MATIASGUARRO

 Today, the mortgage interest rate on a 30-year fixed mortgage is 6.37%, according to the Mortgage Research Center, while the average rate on a 15-year mortgage is 5.45%. On a 30-year jumbo mortgage, the average rate is 6.74%.

30-Year Mortgage Rates Climb 0.81%

Today’s average rate on a 30-year mortgage (fixed-rate) remained at 6.37% from 6.37% yesterday. One week ago, the 30-year fixed was 6.32%.

The APR on a 30-year fixed inched up to 6.4%. This time last week, it was 6.34%. APR is the all-in cost of your loan.

At an interest rate of 6.37%, a 30-year fixed mortgage would cost $623 per month in principal and interest (taxes and fees not included) per $100,000 borrowed, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be about $125,088 per $100,000 borrowed.

15-Year Mortgage Rates Climb 0.09%

Today’s 15-year mortgage (fixed-rate) is 5.45%, up 0.09% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.45%.

The APR on a 15-year fixed is 5.5%. It was 5.49% a week earlier.

A 15-year, fixed-rate mortgage with today’s interest rate of 5.45% will cost $815 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $47,085 in total interest.

Jumbo Mortgage Rates Climb 0.81%

Today’s average interest rate on a 30-year fixed-rate jumbo mortgage (a mortgage above 2025’s conforming loan limit of $806,500 in most areas) climbed 0.81% from last week to 6.74%.

Borrowers with a 30-year, fixed-rate jumbo mortgage with today’s interest rate of 6.74% will pay approximately $648 per month in principal and interest per $100,000 borrowed. That would be $133,567.

Trends in Mortgage Rates for 2025

After reaching 7.04% in January, the average interest rate for a 30-year fixed mortgage has steadily remained in the mid-to-high 6% range. The 15-year fixed mortgage rate has hovered between the low-6% and mid-to-high 5% range since its January peak of 6.27%.

Rates have trended downward since mid-January 2025, but experts aren’t forecasting further significant decreases in 2025. Rate drops may continue in 2026, especially if the Federal Reserve continues to cut the federal funds rate down.

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When Will Mortgage Rates Go Down?

Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop.

Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit.

The Federal Reserve’s decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows.

A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens.

How Much House Can I Afford?

Buying a house is a huge purchase and can put a big dent in your savings. Before you start looking, it’s important to calculate how much house you can afford and you’re willing to spend.

Not only do you want to consider your income and debt, but you also want to factor in emergency savings and any long-term financial goals such as retirement or college.

These are some basic financial factors that go into home affordability:

• Income
• Debt
• Debt-to-income ratio (DTI)
• Down payment
• Credit score

How Are Mortgage Rates Determined?

Multiple factors affect the interest rate for a mortgage, including the economy’s overall health, benchmark interest rates and borrower-specific factors.

The Federal Reserve’s rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn’t directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation.

Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment.

Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term.

Frequently Asked Questions (FAQs)