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Tag: mortgage rate

  • HELOC and home equity loan rates Sunday, February 22, 2026: Monthly payments fall (example: $302 a month)

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    Interest rates on home equity lines of credit (HELOCs) and home equity loans are the lowest in years. And that means your monthly payment is more affordable. The example at the bottom of this page illustrates a HELOC payment of $302 a month on a $50,000 equity draw. It’s a valid estimate, but of course, your repayment terms may vary.

    The average HELOC rate is 7.23%, according to real estate data firm Curinos. The 52-week HELOC low was 7.19%. The national average rate on a home equity loan is 7.44%. The low was 7.38% in early December 2025. Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

    With primary home mortgage rates stuck near 6%, homeowners with home equity and a low primary mortgage rate may not be able to access the increasing value of their home. For those who are unwilling to give up their low home loan rate, a home equity line of credit or home equity loan can be an excellent solution.

    The Federal Reserve estimates that homeowners have $34 trillion dollars of equity locked within the walls of their homes. A second mortgage HELOC, or HEL allows U.S. homeowners to tap into the near-record-setting equity they have accumulated.

    Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

    And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

    HELs don’t usually have introductory rates, so that’s one less variable to deal with. The fixed rate you earn on a home equity loan won’t change over the life of the agreement.

    You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Meanwhile, you’re paying down your low-interest-rate primary mortgage and earning even more wealth-building equity.

    Today, LendingTree is offering a HELOC APR as low as 6.13% on a credit line of $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.

    The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.

    And as always, compare fees and the fine print of repayment terms.

    The national average for a HELOC is 7.23%, and 7.44% for a home equity loan. However, rates vary from one lender to the next. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

    For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC or a home equity loan. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.25% interest rate, your monthly payment during the 10-year draw period would be about $302. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments may increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.

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  • Mortgage and refinance interest rates today, February 13, 2026: Low rates and new home discounts entice buyers

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    Mortgage rates slid a bit lower for the week. According to Freddie Mac, the average 30-year fixed rate fell two basis points to 6.09%. That’s a slim three basis points above the three-year low of 6.06%. The 15-year fixed-rate fell six basis points to 5.44%.

    Discounts on new homes have outpaced the resale market “for the first time in recent history,” Realtor.com reported Thursday. Prices were cut on nearly one in five new homes in late 2025.

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

    • 30-year fixed: 5.88%

    • 20-year fixed: 5.73%

    • 15-year fixed: 5.44%

    • 5/1 ARM: 6.08%

    • 7/1 ARM: 5.84%

    • 30-year VA: 5.52%

    • 15-year VA: 5.11%

    • 5/1 VA: 5.08%

    Remember, these are national averages and have been rounded to the nearest hundredth.

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

    • 30-year fixed: 6.00%

    • 20-year fixed: 5.86%

    • 15-year fixed: 5.48%

    • 5/1 ARM: 6.15%

    • 7/1 ARM: 6.18%

    • 30-year VA: 5.44%

    • 15-year VA: 5.15%

    • 5/1 VA: 5.03%

    Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.

    Dig deeper into the 7 home refinance options.

    Your mortgage rate plays a large role in how much your monthly payment will be. Use this mortgage calculator to see how your mortgage amount, rate, and term length will impact your monthly payments:

    You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders.

    A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.

    A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you obtain a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30-year term unless you refinance or sell.

    An adjustable-rate mortgage locks in your rate for a predetermined period and then adjusts it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once per year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and housing market.

    At the beginning of your mortgage term, most of your monthly payment goes toward interest. Your monthly payment toward mortgage principal and interest stays the same throughout the years — however, less and less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.

    A 30-year fixed-rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term, and you will pay significantly more in interest over the years.

    You may want to consider a 15-year fixed-rate mortgage if you aim to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot in interest in the long run. But you’ll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.

    Typically, an adjustable-rate mortgage could be good if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates have similar to (or even higher than) 30-year fixed rates recently. Before getting an ARM just for a lower rate, compare your rate options from term to term and lender to lender.

    Mortgage rates have generally fallen since the end of last May, and home loan rates are just above three-year lows, according to Freddie Mac.

    Economists don’t expect drastic mortgage rate declines through the end of 2026. Even with the most recent rate pause of the federal funds rate, mortgage rates continue to hover in the low-6% range.

    According to Freddie Mac, the national average 30-year mortgage fell by two basis points to 6.09% for the week, while the average 15-year mortgage rate dropped by six basis point to 5.44%.

    According to its January forecast, the Mortgage Bankers Association expects the 30-year mortgage rate to be near 6.1% through 2026. Fannie Mae also predicts a 30-year rate near 6% through next year.

    Mortgage rates are likely to remain little changed in 2027. The MBA predicts 30-year fixed rates of 6.2% to 6.3% in 2027. Fannie Mae predicts average rates near 6% for the full year of 2027.

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  • HELOC and home equity loan rates Saturday, January 24, 2026: Why now is a smart time to tap home equity

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    HELOC and home equity loan rates range from near 7% to 9% nationally, settling in with an average near 7.5%. Second mortgage rates are at a multi-year low, making this an opportune time to cash out some of the value in your home.

    According to Curinos data, the average monthly HELOC rate has fallen to 7.25%, down 19 basis points from one month ago. The national average rate on a home equity loan is 7.56%, down three basis points.

    Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

    The Federal Reserve estimates that homeowners have $34 trillion dollars of equity locked within the walls of their homes. With mortgage rates refusing to budge, homeowners with home equity and a favorable primary mortgage rate may feel the frustration of not being able to access that growing value in their home. A second mortgage in the form of a HELOC or HEL can be a workable solution.

    Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen recently to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.

    A home equity loan may have a different margin because it is a fixed-interest product.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

    And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a higher rate.

    Again, because a home equity loan has a fixed rate, it’s unlikely to have an introductory “teaser” rate.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Look for a lender offering a below-market introductory rate. For example, FourLeaf Credit Union is currently offering a HELOC APR of 5.99% for 12 months on a line up to $500,000. That introductory rate will convert to a variable rate. When shopping for lenders, be aware of both rates.

    Also, pay attention to the minimum draw amount of a HELOC. The draw is the amount of money a lender requires you to initially take from your equity.

    The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.

    And as always, compare fees and the fine print of repayment terms.

    Rates vary from one lender to the next — and by where you live. You may see rates from nearly 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. The national average for a HELOC is 7.25%, and for a home equity loan is currently 7.56%.

    For homeowners with low primary mortgage rates and a significant amount of equity in their house, it’s likely one of the best times to obtain a HELOC or home equity loan. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year HELOC draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.

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  • HELOC and home equity loan rates Sunday, January 4, 2026: Lowest in over 36 months

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    National average rates for home equity lines of credit (HELOCs) and home equity loans (HELs) are well under 8%, the lowest in more than 36 months. Of course, home owners with the most equity in their homes — and the best credit — earn the lowest rates.

    According to real estate analytics firm Curinos, the average HELOC rate is 7.44%. The national average rate on a home equity loan is 7.59%. Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

    With primary home mortgage rates refusing to budge, homeowners with home equity and a favorable primary mortgage rate may feel the frustation of not being able to access that growing value in their home.

    For those who are unwilling to give up their low home loan rate, a home equity line of credit or home equity loan can be an excellent solution.

    The Federal Reserve estimates that homeowners have $36 trillion dollars of equity locked within the walls of their homes. A second mortgage HELOC or HEL allows U.S. homeowners to tap into the record-setting equity they have accumulated.

    Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

    And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

    HELs don’t usually have introductory rates, so that’s one less variable to deal with. The fixed rate you earn on a home equity loan won’t change over the life of the agreement.

    You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Meanwhile, you’re paying down your low-interest-rate primary mortgage.

    Today, LendingTree is offering a HELOC APR as low as 6.36% on a credit line of $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.

    The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.

    And as always, compare fees and the fine print of repayment terms.

    The national average for a HELOC is 7.44% and for a home equity loan is currently 7.59%. However, rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

    For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC or a home equity loan. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.

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  • Despite Fed rate cuts, mortgage rates could still rise. Here’s why

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    Mortgage rates are the interest you pay to borrow money for *** home. Higher rates mean higher monthly payments because of accrued interest, which costs you more over the life of *** loan. The Federal Reserve set short-term interest rates, which influence how much you owe for things like credit cards and car loans. But according to experts, mortgage rates do not follow the Fed. Instead they follow the 10-year Treasury, which has to do with US government bonds. Right now, the bond market is nervous about inflation. So even with the Fed’s recent Rate cut in December, mortgage rates didn’t budge. Our get the Facts data team dug into the numbers to show us how mortgages have changed over the last decade. Rates remain high, hovering an average of 6% this year, the lowest rates have been in the last decade and came during the COVID pandemic when they bottomed out at 2.65% in January of 2021. But mortgage rates have hovered around 3 to 4% until the start of 2022 when they surpassed 5% and haven’t dropped. Below 6% since September 2022, and these high rates can be painful when buying *** home. Our get the facts data team found the most expensive mortgages were in places like Santa Clara, San Mateo, and Marin Counties, all in California. But Nantucket County in Massachusetts tops the list, with mortgages averaging nearly $10,000 in 2025. The least expensive are mostly in the South or Midwest, like Todd County, South Dakota or Stewart County, Georgia. Where an average mortgage is over $300. If you’re trying to buy *** home, experts tell our data team there are 3 barriers right now, those high mortgage rates, high home prices, and buyers just not wanting to buy *** house right now due to other levels of uncertainty. If you’re curious with how your monthly mortgage rate has changed, our get the Facts data team created *** tool on our website. You just plug in your county, and it calculates how much more or less you’re paying compared to 10 years ago. Reporting in Washington, I’m Amy Lou.

    Despite Fed rate cuts, mortgage rates could still rise. Here’s why

    The Federal Reserve cut interest rates by 25 basis points at its final meeting of 2025, but the 30-year fixed-rate mortgage remained high at 6.22%.

    Updated: 5:28 AM PST Dec 31, 2025

    Editorial Standards ⓘ

    The Federal Reserve cut interest rates by 25 basis points at its final meeting of 2025, but an expert says it may not translate into lower mortgage rates. Susan Wachter, a professor of real estate at the Wharton School at the University of Pennsylvania, said mortgage rates take their metric cue from the 10-year Treasury.”The two rates are disconnected. The only time the two rates move together is if we’re moving towards a recession,” Wachter said. Mortgage rates are the interest you pay to borrow money to buy a home. Higher mortgage rates raise monthly payments because more interest accrues on the principal mortgage each month.The 30-year fixed-rate mortgage averaged 6.22% as of Dec. 11, 2025. That is below the year-to-date average of 6.62%, but Wachter said rates remain high.”Just a matter of four years ago, mortgage rates were 3 or 4%, so this has a big impact on the overall economy, and we cannot, unfortunately, rely on the Federal Reserve’s action to solve this affordability problem,” Wachter said. National Association of Realtors data, analyzed by the Get the Facts Data Team, shows that monthly principal and interest mortgage payments in the United States have nearly doubled in the last 10 years.See how much your monthly mortgage has changed with our calculator.On average, the monthly cost of owning a home in counties across the United States was $1,424 in 2025, compared with $712 in 2015. That number doesn’t include costs like property taxes, homeowner’s insurance, homeowners association fees and other fees. Nantucket County in Massachusetts saw the monthly cost of owning a home more than double, reaching $9,797 in 2025 compared to $4,691 in 2015. The island, located about 30 miles south of Cape Cod, has a median home listing price of $5.2 million, according to Realtor.com.In California, mortgage rates rose by an average of 89% over the last 10 years. The highest mortgage rates in the state are found in Marin, San Mateo and Santa Clara counties.What is driving up mortgage costs?According to Wachter, homebuyers face three barriers: high mortgage rates, high housing prices and a buyer strike.High mortgage rates stem in part from large U.S. budget deficits caused by government borrowing during and after the COVID-19 pandemic. As a result, housing prices have risen and many buyers have pulled back. “Buyers are uncertain about their future job prospects, overall economy prospects — even stock market prospects. That uncertainty is keeping buyers on the sidelines, which is why housing prices, even though they’re near all-time highs, are not increasing anymore,” said Wachter.Aside from increasing mortgage costs, the housing market is also seeing a surge in delistings.”The homeowners who are selling are disappointed because their prices are falling, so they’re taking their homes off the inventory. We see that happening more than ever recently,” Wachter said.A recent report from Realtor.com shows that about 6% of listings have been removed from the market by sellers each month since June. That is the highest national delisting rate reported by Realtor.com since it began tracking this metric in 2022. PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4K

    NEW YORK —

    The Federal Reserve cut interest rates by 25 basis points at its final meeting of 2025, but an expert says it may not translate into lower mortgage rates.

    Susan Wachter, a professor of real estate at the Wharton School at the University of Pennsylvania, said mortgage rates take their metric cue from the 10-year Treasury.

    “The two rates are disconnected. The only time the two rates move together is if we’re moving towards a recession,” Wachter said.

    Mortgage rates are the interest you pay to borrow money to buy a home. Higher mortgage rates raise monthly payments because more interest accrues on the principal mortgage each month.

    The 30-year fixed-rate mortgage averaged 6.22% as of Dec. 11, 2025. That is below the year-to-date average of 6.62%, but Wachter said rates remain high.

    “Just a matter of four years ago, mortgage rates were 3 or 4%, so this has a big impact on the overall economy, and we cannot, unfortunately, rely on the Federal Reserve’s action to solve this affordability problem,” Wachter said.

    National Association of Realtors data, analyzed by the Get the Facts Data Team, shows that monthly principal and interest mortgage payments in the United States have nearly doubled in the last 10 years.

    See how much your monthly mortgage has changed with our calculator.

    On average, the monthly cost of owning a home in counties across the United States was $1,424 in 2025, compared with $712 in 2015. That number doesn’t include costs like property taxes, homeowner’s insurance, homeowners association fees and other fees.

    Nantucket County in Massachusetts saw the monthly cost of owning a home more than double, reaching $9,797 in 2025 compared to $4,691 in 2015. The island, located about 30 miles south of Cape Cod, has a median home listing price of $5.2 million, according to Realtor.com.

    In California, mortgage rates rose by an average of 89% over the last 10 years. The highest mortgage rates in the state are found in Marin, San Mateo and Santa Clara counties.

    What is driving up mortgage costs?

    According to Wachter, homebuyers face three barriers: high mortgage rates, high housing prices and a buyer strike.

    High mortgage rates stem in part from large U.S. budget deficits caused by government borrowing during and after the COVID-19 pandemic. As a result, housing prices have risen and many buyers have pulled back.

    “Buyers are uncertain about their future job prospects, overall economy prospects — even stock market prospects. That uncertainty is keeping buyers on the sidelines, which is why housing prices, even though they’re near all-time highs, are not increasing anymore,” said Wachter.

    Aside from increasing mortgage costs, the housing market is also seeing a surge in delistings.

    “The homeowners who are selling are disappointed because their prices are falling, so they’re taking their homes off the inventory. We see that happening more than ever recently,” Wachter said.

    A recent report from Realtor.com shows that about 6% of listings have been removed from the market by sellers each month since June. That is the highest national delisting rate reported by Realtor.com since it began tracking this metric in 2022.

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  • HELOC rates today, December 28, 2025: The equity-tapping advantage of 2026

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    The national average home equity line of credit interest rate continues to fall. For 2026, the year will begin with the lowest HELOC rates in more than three years. That’s a hugh advantage that homeowners looking to access the value in their homes will have in the new year.

    According to Curinos data, the average monthly HELOC rate is 7.44%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

    With mortgage rates refusing to budge, homeowners with home equity and a favorable primary mortgage rate may feel the frustation of not being able to access that growing value in their home.

    For those who are unwilling to give up their low home loan rate, a home equity line of credit can be a workable solution.

    The Federal Reserve estimates that homeowners have $36 trillion dollars of equity locked within the walls of their homes. A second mortgage HELOC allows U.S. homeowners to tap into the record-setting equity that has accumulated.

    HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

    And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

    You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Meanwhile, you’re paying down your low-interest-rate primary mortgage.

    Today, LendingTree is offering a HELOC APR as low as 6.36% on a credit line of $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.

    And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

    The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

    Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

    For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.

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  • HELOC rates today, December 21, 2025: A holiday cash flow solution gets a rate break

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    As the national average home equity line of credit interest rate continues to fall, homeowners are finding a HELOC to be a welcome holiday cash flow solution. With pricing as low as it’s been in three years, based on the prime rate, a HELOC is more affordable these days too.

    According to Curinos data, the average weekly HELOC rate is 7.44%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

    Homeowners had nearly $36 trillion of value in their homes at the end of the second quarter of 2025, according to the Federal Reserve. That’s the largest amount of home equity on record.

    With mortgage rates still lingering above 6%, homeowners are not likely to let go of their primary mortgage anytime soon, so selling a house or getting a cash-out refinance may not be an option. Why give up your 5%, 4% — or even 3% mortgage?

    Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative.

    HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has just fallen to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

    And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

    You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Meanwhile, you’re paying down your low-interest-rate primary mortgage.

    Today, LendingTree is offering a HELOC APR as low as 6.36% on a credit line of $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.

    And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

    The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

    Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

    For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.

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  • HELOC rates today, November 23, 2025: Lowest 2025 rates in time for holiday cash needs

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    Nationally, the average home equity line of credit interest rate remains under 8%, according to the analytics company Curinos. With the holidays looming, a HELOC can be an excellent source of cash when you need it most.

    According to Curinos data, the average weekly HELOC rate is 7.64%, its lowest point so far in 2025. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

    Homeowners have a huge amount of value tied up in their houses — nearly $36 trillion at the end of the quarter of 2025, according to the Federal Reserve. That’s the largest amount of home equity on record.

    With mortgage rates lingering above 6%, homeowners are not likely to let go of their primary mortgage anytime soon, so selling a house or getting a cash-out refinance may not be an option. Why give up your 5%, 4% — or even 3% mortgage?

    Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative.

    HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has fallen recently to 7.00%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.75%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

    And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

    You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Meanwhile, you’re paying down your low-interest-rate primary mortgage like the wealth-building machine you are.

    Today, LendingTree is offering a HELOC APR as low as 6.38% on a credit line of up to $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.

    And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

    The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

    Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from just below 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

    For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.

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  • Mortgage and refinance interest rates today, November 23, 2025: Fractional moves

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    Mortgage rates have made fractional moves up and down for weeks without much change. According to Zillow data, the current 30-year fixed mortgage rate is 6.11%. The 15-year fixed rate is 5.62%.

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

    • 30-year fixed: 6.11%

    • 20-year fixed: 5.94%

    • 15-year fixed: 5.62%

    • 5/1 ARM: 6.17%

    • 7/1 ARM: 6.08%

    • 30-year VA: 5.58%

    • 15-year VA: 5.33%

    • 5/1 VA: 5.32%

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

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

    • 30-year fixed: 6.28%

    • 20-year fixed: 6.19%

    • 15-year fixed: 5.73%

    • 5/1 ARM: 6.40%

    • 7/1 ARM: 6.43%

    • 30-year VA: 5.64%

    • 15-year VA: 5.30%

    • 5/1 VA: 5.35%

    Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.

    Learn whether now is a good time to refinance your mortgage.

    Use the mortgage calculator below to see how various mortgage terms and interest rates will impact your monthly payments.

    You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use. It also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest.

    The average 30-year mortgage rate today is 6.11%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is lower than with a shorter-term loan.

    The average 15-year mortgage rate is 5.62% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.

    A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher as you pay off the same amount in half the time.

    Let’s say you get a $300,000 mortgage. With a 30-year term and a 6.11% rate, your monthly payment toward the principal and interest would be about $1,820, and you’d pay $355,172 in interest over the life of your loan — on top of that original $300,000.

    If you get that same $300,000 mortgage with a 15-year term and a 5.62% rate, your monthly payment would jump to $2,470. But you’d only pay $144,671 in interest over the years.

    With a fixed-rate mortgage, your rate is locked in for the entire life of your loan. You will get a new rate if you refinance your mortgage, though.

    An adjustable-rate mortgage keeps your rate the same for a predetermined period of time. Then, the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remaining 23 years of your term.

    Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, it’s possible your rate will go up. Lately, though, some fixed rates have been starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other.

    Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.

    Waiting for rates to drop probably isn’t the best method to get the lowest mortgage rate right now. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.

    To find the best mortgage lender for your situation, apply for mortgage preapproval with three or four companies. Just be sure to apply to all of them within a short time frame — doing so will give you the most accurate comparisons and have less of an impact on your credit score.

    When choosing a lender, don’t just compare interest rates. Look at the mortgage annual percentage rate (APR) — this factors in the interest rate, any discount points, and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.

    According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.11%, and the average 15-year mortgage rate is 5.62%. But these are national averages, so the average in your area could be different. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas.

    The average 30-year fixed mortgage rate is 6.11% right now, according to Zillow. However, you might get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI).

    Mortgage rates have been inching down recently, but they aren’t expected to drop drastically in the near future.

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  • HELOC rates today, November 17, 2025: Less likely to fall more this year if the Fed delays

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    The current national average HELOC rate hasn’t been this low all year, according to the analytics company Curinos. Home equity line of credit rates may not decrease significantly before the end of the year, as the Federal Reserve hints that another rate cut might not occur until 2026.

    According to Curinos data, the average weekly HELOC rate is 7.64%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

    Homeowners have a huge amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That’s the third-largest amount of home equity on record.

    With mortgage rates lingering just over 6%, homeowners may not want to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why give up your 5%, 4% — or even 3% mortgage?

    Accessing some of the value locked into your house with a use-it-as-you-need-it HELOC can be an excellent alternative.

    HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has moved down to 7.00%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.75%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

    And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

    You don’t have to give up your low-rate mortgage to access your home’s equity. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Meanwhile, you’re paying down your low-interest-rate primary mortgage like the wealth-building machine you are.

    Today, FourLeaf Credit Union is offering a HELOC rate of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate later. When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

    The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

    Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from nearly 6% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

    For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.

    If you withdraw the full $50,000 from a home equity line of credit and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.

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  • HELOC rates today, November 7, 2025: Lenders are dropping their HELOC rates by 0.25% or more

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    According to analytics company Curinos, the current national average HELOC rate is 7.64%. Yahoo Finance is seeing home equity line of credit interest rates dropping by 0.25% or more at national lenders. Shop more than one HELOC lender to find your best offer.

    According to Curinos data, the average weekly HELOC rate is 7.64%, down 40 basis points since January. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

    Homeowners have an impressive amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That’s the third-largest amount of home equity on record.

    With mortgage rates remaining in the low-6% range, homeowners are unlikely to let go of their primary mortgage anytime soon, so selling a house may not be an option. Why give up your 5%, 4% — or even 3% mortgage?

    Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative.

    HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which has fallen to 7.00% in the past week. If a lender added 1% as a margin, the HELOC would have a rate of 8.00%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. Shop two or three lenders for the best terms.

    National HELOC rates can include “introductory” offers that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

    You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Meanwhile, you’re paying down your low-interest-rate primary mortgage like the wealth-building machine you are.

    Today, FourLeaf Credit Union is offering a HELOC APR of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate later. When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

    The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

    Rates vary significantly from one lender to the next. You may see rates from 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper.

    For homeowners with low primary mortgage rates and a significant amount of equity in their house, it’s likely one of the best times to take out a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is probably not worth taking on long-term debt.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period of time.

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  • Mortgage and refinance interest rates today, October 12, 2025: Best week of the year to buy a house

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    Mortgage rates are down today. According to Zillow, the national average 30-year fixed rate is down two basis points to 6.28%, and the 15-year fixed mortgage rate has inched down by two basis points to 5.56%.

    According to new data from Realtor.com, today marks the start of the best week of the year to buy a house. Mortgage rates shouldn’t plummet anytime soon, so if you’re otherwise ready to buy a home, now could be a great time.

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

    • 30-year fixed: 6.28%

    • 20-year fixed: 5.90%

    • 15-year fixed: 5.56%

    • 5/1 ARM: 6.52%

    • 7/1 ARM: 6.63%

    • 30-year VA: 5.88%

    • 15-year VA: 5.39%

    • 5/1 VA: 5.76%

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

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

    • 30-year fixed: 6.38%

    • 20-year fixed: 5.97%

    • 15-year fixed: 5.76%

    • 5/1 ARM: 6.83%

    • 7/1 ARM: 6.75%

    • 30-year VA: 5.96%

    • 15-year VA: 5.96%

    • 5/1 VA: 5.61%

    Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.

    Learn whether now is a good time to refinance your mortgage.

    Use the mortgage calculator below to see how various mortgage terms and interest rates will impact your monthly payments.

    Our free mortgage calculator also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest.

    The average 30-year mortgage rate today is 6.28%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is lower than with a shorter-term loan.

    The average 15-year mortgage rate is 5.56% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.

    A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher as you pay off the same amount in half the time.

    Let’s say you get a $300,000 mortgage. With a 30-year term and a 6.28% rate, your monthly payment toward the principal and interest would be about 1,853, and you’d pay $367,083 in interest over the life of your loan — on top of that original $300,000.

    If you get that same $300,000 mortgage with a 15-year term and a 5.56% rate, your monthly payment would jump to $2,461. But you’d only pay $142,946 in interest over the years.

    With a fixed-rate mortgage, your rate is locked in for the entire life of your loan. You will get a new rate if you refinance your mortgage, though.

    An adjustable-rate mortgage keeps your rate the same for a predetermined period of time. Then, the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remaining 23 years of your term.

    Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, it’s possible your rate will go up. Lately, though, some fixed rates have been starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other.

    Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.

    Waiting for rates to drop probably isn’t the best method to get the lowest mortgage rate right now. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.

    To find the best mortgage lender for your situation, apply for mortgage preapproval with three or four companies. Just be sure to apply to all of them within a short time frame — doing so will give you the most accurate comparisons and have less of an impact on your credit score.

    When choosing a lender, don’t just compare interest rates. Look at the mortgage annual percentage rate (APR) — this factors in the interest rate, any discount points, and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.

    Learn 6 tips for choosing a mortgage lender.

    According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.28%, and the average 15-year mortgage rate is 5.56%. But these are national averages, so the average in your area could be different. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas.

    The average 30-year fixed mortgage rate is 6.28% right now, according to Zillow. However, you might get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI).

    Mortgage rates aren’t expected to drop drastically in the near future, though they might inch down here and there.

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  • Mortgage and refinance interest rates today, September 28, 2025: Adjustable rates are falling

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    Today’s mortgage rates have shifted in different directions, depending on their term. According to Zillow, the 30-year fixed mortgage rate is up slightly to 6.47%, and the 15-year fixed rate has ticked down to 5.66%.

    However, the rate on the 5/1 adjustable-rate mortgage (ARM) has decreased for the third day in a row. It could be a good time to get an ARM because they usually start out with lower rates than what you’ll get with a fixed-rate mortgage. If you plan to sell your house before the intro-rate period ends, you can enjoy lower rates until then. And who knows — by the time your rate changes in a few years, market rates could be lower.

    Dig deeper: The best mortgage lenders for first-time home buyers

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

    • 30-year fixed: 6.47%

    • 20-year fixed: 6.10%

    • 15-year fixed: 5.66%

    • 5/1 ARM: 6.66%

    • 7/1 ARM: 6.88%

    • 30-year VA: 5.89%

    • 15-year VA: 5.59%

    • 5/1 VA: 5.32%

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

    Learn more: 8 strategies for getting the lowest mortgage rates

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

    • 30-year fixed: 6.55%

    • 20-year fixed: 6.25%

    • 15-year fixed: 5.83%

    • 5/1 ARM: 6.91%

    • 7/1 ARM: 7.54%

    • 30-year VA: 6.16%

    • 15-year VA: 6.05%

    • 5/1 VA: 5.82%

    Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.

    Read more: Is now a good time to refinance your mortgage?

    Use the mortgage calculator below to see how various mortgage terms and interest rates will impact your monthly payments.

    Our free mortgage calculator also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest.

    The average 30-year mortgage rate today is 6.47%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is lower than with a shorter-term loan.

    The average 15-year mortgage rate is 5.66% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.

    A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher as you pay off the same amount in half the time.

    Let’s say you get a $300,000 mortgage. With a 30-year term and a 6.47% rate, your monthly payment toward the principal and interest would be about $1,890, and you’d pay $380,504 in interest over the life of your loan — on top of that original $300,000.

    If you get that same $300,000 mortgage with a 15-year term and a 5.66% rate, your monthly payment would jump to $2,477. But you’d only pay $145,823 in interest over the years.

    With a fixed-rate mortgage, your rate is locked in for the entire life of your loan. You will get a new rate if you refinance your mortgage, though.

    An adjustable-rate mortgage keeps your rate the same for a predetermined period of time. Then, the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remaining 23 years of your term.

    Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, it’s possible your rate will go up. Lately, though, some fixed rates have been starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other.

    Dig deeper: Fixed-rate vs. adjustable-rate mortgages

    Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.

    Waiting for rates to drop probably isn’t the best method to get the lowest mortgage rate right now. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.

    To find the best mortgage lender for your situation, apply for mortgage preapproval with three or four companies. Just be sure to apply to all of them within a short time frame — doing so will give you the most accurate comparisons and have less of an impact on your credit score.

    When choosing a lender, don’t just compare interest rates. Look at the mortgage annual percentage rate (APR) — this factors in the interest rate, any discount points, and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.

    Learn more: 6 tips for choosing a mortgage lender

    According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.47%, and the average 15-year mortgage rate is 5.66%. But these are national averages, so the average in your area could be different. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas.

    The average 30-year fixed mortgage rate is 6.47% right now, according to Zillow. However, you might get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI).

    Mortgage rates aren’t expected to drop drastically in the near future, though they might inch down here and there.

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  • HELOC rates today, September 14, 2025: Don’t wait on the Fed for a lower interest rate

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    The HELOC interest rate today remains under 9%. However, you don’t have to wait for a Fed rate cut to find a lower home equity line of credit interest rate. Shop lenders offering introductory rates. You may find rates as low as 3.99% to 5.99% that will last for six months to one year.

    Dig deeper: Is it a good idea to get a HELOC? Here are the pros and cons.

    According to Bank of America, the largest HELOC lender in the country, today’s average APR on a 10-year draw HELOC remains 8.72%. That is a variable rate that kicks in after a six-month introductory APR of 6.49% in most U.S. states.

    Homeowners have a huge amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That’s the third-largest amount of home equity on record.

    With mortgage rates lingering above 6%, homeowners are not likely to let go of their primary mortgage anytime soon, so selling a house may not be an option. Why give up your 5%, 4% — or even 3% mortgage?

    Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative.

    HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

    And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

    You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

    The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

    Meanwhile, you’re paying down your low-interest-rate primary mortgage like the wealth-building machine you are.

    Today, LendingTree is offering a HELOC rate as low as 6.75% for a credit line of $150,000. That’s likely an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

    The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

    Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

    For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.

    If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That’s for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.

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  • Mortgage rates are rising. Experts cite economic strength, inflation and possible Trump win

    Mortgage rates are rising. Experts cite economic strength, inflation and possible Trump win

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    In September, the Federal Reserve lowered its benchmark interest rate for the first time since 2020, giving hope to prospective home buyers that mortgage rates would follow suit.

    But instead of declining, home loan costs marched higher.

    On Thursday, mortgage giant Freddie Mac reported the average rate on a 30-year home loan rose to 6.72%, up from 6.54% a week earlier. It was the fifth consecutive week of increases.

    “People are confused,” said Jeff Lazerson, president of Mortgage Grader in Laguna Niguel. “They are saying ‘What’s going on?’”

    The fact that mortgage rates have gone up despite the cut underscores that while the Federal Reserve influences mortgage rates, it does not set them.

    Instead, rates are determined by what institutional investors who purchase bundles of mortgages are willing to pay for them and a variety of factors influence those investors.

    One is the benchmark rate the Fed cut in September, which sets a floor on borrowing costs throughout the economy. Another is expectations for inflation. That’s because when purchasing 30-year mortgages, investors don’t want to see the value of their investment eaten away as the years march on.

    Mortgage rates fell in advance of the Fed’s decision in September, because investors priced in the expectation the Fed would be able to cut because inflation had eased.

    Experts said one major reason rates have risen since is because economic data has come in stronger than expected. That’s convinced investors inflation will stay higher for longer and the Fed won’t be able to cut rates as much as they otherwise could have. Similarly, if the job market is stronger, there’s less of a need to cut rates to spur growth.

    “You see a lot of positive economic surprises,” said Kara Ng, an economist with Zillow, who cited a strong jobs report in September as one example.

    Political factors could be at play as well as presidential election polls have tightened in recent weeks.

    Chen Zhao, an economist with real estate brokerage Redfin, said it appears investors increasingly believe former President Trump will best Vice President Kamala Harris and retake the White House.

    According to a recent survey from the Wall Street Journal, most economists predict inflation and interest rates would be higher under policies proposed by Trump, who among other measures has called for sweeping tariffs on imported goods.

    “The link between tariffs and inflation is just very stark,” Zhao said. “There is not a lot of controversy there.”

    As rates rise, home buyers feel the pinch.

    Lazerson, the Orange County mortgage broker, said he’s seen business slow to a “trickle” after an initial burst when rates dropped around the Fed announcement.

    The reason is simple math.

    When rates hit their recent bottom of 6.08% in September, the monthly principal and interest payment on a $800,000 house would have been $3,870. It’s now $4,138.

    According to the weekly Freddie Mac survey, rates are still below 7%, a level last seen in May. However, a daily tracker from Mortgage News Daily puts them above that threshold.

    Zhao said what happens with rates next depends on a variety of factors, including who wins the election and what policies they actually enact.

    If there isn’t a policy shift, she would expect mortgage rates to come down next year because inflation is easing. On Thursday, an inflation measure closely watched by the Federal Reserve dropped to near pre-pandemic levels.

    Even so, economists say borrowers shouldn’t expect pandemic-era mortgage rates of 3% and below. Those rates were the byproduct of a massive federal effort to revive an economy where unemployment hit levels last seen in the Great Depression.

    “We are talking about [mortgage rates in] the high fives, low sixes” Zhao said. “If President Trump does win, there is certainly a lot more risk that rates could be higher.”

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    Andrew Khouri

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  • Mortgage rates are falling. How far will they go?

    Mortgage rates are falling. How far will they go?

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    For many prospective homebuyers, the last two years have been brutal as high home prices and mortgage rates produced the most unaffordable housing market since the 2000s bubble.

    Many experts don’t expect drastic improvement soon, but a shift could finally be underway.

    The cost of a 30-year fixed mortgage has fallen from above 7% in May to the low-6% range as of last week. On Wednesday, the Federal Reserve is expected to cut its benchmark interest rate for the first time since it began raising it in 2022 in a bid to fight inflation.

    “I think for the next two years, we are in a world where the pressure is on rates to come down,” said Daryl Fairweather, chief economist with real estate brokerage Redfin.

    How much mortgage rates will decline is unclear.

    The cost for a mortgage is heavily influenced by inflation because institutional investors that buy 30-year mortgages that are packed into bundles don’t want to see the value of their investment eaten away.

    Experts attribute the recent decline in mortgage rates to easing inflation, as well as expectations that because consumer prices are rising less, that will enable the Fed to cut its benchmark interest rate.

    The central bank’s federal funds rate does not directly affect mortgage rates, but it can do so indirectly since it sets a floor on all borrowing costs and provides a signal of how entrenched the Fed thinks inflation is.

    Keith Gumbinger, vice president of research firm HSH.com, said a Fed cut Wednesday may not move mortgage rates much because, to some extent, mortgage investors have already priced in the expectation that rates would decline.

    More cuts, however, are expected in the future.

    Gumbinger said if the Fed achieves a so-called soft landing — taming inflation without causing a recession — he would expect mortgage rates to be in the mid-5% range by this time next year.

    If the economy turns sour, mortgage rates could fall further, though even in that scenario Gumbinger doubted they’d reach the 3% and below range of the pandemic.

    Orphe Divounguy, a senior economist with Zillow, predicted that rates would not even fall to 5.5% but would stay around where they are, arguing that the economy is relatively strong and inflation is unlikely to ease much.

    “I don’t think we are going to see a huge drop, but what we have seen has been great for homebuyers so far,” he said.

    Indeed, even modest drops in borrowing costs can have a big effect on affordability.

    If a buyer puts 20% down on an $800,000 house, the monthly principal and interest payments would equal $4,258 with a 7% mortgage; $3,837 with a 6% mortgage; and $3,436 with a 5% mortgage.

    Whether dropping rates bring lasting relief is another question. Falling borrowing costs could attract a flood of additional buyers and send home prices higher — especially if increased demand isn’t met by an increase in supply.

    For now, the number of homes for sale is increasing modestly, rates are falling and home price growth is slowing.

    In August, home prices across Southern California dipped slightly from the prior month. Values were still up nearly 6% from a year earlier, but that was smaller than the 12-month increase of 9.5% in April, according to data from Zillow.

    In theory, this combination of factors could provide prospective buyers an opportunity to get into the market. Many don’t appear to be doing so.

    According to Redfin, 7.8% fewer homes across the U.S. went into escrow during the four weeks that ended Sept 8 compared with a year earlier.

    In Los Angeles County, pending sales were up 2% from a year ago but down from earlier in the summer.

    Fairweather said buyers might not be jumping in now because they haven’t realized rates have gone down or they are temporarily scared off by recent changes to real estate commission rules.

    Some agents say they are noticing a pickup.

    Costanza Genoese-Zerbi, an L.A.-area Redfin agent, said she’s recently noticed more first-time buyers out shopping, leading to an uptick in multiple offers in entry-level neighborhoods where people are more sensitive to rates.

    Other agents aren’t seeing much of a boost.

    Real estate agent Jake Sullivan, who specializes in the South Bay and San Pedro, has a theory: Homes are still far more expensive than they were just a few years ago.

    Home insurance costs have risen as well.

    “The cost of living is just so high,” Sullivan said.

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    Andrew Khouri

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  • Maryland family closes on dream home with a 3.4% mortgage rate — paying $1K a month less than the market rate

    Maryland family closes on dream home with a 3.4% mortgage rate — paying $1K a month less than the market rate

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    Maryland family closes on dream home with a 3.4% mortgage rate — paying $1K a month less than the market rate

    With house prices and mortgage rates hovering at painful highs, many Americans have tossed aside their dreams of homeownership — but are they missing a trick?

    The Sutton family in Northeast Maryland recently secured their dream home with a mortgage rate of around 3.4% — which was roughly half the average 30-year fixed mortgage rate at the time of purchase.

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    How did they beat the home buying odds? They used something called an assumable mortgage — a special type of home loan where the buyer essentially takes over the seller’s mortgage.

    The young family shared their story with NBC News. By going down the assumable mortgage route, the Suttons not only managed to avoid the stress and fees associated with qualifying for a conventional mortgage, but they also saved themselves about $1,000 to $1,500 a month by taking on the low interest rate.

    Here’s how assumable mortgages work and how to determine if one might be right for you.

    What is an assumable mortgage?

    An assumable mortgage is a type of home loan where a qualified buyer can take over (or assume) a seller’s mortgage terms, including the existing balance, repayment period and interest rate.

    These loans can be appealing for both buyers and sellers, particularly those, like the Suttons, looking to capitalize on lower mortgage rates of the past. But they do also have their limitations and are bound by strict regulations.

    Christopher Sutton admitting he’d “never heard of” assumable mortgages before his realtor suggested one is unsurprising.

    Assumable mortgages are a relatively niche product today, but they were immensely popular back in the 1980s, when mortgage rates lingered in double-digit territory for years and many lenders (including conventional banks) accepted the practice.

    Since then, the majority of lenders have restructured their loan terms (in line with regulatory and market developments) to prohibit the practice. Today, conventional loans are no longer eligible for assumption. They must be paid in full — and a new one issued — whenever a property is sold or transferred to a new owner.

    There are three exceptions, where home loans are assumable:

    • FHA loans: These loans are backed by the Federal Housing Administration and are popular with first-time buyers and those with lower incomes who may not qualify for a conventional loan. Like conventional loans, borrowers still have to qualify under all FHA terms, including credit and employment standards.

    • USDA loans: These loans are intended for low-income borrowers in rural areas. They’re backed by the U.S. Department of Agriculture and don’t require any down payment.

    • VA loans: These loans are offered to active or retired members of the U.S. military.

    The Suttons assumed an FHA loan in order to secure their dream home in Maryland.

    Read more: ‘You didn’t want to risk it’: 80-year-old woman from South Carolina is looking for the safest place for her family’s $250,000 savings. Dave Ramsey responds

    Things to be wary of

    To successfully assume someone else’s mortgage, you need to cover all of the equity already built up in the house. So, if the seller bought the home for $200,000 and paid off $50,000 in principal, the buyer would have to bring $50,000 to the table (a bit like a down payment) and qualify to assume the remaining mortgage.

    This worked out for the Suttons because the previous owner of the house had only made about 18 months of mortgage payments before relocating to Florida for work, meaning they had not built up a ton of equity that the Suttons would have to match.

    “It was just one more of those stars that had to align for this to work,” the family’s realtor, John Gatsoulas from REMAX, told NBC News.

    It’s also important to consider the property value before assuming a mortgage. If the home has appreciated significantly since the seller first bought it, the original home loan that you assume may not cover your costs.

    So, if you assume a mortgage for $350,000, but the house is now worth $500,000, you’ll need to pay the $150,000 difference out of pocket. You may be able to secure financing to cover that cost, but second mortgages are typically expensive, hard to qualify for and not really suitable for families, like the Suttons, seeking assumable mortgages for their affordability.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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  • Falling mortgage rates lend a helping hand to home buyers

    Falling mortgage rates lend a helping hand to home buyers

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    Mortgage rates fell for the eighth consecutive week, giving cash-strapped home buyers some relief as the new year approaches.

    The average interest rate on the popular 30-year fixed mortgage clocked in at 6.67% for the week ended Dec. 20, down from 6.95% a week earlier, according to data released Thursday by mortgage giant Freddie Mac. As recently as late October, rates were 7.79% — the highest in more than two decades.

    The drop in borrowing cost saves new buyers hundreds of dollars each month, but experts said consumers shouldn’t expect drastic improvement in 2024.

    The interest rate on mortgages changes based on a variety of factors, including inflation expectations and Federal Reserve policy.

    Keith Gumbinger, vice president of research firm HSH.com, predicted rates will bottom out around 6.4% in 2024 as economic growth and inflation remain elevated enough to prevent further declines in borrowing costs.

    “Cheaper mortgage money doesn’t necessarily mean that cheap mortgage money is coming,” Gumbinger said. “If you really want the lowest possible interest rates, you really have to hope for the most horrific economic climate.”

    Rates have fallen since October, however, in large part because multiple economic reports have signaled inflation is slowing.

    The most recent decline comes after the Federal Reserve signaled last week it may be done raising its benchmark interest rate, which helps set a floor on all types of borrowing costs, including mortgage rates.

    For prospective homeowners, housing remains drastically more expensive than when rates were 3% and below during the early part of the pandemic. But the decline from 7.79% to 6.67%, equals $486 in monthly savings for a $800,000 home, assuming a buyer puts 20% down.

    What effect somewhat lower mortgage rates will have on the housing market depends on how buyers and sellers react.

    When mortgage rates first surged in 2022, home prices fell in response as buyers quickly pulled away and inventory swelled. But prices started rising again this year as well-heeled first time buyers returned and existing homeowners increasingly chose not to sell, unwilling to give up their rock-bottom mortgage rates on loans taken out before or during the pandemic.

    In most counties, home prices are near their all-time peaks, while in Orange County, prices are setting new records, according to data from Zillow.

    Jordan Levine, chief economist with the California Assn. of Realtors, said rates likely will end 2024 in the “low-6% range,” which should convince more existing homeowners to sell.

    But he said the increase in supply isn’t likely to be enough to offset an increase in buyers who will also be lured by lower borrowing costs. As a result, Levine said the market may actually be more competitive in 2024, with prices up around 8% by year’s end in Southern California.

    A recent forecast from Zillow predicted values would be flat to down slightly in Southern California between November 2023 and November 2024.

    Zillow senior economist Nicole Bachaud said falling rates could mean home price growth comes in stronger than that forecast, but maybe not.

    “Given the affordability crisis in Los Angeles, we might see sellers move before buyers have enough room in their budgets to respond,” she said.

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    Andrew Khouri

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  • Southern California home prices fell last month. Don't expect them to plunge

    Southern California home prices fell last month. Don't expect them to plunge

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    Southern California home prices dipped from October to November, the first decline in nine months.

    The average home price in the six-county region clocked in at $829,557 in November, down 0.1% from October, according to data released by Zillow this week.

    All counties saw drops except Orange County, where values rose slightly.

    Nicole Bachaud, a senior economist with the real estate website Zillow, said the small price declines across much of Southern California can be attributed to two things: Fall is typically a slower time of the year for home sales and buyers are struggling with high prices and high mortgage rates.

    “It’s really challenging,” she said.

    According to the California Assn. of Realtors, only 11% of households in both Los Angeles County and Orange County could afford a median-priced house during the third quarter; that measure stood at 19% in Riverside County and 25% in San Bernardino County.

    When mortgage rates first surged last year, home prices fell in response as buyers pulled away and inventory swelled. But prices started rising again this year as homeowners increasingly chose not to sell, unwilling to give up their rock-bottom mortgage rates on loans taken out before or during the pandemic.

    In most counties, home prices are near their all-time peaks despite November’s small decline. In Orange County, prices are setting records.

    Prospective buyers received a sliver of good news in recent weeks. Mortgage interest rates have fallen from a high of 7.79% to the low-7% range, giving them a bit more buying power.

    But experts don’t expect a significant improvement in affordability.

    Bachaud said mortgage rates are likely to remain high, which will keep inventories tight as many existing homeowners choose to stay put. At the same time, those high rates should also keep prices from surging, since they limit how much people can afford, Bachaud said.

    Overall, Zillow expects home prices over the next year to rise 0.1% in the Inland Empire counties of Riverside and San Bernardino. Across Los Angeles and Orange counties, prices should fall 1.6%. In San Diego County, prices are expected to remain flat, while in Ventura County they should drop 2%.

    When it comes to the rental market, prices are also dropping slightly. Experts say that’s because the number of vacancies is rising as apartment supply expands and consumers worry about the economy and inflation.

    In November, the median rent for vacant units of all sizes across Los Angeles County was $1,900, down 1.9% from a year earlier, according to data from Apartment List.

    If the Federal Reserve’s actions to tame inflation push the economy into recession, home values and rents could drop further. However, there’s growing optimism that the country will avoid an economic downturn.

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    Andrew Khouri

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  • Average long-term US mortgage rate drops a 5th straight week | Long Island Business News

    Average long-term US mortgage rate drops a 5th straight week | Long Island Business News

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    The average long-term U.S. mortgage rate inched down for the fifth straight week, positive news for potential home buyers and a real estate market that’s been chilled by the Federal Reserve’s series of interest rate hikes the past year.

    Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate ticked down to 6.27% from 6.28% the previous week. The average rate last year at this time was 5%.

    The average long-term mortgage rate hit 7.08% in the fall — a two-decade high.

    The recent decline in mortgage rates is good news for prospective homebuyers, many of whom were pushed to the sidelines during the past year as the Federal Reserve raised its main lending rate nine straight times in a bid to beat back stubborn, four-decade high inflation.

    Though supply remains low, home prices are retreating slightly, another development that could lure buyers back into the market. The national median home price slipped 0.2% from February last year to $363,000, marking the first annual decline in 13 years, according to the National Association of Realtors.

    Rising borrowing costs can add hundreds of dollars a month in costs for homebuyers and cooled off a red-hot housing market. Before surging 14.5% in February, sales of existing homes had fallen for 12 straight months to the slowest pace in more than a dozen years.

    In 2022, existing U.S. home sales fell 17.8% from 2021, the weakest year for home sales since 2014 and the biggest annual decline since the housing crisis began in 2008, the National Association of Realtors reported earlier this year.

    In their latest quarterly economic projections, Fed policymakers forecast that they expect to raise that key rate just once more — from its new level of about 4.9% to 5.1%, the same peak they had projected in December.

    While the Fed’s rate hikes do impact borrowing rates across the board for businesses and families, rates on 30-year mortgages usually track the moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. Investor expectations for future inflation, global demand for U.S. Treasurys and what the Federal Reserve does with interest rates can also influence the cost of borrowing for a home.

    Treasury yields have fluctuated wildly since the collapse of two mid-size U.S. banks last month. The yield on the 10-year Treasury, which helps set rates for mortgages and other important loans, was at 3.41% Thursday but had been above 4% early in March.

    The rate for a 15-year mortgage, popular with those refinancing their homes, fell this week to 5.54% from 5.64% last week. It was 4.17% one year ago.

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    The Associated Press

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