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• Larger economic factors and your personal financial situation both influence the mortgage interest rates you’re offered.
• Fixed-rate mortgages have the same rate through the life of the loan, while adjustable-rate mortgages (ARMs) have rates that may change.
• Work on your credit score and debt-to-income (DTI) ratio to boost your chances of getting favorable rates.
• Look into state and federal assistance programs for help with down payment and closing costs.
• Use online mortgage calculators to get a rough idea of costs and to compare different offers.
If you’re considering purchasing your first home in Auburn, Massachusetts, understanding mortgage rates is key. This guide is designed to demystify mortgage rates and how they work, equipping you with the knowledge to land the most favorable rate possible. We’ll delve into the economic and personal factors in play, empowering you to make savvy decisions during your home-buying journey.
Mortgage rates in Massachusetts are influenced by a variety of factors. The mortgage rate you’re offered depends on the general economy and also on your individual financial situation and history.
• The bond market has historically been the primary indicator of where mortgage rates are headed. That’s particularly true of the 10-year U.S. Treasury Note. When the rates on the note go up, mortgage interest generally rises, too.
• The strength of the housing market is key as well. When the housing market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers.
• Inflation and unemployment also play a role in determining mortgage rates. Mortgage rates tend to rise when the economy is strong, reflecting the potential for increased demand for borrowing and potentially higher costs for lenders providing loans to consumers. A recession, on the other hand, usually means lower mortgage rates.
• Your credit score is a predictor of the mortgage rate you’ll be offered. The higher the score, the lower the rate you’ll likely get.
• The amount of your down payment plays a role. Making a larger down payment can result in a lower interest rate, since lenders often assume that if you have more equity in your new home, you’ll be less likely to default on your loan.
• Your debt-to-income (DTI) ratio is also important since lenders look at your income in relation to your monthly debts. Typically, mortgage lenders want to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
Mortgage rates can make a big difference in the overall affordability of buying a home. Even a small difference in your rate can make a big difference in terms of your monthly budget and the total interest you’ll pay.
For example, if you take out a $400,000 fixed-rate 30-year home loan at a 6.50% interest rate, your monthly payment will be $2,528. But if that interest rate were just half a percentage point higher, at 7.00%, your monthly payment would be $2,661.
Looking at the whole life of the loan, over that 30-year mortgage, you would end up paying nearly $48,000 more in interest with the higher interest rate.
Diving into the historical context of mortgage rates in Auburn can provide valuable insights for people planning for a new home. While rates have seen a gentle rise in recent years, they’re still nowhere near the highest points in history. In fact, they’re currently hovering close to the 50-year average. Understanding the historical context of mortgage rates and the factors that influence them can help you make informed decisions about your home financing.
The history of mortgage rates in the United States is a story of ups and downs. Over the past 50 years, average yearly rates have fluctuated as low as 2.96% during the Covid-19 pandemic and as high as 16.63% in 1981. The graphic below shows just how volatile rates have been over the last half century.
The chart below shows how mortgage interest rates in Massachusetts have compared to the national average during recent decades. (The Federal Housing Finance Agency stopped compiling this city-level data after 2018.)
You can see that rates in Massachusetts have risen and fallen along with national rates, but trend slightly lower.
Year | Massachusetts Rate | U.S. Rate |
---|---|---|
2000 | 7.88 | 8.14 |
2001 | 6.93 | 7.03 |
2002 | 6.38 | 6.62 |
2003 | 5.55 | 5.83 |
2004 | 5.38 | 5.95 |
2005 | 5.62 | 6.00 |
2006 | 6.32 | 6.60 |
2007 | 6.30 | 6.44 |
2008 | 5.96 | 6.09 |
2009 | 4.86 | 5.06 |
2010 | 4.76 | 4.84 |
2011 | 4.44 | 4.66 |
2012 | 3.63 | 3.74 |
2013 | 3.71 | 3.92 |
2014 | 3.94 | 4.24 |
2015 | 3.71 | 3.91 |
2016 | 3.54 | 3.72 |
2017 | 3.86 | 4.03 |
2018 | 4.33 | 4.57 |
If you’re buying your first home in Auburn, you might be asking yourself if you should wait for mortgage rates in Massachusetts to dip.
Here’s what you should know: As of early 2025, predictions from Fannie Mae indicate that rates will likely hold more or less steady, hovering around 6.30% by the year’s end and about 6.20% when 2026 draws to a close.
Remember, too, that if you buy a house and rates go down in the future, you have the option to get a mortgage refinance to take advantage of the change.
Based on its cost of living, Auburn is among the more affordable cities in Massachusetts, though it’s still a bit above the national average. The cost of living in your city can have a major influence on your financial planning, since it has an impact both on home prices and on how easily you’ll be able to budget for your monthly mortgage payments.
Here’s how Auburn compares to other towns in Massachusetts on an index where 100 equals the average cost of living in the U.S.
Massachusetts City | Cost of Living |
---|---|
Auburn | 111.5 |
Boston | 150.8 |
Lowell | 144.7 |
Springfield | 96.2 |
Worchester | 111.5 |
Recommended: The Best Affordable Places in the U.S.
Consider taking these steps to help you get the best mortgage rates that you can.
• Check your credit score. If it’s lower than you’d like, plan to work on building a stronger credit history.
• Reduce your debt-to-income (DTI) ratio. Paying down as much debt as you can will help.
• Increase your down payment. You can use savings and gifts contributed by friends and family to boost the amount.
• Coompare rates from multiple lenders. Even before you reach out to lenders, you can look at mortgage rates online in Auburn, MA to focus your search.
• Think about going through the mortgage preapproval process. This will give you a better sense of what you can afford.
Online mortgage calculators are a great way to get an estimate of your monthly payments and total costs. These tools can help you understand the impact of interest rates and loan terms on your budget, and let you see how changing components — like the length of your loan — change your financial commitments.
Here are three calculators that may be helpful.
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
In Auburn, you’ll find that lenders provide many types of mortgage loans to homebuyers. Conventional mortgages are the go-to for many, typically requiring a credit score of 620 or above. Like many other home loans, conventional mortgages can be either fixed-rate, with unchanging monthly payments, or adjustable-rate mortgages (ARMs), which have rates that can shift over time.
Additionally, don’t forget about government-backed loans, like FHA and VA loans. These can be game-changers, accepting smaller down payments and lower credit scores.
Fixed-rate mortgages provide you with a consistent interest rate throughout the loan term. This structure ensures stable and predictable monthly payments, making it easier to budget. These mortgages are most commonly available in terms of 15 or 30 years, but other terms may be possible, providing a variety of options suited to different financial situations. For first-time homebuyers concerned about avoiding unexpected costs, a fixed-rate mortgage can be particularly beneficial.
Adjustable-rate mortgages (ARMs) typically start with a lower interest rate than fixed-rate mortgages. After a defined period, however, the interest rate adjusts regularly in accordance with market conditions, so your payments can fluctuate. This could work in your favor if market rates drop, but there’s also the risk of rates rising. For homebuyers who are planning to move before the initial low-interest rate period is over, an ARM can be a strategic choice. But it’s wise to be sure of your plans so you don’t end up facing higher payments than you anticipated down the road.
Supported by the Federal Housing Administration, FHA loans are known for having less demanding eligibility criteria than conventional loans. With a minimum down payment requirement of just 3.5% and often more flexible credit terms, they’re a popular choice for first-time homebuyers. These loans do require a mortgage insurance premium (MIP). In Auburn, where the cost of living is on the higher side, FHA loans can be the key to unlocking homeownership.
VA loans are available to eligible active-duty military members, veterans, reservists, National Guard members, and some surviving spouses. The most significant advantage of a VA loan is that it doesn’t require a down payment, making it an attractive option for anyone who may not have a large amount of cash to put down. Additionally, VA loans don’t expect borrowers to obtain private mortgage insurance (PMI), which can save you a significant amount of money over the life of the loan.
In most areas, including Auburn, conventional mortgage loans have a 2025 cap of $806,500 for a single-family home. Jumbo loans are designed for properties exceeding this limit, offering flexibility for high-value homes and larger purchases. These loans often come with higher interest rates and stricter qualification criteria; however, they can be a good option for those with strong financial profiles seeking to buy expensive properties.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Let’s look at how to make your decision once you’ve got loan offers.
A competitive mortgage rate is your ticket to long-term savings. Even half a percentage point can add up to thousands of dollars over the loan’s life, as we’ve seen.
But rates are not the whole story. Also compare each potential loan’s annual percentage rate (APR), which is an all-in-one number that factors in fees, closing costs, and mortgage points.
Once you’ve decided, if you’re losing sleep over rising interest rates, many lenders will let you pay a fee to lock in your rate for up to 90 days.
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Massachusetts has resources and programs to aid house hunters, especially those who are first-time homebuyers or have limited financial means.
The state’s initiatives, such as My Mass Home’s ONE Mortgage (for which you can only qualify as a first-time homebuyer) and MassHousing Loan, are designed to offer low-interest, fixed-rate loans with down payments as minimal as 3% or 5%. They also provide down payment assistance programs.
Federal programs like FHA loans and VA loans are also in the mix, providing low down payments and flexible credit requirements.
If you’re getting ready to settle down in a new home in Auburn, it’s a good idea to be prepared to cover 2% to 5% of your loan amount in closing costs. These costs can vary based on the property’s value and location, and they typically include charges such as loan origination fees, appraisals, and title insurance.
The average cost of a house in Auburn is about $453,000. For a loan of that amount, closing costs typically run between $9,460 and $23,650. To keep these expenses in check, it’s a smart move to explore different lenders and negotiate terms.
Auburn, Massachusetts’s mortgage landscape features a range of options for prospective homebuyers. By staying informed about current mortgage rates in Massachusetts and exploring available assistance programs, you can make well-informed decisions that align with your financial resources and goals. Whether you’re a first-time buyer, a veteran, or a high-income earner looking to purchase a prestige property, there are resources and loan types available that can help you secure the best possible rate and terms for your mortgage.
While it’s tricky to pinpoint the exact trajectory of mortgage rates, current predictions from Fannie Mae suggest that rates will stay fairly stable through the end of 2026. That said, if you work on strengthening your credit history, paying down your debt, and saving up a larger down payment, you may be offered a better rate by lenders.
History shows us that mortgage rates have been all over the map. However, right now they’re actually in the range of the 50-year average, and Fannie Mae has predicted that they will hold relatively steady, ending 2025 at about 6.30%.
After you’ve been offered a rate you like but before you’ve closed on your new home, it can be a good move to lock in your mortgage rate. You can ask your lender for a rate lock, which may involve a small fee and guarantees your rate for up to 90 days. That way, even if your closing is delayed a little, your rate won’t go up.
Mortgage interest rates are essentially the charge you pay your lender in order to borrow money to purchase a home. Interest rates are often expressed as a percentage of the loan amount. You’ll find two main types of rates: fixed and adjustable. Fixed-rate mortgages provide a consistent interest rate over the loan term, while adjustable-rate mortgages (ARMs) can start at a lower fixed rate, but after that initial period, their rates may fluctuate.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.SOHL-Q225-138
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. (www.nmlsconsumeraccess.org)
✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.