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Mortgage and refinance rates today, March 4, 2025: Rates hold steady

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Mortgage and refinance rates today, March 4, 2025: Rates hold steady

Some mortgage rates have decreased today while others have increased, but either way, the shifts are pretty minor. According to Zillow, the average 30-year fixed interest rate is down one basis point to 6.26%, and the 15-year fixed rate is up one basis point to 5.58%.

Interest rates have fallen for the last two weeks, and now that rates are holding steady, it could be a good time to start applying for preapproval with mortgage lenders.

Dig deeper: 2025 housing market — Is it a good time to buy a house?

Here are the current mortgage rates, according to our latest Zillow data:

  • 30-year fixed: 6.26%

  • 20-year fixed: 5.94%

  • 15-year fixed: 5.58%

  • 5/1 ARM: 6.15%

  • 7/1 ARM: 6.21%

  • 30-year VA: 5.72%

  • 15-year VA: 5.24%

  • 5/1 VA: 5.89%

Remember that these are the national averages and rounded to the nearest hundredth.

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Read more: How to get the lowest mortgage rates possible

Have questions about buying, owning, or selling a house? Submit your question to Yahoo’s panel of Realtors using this Google form.

These are the current mortgage refinance rates, according to the latest Zillow data:

  • 30-year fixed: 6.30%

  • 20-year fixed: 5.92%

  • 15-year fixed: 5.59%

  • 5/1 ARM: 6.24%

  • 7/1 ARM: 6.55%

  • 30-year VA: 5.73%

  • 15-year VA: 5.43%

  • 5/1 VA: 5.91%

  • 30-year FHA: 5.96%

  • 15-year FHA: 5.24%

Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates.

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A mortgage calculator can help you see how various mortgage term lengths and interest rates will affect your monthly payments. Use the free Yahoo Finance mortgage calculator to play around with different outcomes.

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Our calculator also considers factors like property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.

As a rule of thumb, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15- versus 30-year mortgage rates, know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you’re paying off the same loan amount in half the time.

For example, with a $400,000 mortgage with a 30-year term and a 6.26% rate, you’ll make a monthly payment of about $2,465 toward your mortgage principal and interest. As interest accumulates over decades, you’ll end up paying $487,570 in interest.

If you get a $400,000 15-year mortgage with a 5.58% rate, you’ll pay about $3,285 monthly toward your principal and interest. However, you’ll only pay $191,361 in interest over the years.

If that 15-year mortgage monthly payment is too high, remember you can always make extra mortgage payments on your 30-year loan to pay off your mortgage faster and ultimately pay less interest.

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With a fixed-rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage.

An adjustable-rate mortgage keeps your rate the same for a set period of time. Then the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remainder of your term.

Adjustable rates sometimes start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up. ARM rates have also been starting higher than fixed rates recently, so they’re not as good of a deal as usual.

Dig deeper: Adjustable-rate vs. fixed-rate mortgage — Which should you choose?

Mortgage rates have been decreasing for about two weeks, but they’re fairly stagnant today. Economists also don’t expect drastic drops before the end of 2025.

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In 2024, mortgage rates trended downward from early August to the Sept. 18 Federal Reserve meeting, when the central bank announced a 50-basis-point slash to the federal funds rate. Since that announcement, mortgage rates have mostly increased or held steady.

The Fed decreased its rate again at its November and December meetings (by 25bps each time). The trajectory of future mortgage rates will largely depend on the Federal Reserve’s decision on whether or not to cut the federal funds rate at its 2025 meetings.

The Fed decided not to cut the fed funds rate at its Jan. 29 meeting. According to the CME FedWatch tool, there’s currently a 91% chance that the rate remains unchanged at the March meeting too. This means rates probably won’t significantly drop in the next couple of months.

Dig deeper: Understanding the Fed’s rate decisions — Do we want high or low interest rates?

According to Zillow data, today’s 30-year fixed rate for purchases is 6.26%, and the 30-year refinance rate is 6.30%. These are the national averages, so keep in mind the average in your state or city could be different. Your rate will also vary depending on your personal finances.

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Mortgage rates will probably gradually drop throughout 2025, but they’re unlikely to plummet anytime soon.

Mortgage rates should go down in 2025, though probably not as drastically as many expected a few months ago. Any decreases may be relatively small depending on the economy, inflation, and the Fed.

Finance

Las Cruces finance director gets national honor for ‘exceptional contributions’

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Las Cruces finance director gets national honor for ‘exceptional contributions’

EL PASO, Texas (KTSM) — The City of Las Cruces’ finance director has received a national honor recognizing “exceptional contributions to public finance and local government service,” the City said.

Finance Director Lesley Doyle was selected by the Government Finance Officers Association (GFOA) to receive the organization’s “Recognition for Outstanding Public Service.”

The award recognizes Doyle’s leadership during a critical financial period for the City.

She stepped into the role of finance director as the City’s FY25 audit identified a projected beginning balance shortfall of more than $10 million in a community of nearly 120,000 residents, the City said.

Doyle led a coordinated effort to communicate the financial situation clearly to City departments, executive leadership, and the City Council, while working with the budget team to close the gap without reducing essential services.

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Josie Trevino, assistant finance director, credited Doyle with building a culture of trust and collaboration between the Finance Department and other City departments from the beginning of her tenure.

Doyle came to municipal government after a career in public education, transitioning from a school district into City finance leadership.

“In her first year, she met the challenge with confidence, emphasizing open communication, transparency, and proactive problem-solving. Her leadership has helped strengthen relationships across the organization while fostering a positive and supportive workplace culture within the Finance Department,” the City of Las Cruces said.

“The balance of technical skill and genuine care for people is what makes Lesley’s leadership unique,” Trevino said.

The GFOA has published Doyle’s recognition on its website, and her story will also be highlighted during the upcoming GFOA newsletter and highlighted at the annual GFOA conference.

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Former top Treasury adviser warns that HMRC plans to track personal finances with AI

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Former top Treasury adviser warns that HMRC plans to track personal finances with AI
HMRC could follow Spain’s lead on tracking personal finances (Reuters)

A former senior Treasury adviser to Gordon Brown has warned that HMRC is on the cusp of using artificial intelligence to track people’s and businesses income and expenditure without them knowing.

Dr Chris Wales, who was a member of Mr Brown’s Council of Economic Advisers for more than six years, has sounded the alarm while launching a chilling book on the conduct of the Spanish tax authority, Agencia Tributaria.

He is set to join former Labour Treasury minister Baroness Dawn Primarolo at an event next week flagging up how the Spanish model of dealing with tax evasion is about to arrive in the UK suggesting that the door is opening for a “surveillance state.”

HMRC could follow Spain's lead on tracking personal finances (Reuters)
HMRC could follow Spain’s lead on tracking personal finances (Reuters)

In a preview of the future, Dr Wales has claimed that confidentiality in personal life – not just finances – “will simply go out of the window” and asks whether there are adequate safeguards in the UK to prevent HMRC from emulating its Spanish counterpart.

He said: “From 1 January, every single invoice will go through the tax agency in Spain. The Inspector can already obtain all your utility bills and will soon find out which clinic and pharmacy you use and what you buy there, which restaurants you eat at, where you purchase wine and groceries, what kind of car you have, how far you drive and where you park, what flights you take and which hotels you use. Information security? A thing of the past.”

He went on: “I am far from being a libertarian, but I see great danger in the direction in which tax authority powers are going, particularly because the process doesn’t seem to involve our active consent. There is little parliamentary debate about it. In Spain it is simply out of control. In the UK, let’s see.”

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Highlighting the CONNECT AI program already used by HMRC in the UK, Dr Wales claimed that the UK is now close to following Spain’s lead.

He said: “HMRC has been using sophisticated information technology for years including an AI system called CONNECT which, as early as 2023, was said to contain more than 55 billion taxpayer-related data items.

“It will be much bigger today with these billions of pieces of information about taxpayers capable of being sorted quickly by AI.”

Dr Wales, who is now senior research adviser at International Centre for Tax and Development, added that HMRC also declines to say what algorithms it uses, under the pretext that if you publish them people will “game the system”, a claim that he suggests does not stand up to scrutiny.

“The system is understood to be used to target evasion. For tax authorities, everyone is a potential tax evader. This means that they believe they have a legitimate reason to collect data about all of us,” he said.

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Dr Wales and Baroness Primarolo will be urging parliamentarians in the UK to make more of a stand and apply greater scrutiny than has happened in Spain.

He noted that the Spanish government is trying to introduce a new law, making it an official secret, how the data is used, what algorithms are employed in the selection of taxpayers for investigation and whether there is any review by an official, in apparent defiance of the EU AI Act, GDPR and its own Constitution. “This is obviously a matter of deep concern. When the reasons why decisions are made are unknowable, legal challenge becomes almost impossible.”

In Spain the system is already being used against British expats and others by the authorities.

An HMRC spokesperson said: “Our data and collection powers are set by Parliament and subject to strict legal safeguards, oversight and data protection laws. They exist so we can collect the right tax to fund vital public services, and target error and fraud in a way which minimises intrusion on the honest majority.

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“Artificial intelligence supports some of our processes but never replaces human decision-making and oversight. We remain committed to the safe use of these technologies, underpinned by strict data protection, security and ethical standards.”

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Boyle Heights warehouse fire: Where neighbors, victims can seek financial assistance

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Boyle Heights warehouse fire: Where neighbors, victims can seek financial assistance

More than two weeks after a fire broke out inside the Lineage warehouse in Boyle Heights, many neighbors have received N95 masks and air purified while mobile health clinics are set up in their area.

But some neighbors said the massive fire that sent toxic fume into the air and created a horrendous stench of rotting food has cost them out of pocket.

Neighbors said they missed days of work while spending extra money on property cleanup. One woman said she spent hundreds of dollars on air purified before they became more widely distributed.

Lineage, the company that operates the burned warehouse, donated $2 million to the California Community Foundation (CCF) so the money can be distributed to the community. The organization said it’s split the money between different organizations.

At least 10 of them are listed as providing financial assistance.

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The Boyle Heights Chamber of Commerce said it’s offering small business grants funded, in part, by the group, Inclusive Action for the City.

“We’re hoping that for brick and mortars: it would be up to $3,000. And then for our vendors, it would be up to $1,000,” Miriam Rodriguez with the Boyle Heights Chamber of Commerce said, adding the application is “very straightforward.” “It’s intentionally made that way so that there’s not a lot of requirements. We’re not asking for legal status. We’re not asking for pages of documentation.”

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