Is Now a Good Time to Buy? A Deep Dive into Current Mortgage Rates in Virginia

If you're considering buying a home in the Old Dominion, you’re likely asking a big question: Is now a good time to buy? While there’s no one-size-fits-all answer, one of the most important factors that can help you decide is the current mortgage rates in Virginia. Understanding how mortgage rates affect your monthly payments—and long-term costs—can be the difference between a smart purchase and a stressful investment.

Let’s break it all down in a clear and practical way, so you can move forward with confidence.

What Are Mortgage Rates and Why Do They Matter?

A mortgage rate is the interest you pay on the loan you take to buy a home. This rate directly influences how much your monthly payments will be and how much you’ll pay over the life of your loan. For example, on a $300,000 loan:

At 6% interest, you’ll pay around $1,799/month (excluding taxes and insurance).
At 7%, your payment jumps to about $1,996/month.

That’s a $197 difference each month—or nearly $71,000 more over 30 years.

Even a small change in interest rates can significantly impact your financial future, which is why keeping tabs on the current mortgage rates in virginia is critical.

What Are the Current Mortgage Rates in Virginia?

As of mid-2025, average mortgage rates in Virginia are hovering around:

30-Year Fixed: 6.75%–7.10%
15-Year Fixed: 6.10%–6.40%
5/1 ARM (Adjustable Rate): 6.25%–6.75%

These rates can vary depending on factors like:

Your credit score
Down payment amount
Type of property
Whether you’re a first-time buyer
Your debt-to-income ratio

Pro tip: Lenders in Virginia are still offering competitive deals for borrowers with strong credit or who qualify for programs like VA loans, FHA loans, or first-time buyer assistance.

How Do These Rates Compare Historically?

While 6.75% may sound high compared to the sub-3% rates seen during 2020–2021, it’s important to look at the bigger picture.

Historically, mortgage rates:

Averaged 7–9% in the 1990s
Climbed to double digits in the 1980s
Were as low as 2.65% during the pandemic (a historic low)

So, while today’s rates aren’t as low as we’ve seen recently, they are still moderate by long-term standards.

Is Now a Good Time to Buy in Virginia?

That depends on your personal situation, but here are some things to consider:

1. Virginia’s Housing Market Remains Competitive

Even with higher mortgage rates, demand for homes in Virginia—especially in areas like Northern Virginia, Richmond, and Hampton Roads—remains strong. Inventory is still tight, which has helped keep home prices stable.

2. Rent Prices Keep Climbing

Renters across Virginia are seeing significant increases. In some cases, buying a home (even at today’s rates) could be more cost-effective than continuing to rent.

3. You Can Always Refinance

If you buy now at 7% and rates drop in a year or two, you can always refinance your mortgage to take advantage of the lower rate. Many homeowners use this strategy to lower their monthly payments when the market shifts.

4. VA Loans Offer Big Benefits

If you’re a veteran or active-duty service member, you could qualify for a VA loan, which often comes with lower rates, no PMI, and no down payment. Virginia has one of the highest populations of military personnel in the country—so this is a great option for many.

What Could Happen to Rates in the Coming Months?

Economists are watching inflation, the Federal Reserve’s decisions, and global financial trends closely. While no one can predict the future with 100% certainty, many experts believe:

Rates may stay elevated through the rest of 2025
There’s a possibility of gradual decreases in 2026 if inflation stabilizes
Sudden drops in rates are unlikely unless there’s a significant economic shift

This means waiting for a “perfect” rate could delay your plans indefinitely. If you’re financially ready and find the right home, locking in today’s rate could still make sense.

How to Get the Best Mortgage Rate in Virginia

If you’re shopping around, here are steps you can take to secure the best possible rate:

Improve your credit score before applying
Shop multiple lenders to compare offers
Consider different loan types (fixed vs. adjustable)
Work with a local mortgage advisor who understands the Virginia market
Look into state or county programs that offer down payment or closing cost assistance

In Virginia, you can also explore resources like:

Virginia Housing Development Authority (VHDA)
Down Payment Assistance (DPA) programs
First-time homebuyer tax credits

Bottom Line: Should You Buy Now?

If you’re financially ready, have job stability, and find a home you love—yes, now could be a good time to buy. Mortgage rates may not be at their lowest, but they’re also not historically high. And the chance to build equity, escape rising rent, and refinance later gives today’s buyers solid long-term value.

However, if you’re stretching your budget to the limit, or unsure about your future plans, it might make sense to wait and continue building your savings and credit profile.

The key? Understand the current mortgage rates in Virginia, weigh your options, and work with a trusted lender who can guide you based on your unique goals.