Here’s a look at the latest mortgage rate trends, home price updates, and key market insights to keep in mind.

Understanding these shifts can help you make the best financial decisions.

Rate Stability – Mortgage rates have remained steady since the start of the year, with forecasts suggesting a potential gradual decline through 2025. 

Recent Rate Decreases – Mortgage interest rates have decreased again today. According to our trusted lenders, the 30-year fixed mortgage rate has dropped by nine basis points to 6.35%, and the 15-year fixed rate is down 13 basis points to 5.64%. With a full week of rate decreases, now might be the perfect time to start applying for preapproval!

Strong Buyer Demand – Despite higher rates, 40% of homes are selling within the first 30 days on market. 

Home Price Growth – The average U.S. home price now stands at $513,600, reflecting a 4.5% increase in 2024, slightly up from 4.1% in 2023. 

Improving Inventory – The housing supply is still tight at 1.7 months, but we are seeing slight improvements, offering more options for buyers. 

Current Mortgage Rates:

30-year fixed: 6.35%

20-year fixed: 6.06%

15-year fixed: 5.64%

5/1 ARM: 6.56%

7/1 ARM: 6.39%

30-year VA: 5.80%

15-year VA: 5.30%

5/1 VA: 5.89%

Today’s Mortgage Refinance Rates:

30-year fixed: 6.36%

20-year fixed: 6.01%

15-year fixed: 5.68%

5/1 ARM: 6.78%

7/1 ARM: 6.74%

30-year VA: 5.82%

15-year VA: 5.47%

5/1 VA: 5.97%

30-year FHA: 6.06%

15-year FHA: 5.53%

Strategic Considerations:

Refinance Opportunities: Some homeowners may still benefit from refinancing, especially those who purchased at higher rates.

First-Time Homebuyers: Now could be an ideal time for first-time buyers as inventory gradually improves.

Investor Strategies: The steady home appreciation makes real estate an attractive long-term investment. DSCR loan options can help investor clients expand their portfolios.