Mortgage Rates Dip Slightly: Is Now the Right Time to Buy?
Rates Take a Breather
Mortgage rates have finally taken a slight dip, with the 30-year fixed rate decreasing by one basis point to 6.67% and the 15-year fixed rate dropping four basis points to 6.00%. While rates are expected to decline throughout 2025, it’s unlikely to be a drastic drop.
Current Mortgage Rates
Here are the current mortgage rates, according to the latest data:
- 30-year fixed: 6.67%
- 20-year fixed: 6.51%
- 15-year fixed: 6.00%
- 5/1 ARM: 6.68%
- 7/1 ARM: 6.65%
- 30-year VA: 6.08%
- 15-year VA: 5.63%
- 5/1 VA: 6.23%
Refinance Rates
And here are today’s mortgage refinance rates:
- 30-year fixed: 6.65%
- 20-year fixed: 6.62%
- 15-year fixed: 5.89%
- 5/1 ARM: 6.04%
- 7/1 ARM: 6.68%
- 30-year VA: 6.05%
- 15-year VA: 5.77%
- 5/1 VA: 5.97%
The Pros and Cons of 30-Year Fixed Mortgages
A 30-year fixed mortgage offers lower monthly payments and predictable payments, but comes with higher interest rates and more interest paid over the life of the loan.
The Advantages of 15-Year Fixed Mortgages
On the other hand, 15-year fixed mortgages offer lower interest rates and less interest paid over the life of the loan, but come with higher monthly payments.
Adjustable-Rate Mortgages: Weighing the Risks and Rewards
Adjustable-rate mortgages offer lower introductory rates, but come with the risk of rate increases later on. They’re ideal for those who plan to move before the intro-rate period ends.
Is Now the Right Time to Buy?
With mortgage rates relatively low and home prices stabilizing, now might be a good time to buy a house. Additionally, winter months tend to have less competition, making it a good time to negotiate.
Factors Affecting Mortgage Rates
Keep an eye on inflation, the Federal Reserve, and the 10-year Treasury note to stay ahead of interest rate changes. By understanding these factors, you’ll be better prepared to make informed decisions about your mortgage.
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