Staying Strong in the Sixes
📉 What’s Happening with Home Loan Interest Rates in Delaware
As of mid-June 2025, mortgage interest rates in Delaware are stabilizing after a period of volatility. The average 30-year fixed rate sits between 6.75% and 6.98%, while 15-year fixed loans are closer to 6.13%. Although still elevated compared to pre-pandemic lows, rates have edged down from the highs of 2023–2024. This movement reflects optimism around easing inflation and steady Federal Reserve policy. Delaware's local housing market remains active, with limited inventory sustaining pricing strength despite financing headwinds.
💡 Refinance Strategies for Delaware Homeowners
With rates stabilizing in the mid-6% range, homeowners who purchased or refinanced during the 2022–2023 rate spikes (7% and above) may now find an opportunity to refinance at more favorable terms. Strategic options include:
- Rate-and-term refinancing to reduce monthly payments or switch from a 30-year to a 15-year term.
- Cash-out refinancing to leverage home equity for major expenses while consolidating debt.
- FHA Streamline or VA IRRRL refinances, which offer quicker approvals and minimal documentation for qualifying loans.
Those considering refinancing should act sooner rather than later, as current rate dips may be temporary, and many lenders offer free or low-cost rate locks.
🏠 Loan-Type Breakdown for Delaware Borrowers
Here’s how rates and benefits vary by loan type:
- Conventional Loans (Fixed): Most common for primary residences and second homes; 30-year fixed rates ~6.83%, 15-year ~6.13%.
- FHA Loans: Typically 0.5–1% lower than conventional but with mortgage insurance; ideal for buyers with lower credit scores or minimal down payments.
- VA Loans: Competitive rates for qualified veterans with no PMI; some lenders offering VA rates below 6.5% in DE.
- Adjustable-Rate Mortgages (ARMs): 5/1 and 7/1 ARMs offer starting rates in the 5.75%–6.25% range; suitable for short-term ownership strategies.
- Jumbo Loans: For high-value properties (above $766,550 in Sussex County), rates may be slightly higher than conventional and require strong credit.
Partner with Coastal Delaware’s Trusted Real Estate Expert
Mike Kogler of Long & Foster Real Estate is a leading name in Coastal Delaware real estate, with deep expertise in the Lewes, Rehoboth Beach, and Bethany Beach markets. With years of proven success, Mike understands exactly what it takes to prepare and present your home for maximum appeal and top-dollar results. From professional recommendations on yard enhancements to strategic marketing and negotiation, Mike is your dedicated partner for a smooth and successful sale. Reach Mike today at (302) 236-7648 or email him at michaelkogler@outlook.com to get started.
Michael Kogler, REALTOR
MIKE KOGLER TEAM: #1 Sales Team
Long & Foster Real Estate | Luxury Portfolio International
37156 Rehoboth Ave., Ext.
Rehoboth Beach, DE. 19971
Cell: (302) 236-7648 ♦ Office: (302) 227-2541
Email: michael.kogler@LNF.com
Web: www.MikeKogler.com
Henlopen Sales & Rentals: www.HenlopenRB.com
