Rate Basics

What are mortgage rates right now?

As of mid-June 2026, the average 30-year fixed mortgage rate is hovering around 6.5%, and the 15-year fixed is closer to 5.8%. Rates have spent several weeks above 6.5%, nudged up recently by global events and their effect on inflation. The short version: rates are higher than the pandemic-era lows many people remember, but they remain below long-term historical averages.

Are mortgage rates expected to go up or down this year?

Most major housing forecasters expect rates to stay in roughly the 6% to 6.5% range for the rest of the year, with no dramatic swings anticipated barring a major economic shift. Some groups lean slightly lower and some slightly higher, but the consensus is stability rather than a sharp drop. In practical terms, waiting for a big rate decline is a gamble — and if rates do fall, the pent-up buyer demand that follows tends to push home prices and competition up.

Does the Federal Reserve set my mortgage rate?

Not directly. This is one of the most common misconceptions. The Fed sets a short-term overnight rate, but 30-year mortgage rates track much more closely with the 10-year Treasury yield and the bond market. The Fed's decisions influence the broader environment, but your mortgage rate is not simply a reflection of whatever the Fed did at its last meeting.

Rate Buydowns

What is a mortgage rate buydown?

A rate buydown lowers your interest rate — either for the first few years of the loan or for its entire life — in exchange for an upfront cost paid at closing. That cost is often covered partly or fully by the builder or seller as an incentive, which is what makes buydowns especially worth understanding in today's market.

What is the difference between a temporary and a permanent buydown?

There are two main types, and they solve different problems:

•        A temporary buydown (often structured as a 2-1 or 1-0) reduces your rate for the first year or two, then steps it back up to the full rate. It eases you into payments and is helpful if you expect your income to grow or plan to refinance later.

•        A permanent buydown uses discount points to lower your rate for the entire life of the loan. You pay more upfront, but the savings continue for as long as you keep the mortgage.

How does a 2-1 buydown actually work?

With a 2-1 buydown, your interest rate is reduced by two percentage points in the first year and one percentage point in the second year, before settling at the full note rate in year three. For example, on a loan with a 6.5% note rate, you would pay as if the rate were 4.5% in year one, 5.5% in year two, and 6.5% from year three onward. The difference is covered upfront, often by the builder or seller.

Are discount points the same as a buydown?

Discount points are the mechanism behind a permanent buydown. One point typically costs 1% of your loan amount and lowers your rate by a set fraction of a percent. If you plan to stay in the home long enough for the monthly savings to exceed the upfront cost — your break-even point — buying points can make sense. If you might move or refinance sooner, a temporary buydown or no buydown at all may serve you better.

Making the Decision

Is a buydown better than just waiting for rates to drop?

For many buyers, yes. A buydown gives you a lower payment now, on a home you can buy at today's price. Waiting for rates to fall means competing later against more buyers, very likely at higher home prices, with no guarantee the rate drop arrives when you want it. A common strategy is to buy now with a buydown and refinance later if rates improve — you lock in the home and the price, and keep the option to lower your rate down the road.

Can a builder help cover my rate buydown?

Often, yes — and this is where working with a homebuilder can be a real advantage. Builders frequently offer rate buydowns or closing-cost incentives, especially when paired with a preferred lender. These incentives can change month to month, so it is always worth asking what is currently available on the home and community you are considering.

What should I ask my lender about a buydown?

A few questions will tell you most of what you need to know:

•        Is the buydown temporary or permanent, and what does the rate look like in each year?

•        Who is paying for it — me, the builder, or a combination?

•        If I pay points, what is my break-even point in months?

•        How would the numbers change if I refinanced in a few years?

Ready to Talk Numbers?

Rate buydowns can make a meaningful difference in your monthly payment, but the right choice depends on your timeline and your budget. The best next step is a conversation about your specific situation and what incentives are available right now. Explore Bloomfield Homes communities to find the office nearest to you to learn more, or visit our Preferred-Lenders page to view our lender partners.