Mortgage rates have seen a slight decrease this week, with the average 30-year fixed interest rate dropping 3 basis points to 6.81%, compared to 6.87% a year ago. The 15-year mortgage rate also fell by 1 basis point to 5.96%, down from 6.13% last year. The Federal Reserve did not change short-term interest rates during its June meeting, maintaining stability in the market.
Current mortgage rates listed by Zillow include:
– 30-year fixed: 6.73%
– 20-year fixed: 6.38%
– 15-year fixed: 5.96%
– 5/1 ARM: 6.90%
– 7/1 ARM: 6.88%
– 15-year VA: 5.68%
– 5/1 VA: 6.26%
Refinance rates are slightly higher, with 30-year fixed rates at 6.85% and 15-year fixed rates at 6.07%.
A 30-year fixed mortgage offers lower, predictable payments but comes with higher interest costs over time. Conversely, a 15-year mortgage has higher monthly payments but allows borrowers to pay off their debt faster, potentially saving on interest.
Adjustable-rate mortgages (ARMs) provide lower initial rates, but may pose a risk of increasing payments after the fixed period ends. Overall, mortgage rates are expected to remain stable, and borrowers are encouraged to improve credit scores and reduce debt-to-income ratios to secure better rates.
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