Current Mortgage Rates Snapshot

As of April 21, 2025, the national average 30-year fixed mortgage rate is approximately 6.89%, while the 15-year fixed rate hovers around 6.12%. Although the Federal Reserve hints at potential rate cuts later this year, most forecasts expect mortgage rates to stay above 6% into 2026.

Key takeaway: Now may be a strategic time to consider options like FHA streamline refinance or VA Interest Rate Reduction Refinance Loans (IRRRLs) to lower monthly payments.

FHA and VA Loans Face New Challenges

• FHA loan delinquencies have risen by 70 basis points year-over-year.

• VA loan delinquencies have increased by 57 basis points.

First-time buyers using low-down-payment programs like FHA are feeling the squeeze from higher rates, inflation, and rising home prices.

Policy Changes Impact Housing Finance

The new leadership at the Federal Housing Finance Agency (FHFA) is sparking concerns over the future of Fannie Mae and Freddie Mac. Experts warn that disruption could impact conventional loan availability, putting even greater emphasis on government-backed programs like FHA loans and VA loans.

2025 Mortgage Rate Forecast

Most analysts agree: Mortgage rates are likely to stay elevated, with gradual downward movement expected only if economic growth slows sharply. Homebuyers using FHA loans or VA loans should work closely with their mortgage broker to lock in favorable rates and avoid future increases.