow data.

  • 30 years fixed; 6.73%

  • 20 years fixed; 6.33%

  • 15 years fixed; 6.00%

  • 5/1 Arm: 6.63%

  • 7/1 Arm: 6.72%

  • 30-year VA: 6.12%

  • 15-year VA: 5.82%

  • 5/1 VA: 6.06%

Again, the numbers presented are national averages rounded to the nearest hundred. The cost of a mortgage modification is often higher than the cost of buying a home, although that’s not always the case.

Use Yahoo Finance’s free mortgage calculator to see how different interest rates and terms will affect your monthly loan payment. It also shows how home prices and down payment rates play into things.

Our calculator includes homeowners insurance and property taxes in monthly payment estimates. You have the option to include expenses for private mortgage insurance (PMI) and homeowners association dues if they apply to you. These details will give you a more accurate monthly payment estimate than simply calculating your mortgage principal and interest.

A 30-year fixed mortgage has two main advantages: your payments are low, and your monthly payments are predictable.

A 30-year fixed-rate mortgage has relatively low monthly payments because you’re spreading your payments over a longer period of time than a 15-year mortgage. Your payments are predictable because, unlike an adjustable-rate mortgage (ARM), your rate doesn’t change from year to year. Most years, the only things that can affect your monthly payment are changes in your homeowners insurance or property taxes.

The main downside to 30-year fixed mortgage rates is mortgage interest – both short-term and long-term.

A 30-year fixed term comes at a higher rate than a shorter fixed term, and is higher than the introductory rate to a 30-year ARM. The higher your rate, the higher your monthly payment. You’ll pay more interest over the life of your loan because of both the higher amount and the longer term.

The pros and cons of 15-year fixed mortgage rates are fundamentally different from 30-year rates. Yes, your monthly payments will still be predictable, but another benefit is that shorter terms come with lower interest rates. Not to mention, you’ll pay off your mortgage 15 years early. So you’ll save hundreds of thousands of dollars in interest over the life of your loan.

However, since you are paying the same amount in half the term, your monthly payment will be higher if you choose a 30-year term.

Dig deep; 15-year to 30-year loans

Adjustable-rate loans lock in your rate for a certain period of time, then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then goes up or down once a year for the remaining 25 years.

The main advantage is that the introductory rate is lower than what you would get with a 30-year fixed rate, so your monthly payments will be lower. (Current average rates don’t reflect this, however—fixed rates are actually lower. Check with your lender before deciding on a fixed or adjustable rate.)

With an ARM, you don’t know what the loan rate will be after the introductory period is over, so your rate may increase later. This can end up costing you more, and your monthly payments are unpredictable from year to year.

But if you plan to move before the introductory period expires, you can reap the benefits of lower rates without incurring price increases down the road.

Learn more: Adjustable-rate versus fixed-rate mortgages

The national average 30-year mortgage rate is now 6.67%, according to Zillow. But keep in mind that averages may vary depending on where you live. For example, if you are buying in a city with a high cost of living, the price may be higher.

Mortgage rates will drop by the end of 2025. However, any declines are likely to be gradual – and may peak before slowing.

No, for the most part, mortgage rates have been rising for several weeks.

In many ways, securing a low mortgage is the same as when you bought your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Short-term refinancing can get you a lower rate, even if your monthly mortgage payment is higher.