Today’s Mortgage Rates March 15, 2025: Rates Edge Higher After Inflation Data

Mortgage rates are on the rise today, March 15, 2025. The average 30-year fixed mortgage rate has increased to 6.59%, while the 15-year fixed rate now sits at 5.93%, according to Zillow data. This increase follows the release of recent inflation reports, suggesting that the Federal Reserve may delay cutting interest rates.

Mortgage Rates Today, March 15, 2025: Rates Edge Higher After Inflation Data

Key Takeaways:

• Mortgage rates are up today across the board.
• The 30-year fixed rate is currently at 6.59%.
• The 15-year fixed rate has climbed to 5.93%.
• Recent inflation data is influencing the rate hike.
• The Federal Reserve is less likely to cut rates soon.

Current Mortgage Rates on March 15, 2025

The latest figures indicate a general increase in mortgage rates. Let's break down the specifics, referencing data sourced from Zillow, as reported by Yahoo Finance:

Loan Type	Interest Rate
30-year fixed	6.59%
20-year fixed	6.45%
15-year fixed	5.93%
5/1 ARM	6.85%
7/1 ARM	7.13%
30-year VA	6.15%
15-year VA	5.59%
5/1 VA	6.15%

It's important to remember that these are national averages. Your individual rate could be different, depending on factors like your credit score, down payment, and the location of the property.

Refinance Rates: What's the Picture Today?

If you're considering refinancing your mortgage, here's how the rates look as of today:

Loan Type	Interest Rate
30-year fixed	6.61%
20-year fixed	6.19%
15-year fixed	5.90%
5/1 ARM	7.18%
7/1 ARM	7.02%
30-year VA	6.09%
15-year VA	5.82%
5/1 VA	6.09%
30-year FHA	6.00%
15-year FHA	5.75%

Generally, refinance rates can be slightly higher than purchase rates, but it's not always the case. It is important to consider your financial goals when considering a refinance.

Factors Influencing Today's Mortgage Rates

Several economic factors are driving today's mortgage rates. The most significant is the recent inflation data. The Consumer Price Index (CPI) and the Producer Price Index (PPI) both came out this week. While these reports showed that inflation slowed down in February, the decrease wasn't significant enough to push the Federal Reserve to cut the federal funds rate anytime soon.

The Federal Reserve (also known as “The Fed”) uses the federal funds rate to influence borrowing costs throughout the economy. When inflation is high, the Fed tends to keep the federal funds rate high in order to slow down the economy and control prices. When inflation is low, the Fed may lower the federal funds rate to encourage economic activity.

Many experts had hoped the Fed would start lowering rates as early as May 2025, but now June looks more likely.

Understanding Different Mortgage Types

Choosing the right type of mortgage is crucial. Here's a quick rundown of some common options:

• 30-Year Fixed-Rate Mortgage: This is a very common choice because it provides predictable monthly payments over a long period, making it easier to budget. The downside is that you'll pay more interest over the life of the loan, and the interest rate is usually higher than shorter-term loans.
• 15-Year Fixed-Rate Mortgage: This option offers a lower interest rate and allows you to pay off your mortgage faster, saving you a ton on interest in the long run. However, your monthly payments will be higher compared to a 30-year mortgage.
• Adjustable-Rate Mortgage (ARM): ARMs have an interest rate that's fixed for a certain period (like 5 or 7 years), then it adjusts periodically based on market conditions. They often start with lower introductory rates, but there's a risk that your rate could increase later on. This option can be good if you plan to move before the rate adjusts.

What Will Be Your Mortgage Payments Today Under Current Rates

Let's get down to specifics and see how these rates translate into monthly payments. Remember, these are estimates and don't include property taxes, homeowners insurance, or other fees, so they should be regarded as a principal and interest calculation only.

Monthly Payment on $150k Mortgage

If you were to take out a $150,000 mortgage at today's average 30-year fixed rate of 6.59%, your estimated monthly payment (principal and interest only) would be approximately $954.

Monthly Payment on $200k Mortgage

For a $200,000 mortgage at 6.59%, the estimated monthly payment (principal and interest only) would be around $1,272.

Monthly Payment on $300k Mortgage

A $300,000 mortgage at the same rate would result in an estimated monthly payment (principal and interest only) of roughly $1,908.

Monthly Payment on $400k Mortgage

Stepping up to a $400,000 mortgage means your estimated monthly payment (principal and interest only) at 6.59% would be approximately $2,544.

Monthly Payment on $500k Mortgage

Finally, a $500,000 mortgage at 6.59% would have an estimated monthly payment (principal and interest only) of around $3,180.

Remember to factor in additional costs such as property taxes, homeowner's insurance, and possible PMI (Private Mortgage Insurance) when calculating your true monthly housing expenses.