Interest Rates Archives | Real Estate & Investment Perspective by Karen Lee Bertiger

30-year fixed-rate (Conforming – $832,750 or less)
● Average contract interest rate increased to 6.65% from 6.58%.
● Highest level since August 2025.
● Points increased to 0.67 from 0.64 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
30-year fixed-rate (Jumbo – greater than $832,750)
● Average contract interest rate increased to 6.62% from 6.50%.
● Points increased to 0.54 from 0.42 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
30-year fixed-rate (FHA)
● Average contract interest rate increased to 6.33% from 6.28%.
● Points increased to 0.81 from 0.79 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
15-year fixed-rate
● Average contract interest rate increased to 6.05% from 5.99%.
● Points increased to 0.88 from 0.71 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
5/1 ARM
● Average contract interest rate decreased to 5.75% from 5.84%.
● Points decreased to 0.93 from 0.94 (including the origination fee) for 80% LTV loans.
● Effective rate decreased from last week.

Joel Kan, MBA’s Vice President and Deputy Chief Economist: “Mortgage applications declined as the 30-year fixed rate increased to 6.65 percent, the highest level since August 2025. Purchase applications were down over the week and dipped below last year’s pace in the week following the July 4th holiday. Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9 and 10 percent, respectively.”

Not since right before the Great Financial Crisis have we seen this! It just appears to me that lenders are trying to get you to play with fire again.

BUYERS! This is a dangerous move at today’s real estate prices. Prices must come down, or you need to offer less on a property that fits your criteria, by finding a seller who is realistic on price and needs to sell (motivated.)

Or WAGES need to increase. Wages are NOT keeping up with inflation. The median income in the US today is approximately $85,000. The income needed to get that DTI under 30% is $110,000 for a wage gap of 28%!

Traditionally, DTI was 28/36%. These days, my recommendation is to keep your DTI under 20% if you can because of the problems with property taxes and property insurance.

Locally here in Florida, many insurnace companies are dictating that costly home improvements be made before renewing your policy. Don’t ignore this. Shop around for new insurance quotes immediately. Don’t let this slide into a situation where you end up with forced insurance placement from your lender.

Sellers would be wise to price their properties correctly from the beginning of marketing.

Remember, your property really isn’t on the market unless it’s on the list…the MLS…and is AVAILABLE to the public for showing to the entire market.

Tag: Interest Rates

Mortgage Rates

Debt to Income Ratios (DTI) Being Approved by Banks at Higher Percentage (40%) Than in 2007 (39%)