Compare Lowest Home Mortgage Rates

Housing markets from Boston to Tampa to Los Angeles and Denver all crippled by the mortgage rate locked-in effect. Sellers can’t afford to sell their homes and adopt a new mortgage at a higher rate.

For mortgage agents, it’s a frustrating situation as they wait for mortgage holders forced to renegotiate rates. For y0u the home buyer, it means rates are likely not going to fall. Unfortunately, the latest price projections for 2025 are 3+ percentage points up and in some cities, price gains could be very steep.

First of all, inflation is above the FEDs target and the economy is likely to get heated up in 2025.  Rates as you’ll see below are expected to stay around 6.9% for a 15-year ARM and 6.1% for a 30-year mortgage (Freddie Mac FRM).  There is the long shot that the economy will sag and inflation will drop to cause the FED to slowly bring them down by end of 2025.

Right now the wall of worry is causing government and bank economists to project high inflation. The reasoning isn’t solid, so don’t be surprised if long-term inflation and mortgage rates fall. We’d have to conclude we’re moving into a seller’s market in the US, countering the belief that increase listings will create better buying circumstances for hopeful buyers.

Interest Rates and Long-Term Bond Yields Push up Rates

So home sellers must wait for rates to slowly recede as the FED practices its inflation-centered ideology, regardless of the pain it’s causing Americans. Now with renewed rumors of future inflation flareups as President Trump brings his Pro-American agenda into play, lenders have increased their long-term mortgage rates as you can see in the Freddie Mac chart below.

What’s the Outlook for Mortgage Rates?

Mortgage Bankers Association (MBA) expects mortgage rates to range between 6.4% and 6.6% in 2025, while holding steady at 6.3% in 2026. That would mean no relief for home mortgage holders who must brace for the worst, regardless of the economy. Fannie Mae believes average mortgage rates will decline modestly yet stay above 6%, with likely bouts of volatility.

In October, when there was more optimism about the pace of Fed rate cuts, the trade organization projected rates to be between 5.9% and 6.2% in 2025, and at 5.9% in 2026.

As the Freddie Mac Survey shows, after falling to near 5%, mortgage rates are back up almost a full percentage point at 6.9% for 30-year FRMs and 6.13% for 15-year FRM mortgages. Given home prices have not receded, very few sellers can afford to switch from their current low rate mortgage.  They’ll have to wait at least another year to sell their New York, Texas, Florida or California home.

With stories of major losses on homes purchased in the US south, sellers are reporting not having any offers on their listed property. And we know from the most recent Florida housing market report that homes listed for sales are accumulating at a fast-growing rate (see the report).

And buyers are wondering when will home prices fall, and sellers are asking “when will mortgage rates drop?”   The FED says it will be hawkish with a desire to lower the rates, but indicate only two more cuts this year, which would mean big trouble is brewing for many housing markets. Mortgage holders will hit a crisis of having to turnover their mortgage at rates much higher than they can afford. Later this year, and in early 2026, it suggests a flood of homes will hit the market.

And this is why people are wanting to discover more about the forecast for a housing market crash. They fear it is slowly mounting and a sudden deflation event is bound to happen.

Zillow Mortgage Rates

Zillow publishes its rates for the 15-year fixed, 30-year fixed rate and the 5-year ARM rate for a one year term.

Lending Tree Mortgage Rates

Mortgage Refinancing

According the Fannie Mae mortgage refinance index, mortgage applications have dropped dramatically to the lowest in 5 years.

And although not at the lows of the major recessions, today’s refinancing applications are low.

See the 5 year housing market forecast to gauge housing prices and demand. And get up to date on the US economic forecast and the US housing market forecast to understand what impacts US mortgage rates.

Saving Money Means Shopping Around for Better Rates

Save your money by checking out several mortgage rate quotes from as many brokers as possible. More people are shopping for mortgages and refinancing this year.

The mortgage rate quote, auto insurance quote, refinancing rate etc. you currently receive is likely not all that competitive. It’s a good time to refinance or shop around for an entirely new mortgage solution.

Keep a close eye on lower mortgage rate brokers in the secondary market. You’ll save a lot of money. Consider how much savings a few points translates to over a 5, 10, or 20-year mortgage and it’s tens of thousands of dollars.

Saving Money on Your Mortgage – Is Money in Your Bank Account

That money is yours. You worked hard for it. Count how many hours and days you will have to work for the next 30 years to buy a home in 2020. See what I mean? People are penny smart and dollar stupid. It’s part of our culture.

Financially wise people on the other don’t get duped when they shop for a mortgage or their auto insurance. It’s your money, get full value for it.

You’d better shop around. According to a report from Consumer Finance.gov, 77% of consumers apply to only one lender when seeking a mortgage.

You can Save a lot of Money just by Shopping for a Better Mortgage Rate

There are some particularly important tactics you can use to lower your mortgage payments.

Ten Mortgage Rate hunting tips:

1. search on Google – the top-ranking websites are there because people like them
2. get quotes directly from bank websites – compare them
3. clean up your credit score – make extra big payments for many months to show your intent to pay down your debt. Bank credit score rating expectations are ludicrous, created only to justify charging high mortgage rates
4. don’t leave your current job until you’ve landed that long-term mortgage successfully
5. check out the mortgage rate quote tools below
6. use a mortgage rate calculator and crunch some numbers yourself – at least it’ll be harder for lenders to pull the wool over your eyes
7. talk to your current provider and ask for a much lower rate – tell them you’re unhappy and intend to get a cheaper mortgage
8. take a shorter term home loan, let’s say 3 to 5 years – it’s risky however it can you a cheaper rate
9. take the bank’s teaser rate on a short term then shop for a better one when that expires
10. check out a mortgage broker, many of whom advertise online. They’re eager to compete and they’ll do more to offer that lower rate and better terms

All you need to do is search for a lower mortgage rate. The offers are plastered all over Facebook, Google, Bing, news websites and even a blog like this one. How easy can it get!

Mortgage Loan Options – Which the Best Mortgages?

While the lowest mortgage interest rate is one of the primary criteria home buyers take into account, there are other financial and real life issues you need to prepare for. Ensure you check out these popular and vital mortgage loan benefits.

1. fixed or variable rates
2. open mortgages
3. long term loans
4. amortization periods
5. payment schedules
6. skip a payment

Free Mortgage Calculator

Mortgage Calculator

 

See more on whether home prices will fall, and how the Trump economic agenda could contribute to inflation and continued high mortgage rates. In Florida, read the latest report on the Florida housing market and whether Florida home prices will fall.