After a prolonged period of steady increases, mortgage interest rates began a welcome descent in 2024 but saw an uptick to just over 7% at the end of last year. Over the past couple of years, homeowners and prospective buyers faced the challenges of rising rates, grappling with higher borrowing costs and affordability concerns. While the recent rise interrupts the downward trend, the overall market remains cautiously optimistic. Even with rates above 7%, buyers and sellers can still find opportunities to navigate the housing market strategically. This evolving rate environment underscores the importance of staying informed and adaptable in pursuing real estate goals.
Average rates: January 21, 2025
Loan amount $300K – Down payment 20%
State – Indiana
Credit score 740
Conv. 30-yr fixed 6.999% – APR = 7.100%
Conv. 15-yr fixed 6.125% – APR = 6.170%
FHA 30-yr fixed 6.250% – APR = 6.710%
FHA 15-yr fixed 6.250% – APR = 6.510%
An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. ** APR is based on estimated finance charges of $ 9962.
