Mortgage rates fell slightly this week. The 30-year fixed-rate mortgage fell to 6.64%, down one basis point, Freddie Mac’s Primary Mortgage Market Survey dated April 3, 2025, showed, marking a second weekly decline in a row. The 15-year fixed-rate mortgage declined seven basis points to 5.82% as well.
“This holding steady and slight easing of mortgage rates can be a potentially positive sign for home shoppers.” Lower borrowing costs can help make homeownership achievable and more economical. However, other elements are driving the housing market that you cannot ignore.
And just recently, President Donald Trump laid out sweeping tariffs that will touch imports from many of the country’s biggest trading partners, including Canada and Mexico. Such tariffs are expected to drive up building materials costs and, in turn, new home construction costs. The added design scrutiny is expected to cost, in addition to other costs, about $9,200 per new single-family home.
Stable or slightly declining mortgage rates are great news for real estate, but this would be accompanied by repeated increases in construction costs fueled by tariffs. Although lower mortgage rates enhance affordability, higher building costs are likely to translate into higher home prices, especially for new builds. This uncertainty is causing an appearance of stability in mortgage rates, which largely benefits buyers (if they get financing before an economic shift) as we continue to rise into new heights.
Mortgage Rates Today
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- 30-year fixed: 6.47%
- 20-year fixed: 6.19%
- 15-year fixed: 5.81%
- 5/1 ARM: 6.47%
- 7/1 ARM: 6.55%
- 30-year VA: 5.95%
- 15-year VA: 6.62%
- 5/1 VA: 5.95%
- 30-year FHA: 5.95%
- 15-year FHA: 5.69%
Refinance Mortgage Rates
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- 30-year fixed: 6.46%
- 20-year fixed: 6.08%
- 15-year fixed: 5.85%
- 5/1 ARM: 6.61%
- 7/1 ARM: 6.77%
- 30-year VA: 6.01%
- 15-year VA: 5.74%
- 5/1 VA: 5.85%
- 30-year FHA: 6.08%
- 15-year FHA: 5.62%
- 5/1 FHA: 6.63%
Bear in mind that the numbers being bandied about are national averages. This means that the rates reported above have been derived from a sum of data from around the country and rounded to be clearer and easier to compare, to the nearest hundredth of a percentage point. That rounding makes the numbers easier to read while still providing a reasonably accurate reading of the general direction of mortgage rates.
Also, when shopping for mortgage products, it helps to separate rates for purchasing a home from those for refinancing an existing mortgage. In general, mortgage refinance rates are slightly higher than rates for new home purchases. This variation is due to a number of reasons, from gathering risk profiles significantly different than what is usually associated with refinance to differing underwriting processes.
That’s not always the case, though; some market conditions or a borrower’s specific financial situation may see rates to refinance spectacularly low relative to new rates for home loans, to where their new loan may even cost less than the refinancing.
But while the reported numbers are useful as a rough, rounded gauge of current market conditions, they obscure some of the nuances that are built into different kinds of mortgage products and lending standards. These nuances are important for borrowers to consider when weighing mortgage options.
Use Our Mortgage Calculator
See how you can change home financing with Fortune Rules free mortgage calculator. With our tool, you can see how various interest rates and term lengths affect your monthly mortgage payment, as well as take into account your home price and how much you plan to put down.
Our calculator factors in more than just principal and interest in your monthly estimate: We include homeowners insurance and property taxes, too. You can also add in costs for private mortgage insurance (PMI) and homeowners’ association dues, if applicable. This holistic method gives you a more accurate projection of what your monthly payment may be, which can help you make better financial choices.
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Fixed-Rate vs. Adjustable-Rate Mortgages
There are two primary types of mortgages that you will need to select from: fixed-rate mortgages and adjustable-rate mortgages. Let’s dissect these.
Fixed-Rate Mortgage (FRM)
Your interest rate remains constant for the duration of the loan if you have a fixed-rate mortgage.
For instance, depending on the length of your loan, your interest rate of 5% will remain at that level for 15, 20, or 30 years.
Why people enjoy it: It’s foreseeable! Budgeting is made easy because your monthly payment won’t vary.
Adjustable-Rate Mortgage (ARM)
Your interest rate may fluctuate after a predetermined period if you have an adjustable-rate mortgage.
For instance, your rate may be 4% for the first five years, but it may then increase or decrease based on the state of the market.
Why people enjoy it: In the short run, you may save money because the initial rate is sometimes lower than a fixed-rate mortgage.
Which is superior?
Depending on your circumstances, yes. A fixed-rate mortgage can be a better option if you want to remain in your house for an extended period. However, an ARM can save you money if you anticipate moving within a few years.
Mortgage Terms: 15 Years vs. 30 Years
You may also decide how long you want to take to repay your mortgage when you receive one. 15 or 30 years are the most popular choices.
30-Year Mortgage:
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- You have 30 years to repay the loan.
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- Pros: Since you’re spreading the cost over a longer period of time, you’ll pay less each month.
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- Cons: Over the course of the loan, your interest payments will increase.
15-Year Mortgage:
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- The loan is repaid in about 15 years.
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- Pros: You’ll pay less interest overall because you’re borrowing money for a shorter term.
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- Cons: Since you’re paying off the loan more quickly, your monthly payments will be higher.
Which is superior?
A 30-year mortgage is the best option if you desire lower monthly payments. However, a 15-year mortgage is a wise option if you can afford larger payments and wish to save money over time.
Frequently Asked Questions (FAQs)
Q1. What are mortgage rates, and how do they work?
Mortgage rates are how much interest you pay on your home loan, and they are affected by various factors, including the state of the economy, inflation expectations, and the Federal Reserve’s actions. Interest rates also depend on market conditions and investors’ appetite for mortgage-backed securities.
Q2. What can influence mortgage rates day to day?
Daily increases or decreases in mortgage rates may be influenced by reports on the economy, events in the world financial sector, shifts in the bond market, and even political developments. Lenders set their rates up or down according to these aspects of the macroeconomic model to strike equilibrium between risk and demand.
Q3. Where do I get the current mortgage rate today?
To find interested mortgage rates, visit reputable financial sites, lender sites, and real-time updating free mortgage calculators. These tools scour rates from various sources, allowing you to get a better sense of today’s market.
Q4. Should you lock in your mortgage rate now?
If you’re happy with the current rates and feel you won’t go through any financial hurdles, locking a rate can save you from potential increases in the future. But your decision should be based on your long-term plans and the trend in the market.
Q5. What are refinance rates, and how are they different from purchase mortgage rates?
Refinance rates are interest rates offered when you refinance an existing mortgage. They usually are a bit higher than you might find for a new home purchase for a few reasons, like who has the underwriter and the cost of refinancing. There are isolated circumstances that allow for solid refinance rates, however, such as a change in market conditions or an increased credit score.
Q6. When should I think about refinancing my mortgage?
You may consider refinancing if current rates are lower than your current rate, if you wish to change the term of your loan, or if you want to draw on your home equity for other equity-related goals. Evaluate all costs involved, including closing fees, to ensure refinancing makes sense long-term.
Q7. What to consider when comparing refinance rates today?
Some of the main factors to consider are your current loan balance, remaining term, credit score, the overall cost of refinancing, and whether you plan to stay in your home long enough to make back the cost of closing. It’s also helpful to see how changes in rates will impact your monthly payment and total interest over the life of the loan.
