Mortgage rates continue to rise in the United States. On June 9, the average annual percentage rate on 30-year fixed mortgages was 7.07%. Meanwhile, the average 15-year fixed mortgage APR is 6.48%, according to the latest survey from Bankrate, one of the nation’s largest mortgage lenders.
READ ALSO: What are the best interest rates for a home and which banks offer them?
Will mortgage rates continue to rise in the US in 2023?
In recent months, mortgage rates have risen to their highest level in 20 years, causing a slowdown in buying activity. Where is the housing market headed in 2023? Bankrate questioned several real estate experts to come up with a five-year forecast for the real estate market.
According to Lawrence Yun, chief economist at the National Association of Realtors, mortgage interest rates could continue to rise. According to Yun’s forecasts, 7% could be the level of mortgage rates for the rest of this year and most of 2024. Within two years, he forecasts the rate should return to 5.5 or 6%.
Because rates are high, Yun expects higher interest on adjustable-rate mortgages over the next year. After that, however, he predicts that 90% of Americans will return to the traditional 30-year fixed-rate mortgage.
Danushka Nanayakkara-Skillington, assistant vice president of forecasting and analysis at the National Association of Home Builders predicts that rates will fall to around 6% by mid-2024.
Average 30-Year Mortgage Rate in the US… 1970s: 8.9% 1980s: 12.7% 1990s: 8.1% 2000s: 6.3% 2010s: 4.1% 2020s: 4.1% — All-Time Low (Jan 2021): 2.65% Today’s Rate: 6.79% pic.twitter.com/NkC2n7YiV0
— Charlie Bilello (@charliebilello) June 1, 2023
Home Price Predictions
According to NAR, the median sales price for existing homes in the country in April of this year was $388,800. For newly built homes, the NAHB data shows that the April median sales price across the country was slightly above $420,800.
Looking ahead, Yun doesn’t see any major changes in price tags nationwide next year and predicts fluctuations of about 5 percent one way or the other. However, in five years, he expects prices to have appreciated a total of 15-25%.
READ ALSO: These are the most overpriced housing markets in the US in 2023
Will the housing market crash?
According to Yun, although there are some characteristics similar to a housing bubble, the residential real estate market is not expected to burst. Several experts point out that there is no danger of an imminent housing market crash, as inventory is too scarce. Also, the standards for obtaining a loan today are much stricter compared to the Great Recession.
A variety of important mortgage rates inched upward over the last seven days. The average interest rates for both 15-year fixed and 30-year fixed mortgages both made gains. For variable rates, the 5/1 adjustable-rate mortgage also rose.
After hiking interest rates 10 times since March 2022, the Federal Reserve pumped the brakes during its June meeting. The central bank’s benchmark federal funds rate will remain at a range of 5.00% to 5.25% for the time being, although the Fed hasn’t ruled out the possibility of further increases if inflation doesn’t continue to moderate.
As long as inflation continues to trend downward, experts say a pause in rate hikes from the Fed could bring some stability to today’s volatile mortgage rate market.
Current Mortgage Rates for July 2023
Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
Mortgages hit a 20-year high in late 2022, but now the macroeconomic environment is changing again. Rates dipped significantly in January before climbing back up in February. Aside from a brief surge towards the end of May, rates continue to fluctuate in the 6% to 7% range.
Even though the Fed hit pause on rate hikes, mortgage interest rates will continue to fluctuate on a daily basis. That’s because mortgage rates aren’t tied to the federal funds rate in the same way other products are, such as home equity loans and home equity lines of credit, or HELOCs. Mortgage rates respond to a variety of economic factors, including inflation, employment and the broader outlook for the economy.
“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree. “I don’t anticipate them to spike or even show a sustained spike following this meeting,” Channel said.
Overall, inflation remains high but has been slowly, but consistently, falling every month since it peaked in June 2022.
After raising rates dramatically in 2022, the Fed opted for smaller, 25-basis-point increases in its first three meetings of 2023. The decision to hold rates steady on June 14 suggests that inflation is cooling and ongoing rate hikes may no longer be necessary to bring inflation down to the Fed’s 2% target. The central bank is unlikely to cut rates any time soon, but positive signaling from the Fed and cooling inflation may ease some of the upward pressure on mortgage rates.
“Rates are getting to a point of being steady. So, it’s more a question of how long it will take for rates to start ticking back down and when inflation will return to a place where your dollar starts buying a little bit more each month,” said Kevin Williams, founder of Full Life Financial Planning.
However, mortgage rates remain well above where they were a year ago. Fewer buyers are willing to jump into the housing market, driving demand down and causing home prices in some regions to ease, but that’s only part of the home affordability equation.
“Interest rates have been much higher in the past and people bought homes and financed homes at those rates. But it’s been hard for people to react to such a rapid increase in just a short amount of time,” said Daniel Oney, research director at the Texas Real Estate Research Center at Texas A&M University. “Everybody had a target for how much they needed to save in order to go into the housing market, but when interest rates increased, those goal posts moved too,” he added.
What does this mean for homebuyers this year? Mortgage rates are likely to decrease slightly in 2023, although they’re highly unlikely to return to the rock-bottom levels of 2020 and 2021. However, rate volatility may continue for some time. “Expect mortgage rates to yo-yo up and down in the first half of the year, at least until there is a consensus about when the Fed will conclude raising interest rates,” said Greg McBride, CFA and chief financial analyst at Bankrate. McBride expects rates to fall more consistently as the year progresses. “Thirty-year fixed mortgage rates will end the year near 5.25%,” he said.
Rather than worrying about market mortgage rates, homebuyers should focus on what they can control: getting the best rate they can for their situation.
“The most important thing is that they find the right home. The second most important thing is obviously to find the most efficient way to finance it,” said Melissa Cohn, regional vice president of William Raveis Mortgage.
Take steps to improve your credit score and save for a down payment to increase your odds of qualifying for the lowest rate available. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you compare apples to apples.
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 7.31%, which is an increase of 14 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed mortgage will often have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 6.59%, which is an increase of 9 basis points from seven days ago. You’ll definitely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 6.17%, an uptick of 10 basis points compared to a week ago. For the first five years, you’ll usually get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But changes in the market could cause your interest rate to increase after that time, as detailed in the terms of your loan. Because of this, an ARM could be a good option if you plan to sell or refinance your house before the rate changes. If not, shifts in the market could significantly increase your interest rate.
Mortgage rate trends
Mortgage rates were historically low throughout most of 2020 and 2021 but increased steadily throughout 2022. Now, mortgage rates are roughly twice what they were a year ago, pushed up by persistently high inflation. That high inflation prompted the Fed to raise its target federal funds rate seven times in 2022. By raising rates, the Fed makes it more expensive to borrow money and more appealing to keep money in savings, suppressing demand for goods and services.
Mortgage interest rates don’t move in lockstep with the Fed’s actions in the same way that, say, rates for a home equity line of credit do. But they do respond to inflation. As a result, cooling inflation data and positive signals from the Fed will influence mortgage rate movement more than the most recent 25-basis-point rate hike.
We use data collected by Bankrate to track changes in these daily rates. This table summarizes the average rates offered by lenders across the US:
Average mortgage interest rates
Product
Rate
Last week
Change
30-year fixed
7.31%
7.17%
+0.14
15-year fixed
6.59%
6.50%
+0.09
30-year jumbo mortgage rate
7.34%
7.20%
+0.14
30-year mortgage refinance rate
7.41%
7.27%
+0.14
Rates as of July 7, 2023.
How to shop for the best mortgage rate
When you are ready to apply for a loan, you can connect with a local mortgage broker or search online. In order to find the best home mortgage, you’ll need to take into account your goals and overall financial situation.
Specific mortgage interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a good credit score, a higher down payment, a low DTI, a low LTV or any combination of those factors can help you get a lower interest rate.
Beyond the mortgage interest rate, other factors including closing costs, fees, discount points and taxes might also factor into the cost of your house. Make sure to shop around with multiple lenders — such as credit unions and online lenders in addition to local and national banks — in order to get a mortgage that’s the right fit for you.
What is a good loan term?
One important thing you should consider when choosing a mortgage is the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are the same for the duration of the loan. For adjustable-rate mortgages, interest rates are set for a certain number of years (typically five, seven or 10 years), then the rate changes annually based on the market interest rate.
When choosing between a fixed-rate and adjustable-rate mortgage, you should consider how long you plan to live in your house. For those who plan on living long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages can sometimes offer lower interest rates upfront. If you don’t have plans to keep your new house for more than three to 10 years, though, an adjustable-rate mortgage may give you a better deal. There is no best loan term as a rule of thumb; it all depends on your goals and your current financial situation. Be sure to do your research and think about your own priorities when choosing a mortgage.
In this high-interest-rate environment, many prospective homebuyers are put off by high mortgage costs. Homes that might have been in your budget in the past might no longer be affordable when accounting for monthly interest payments.
But that doesn’t mean the situation is totally out of your control. While mortgage timing can be tricky, you might decide to wait to see if interest rates drop, as many experts predict will happen in the next year or so.
You can also take a number of steps to improve your financial situation and get a handle on the real estate market now as you’re figuring out when to buy a home.
See where today’s mortgage rates stand here.
What prospective homebuyers should do until interest rates drop
In particular, some action items to consider as you wait to see what happens with mortgage interest rates include the following expert-recommend tips:
Figure out what you want
If you’re waiting to see what happens with interest rates, use this time to do more research. That includes narrowing down what you want in a home and what you can realistically afford.
“Use this time to refine exactly what you’re looking for in your next home, including things like what your budget can buy you and what your ‘needs’ and ‘wants’ are,” says Merav Bloch, VP and GM of Opendoor Exclusives. “If you’re willing to trade a longer commute for your dream yard, but your partner wants to be within a 10-minute drive of their office, now is an opportune time to debate that trade-off.”
Even if you’re not necessarily ready to buy right away, you can still tour homes.
“I encourage buyers to see what’s out there and tour as many homes as possible to get a sense of what your budget will get you, what your non-negotiables are and what neighborhoods you’re open to,” Bloch says. “People typically don’t get married on the first date, and it’s usually better not to purchase the first home you tour.”
Start your mortgage search online now.
Talk to experts
As you figure out what you want in a home, it can help to talk to experts like mortgage consultants and real estate agents to narrow down what’s realistic for you.
Tanya Ball, home loans regional director at BOK Financial, suggests asking experts about down payment assistance options as well as “specialized loan programs if you are a veteran, Native American, first-time buyer or buying in a rural area.”
Plus, speaking with an expert like a mortgage professional “can let you know which items to focus on for better offers — for example, a higher down payment or paying off debt,” says Michael Merritt, mortgage servicing operations manager at BOK Financial. “The biggest benefit will vary based on your circumstances, so it is important to focus on the things that will help you the most.”
Improve your credit score
For some prospective homebuyers, improving your credit score can make a significant difference in the mortgage rate you qualify for.
“Lenders typically offer better interest rates and loan terms to borrowers with higher credit scores, so taking steps to improve your credit can help you get the best possible deal on your mortgage,” says Adie Kriegstein, licensed real estate salesperson at Compass Real Estate. “This might include paying down existing debt, making all of your payments on time and avoiding new credit inquiries or applications.”
Build up your down payment
Another way to take advantage of this time waiting for interest rates to stabilize or drop is to build up your down payment. The more you can put down, the less you have to borrow and therefore pay interest on. Plus, a higher down payment could potentially get you a lower interest rate.
“A strategy I recommend, especially for first-time home buyers, is to deposit the difference between your current housing payment and your projected payment into a high-yield account each month. This helps grow your down payment or the amount you can use to pay down debts and is a test for your expected budget to see if it is workable,” says Merritt.
Check out today’s mortgage offerings here.
Shop around
Don’t assume that what one lender offers you is the same as what all other banks and mortgage providers offer. Your borrowing limits, interest rates and terms can vary from lender to lender, so it pays to shop around.
You also might find that paying for mortgage points with some lenders (where you pay money upfront to lower your interest rate), or choosing adjustable-rate mortgages rather than fixed-rate loans, works out in your favor.
“It’s an interesting quirk of human nature that many of us would drive across town to save 30% on a sofa but not necessarily compare rates and financing options on a house-sized purchase,” says Bloch.
“If you’re waiting to buy, this is a great time to shop lenders and financing options, including lesser-known options like rate buydowns. In this market, buyers are acutely aware of interest rates, but they’re less aware of options to reduce their monthly payments,” Bloch says.
Improve your current home
Lastly, if you already own a home, you can use this time to improve your current home to try to get more money when you eventually sell. That can help offset the cost of high interest rates.
One idea is to get a home inspection now, says Jonathan Rundlett, a real estate agent and regional owner at EXIT Mid-Atlantic.
“This will allow you to take the time that you are waiting for interest rates to fall to make any repairs or updates that the inspector finds in your home,” Rundlett says. “Making any necessary repairs and updating your home so that it shows in move-in ready condition will allow you to get top dollar for your home when you are ready to sell.”
The bottom line
These action items can help many prospective homebuyers better position themselves as they wait to see what happens with interest rates. But it’s important to remember that the specific ways to improve your situation depend on personal factors
like your credit history, savings and income. And while you might try to time mortgage purchasing, it’s difficult to know when to buy a home, as it can be both a financial and emotional decision. Some people might be comfortable paying more for their dream home, while others might want to wait to get a good deal on a mortgage interest rate. Weigh the pros and cons, and consider speaking with experts for personalized advice.
The Federal Reserve concluded its June meeting by pausing its strategy it started in 2022.
The central bank decided to not hike its federal funds rate for the first time in over a year. Instead, it’s taking a wait-and-see approach in order to see if inflation keeps descending and the overall economy cools in the face of job market resiliency.
“With this muddled picture, it is not surprising that the Federal Open Market Committee (FOMC) held rates steady at its June meeting – but kept their options open for July and later this year,” said Mortgage Bankers Association Chief Economist Mike Fratantoni.
The Fed’s role and June’s FOMC meeting
The Fed doesn’t set mortgage interest rates. Mortgage rates hinge on several factors, but they do intrinsically correlate with the central bank’s policy actions.
After 10 consecutive hikes, the FOMC concluded its June 14 meeting by holding the federal funds rate target range static. The committee will instead “assess additional information and its implications for monetary policy” to bring inflation down to the 2% goal, according to its press release.
The national inflation rate gradually decreased for 10 straight months, from June 2022’s 41-year high of 9.1% to 4% in May 2023, according to the U.S. Bureau of Labor Statistics. Ahead of June’s meeting, Fed Governor Philip Jefferson said skipping a rate hike “would allow the committee to see more data before making decisions about the extent of additional policy firming.”
While only time will determine the Fed’s next moves, its median forecast showed two more rate hikes in 2023. Of course, the FOMC is prepared to make adjustments based on economic conditions and developments.
Fratantoni predicts the Fed will forego making more hikes this year.
“The threat of further hikes, baked in to medium-term rates today, will only further slow economic activity,” Fratantoni continued. “We expect that mortgage rates will drift down over the second half of the year as the economy slows and the Fed reacts accordingly by holding off on further rate hikes.”
The FOMC’s goal is to keep the long-term average annual rate of inflation near 2% and the next meeting comes on July 25-26.
How will mortgage rates react?
With debt ceiling negotiations creating uncertainty, interest rate movement mostly trended upwards since May’s FOMC meeting.
Since settling at 6.39% on May 4, the average 30-year fixed-rate mortgage (FRM) climbed to 6.71% on June 8, according to Freddie Mac.
Interest rates typically rise alongside increases to the fed funds rate and run off of balance sheet holdings. With this relatively small — and potentially 2023’s final — hike, mortgage rates could decline amongst the financial market uncertainty.
We’ve seen mixed results in the immediate aftermath for this series of rate hikes. Most recently, the average 30-year FRM decreased 18 basis points (0.18%) and four basis points (0.04%), respectively, the day after the hikes on March 22 and May 4.
Is it a good idea to lock in a mortgage rate?
The FOMC’s latest action signals a downtrend for inflation and likely the economy.
In turn, interest rates are expected to gradually fall over the remainder of the year. However, mortgage rate movements are highly volatile and depend on a multitude of factors. Trying to time the market typically isn’t financially prudent, but the sooner you lock in a mortgage, the sooner you start building home equity (and personal wealth).
If you’re ready to become a homeowner, reach out to a mortgage professional to see what rate and loan type you qualify for.
Buying a home can be challenging these days. Home prices remain high, and interest rates are up significantly compared to a few years ago. In fact, according to Freddie Mac, the average rate on 30-year loans is now creeping toward 7%.
Will rates stay high for the foreseeable future? There’s no way to tell for sure, but there are ways to get around them if they do.
Find out what today’s mortgage rates are here.
What to do if mortgage interest rates stay high
If you’re looking to purchase a house but high mortgage rates are holding you back, here are the strategies that might help.
Buy now, refinance later
One clear option is to buy a house now, at today’s rate, and then refinance your loan when interest rates inevitably drop.
According to Robert Esposito, director of sales at RelatedISG Realty, mortgage refinancing is a particularly good option for those searching for average-priced homes, as their value will only increase in price as time goes on.
“They will encounter the most competition,” Esposito says. “A property worth $500,000 today might be worth $600,000 a year from now, and then you realize you didn’t save any money.”
Check out current mortgage rates here to start exploring your options.
Make a larger down payment
Making a big down payment can help in two ways. First, “it could offer a lower interest rate,” says Sam Sharp, executive vice president of national sales at Guaranteed Rate.
It will also reduce your total loan balance and help you avoid private mortgage insurance, which means lower monthly payments.
“Making a large down payment lowers the total loan amount and interest rate,” Esposito says.” It also makes you eligible for better loan terms or even to avoid private mortgage insurance altogether.”
Consider different loan options
Exploring less-common mortgage products is another option. Adjustable-rate mortgages, for example, offer lower rates than fixed ones for the first few years of the loan. These are good if you only plan to be in the home for a few years — before your rate can increase.
“Having worked with buyers in every stage of life over the years, we find that most people overestimate the amount of time they will live in a property and thus end up with a rate higher than necessary,” says Lindsay Barton Barrett, a licensed associate real estate broker at Douglas Elliman. “If you can get an ARM, you can save substantially — even if you stay beyond the adjustment date. What happens is that you pay a higher mortgage rate for one year in five years versus paying a higher rate for all six years.”
Getting a shorter-term loan can help, too. For example, the current average rate on 30-year loans is 6.71%, according to Freddie Mac. With 15-year loans, though, the average drops to just 6.06%. This could save you quite a bit in long-term interest. Just keep in mind that you’ll have a higher payment due to the shortened pay-off timeline.
Begin comparing your loan options online today.
Stay put and improve your current home instead
If you already own a home, tapping into your equity with a home equity loan, home equity line of credit (HELOC) or cash-out refinance may be another strategy. These allow you to borrow from your home equity, which could provide funds for improving or expanding your current home as needed.
According to CoreLogic, the typical homeowner has a whopping $274,000 in home equity, so this could be a viable option for many. Still, it depends on where you live. If you’re in a condo or tight urban area, for example, there may not be space to expand.
Using your home equity also means taking on more debt, often at variable rates. These rates can be volatile, particularly as the Federal Reserve continues to fight inflation.
“Home equity lines at a variable rate track higher interest rate numbers since they are tied to factors like benchmark rates, which are currently very high,” Barrett says.
See today’s home equity rates and find out how much you may be eligible to borrow.
Buy down your rate
Buying down your rate can work as well. In this scenario, you purchase “points” — usually for 1% of the loan amount — which reduces your interest rate by a nominal amount (typically 0.125% to 0.25%).
“In recent years, we’ve found it very common for buyers to buy points, which act as prepayment interest and reduce the overall interest rate on the mortgage,” Esposito says.
Some lenders also offer temporary buydowns, where a seller or lender pays to reduce a buyer’s interest rate for a set period. After that, it goes back to the normal rate.
“This will allow for a credit from the seller that will pay the interest difference on a loan over the course of one to three years, resulting in a temporary rate reduction as high as 3% below the market rate,” Sharp says. “This is a great way to lower the monthly payment for homebuyers.”
Wait for rates to drop
Finally, you can always wait it out. As they say, “what goes up, must come down,” so mortgage rates will inevitably fall at some point. The question is when.
Fannie Mae’s forecast currently projects rates will finish out 2023 at an average 6.3%. The Mortgage Bankers Association predicts a bigger drop to 5.8%.
Still, these aren’t guarantees. And even if rates drop, it could mean more buyers in the market, which could drive up home prices.
“If rates decrease because inflation is deemed under control, then the economy overall will be more stable and lend itself to confidence,” Barrett says. “Between more purchasing power and confidence in the market, home prices would increase — meaning many will have missed the opportunity to buy real estate.”
Ready to see your mortgage options? Start by viewing today’s rates here.
Every situation is different
There’s no clear-cut strategy for dealing with today’s high mortgage interest rates. The right move for you will depend on your goals, your budget and your personal situation, so make sure to talk to a mortgage professional before deciding how to proceed.
And once you do decide to move forward, make sure to shop around for your mortgage. Freddie Mac estimates that getting at least four rate quotes can save you up to around $1,200 every year.
With the news this month that the housing market hit a milestone by showing the first year-over-year price decline in recent memory, homeowners who’d considered finally selling their home this year are finding themselves discouraged yet again.
What happened, they might wonder, to the not-so-distant glory days of frantic bidding wars and over-ask offers? Plenty of frustrated owners seem worried that the window for a fast and lucrative home sale might be shutting fast.
But here’s the reality: The U.S. housing market is no monolith. Although it’s true that many of the hottest markets of the past few years have seen prices fall in the wake of higher mortgage interest rates that broadly dampened home shoppers’ buying power, there are still cities where buyers continue to snatch up homes quickly and where sellers are getting their full asking price—or more.
This is why the Realtor.com® data team dug in to find the U.S. real estate markets that most favor sellers. (Sorry, buyers!)
The best places for sellers generally have persistently low housing inventory, strong demand from buyers, and often—but not always—lower prices that have room to swell. These are generally affordable metropolitan areas in the Northeast with a few in the Midwest.
Three of the metros on our list—Hartford, CT, Worcester, MA, and Providence, RI—are so close, you could tour homes in all of them in a single day. Our ranking also has one spot in the South and a somewhat bizarre outlier in California—more on that later.
To figure out if an area is a buyer’s or seller’s market, Pamela Ermen likes to track the change in the number of closed sales per month, compared with the change in the number of new listings per month.
“When sales are going up and inventory is going down, that’s a real seller’s market,” says Ermen, a Virginia Beach–based Realtor® at Re/Max and a speaker and coach at Real Estate Guidance.
Still, sellers who focus solely on low inventory can wrongly conclude that they can list their home at a higher price than an agent might advise. That can lead to their property languishing on the market not receiving strong offers. Meanwhile, buyers who focus only on the number of sales going down might wrongly think there’s less competition. That might result in heartache when they find out the hard way that many homes are still getting multiple offers.
To find true seller-friendly places, the Realtor.com data team looked at the May 2023 listing data for the 100 largest metropolitan areas. Then we ranked each based on the number of days that the median listing is on the market, combined with the portion of listings that have had the price reduced. These metrics tell us where homes are selling faster than average and with fewer sellers having to reduce their price to make the sale.
We selected just one metro area per state to ensure geographical diversity. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
Here’s where sellers can expect the market to be most tilted in their favor this summer.
Median list price: $265,000 Median days on the market: 13 Listings with a price reduction: 1 in 17
Rochester, on the western edge of New York along the southern shore of Lake Ontario, not only is at the top of our seller’s saviors list—it’s also in a class of its own. Rochester had both the lowest number of days on the market and the lowest portion of listings with a price reduction. But this is nothing new for the so-called Flower City.
The metro area has become a mainstay of the Realtor.com hottest real estate markets list. It’s also where sellers are usually still getting their asking price, and where buyers can find one of the largest selections of homes for less than $200,000. Plus, home prices are well below the national median list price of $441,500 in May.
These affordable homes have made the area appealing to locals, out-of-towners, and investors.
“If you’re priced right in our market, you can expect to still sell in about one week,” says Jenna May, a local real estate agent at Keller Williams Realty.
When the market was at its pandemic peak in 2022, and even before anyone had heard of COVID-19, Rochester was still leading the nation in the low number of days on the market. Demand here for homes is high and seems destined to stay that way.
“There are people who are offering $80,000 over listing price and not getting the home,” says May. “It’s that competitive.”
Median list price: $424,925 Median days on the market: 19 Listings with a price reduction: 1 in 14
The capital city of Connecticut is also no stranger to the Realtor.com list of the nation’s hottest real estate markets. Hartford is the largest population hub in the state, with 1.2 million residents.
It also boasts home prices that are about 5% below the national median.
“The Northeast has been well undervalued compared with other markets—and not just for years, but for decades,” says Lisa Barrall-Matt, a senior broker at Berkshire Hathaway in West Hartford.
Homes in the Hartford area have been priced $100,000 less than comparable homes in other markets, Barrall-Matt says, for so long that she began to take it for granted.
Now, she’s feeling vindicated: “I used to say, ‘Why aren’t prices higher?’ Now I’m saying, ‘Where’s the ceiling?’”
Median list price: $622,500 Median days on the market: 24 Listings with a price reduction: 1 in 13
Portland became a popular pandemic destination for Northeasterners looking for a scenic, coastal city with some great restaurants, entertainment, and a brewery scene. The area has a rich history, having a Native American presence dating more than 10,000 years before becoming an early Colonial settlement.
The above-average prices in this artsy city on Casco Bay aren’t keeping sellers from enjoying quick sales. In fact, few listings are getting marked down. The demand for housing here is just so strong. Portland has been featured on our list of the best places to retire in 2022, and it has one of the last year’s hottest neighborhoods: Windham, just on the northwestern edge of Portland proper.
Prices in Portland have grown significantly faster during the pandemic—from May 2019 to now—than they did in most of the country. Where prices rose about 40% nationally, prices in Portland have grown by about 62%. Just since this time last year, prices rose 17%.
A newer four-bedroom home in South Portland that’s within walking distance of Fore River is listed for $650,000, close to the area average.
Median list price: $517,450 Median days on the market: 19 Listings with a price reduction: 1 in 10
Worcester, about 40 miles west of Boston, was nicknamed the “Heart of the Commonwealth” because of its central location in Massachusetts.
This medium-sized metro has a name that’s fun to say, like “rooster” but with a W. But it simply doesn’t have enough homes to match the high interest from potential buyers, according to Nick McNeil, a local Realtor with the Lux Group.
“The amount of demand and the absolute lack of inventory is nuts,” he says. “And there’s not much room for new construction in this area, with tight regulations on what can be built.”
Until there’s some kind of change in the supply and demand dynamic in the area, McNeil says, it’s going to be hard for buyers, and relatively easy for sellers—as long as they’re not also trying to buy.
“The best situation you can be in is if you can sell now,” he says.
Median list price: $384,250 Median days on the market: 25 Listings with a price reduction: 1 in 10
Amid the rolling hills of Eastern Pennsylvania’s Lehigh Valley, about 60 miles northwest of Philadelphia, Allentown has a few things going for sellers right now. The portion of homes with a price reduction is about half the national average, and homes are selling about 40% faster.
Like some other places on this list, the homes in this historic steel town are priced below the national average. But local incomes are a bit higher than average, offering buyers more affordability. That’s helping the real estate market to remain competitive as buyers seek out deals.
Allentown offers a mix of urban, suburban, and rural lifestyles, making it broadly attractive for buyers.
What’s especially notable about the area is the price growth over the past several years. Allentown metro prices have risen by 78% since before the pandemic, ahead of all the other places on this list.
For about the local median price in Allentown, buyers can find a five-bedroom bungalow in the Hamilton Park neighborhood west of downtown Allentown.
Median list price: $374,950 Median days on the market: 29 Listings with a price reduction: 1 in 11
Perched on the western shore of Lake Michigan in southeastern Wisconsin, Milwaukee is known for its breweries, including Miller and Pabst. It’s also where Harley-Davidson was founded. And it’s been a staple of housing affordability for some time.
However, prices have been rising in Milwaukee’s metro area: They rose by around 11% compared with this time last year.
The median number of days on the market is below the average now, just like it was before the pandemic. The same goes for the portion of listings with a price reduction. This is all very good news for home sellers hoping for a quick, profitable sale.
For $375,000, a buyer can get a large, four-bedroom home just 5 minutes from hiking trails, a golf course, and a dog park, all along the shoreline.
Median list price: $386,973 Median days on the market: 29 Listings with a price reduction: 1 in 9
The Virginia Beach metro area, a popular vacation spot for beach, maritime history, and seafood lovers, is another place where incomes are higher than average and home prices are lower.
Last year, sellers could count on getting multiple offers, usually leading to potential buyers bidding up the price, says Virginia Beach–based Realtor Ermen. Now, it’s not as easy to figure out that pricing sweet spot. If the home is listed too high, that’s when there’s eventually pressure to reduce the price.
In the month of May, even with a low number of price reductions, Erman says, “90% of price reductions were made before the listing hit the average time on market.”
That indicates sellers are getting antsy, and probably would have been better off pricing the home lower to begin with. But homes that are priced to sell are still moving briskly.
Median list price: $1,530,000 Median days on the market: 25 Listings with a price reduction: 1 in 9
San Jose is the oddball on this list.
Nestled in the heart of Silicon Valley, it is one of the most expensive real estate markets in the nation. Homes in this San Francisco Bay Area hot spot cost more than triple the national average, which means real estate attracts a very specific buyer.
Because San Jose is a global technology hub, its population is very diverse, and not just racially or ethnically. Roughly 40% of residents were born outside of the U.S., according to the U.S. Census Bureau. Most significantly, many residents have tons of money to spend, whether they’re high-salaried tech employees or they have had an entrepreneurial startup windfall.
Local real estate agents will tell you that San Jose is simply insulated from many of the market dynamics because the clientele is so wealthy. If they’re making an all-cash purchase, they don’t have to worry about higher mortgage rates. And that’s a big boon for sellers.
Median list price: $539,950 Median days on the market: 31 Listings with a price reduction: 1 in 10
Providence, home to Brown University and the Rhode Island School of Design, is a bustling town filled with older homes. About 50 miles southwest of Boston, it’s one of the medium-sized, Northeastern metros on our list that are enjoying especially strong housing markets right now.
Providence prices are significantly above the national average, but compared with nearby Boston, where the median list price is north of $850,000, Providence is a downright bargain.
Plus, it’s got a lot going for it. It boasts beautiful scenery along the Seekonk River, a thriving arts scene, and good jobs. The headquarters for CVS is located in nearby Woonsocket.
In Providence, for $550,000, a little above the local average, buyers can find a midcentury two-bedroom home with classic brick construction about 15 minutes from downtown.
Median list price: $229,950 Median days on the market: 31 Listings with a price reduction: 1 in 9
Home prices in this Rust Belt city, which has struggled in more recent years, are still dramatically lower than the national average—about 45% less expensive. And with the focus of buyers on affordability, it’s no wonder that Toledo has taken off.
In the past year, median list prices in Toledo have risen by 25% (10% per square foot), which is quite a bit higher than before the pandemic.
For less than the median list price in Toledo, buyers can get a massive, six-bedroom home in Toledo’s Old West End neighborhood, just northwest of downtown.
Looking for the most up-to-date mortgage rates to empower your purchasing or refinancing decisions? We’ve got you covered.
Here, you can view today’s mortgage interest rates, updated daily according to data from Bankrate, so you can have the most current data when purchasing or refinancing your home.
30-year fixed rate mortgages
The average mortgage interest rate for a standard 30-year fixed mortgage is 7.15%, an increase of 0.09 percentage points from last week’s 7.06%.
Thirty-year fixed mortgages are the most commonly sought out loan term. A 30-year fixed rate mortgage has a lower monthly payment than a 15-year one, but usually has a higher interest rate.
15-year fixed rate mortgages
The average mortgage interest rate for a standard 15-year fixed mortgage is 6.49%, an increase of 0.03 percentage points from last week’s 6.46%.
Fifteen-year fixed rate mortgages come with a higher monthly payment compared to its 30-year counterpart. However, usually interest rates are lower and you will pay less total interest because you are paying off your loan at a faster rate.
5/1 adjustable rate mortgages
The average rate on a 5/1 adjustable rate mortgage (ARM) is 6.08%, with no change from last week. With an ARM, you will most often get a lower interest rate than a fixed mortgage for say, the first five years.
But you could end up paying more or less after that time depending on your loan terms and how that rate follows the market.
What is the best term for a loan?
When picking a mortgage, it is important to pick out a loan term or payment schedule. Usually you will be offered a 15 or 30-year loan term, but it is not uncommon to see 10, 20, or 40-year mortgages, according to CNET.
Mortgages can be fixed-rate or adjustable-rate. Interest rates in fixed-rate mortgages are set in stone for the duration of the loan.
Adjustable-rate mortgages only have interest rates set for a certain period of time before the rate adjusts annually based on the market.
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Some principal mortgage rates rose over the last seven days. The average 15-year fixed and 30-year fixed mortgage rates both were higher. For variable rates, the 5/1 adjustable-rate mortgage also climbed.
After hiking interest rates 10 times since March 2022, the Federal Reserve pumped the brakes during its June meeting. The central bank’s benchmark federal funds rate will remain at a range of 5.00% to 5.25% for the time being, although the Fed hasn’t ruled out the possibility of further increases if inflation doesn’t continue to moderate.
As long as inflation continues to trend downward, experts say a pause in rate hikes from the Fed could bring some stability to today’s volatile mortgage rate market.
Current Mortgage Rates for July 2023
Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
Mortgages hit a 20-year high in late 2022, but now the macroeconomic environment is changing again. Rates dipped significantly in January before climbing back up in February. Aside from a brief surge towards the end of May, rates continue to fluctuate in the 6% to 7% range.
Even though the Fed hit pause on rate hikes, mortgage interest rates will continue to fluctuate on a daily basis. That’s because mortgage rates aren’t tied to the federal funds rate in the same way other products are, such as home equity loans and home equity lines of credit, or HELOCs. Mortgage rates respond to a variety of economic factors, including inflation, employment and the broader outlook for the economy.
“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree. “I don’t anticipate them to spike or even show a sustained spike following this meeting,” Channel said.
Overall, inflation remains high but has been slowly, but consistently, falling every month since it peaked in June 2022.
After raising rates dramatically in 2022, the Fed opted for smaller, 25-basis-point increases in its first three meetings of 2023. The decision to hold rates steady on June 14 suggests that inflation is cooling and ongoing rate hikes may no longer be necessary to bring inflation down to the Fed’s 2% target. The central bank is unlikely to cut rates any time soon, but positive signaling from the Fed and cooling inflation may ease some of the upward pressure on mortgage rates.
“Rates are getting to a point of being steady. So, it’s more a question of how long it will take for rates to start ticking back down and when inflation will return to a place where your dollar starts buying a little bit more each month,” said Kevin Williams, founder of Full Life Financial Planning.
However, mortgage rates remain well above where they were a year ago. Fewer buyers are willing to jump into the housing market, driving demand down and causing home prices in some regions to ease, but that’s only part of the home affordability equation.
“Interest rates have been much higher in the past and people bought homes and financed homes at those rates. But it’s been hard for people to react to such a rapid increase in just a short amount of time,” said Daniel Oney, research director at the Texas Real Estate Research Center at Texas A&M University. “Everybody had a target for how much they needed to save in order to go into the housing market, but when interest rates increased, those goal posts moved too,” he added.
What does this mean for homebuyers this year? Mortgage rates are likely to decrease slightly in 2023, although they’re highly unlikely to return to the rock-bottom levels of 2020 and 2021. However, rate volatility may continue for some time. “Expect mortgage rates to yo-yo up and down in the first half of the year, at least until there is a consensus about when the Fed will conclude raising interest rates,” said Greg McBride, CFA and chief financial analyst at Bankrate. McBride expects rates to fall more consistently as the year progresses. “Thirty-year fixed mortgage rates will end the year near 5.25%,” he predicted.
Rather than worrying about market mortgage rates, homebuyers should focus on what they can control: getting the best rate they can for their situation.
“The most important thing is that they find the right home. The second most important thing is obviously to find the most efficient way to finance it,” said Melissa Cohn, regional vice president of William Raveis Mortgage.
Take steps to improve your credit score and save for a down payment to increase your odds of qualifying for the lowest rate available. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you compare apples to apples.
30-year fixed-rate mortgages
For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 7.17%, which is a growth of 12 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed mortgage will usually have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 6.52%, which is an increase of 6 basis points from seven days ago. You’ll definitely have a bigger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, as long as you’re able to afford the monthly payments, there are several benefits to a 15-year loan. You’ll typically get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 6.11%, an addition of 3 basis points from the same time last week. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But you might end up paying more after that time, depending on the terms of your loan and how the rate shifts with the market rate. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage may make sense for you. Otherwise, changes in the market mean your interest rate might be a good deal higher once the rate adjusts.
Mortgage rate trends
Mortgage rates were historically low throughout most of 2020 and 2021 but increased steadily throughout 2022. Now, mortgage rates are roughly twice what they were a year ago, pushed up by persistently high inflation. That high inflation prompted the Fed to raise its target federal funds rate seven times in 2022. By raising rates, the Fed makes it more expensive to borrow money and more appealing to keep money in savings, suppressing demand for goods and services.
Mortgage interest rates don’t move in lockstep with the Fed’s actions in the same way that, say, rates for a home equity line of credit do. But they do respond to inflation. As a result, cooling inflation data and positive signals from the Fed will influence mortgage rate movement more than the most recent 25-basis-point rate hike.
We use information collected by Bankrate to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the US:
Current average mortgage interest rates
Loan type
Interest rate
A week ago
Change
30-year fixed rate
7.17%
7.05%
+0.12
15-year fixed rate
6.52%
6.46%
+0.06
30-year jumbo mortgage rate
7.19%
7.08%
+0.11
30-year mortgage refinance rate
7.29%
7.21%
+0.08
Rates as of July 4, 2023.
How to find the best mortgage rates
To find a personalized mortgage rate, speak to your local mortgage broker or use an online mortgage service. In order to find the best home mortgage, you’ll need to consider your goals and current finances.
Specific interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a higher credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate.
Besides the mortgage interest rate, other costs including closing costs, fees, discount points and taxes might also affect the cost of your home. Be sure to comparison shop with multiple lenders — for example, credit unions and online lenders in addition to local and national banks — in order to get a loan that works best for you.
What is a good loan term?
When picking a mortgage, you should consider the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are set for the duration of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (commonly five, seven or 10 years), then the rate changes annually based on the market interest rate.
One important factor to consider when choosing between a fixed-rate and adjustable-rate mortgage is the length of time you plan on staying in your house. For people who plan on staying long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable over time. If you don’t plan to keep your new house for more than three to 10 years, though, an adjustable-rate mortgage may give you a better deal. The best loan term depends on your specific situation and goals, so be sure to consider what’s important to you when choosing a mortgage.
Mortgage delinquencies are up to 1.3%, which is the highest level since March 2020, meaning around 19,500 accounts are past due.
New mortgage lending is also down 27% year-on-year as the housing market takes a downturn.
A number of homeowners who bought during Covid will now have to re-fix their loans, putting interest rates relatively high compared to where they were.
The higher interest rates are making some people nervous.
“I’ve got friends who are obviously they’re a bit worried ’cause they’re coming up in the next month or so. No one’s looking forward to it,” one woman told 1News.
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“We are considering going back to Switzerland because mortgages and everything is just too high,” another woman said.
More on this topic
Mortgage advisor Dawn Whiteside says this reaction is understandable.
“I would imagine as well that there’s going to be quite a few people that are quite nervous out there,” she told 1News.
“These are probably the highest interest rates that we’ve seen for a number of years.”
Data firm Centrix said its latest figures confirm more are struggling to pay mortgages.
They’re also climbing — with 11.5% of mortgages in arrears.
ASB has just hiked its 12-month fixed rate to 7.25%. The bank said it’s held fixed rates for two years.
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It acknowledges the challenges of rising rates, particularly with the cost of living. It also said it’s “proactively engaging with customers to provide advice”.
Centrix said New Zealand has an economy of two halves, with some people fine and others struggling.
Personal loans are also a big worry.
“That tends to be people who are looking for short-term borrowing to try and bridge the gap between what they need in their bank account to meet their commitments for what they actually have,” Centrix managing director Keith McLaughlin said.
“So that’s the one I find the most disturbing.”
High-interest rates do help to keep inflation under control, but they’re also making it tough for many New Zealanders.
One silver lining is that unemployment is relatively low, so people with jobs have a good chance to renegotiate debt and manage tough times.
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“The really, really big main point is don’t bury your head in the sand. If you’re struggling, talk to somebody because there are options out there for you,” Whiteside said.
McLaughlin sees things easing later on in the year.
“I would’ve hoped at the end of October we may start to see things settle down where there is more confidence that there’s stability in interest rates.”
The Reserve Bank will make another call on interest rates next week.
If you live in Texas or the Southeast, you’ve likely heard of Regions Mortgage. In fact, you might already be a banking customer with parent company Regions Financial.
The company is a banking leader in the states of Alabama and Tennessee, so if you’re the type that likes to do all your business in one place, Regions Mortgage might be for you.
Aside from their strong presence in the Southeast, they also provide banking and home loan services in Indiana, Illinois, and Missouri.
Their basic pitch is that you should get your mortgage from a lender you can trust, namely a massive billion-dollar bank with a near 50-year history.
Let’s learn more to see if Regions Mortgage could be a good fit for your home financing needs.
Regions Mortgage Quick Facts
Publicly traded commercial bank serving customers in the Midwest, South, and Texas
Founded in 1971, headquartered in Birmingham, Alabama
One of the largest banks in the United States (top 40)
A top-50 mortgage lender nationally by volume
Funded nearly $7 billion in homes loans via retail channel during 2019
Florida accounted for 25% of total home loan volume
Also a major mortgage lender in the states of Alabama and Tennessee
Regions Mortgage is the retail mortgage banking arm of Regions Financial, a full-scale depository bank.
The company, which is one of the largest banks in the United States, was founded in 1971 and is headquartered in Birmingham, Alabama.
Last year, they funded almost $7 billion in home loans, allowing them to just sneak into the top-50 mortgage lender list nationally.
That’s actually more impressive than it sounds since they only focus on one region of the country.
They used to operate a wholesale mortgage division, which they sold to M&T Mortgage Corporation back in 2005.
Additionally, they exited their correspondent home loan lending business in 2018. So it’s clear they’re entirely focused on originating home loans via the retail, direct-to-consumer channel.
Interestingly, Regions also sells homes and you can search for Regions-owned properties on their website. So it might be a one-stop shop for some home buyers!
Getting a Home Loan with Regions Mortgage
You can apply for a mortgage directly from their website or on your phone
They say it takes about seven minutes to complete the application
Their digital mortgage process is known as Regions Loan Accessway
Allow you to view loan details, check application status, and upload documents
You can start a few different ways. Obviously, you can head down to a brick-and-mortar branch if that’s your thing, or simply call them up on the phone.
Or you can visit their website and search for a loan officer near you. It’s also possible to inquire about a home purchase or mortgage refinance by using their online form.
Assuming you go the online route and select a specific loan officer, you can apply for a mortgage directly on their website without any human interaction.
Like other digital mortgage applications, you’ll need to sign up, provide basic contact information, then provide additional financial information like your income, bank details, employment history, and so on.
They allow you to link financial accounts using Finicity, which provides automated verification of income and assets.
Once your loan is submitted, you can manage it via the borrower portal at any time. You’ll be given a to-do list and the option to receive status updates to stay in the know.
All in all, it looks like a sleek and easy-to-use mortgage dashboard that should make it fairly painless to get your loan to the finish line.
If you’re looking for a mortgage pre-qualification, the Regions “Purchase Power” tool will provide a general idea of how much you may be eligible to borrow.
What Types of Home Loans Does Regions Mortgage Offer?
Home purchase and refinance loans
Renovation and construction-to-perm loans
Conventional loans (Fannie Mae and Freddie Mac)
Government-backed loans (FHA, USDA, VA)
Jumbo home loans
HELOCs
Fixed-rate mortgages and adjustable-rate mortgages
Regions Mortgage offers lots of different types of mortgages, including home purchase financing, mortgage refinances, renovation loans, and construction-to-perm loans.
You can access the equity in your home via a cash out refinance or a home equity line of credit (HELOC).
And first-time home buyers can take advantage of low-down payment programs, such as the 3% down required by Fannie/Freddie, or the 3.5% down required by the FHA.
They also offer USDA home loans for those buying in rural parts of America, and VA loans for both active duty and veteran home buyers or existing homeowners.
You can get a fixed-rate mortgage such as a 30-year fixed or 15-year fixed, or an adjustable-rate mortgage such as a 5/1 or 7/1 ARM.
Those purchasing a particularly expensive home or refinancing a larger existing loan can take advantage of their jumbo loan offerings.
Finally, because they’re a depository bank, they might be able to offer stuff the other guys can’t since they can keep it in their loan portfolio as opposed to selling it.
Regions Mortgage Rates
Similar to many other banks and mortgage lenders, Regions does not post daily mortgage rates on their website.
But unlike other companies, they take the time to explain why, saying it’s “due to the constant fluctuation of mortgage interest rates.”
I tend to agree that advertised mortgage rates aren’t worth a whole lot, but it’s still nice to see something.
They direct customers looking for current mortgage rate information to get in touch with a Regions Mortgage loan officer.
In other words, you won’t know how competitive they are until you make contact and get a free rate quote.
So they lose some points for transparency, especially since they also don’t mention anything about lender fees.
This means we don’t know their interest rates or fees, and they don’t appear to offer any discounts to existing Regions Bank deposit customers like some other large banks do.
To summarize, be sure to shop around to ensure they offer a good mix of rate and closing costs relative to other banks and mortgage lenders.
Regions Mortgage Reviews
Their parent company, Regions Financial Corp., is accredited with the Better Business Bureau, and has been since 1956. Not sure why longer than when they were founded.
They currently enjoy an A+ BBB rating, which is based on complaints history and how a company responds to said complaints.
There are quite a few complaints against the company, but they’re also a massive bank and not all of them pertain to their home lending division.
Their BBB customer review rating is just over 1 star out of 5, based on some 55 reviews.
Regions Bank has a 4.3-star rating out 5 on Trustpilot based on around 100 customer reviews, which again aren’t limited to their home loans business.
They also have a 3.9-star rating out of 5 on WalletHub based on nearly 2,000 reviews. Again, you’ll need to comb through them to see which actually pertain to mortgages.
Your best move might be to look up individual loan officer’s reviews who work at Regions Mortgage on Zillow to see how a particular individual has fared in the past.
Since they’re such a big bank, companywide reviews probably won’t do you much good as experiences will vary widely.
Regions Mortgage Pros and Cons
The Good
Lots of loan programs to choose from
Can apply for a home loan online
Offer a digital mortgage experience
Regions HomeBonus program provides cash back for buying/selling a home in select states
Free mortgage calculators on site
They service their mortgages
A+ BBB rating
The Possibly Not Good
Only lend in select states mostly in the Southeast
Large bank may result in bureaucratic process with strict underwriting guidelines
Do not provide current mortgage rates on their website