💰 Mortgage Rates
💰 Mortgage Rates: What Hampton Roads Buyers Need to Know
Mortgage rates shift daily—and sometimes hourly—based on market conditions, inflation trends, and investor sentiment. But the rate you receive as a buyer depends on more than just the national average. Lenders consider your credit score, debt-to-income ratio, loan type, and down payment when calculating your personalized rate. Even the property type and location can influence your offer, so it pays to be strategic.
Below are mortgage table from erate.com showing the national average rates and rates for the state of Virginia;
📉 Historical Rate Trends: 2023–2025
After a sharp rise in mortgage rates during 2022 and 2023, the housing market entered a period of recalibration. In October 2023, the average 30-year fixed mortgage rate hit a high of 7.79%, the highest level in over two decades. This spike was driven by persistent inflation, aggressive Federal Reserve rate hikes, and investor uncertainty.
📆 Year-by-Year Breakdown
2023: Rates fluctuated between 6.5% and 7.8%, peaking in October. Buyer demand cooled, inventory grew, and price growth slowed.
2024: Rates began to stabilize, averaging around 6.7% for most of the year. The Fed paused rate hikes, and inflation showed signs of easing.
2025: Rates have gradually declined. As of October 2025, the average 30-year fixed rate is 6.27%, and the 15-year fixed sits at 5.52%. The Federal Reserve’s September 2025 rate cut helped ease borrowing costs, improving affordability and buyer confidence.
💡 What This Means for Buyers
Lower rates in 2025 are giving buyers more negotiating power and expanding affordability. While rates are still higher than the 3–4% averages seen in the 2010s, they’re trending in a favorable direction. If inflation continues to cool, further rate cuts could follow—making this a strategic window for buyers to act before competition heats up again.
💸 Rate Impact Scenarios: Why Every Percent Matters
Mortgage rates don’t just influence headlines—they directly shape your monthly payment, buying power, and long-term equity. Even a small rate change can mean hundreds of dollars per month and tens of thousands over the life of a loan.
Let’s break it down:
📊 Example: $350,000 Loan, 30-Year Fixed
| Interest Rate | Monthly Principal & Interest | Annual Cost | 30-Year Total |
|---|---|---|---|
| 6.00% | $2,098 | $25,176 | $755,280 |
| 6.50% | $2,212 | $26,544 | $796,320 |
| 7.00% | $2,329 | $27,948 | $838,680 |
| 7.50% | $2,449 | $29,388 | $881,640 |
🔑Key Points about Rates
- A lower rate = more home for your budget, or more room for renovations, reserves, or lifestyle.
- A higher rate = tighter monthly cash flow and reduced affordability.
- Locking a rate early or improving your credit score can shift you into a better pricing tier.
📚 Additional Resources
🏡 Mortgage Calculator
Estimate your monthly payment including principal, interest, taxes, insurance, HOA fees, and flood insurance.
💬 Frequently Asked Questions About Mortgage Rates
1. Why do mortgage rates change so often?
Mortgage rates are tied to the broader economy—things like inflation, the Federal Reserve’s decisions, and investor demand for mortgage-backed securities. That’s why rates can shift daily (or even hourly). It’s not just about your lender—it’s about the market.
2. What determines the rate I’ll actually get?
Great question! Your personal rate depends on your credit score, down payment, loan type, debt-to-income ratio, and even the property itself. Two buyers could see very different offers on the same day.
3. How much does a 1% rate change really matter?
A lot more than you might think. On a $350,000 loan, a 1% increase could raise your monthly payment by over $350—and cost you more than $125,000 over 30 years. That’s why timing and strategy matter.
4. What’s the smartest way to plan around current rates?
Start with your monthly comfort zone, then reverse-engineer your price range. Use my mortgage calculator to factor in taxes, insurance, HOA fees, and flood coverage. That way, you’re not just pre-approved—you’re prepared.
5. Do mortgage rates affect how much house I can afford?
Absolutely. Higher rates mean higher monthly payments, which can lower your approved loan amount. Even a half-point increase could shrink your budget by tens of thousands. That’s why rate strategy is a key part of your buying power.
📊 Got Questions about Mortgage Rates or the Hampton Roads Real Estate Market?
Let's chat about your real estate goals and come up with a personalized plan to help you acheive them.
📅Schedule a Free ConsultationLiz Schuyler, Virginia Beach Real Estate Agent
RE/MAX Allegiance
Liz Schuyler is a top Virginia Beach REALTOR® with RE/MAX Allegiance, licensed since 2001 and trusted across Hampton Roads. With 350+ homes sold, she helps clients Sell, Move, and Invest with confidence and strategy.
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