As of Monday average U.S. mortgage rates remain elevated, with the 30-year fixed holding steady at 6.625%, according to Zillow Home Loans. The 15-year fixed mortgage rate is 5.75%, offering a faster payoff option for qualified buyers. These numbers reflect national trends but mask growing differences across U.S. housing markets—some of which now favor homebuyers for the first time in years.
Current average mortgage rates
Latest data from Zillow:
- 30-year fixed: 6.625% (APR: 6.797%)
- 30-year VA: 6.5% (APR: 6.779%)
- 20-year fixed: 6.5% (APR: 6.743%)
- 15-year fixed: 5.75% (APR: 6.062%)
- 7-year ARM: 7.375%
78 U.S. markets now favor buyers
A new ResiClub analysis shows a shift in power toward homebuyers in 78 of the 200 largest U.S. housing markets, driven largely by a rebound in active inventory. These metros now have more homes for sale than they did in 2019—pre-pandemic—signaling a return to more balanced conditions in places once overheated by pandemic-era migration and remote work.
Where buyer leverage is rising
Markets seeing the biggest shift include:
- Cape Coral, FL
- San Antonio, TX
- Phoenix, AZ
- Colorado Springs, CO
These Sun Belt metros were among the biggest boomtowns of 2020–2022 but are now dealing with excess supply and more price flexibility—especially from homebuilders offering incentives on new construction.
In contrast, Northeast and Midwest cities—like Buffalo, NY or Columbus, OH—have tighter inventory and remain seller-leaning due to lower levels of new home construction.
What’s driving rate stability?
- Federal Reserve policy: The Fed hasn’t lowered rates yet in 2025. Analysts expect cuts later in the year, but market volatility remains a risk.
- Treasury yields: The 10-year Treasury yield, a key benchmark, remains above 4.1%.
- Inflation & labor market: Moderating inflation and a steady job market have prevented rates from rising further—but haven’t yet pushed them lower.
Tips to qualify for the lowest rate
- Raise your credit score: Aim for 740+
- Make a 20%+ down payment
- Lower your debt-to-income ratio
- Consider paying points at closing
- Use tools like Zillow’s BuyAbility for personalized estimates
Should you lock your rate today?
If you’re under contract or nearing purchase, locking in today’s rate could hedge against near-term market volatility. Adjustable-rate loans remain less attractive for most borrowers, with the 7-year ARM now at 7.375%, notably higher than the 30-year fixed.
Key takeaways
- 30-year fixed mortgage rate: 6.625%
- 15-year fixed mortgage rate: 5.75%
- Buyer advantage grows in 78 U.S. metros
- Sun Belt markets show softening home prices
- Northeast/Midwest markets remain tighter
- Rate relief possible later in 2025, but uncertain