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Mortgage Interest Rates Today: July 25, 2022—Rates Drop

Currently, the average rate on a 30-year fixed mortgage is 5.73%, compared to 5.88% a week ago.

For borrowers who want to pay off their home faster, the average rate on a 15-year fixed mortgage is 4.95%, down 0.04% from the previous week.

Homeowners who want to lock in a lower rate by refinancing should compare their existing mortgage rate with current market rates to make sure it’s worth the cost to refinance.

Loan term Rate Change Rate last week
30-Year Mortgage Rate 5.73% -0.15% 5.88%
15-Year Fixed Rate 4.95% -0.04% 4.99%
30-Year Jumbo Mortgage Rate 5.69% -0.20% 5.89%
5/1 ARM Rate 4.25% -0.02% 4.27%


30-Year Fixed Mortgage Interest Rates

The average rate fell on a 30-year fixed mortgage, slipping to 5.73% from 5.91% yesterday. Today’s rate is lower than the 52-week high of 6.11%.

The 30-year fixed mortgage APR is 5.74%. At this time last week, it was 5.89%. Here’s why APR is important.

According to the Forbes Advisor mortgage calculator, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay $582 per month in principal and interest (taxes and fees not included) at today’s interest rate of 5.73%. In total interest, you’d pay $109,629 over the life of the loan.

15-Year Fixed-Rate Mortgage Rates

Today, the 15-year fixed mortgage rate is 4.95%, lower than it was one day ago. Last week, it was 4.99%. Today’s rate is higher than the 52-week low of 4.60%.

On a 15-year fixed, the APR is 4.98%. Last week it was 5.01%.

With an interest rate of 4.95%, you would pay $788 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $41,874 in total interest.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate is 5.69%, lower than it was at this time last week. The average rate was 5.89% at this time last week. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 6.11%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 5.69% will pay $580 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $4,353.

5/1 ARM Interest Rates

On a 5/1 ARM, the average rate inched down to 4.25% from 4.27% yesterday. The average rate was 4.27% last week. Today’s rate is currently lower than the 52-week high of 4.32%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 4.25% will pay $492 per month in principal and interest.

Calculate Your Mortgage Payment

If you can’t or don’t want to pay cash, mortgage lenders and mortgages will be part of your home buying process. It’s important to figure out what you’ll likely pay each month to see if it fits into your budget.

You can use a mortgage calculator to estimate your monthly mortgage payment based on factors including your interest rate, purchase price and down payment.

Here’s what you’ll need in order to calculate your monthly mortgage payment:

  • The home price
  • Your down payment amount
  • The interest rate
  • The loan term
  • Any taxes, insurance and any HOA fees

What you can afford depends on a number of factors, including your income, debt, debt-to-income ratio, down payment and credit score.

You also want to consider closing costs, property taxes, insurance costs and ongoing maintenance expenses.

The type of loan you choose can also affect how much house you can afford. When shopping for a loan, think about whether a conventional mortgage, FHA loan, VA loan or USDA loan is best for your particular situation.

Explaining Annual Percentage Rate

Annual percentage rate, or APR, takes into account interest, fees and time. It’s the total cost of your loan and includes both the loan’s interest rate and its finance charges.

Since APR includes both the interest rate and certain fees associated with a home loan, APR can help you understand the total cost of a mortgage if you keep it for the entire term. The APR will usually be higher than the interest rate, but there are exceptions.

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