What is the current 30-year fixed mortgage rate in late 2025?

The current average rate for a 30-year fixed mortgage is 6.27%.

Will mortgage rates decrease in 2026 according to experts?

Experts suggest rates may decrease in 2026 if the Federal Reserve continues to cut the federal funds rate.

How does a 15-year fixed mortgage compare to a 30-year in terms of cost?

A 15-year mortgage has a lower interest rate and total interest paid, but higher monthly payments compared to a 30-year mortgage.

Home / Business and Economy / Mortgage Rates Surge: Is Homeownership Still Affordable?

Mortgage Rates Surge: Is Homeownership Still Affordable?

10 Dec

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Summary

15-year fixed mortgage rates rose to 5.40%, a weekly increase.
30-year fixed mortgage rates are now 6.27%, up significantly.
Experts anticipate steady rates, with potential drops in 2026.

Mortgage Rates Surge: Is Homeownership Still Affordable?

Homebuyers and those looking to refinance are facing escalating costs as mortgage rates continue their upward trend. The average rate for a 15-year fixed mortgage now stands at 5.40%, a notable increase from the previous week. Similarly, the 30-year fixed mortgage rate has climbed to 6.27%, making borrowing more expensive.

These rising rates have a tangible impact on monthly payments. For instance, a $100,000 loan at the current 30-year rate would incur approximately $617 in monthly principal and interest, with over $122,000 in interest paid over the loan's life. For a 15-year loan of the same amount, monthly payments would be around $812, with total interest reaching over $46,000.

Looking ahead, experts suggest that mortgage rates are likely to remain stable for the remainder of 2025. However, a potential decrease in rates could occur in 2026, influenced by the Federal Reserve's monetary policy and broader economic factors. Significant drops in the near future appear unlikely, pending easing inflation or economic slowdown.