Homebuyers got a bit of good news this week: mortgage rates slipped for both 30-year and 15-year fixed loans, giving those in the market for a home a slightly better window to lock in a deal.
According to the latest Freddie Mac data, the average 30-year fixed mortgage rate dipped to 6.63%, down nine basis points from last week, while the 15-year fixed fell to 5.75%. Though these moves are modest, they’re the lowest levels we’ve seen in weeks and for some buyers, that’s enough to tip the scales toward making a purchase.
Still, don’t get your hopes up for a return to sub-6% rates anytime soon. Most housing market forecasts suggest rates will hover between 6% and 7% for the rest of the year.
Why It Might Be Time to Lock In
If you’re planning to buy before 2026, locking in a rate now could be a smart move especially if you choose a lender offering a rate buydown option. These programs allow you to re-lock your rate at a lower level if the market drops before you close, essentially giving you a “second chance” at savings.
Today’s Average Mortgage Rates (Zillow data)
- 30-year fixed: 6.63%
- 20-year fixed: 6.03%
- 15-year fixed: 5.75%
- 5/1 ARM: 6.90%
- 7/1 ARM: 6.86%
- 30-year VA: 6.03%
- 15-year VA: 5.47%
- 5/1 VA: 6.03%
Average Refinance Rates
- 30-year fixed: 6.45%
- 20-year fixed: 6.10%
- 15-year fixed: 5.71%
- 5/1 ARM: 7.23%
- 7/1 ARM: 7.21%
- 30-year VA: 6.06%
- 15-year VA: 6.01%
- 5/1 VA: 6.00%
Refinance rates tend to run a bit higher than purchase rates, though that isn’t always the case.
Understanding Your Rate Choices
Fixed-Rate Mortgages
A fixed rate locks in your interest for the full term of the loan, making budgeting predictable. The trade-off: longer terms like 30 years come with lower monthly payments but more interest over time, while shorter terms like 15 years have higher payments but save you thousands in interest.
Adjustable-Rate Mortgages (ARMs)
ARMs typically start lower than fixed rates, but that’s not always true in today’s market—recently, many ARMs have been equal to or higher than 30-year fixed rates. They can still make sense if you plan to sell or refinance before the initial fixed period ends, but compare carefully before assuming they’ll save you money.
Will Rates Keep Dropping in 2025?
Probably not by much.
- Mortgage Bankers Association forecast: 30-year rate at 6.8% in Q3, easing to 6.7% by year-end.
- Fannie Mae forecast: 6.5% in Q3, dipping to 6.4% in Q4.
That means the relief we’re seeing now is likely as good as it gets this year. If you’re in the market, the current dip could be your best opportunity to secure a rate before any market volatility nudges them back up. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
