WASHINGTON, DC — Mortgage rates moved higher again Friday, with the average 30-year fixed loan rising above 7% in Zillow’s national data. The latest reading puts the benchmark purchase rate at 7.05%, up 4 basis points from Thursday.
The move comes after the first Federal Reserve rate increase in three years, a shift that has helped push most borrowing costs upward. The 15-year fixed rate was nearly flat at 6.43%, while the 5/1 adjustable-rate mortgage climbed to 7.16%.
30-year loans lead the move higher as shorter terms stay mixed
Zillow’s purchase-rate snapshot shows a broad spread across common loan terms, but the most closely watched option is now clearly back in the 7% range. The 20-year fixed rate came in at 6.92%, while the 7/1 ARM was lower at 6.66%.
For borrowers looking at shorter repayment windows, the 15-year fixed rate remained below 6.5% even after a slight daily dip. VA borrowers also saw lower quoted rates on some terms, including 6.46% for a 30-year VA loan and 6.00% for a 15-year VA loan.
These are national averages rounded to the nearest hundredth, so actual offers can vary by lender, credit profile, down payment, and loan type.
Refinance rates sit close to purchase rates across several loan types
Refinance pricing was also higher on the day, with the national average for a 30-year refinance at 7.07%. That is slightly above the purchase rate for the same term, a pattern that can make refinancing less attractive for many homeowners.
Zillow’s refinance data put the 20-year fixed at 6.96% and the 15-year fixed at 6.46%. The 5/1 ARM refinance rate was 7.13%, while the 7/1 ARM was 6.70%.
Among VA refinance options, the 30-year rate was 6.64%, the 15-year rate was 6.73%, and the 5/1 VA rate was 5.86%. Even with those lower pockets, the overall picture remained one of firmer borrowing costs.
Why the rate matters for monthly payments and long-term costs
Mortgage interest rates play a major role in the monthly payment a buyer faces, and even small changes can add up over time. A higher rate means more of each payment goes toward interest rather than reducing the loan balance.
That effect is strongest early in the mortgage term, when most of a borrower’s payment is typically absorbed by interest. As the loan ages, a larger share goes toward principal, but the starting rate still shapes the total cost of borrowing for years.
Yahoo Finance points readers to its mortgage calculator to compare payment differences by loan amount, rate, and term length. For shoppers trying to budget, that kind of estimate can help narrow the gap between a comfortable payment and one that stretches a household too far.
Fixed-rate loans offer stability while ARMs remain a more uncertain bet
The latest rate sheet also highlights the tradeoff between fixed and adjustable loans. A fixed-rate mortgage keeps the same interest rate for the life of the loan unless the borrower refinances or sells, which makes budgeting easier.
An adjustable-rate mortgage starts with a set introductory period, then resets later based on market conditions. A 7/1 ARM, for example, would hold its initial rate for seven years before adjusting once a year for the rest of the term.
Recent pricing has made ARMs less compelling than in the past, since 5/1 and 7/1 rates have been similar to, or even higher than, 30-year fixed loans. That means borrowers are being pushed to compare term by term instead of assuming an ARM will always be cheaper.
Forecasts from MBA and Fannie Mae call for rates to stay near current levels
Looking ahead, the latest forecasts suggest mortgage rates may not fall sharply anytime soon. The Mortgage Bankers Association expects the 30-year mortgage rate to average between 6.6% and 6.7% through the rest of 2026.
Fannie Mae is projecting a similar range, with average 30-year rates between 6.7% and 6.8% through the end of the year. For 2027, both groups see little change, with forecasts centered around 6.7% to 6.8%.
Freddie Mac’s weekly reading adds context to the recent move, showing the average 30-year mortgage rate at 6.95% through Wednesday, up from 6.76% a week earlier and 6.26% a year ago. That puts Friday’s Zillow average in line with a market that has already moved noticeably higher over the past year.
More on what homes, rents and new builds are doing near you, on RHS Commoner.
