Mortgage rates continue to hover near recent highs as of July 24 with 30-year fixed loans at 6.625% and adjustable-rate mortgages trending upward. Buyers and homeowners looking to refinance are facing a tight lending environment, despite modest increases in loan applications.
Current average mortgage rates
According to Zillow Home Loans, today’s mortgage rates by loan type are:
- 30-Year Fixed: 6.625% (APR: 6.776%)
- 15-Year Fixed: 5.625% (APR: 5.937%)
- 30-Year FHA: 6.375% (APR: 7.051%)
- 30-Year VA: 6.500% (APR: 6.789%)
- 20-Year Fixed: 6.500% (APR: 6.744%)
Zillow’s data also notes that points (upfront loan costs) vary across products, with 30-year fixed loans averaging 1.544 points, or approximately $4,246.
Rate trends and recent changes
Mortgage rates remain elevated compared to early 2025. Freddie Mac reports the national average for a 30-year fixed mortgage at 6.72%, while the Mortgage Bankers Association (MBA) pegs contract rates even higher at 6.84%.
- 30-year fixed contracts rose from 6.82% to 6.84% last week
- 15-year fixed fell slightly to 6.14%
- 5/1 ARMs decreased to 6.01%
Despite high rates, the MBA notes an 0.8% increase in mortgage application volume for the week ending July 18. Purchase applications rose 3% on a seasonally adjusted basis, indicating sustained buyer interest.
What’s driving rates right now?
Mortgage rates are closely tied to the 10-year Treasury yield, which is influenced by Federal Reserve policy and investor expectations. As inflation concerns linger, investors are pricing in longer-term rate pressure:
- The Fed’s monetary policy continues to impact short- and long-term borrowing costs.
- High home prices and tight inventory persist across many U.S. markets.
- Consumer demand is adapting, with more buyers exploring alternative financing like FHA or VA loans.
Tips to secure a better mortgage rate
Zillow Home Loans offers several tips for borrowers looking to reduce their interest rates:
- Improve your credit score: Better scores unlock better rates.
- Increase your down payment: Higher equity lowers lender risk.
- Lower your debt-to-income ratio: Reducing existing debts can improve approval odds.
- Get pre-approved: A verified pre-approval may help you lock in a more favorable rate.
Should you buy or refinance now?
While refinancing activity is down 3% week-over-week, rates remain attractive for those with older loans. However, the elevated rate environment may give buyers pause.
That said, many industry experts expect rate fluctuations to continue, making timing the market difficult. For most, the right time to buy or refinance depends on personal financial readiness—not just interest rate changes.
What happens next?
If the Fed maintains its current course, we may see continued rate volatility through the summer. Homebuyers should monitor trends weekly and compare loan options regularly.
More News from FL1:
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.
