WASHINGTON (AP) — The average rate on a 30-year U.S. mortgage fell to its lowest level of 2025 this week, an encouraging sign for prospective home buyers.

The average long-term mortgage rate dipped to 6.15% from 6.18% last week, mortgage buyer Freddie Mac said Wednesday. That’s the lowest average long-term rate since October 3, 2024 when it dipped to 6.12% before shooting back up. One year ago, the rate averaged 6.91%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, fell this week to 5.44% from 5.50% the previous week. A year ago it averaged 6.13%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year yield was at 4.14% at midday Wednesday, down a touch from last week’s 4.15%.

The average rate on a 30-year mortgage has been mostly holding steady in recent weeks since Oct. 30 when it dropped to 6.17%, which at the time was its lowest level in more than a year.

Mortgage rates began easing in July in anticipation of a series of Fed rate cuts, which began in September and continued this month.

The Fed doesn’t set mortgage rates, but when it cuts its short-term rate that can signal lower inflation or slower economic growth ahead, which can drive investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates.

Even so, Fed rate cuts don’t always translate into lower mortgage rates.

Home shoppers who can afford to pay cash or finance at current mortgage rates are in a more favorable position than they were a year ago. Home listings are up sharply from 2024, and many sellers have resorted to lowering their initial asking price as homes take longer to sell, according to data from Realtor.com.

Still, affordability remains a challenge for aspiring homeowners, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.

Sales of previously occupied U.S. homes rose in November from the previous month, but slowed compared to a year earlier for the first time since May despite average long-term mortgage rates holding near their low point for the year. Through the first 11 months of this year, home sales are down 0.5% compared to the same period last year.

Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year.

In 2025, the Lehigh Valley’s biggest commercial deal involved something that could very much be part of its future. Ironically, the land was a part of its industrial past.

Those driving on Route 222 on the very western edge of the Valley in Upper Macungie Township may have noticed a series of industrial buildings sitting on top of a hill overlooking vineyards, farms and the Premise Made chocolate and ice cream shop.

The signs on the highway, just as you’re getting ready to enter the new roundabout with Schantz Road, indicate that the buildings make up Tek Park and it houses a few businesses. That 137-acre complex was sold in October to a company that wants to expand its data center on the land.

It is one of numerous Lehigh Valley data center projects being discussed at planning meetings or on the drawing board.

The Tek Park deal was one of several multimillion dollar deals in the Valley this past year. And, yes, warehouses were involved, too.

Don Cunningham, president and CEO of Lehigh Valley Economic Development Corp., said the commercial real estate market continued to rise through the year.

“The commercial real estate market remains strong in the Lehigh Valley,” Cunningham said. “The number of development projects in 2025 was a little higher than the previous year and property values remain high. Despite some upheaval around trade and tariffs, project activity was strong and we saw growth in major strategic sectors like manufacturing and the life sciences.”

Here are some of the more notable commercial real estate transactions during the year:

9999 Hamilton Blvd., Upper Macungie Township

Price: $175 million

Buyer: Tierpoint LLC

Seller: Hamilton Tek Partners LP

Background: TierPoint completed the acquisition of the nine-building, 137-acre complex in October. The St. Louis company was already leasing a building at Tek Park for a data center, which the company said is its largest.

TierPoint said it has started a 100-megawatt power expansion that it expects to complete in the second half of 2026. TierPoint clients at Tek Park include large technology service providers that are using advanced cooling solutions in support of artificial intelligence and other compute-intensive workloads.

TierPoint told LVEDC that it could add up to 100 jobs. The expansion project, including work on the utility substation, could support an estimated 350 or more construction and engineering jobs.

Tek Park was opened by AT&T in 1987 as a Bell Labs research center. Other current tenants include Aesculap Biologics and Aesculap Implant Systems, members of the B. Braun family of companies.

A data center company bought a Lehigh Valley industrial park for $175 million, plans expansion

4728 E. Valley Road, Upper Saucon Township

Price: $150 million

Buyer: Lehigh E Valley RD Ind Owner LLC

Seller: Kay-Lehigh LLC

Background: Lehigh County property records show the 118-acre parcel along East Valley Road was sold in September to a limited liability company in Clayton, Missouri, owned by Panattoni Development.

Panattoni describes itself as “one of the largest privately held, full-service real estate development companies in the world” on its website.

Upper Saucon Manager Thomas Beil said the township has already approved the 309 Commerce Center, a complex consisting of three warehouses totaling 1.77 million square feet. The land is near Route 309 and Center Valley Parkway.

Beil said dirt is already being moved for the project.

Land on Route 309 in Lehigh County slated for 3 warehouses is sold for $150 million

4700 Bath Pike, Hanover Township, Northampton County

Price: $35.9 million

Seller: 4700 Bath Pike Propco LLC

Buyer: Columbia Wegman Hanover LLC

Background: The Vero at Bethlehem, a retirement home, was purchased by the limited liability company, owned by Sabra, a California real estate investment trust specializing in health care real estate.

The 102,172-square-foot building sits on 6 acres along Route 512, a mile north of Route 22.

Built in 2023, the Vero specializes in personal and memory care, according to its website. Amenities include a full-service restaurant and bistro, a salon and barbershop, a game room and a library. It is managed by Legend Senior Living.

Lehigh Valley senior living home sold for about $36 million

4815 Tilghman St., South Whitehall Township

Price: $28.2 million

Seller: Yasin N Khan MD and E S Khan MD

Buyer: Elliott Bay Medical Properties Holdings IV LLC

Background: The medical building complex was sold in April, according to Lehigh County property records.

It houses Lehigh Valley Health Network’s Center for Orthopedic Medicine – Tilghman, along with an urgent care facility.

Seattle-based Elliott Bay is a real estate investment company that has acquired, owns and manages health care properties leased to specialty care providers and health systems across the U.S.

301 Town Center Blvd., Forks Township

Price: $25.5 million

Seller: Shops at Muncy Creek LP

Buyer: CFE Easton LLC

Background: This shopping center just north of Easton along Sullivan Trail is anchored by a Giant supermarket and was sold in November.

According to Northampton County records, the new owner is based in an office building in Sayville, New York.

2141 Commerce Center Blvd., Bethlehem

Price: $15.1 million

Seller: Lehigh Valley Industrial Park Inc.

Buyer: BGO-Petrucci Bethlehem Cold Storage Owner LLC

Background: Developer J.G. Petrucci is planning to build two warehouses on the 18-acre site in Lehigh Valley Industrial Park VII, just off Route 412 near a Wawa convenience store and baseball fields.

The first warehouse will be 216,000 square feet and will be used for cold storage. The other will be 101,000 square feet.

Northampton County records said the parcel was sold in September.

610 Uhler Road, Forks Township

Price: $12.35 million

Seller: Uhler Road LP

Buyer: ABR Realty 1

Background: The building houses A&H Sportsware Co., which makes women’s bathing suits.

The buyer is based in a private residence in Bucks County, according to the Pennsylvania Department of State.

1492 Van Buren Road, Palmer Township

Price: $11.6 million

Seller: Exchange 12 LLC

Buyer: 1492 Van Buren Inc.

Background: A joint venture including developer Lou Pektor is planning to build a $110 million residential development on the 32-acre that includes more than 400 apartments and townhomes.

The land was purchased in June from developer Abe Atiyeh.

According to Palmer Township Director of Planning Craig Beavers the project has yet to receive all township approvals. He said the Board of Supervisors has approved a settlement agreement that allows the project to move forward if it complies with township land development requirements.

Beavers said this hasn’t happened yet and the project still hasn’t been submitted for reapproval from both supervisors and the planning commission. That means construction may not start until late in 2026, or beyond that.

The multifamily community will feature seven apartment buildings totaling 320 units, with 92 townhomes. It will include a 10-acre park between the apartments and townhouses.

Lehigh Valley developer Lou Pektor pushes ahead on project that will create more than 400 homes

6300 Lower Macungie Road, Lower Macungie Township

Price: $9.4 million

Seller: Danweber Land Trust

Buyer: Lower Macungie Township

Background: In April, township commissioners voted unanimously to buy the 45-acre farm field where developer Jason Danweber proposed building 180 apartments. The plan raised worries about traffic and flooding and prompted commissioners to hire a lawyer to oppose it.

The tract across from Lower Macungie Middle School will remain open space dedicated to recreation.

Lower Macungie Township OKs agreement to buy, preserve Danweber land

901 Hamilton St., Allentown

Price: $9 million

Seller: PPL Electric Utilities Corp.

Buyer: DDCAP Allentown LLC

Background: Regulatory approval for the sale of PPL’s former headquarters in downtown Allentown was given in July 2024 and the sale was announced that March. It was finalized in January 2025.

Buyer D&D Realty Group of Scranton purchased the 24-story building at Ninth and Hamilton streets after PPL relocated its HQ down the street to Two City Center. It plans to convert the former utility headquarters into a residential building with 112 apartments averaging 1,100 square feet.

D&D is known for its redevelopment projects, converting properties into mixed-used commercial and residential spaces. It has renovated old buildings in downtowns in the Scranton/Wilkes-Barre area for several years.

Sale of iconic PPL Building in Allentown receives approval from state commission

Morning Call reporter Evan Jones can be reached at ejones@mcall.com.

WASHINGTON (AP) — The average rate on a 30-year U.S. mortgage ticked down modestly this week, remaining in the same narrow range of the past two months.

The average long-term mortgage rate fell to 6.18% from 6.21% last week, mortgage buyer Freddie Mac said Wednesday. A year ago, the rate averaged 6.85%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, rose this week. The rate averaged 5.50%, up from 5.47% last week. A year ago it averaged 6%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year yield was at 4.15% at midday Wednesday, up modestly from last week’s 4.12%.

The average rate on a 30-year mortgage has been mostly holding steady in recent weeks since Oct. 30 when it dropped to 6.17%, its lowest level in more than a year.

Mortgage rates began easing in July in anticipation of a series of Fed rate cuts, which began in September and continued this month.

The Fed doesn’t set mortgage rates, but when it cuts its short-term rate that can signal lower inflation or slower economic growth ahead, which can drive investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates.

Even so, Fed rate cuts don’t always translate into lower mortgage rates.

Home shoppers who can afford to pay cash or finance at current mortgage rates are in a more favorable position than they were a year ago. Home listings are up sharply from last year, and many sellers have resorted to lowering their initial asking price as homes take longer to sell, according to data from Realtor.com.

Still, affordability remains a challenge for many aspiring homeowners, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.

Sales of previously occupied U.S. homes rose in November from the previous month, but slowed compared to a year earlier for the first time since May despite average long-term mortgage rates holding near their low point for the year. Through the first 11 months of this year, home sales are down 0.5% compared to the same period last year.

Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year.

In its year-end review of the nation’s smaller metropolitan areas, RentCafe has determined that the Valley is the second-hottest rental market. Despite a 2.58% increase in supply over the past year, those in the market on average are competing with 14 others for each unit.

“Demand continues to surge — especially in places like Bethlehem, Allentown and Easton — as commuters, remote workers and newcomers from New Jersey and New York search for more affordable options,” RentCafe said in its report. “Adding to the pressure, local colleges — such as Lehigh University and Northampton Community College — continue to draw students, and campus housing is often packed. As such, many end up renting off-campus, competing with young professionals and families for budget-friendly apartments.”

RentCafe said about 80% of tenants renew their leases, keeping occupancy at 96.2%. A vacant unit is usually filled within 40 days.

RentCafe gives the Lehigh Valley a rental competitiveness index score of 90.6 out of 100. The national average score is 73.3. The 15 applicants per unit is the highest in the nation among small metros.

This year, the Lehigh Valley Planning Commission reviewed buildings with an average of 3.46 units through November. LVPC numbers show that renters make up about 33% of households in the Lehigh Valley. It’s a 7% increase since 2005 and a 2% increase since 2018-19.

Projects to bring new apartments include refurbishing older buildings, including 61 units at the former Wells Fargo bank in downtown Bethlehem.

Repurposing older buildings has been an option for some: Developer Nat Hyman is expanding The Bindery complex in Allentown with 20 more units while the former Cement National Bank building in Northampton is being converted into 12 units with retail space. The owner of the PPL Building in downtown Allentown plans to convert the iconic skyscraper into living space.

Other recent projects include a site in Upper Macungie Township that Fox Run Partners recently bought, which is slated to have 22 buildings holding 132 apartments just west of Trexlertown. Two projects are underway along Allentown’s riverfront — the River House at 30 E. Allen St. with 210 units, and the nearby Neuweiler Lofts, which will transform the former brewery into a mixed-use complex, with 283.

Fayetteville, Arkansas, had the highest rate among small markets with a competitiveness score of 92.4 and an occupancy rate of 96.4%. Harrisburg was in the third place with a score of 88.2 and occupancy at 95.9%.

Among the big markets in the U.S., Miami had the highest rental competitiveness index score, 92.9. The Philadelphia suburbs were seventh at 83 and northern New Jersey was 15th at 80.8.

For the national market in 2026, RentCafe expects markets to remain competitive, especially during the summer.

“While the year will likely begin on a calmer note, conditions are set to tighten quickly as demand rises and available apartments become harder to find,” RentCafe said. “The seasonal imbalance between supply and demand will follow a familiar pattern. But, this time, competition could be even tougher. By early summer, the number of renters per available unit is expected to reach 11 — the highest level in recent years.”

Sales of previously occupied U.S. homes rose in November from the previous month, but slowed compared to a year earlier for the first time since May despite average long-term mortgage rates holding near their low point for the year.

Existing home sales rose 0.5% in last month from October to a seasonally adjusted annual rate of 4.13 million units, the National Association of Realtors said Friday.

Sales fell 1% compared with November last year. The latest sales figure came in slightly below the 4.14 million pace economists were expecting, according to FactSet.

Through the first 11 months of this year, home sales are down 0.5% compared to the same period last year.

“It’s possible that 2025, unless December (sales) figures really improve, we may be technically slightly down from one year ago,” said Lawrence Yun, NAR’s chief economist.

One factor limiting home sales is weaker demand for condominiums. Sales of condos are down 6% so far this year, Yun noted.

Despite sluggish sales, home prices continued to climb last month. The national median sales price increased 1.2% in November from a year earlier to $409,200, an all-time high for any November on data going back to 1999.

Home prices have risen on an annual basis for 29 months in a row, even as the housing market has been mired in a slump that began in 2022 when mortgage rates began climbing from historic lows. Sales of previously occupied U.S. homes sank last year to their lowest level in nearly 30 years.

Sales have been stuck at around a 4-million annual pace now going back to 2023. That’s well short of the 5.2-million annual pace that’s historically been the norm.

Home sales got a boost this fall as the average rate on a 30-year mortgage declined at the end of October to 6.17%, the lowest level in more than a year.

Even so, affordability remains a challenge for many aspiring homeowners, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.

A shortage of homes for sale, especially in the more affordable end of the market, continues to weigh especially on first-time homebuyers. They accounted for 30% of homes sales last month. Historically, they made up 40% of home sales.

An annual survey of homebuyers by NAR showed first-time buyers accounted for an all-time low 21% of home purchases between July 2024 and June 2025, while the average age of such homebuyers rose to a record-high of 40.

Homes purchased last month likely went under contract in September and October, when the average rate on a 30-year mortgage ranged from 6.5% to 6.17%, according to Freddie Mac. Mortgage rates have mostly remained close to their October low in recent weeks.

Home shoppers who can afford to buy at current mortgage rates benefited from a wider selection of properties on the market last month than a year ago, although the number of homes for sale in November declined from the previous month.

There were 1.43 million unsold homes at the end of last month, down 5.9% from October and up 7.5% from November last year, NAR said.

The latest inventory snapshot remains well below the roughly 2 million homes for sale that was typical before the COVID-19 pandemic.

November’s month-end inventory translates to a 4.2-month supply at the current sales pace. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.

Yun is forecasting that existing U.S. home sales will jump 14% next year. That’s more optimistic than several other housing economist forecasts, which range from a 1.7% to 9% increase.

Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year.

The average rate on a 30-year U.S. mortgage edged lower this week, staying relatively close to its low for the year.

The decline brings the average long-term mortgage rate to 6.21% from 6.22% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.72%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week. The rate averaged 5.47%, down from 5.54% last week. A year ago, it averaged 5.92%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year yield was at 4.12% at midday Thursday, unchanged from a week ago.

The average rate on a 30-year mortgage has been mostly holding steady in recent weeks since it dropped to 6.17%, its lowest level in more than a year, on Oct. 30.

Mortgage rates began easing in July in anticipation of a series of Fed rate cuts, which began in September and continued this month. An encouraging report on inflation on Thursday could give the central bank cause to keep cutting interest rates next year.

The Fed doesn’t set mortgage rates, but when it cuts its short-term rate that can signal lower inflation or slower economic growth ahead, which can drive investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates.

Even so, Fed rate cuts don’t always translate into lower mortgage rates. That’s what happened in the fall of 2024 after the central bank cut its main rate for the first time in more than four years. Instead of falling, mortgage rates marched higher, eventually cresting above 7% in January this year. At that time, the 10-year Treasury yield was climbing toward 5%.

This year’s late-summer pullback in rates helped lift sales of previously occupied U.S. homes in October on an annual basis for the fourth straight month.

Home shoppers who can afford to pay cash or finance at current mortgage rates are in a more favorable position than they were a year ago. Home listings are up sharply from last year, and many sellers have resorted to lowering their initial asking price as homes take longer to sell, according to data from Realtor.com.

“Mortgage rates have eased into the low-6% range and inventory remains well above last year’s levels, giving buyers more options and greater flexibility,” said Hannah Jones, senior economic research analyst at Realtor.com.

Still, affordability remains a challenge for many aspiring homeowners, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.

Homeowners eager to refinance their home loan to a lower rate have benefited from easing mortgage rates.

Applications for mortgage refinance loans made up 59% of all home loan applications last week, the highest level since September, according to the Mortgage Bankers Association.

Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year.

“If you want to refinance, I say, ‘Well, what do you want to do? What do you hope to accomplish by refinancing?’” says Carolyn Morganbesser, assistant vice president of mortgage originations for Affinity Federal Credit Union in New Jersey.

To get the refinance you want, you need to explain your goal in words that the lender understands. This is a guide to what to say, complete with sample sentences that you can use as you kick off a refinancing conversation with a loan officer or mortgage broker.

If and when you refinance, you’ll have company. Let’s say 30-year mortgage rates linger around 6.125% for a while. In that case, almost 5 million homeowners would be in a position to cut their rate by at least three-quarters of a percentage point, according to Intercontinental Exchange, a mortgage data analytics company.

A refi isn’t a Whopper

Applying for a refinance isn’t like ordering a burger, where you get what you want, no questions asked. An ethical lender turns the request into a discussion.

Jim Sahnger, a loan officer for C2 Financial Corp., in Jupiter, Florida, says he asks, “If I could design a refinance that is outstanding for your situation, what are the top three things you’d like to see come out of it?” Maybe it’s cash flow, or maybe it’s money to pay off debts with higher interest rates.

Morganbesser says she tells clients to talk to her candidly, as if she were a priest or bartender: “I’m not here to judge anybody, nor is any loan officer. We’re here to help you.”

Be prepared to be challenged. Lou Barnes, a retired mortgage loan officer who worked for decades in Colorado, had advice for employees he trained: “Always be prepared to disagree with the client’s intentions and ideas, which are often wildly wrong.” It’s like talking to a car mechanic. You might think you’ve identified the solution to your problem, but what if you’re wrong? It’s the expert’s job to advise you, even when you disagree.

To save time, it helps to come to the conversation with vital information about the loan, including your mortgage interest rate, the amount you owe, the amount of your monthly payment, and the breakdown of the monthly principal, interest, taxes and insurance.

Here is a list of common refinancing scenarios and how to talk to a lender about them.

Simply reducing the monthly payment

The simplest refinance is called a rate and term refi. You replace your mortgage with a lower-rate loan for the same term, or loan length. For example, swapping a 30-year loan with another 30-year mortgage. The goal of a rate-and-term refi is to reduce the monthly payment.

Sample sentence: “I want to do a rate-and-term refinance to reduce my monthly payment.”

The lender might ask you what you plan to do with the monthly savings. Pay off debts? Save for retirement? Have fun? And the lender might ask if you would prefer to start all over with a 30-year payment period, or if you would prefer to keep the original loan’s payoff date, while paying a bit more every month.

If you want to keep the same payoff date as the original loan, say, “I want to amortize (AM-ur-ties) the new loan so it has the same end date as the old loan.”

Refinancing while turning equity into cash

With a cash-out refinance, you borrow more than you currently owe. You take out the difference in cash. It’s your money, so you can spend it however you want. But it’s often used to pay off higher-interest debt, such as credit cards and home equity lines of credit. The classic goal of a cash-out refi is to reduce your total monthly debt payments.

Sample sentence: “I want to do a cash-out refi to pay off my medical debts.”

The lender might ask how you will avoid running up additional debts.

Getting rid of mortgage insurance

An FHA loan is a mortgage insured by the Federal Housing Administration. In most cases, the only way to stop paying monthly FHA premiums is to build at least 20% equity, then refinance into a conventional mortgage.

You have a couple of choices if you have a conventional loan with private mortgage insurance, or PMI. After you have at least 20% equity, you can keep the loan and apply to cancel PMI. Or, if you can capture a lower interest rate, you can get a two-fer by refinancing into a lower-rate loan without PMI.

Sample sentences: “I want to refinance out of my FHA loan and get a mortgage without mortgage insurance.” “I want to refinance to a lower rate and get rid of PMI at the same time.”

Removing a co-borrower

When couples buy a house together, they often put both their names on the mortgage. Some couples later split up. When they do, they often want to take one co-borrower’s name off the mortgage. This is accomplished by refinancing the loan.

Sample sentence: “I want to refinance to get my ex’s name off the mortgage.”

Moving from adjustable-rate to fixed-rate or vice versa

An adjustable-rate mortgage starts out with a low introductory rate that lasts a few years, usually five or seven. Then the rate is adjusted every six months after that. When the rate goes up, the monthly payment goes up, and when the rate goes down, the monthly payment goes down.

Some ARM borrowers insulate themselves from twice-a-year rate changes by refinancing into fixed-rate mortgages. The stability of a fixed rate makes financial planning more predictable.

On the other side of the ledger, some homeowners reckon they’ll sell within a few years. They refinance from a fixed-rate to an adjustable-rate loan to take advantage of the lower rate, while planning to sell before the first rate adjustment.

Sample sentences: “I want to refinance out of my ARM into a fixed-rate mortgage.” “I want to refinance into an ARM because I plan to sell the house in four years.”

Changing the loan’s term

Finally, some homeowners look at the 27 years that are left on their 30-year mortgage and think, “Why not refinance to a 15-year loan to pay it off faster?” Moving from a 30-year to a 15-year loan is called shortening the loan term.

You can save tons of interest over the life of the loan by refinancing into a 15-year mortgage. And the interest rate on a 15-year loan will be lower than on a 30-year mortgage. Those are the upsides.

The downside is that the monthly payments are higher on a 15-year loan, even if the interest rate is lower. Those higher monthly payments can strain your finances if you rack up unexpected expenses. And they leave you with less money to sock away for retirement.

If you’re determined to pay off your mortgage quicker, the lender might recommend that you pay extra each month instead of refinancing into a 15-year loan.

Sample sentence: “I’m thinking of reducing my loan term. Can you step me through the pros and cons?”

Holden Lewis writes for NerdWallet. Email: hlewis@nerdwallet.com.

The article What to Say to a Mortgage Lender When Applying to Refinance originally appeared on NerdWallet.

Monocacy Builders, owned by prolific Bethlehem developer Plamen Ayvazov, bought the building at 46-52 W Broad St. earlier this year, after Wells Fargo closed its branch there in 2024. The facade of the existing building will remain intact under the new plans.

At a Thursday planning commission meeting, Ayvazov, architects and engineers representing the project presented plans to build a five-story addition on top of the stone building, adding 61 apartments. Developers also will construct an additional building on a vacant area next to the existing bank, which will become a restaurant, Ayvazov said.

There are no concrete plans for a tenant to occupy the first floor, which was once home to Wells Fargo, but Ayvazov said he hopes to come to an agreement with a tenant that would operate an “experience center.” He hopes to provide some kind of child-oriented entertainment space, which he said is lacking in downtown Bethlehem.

“Where that came from was, I was sitting on the Downtown Bethlehem Association Board, and a lot of the comments we get back from people visiting the city [are] there was not much to do in downtown, or there is nothing for kids,” Ayvazov said.

The top floor apartment addition will be constructed mostly with glass and metal framing. Ayvazov said he would use “bird-safe glass” on the apartments, which makes the windows more visible to birds who are prone to flying into them.

More than 3 million birds die every year from flying into buildings, according to Muhlenberg ornithology professor Daniel Klem, who testified at the meeting in support of bird-safe glass.

“This being a new construction project, I would encourage, if it all possible, the use of bird-safe glass, which is available from a small but growing number of manufacturers,” Klem said.

Ayvazov also said he is in talks with the Bethlehem Parking Authority to provide parking to prospective tenants at one of the public garages nearby.

Monocacy Builders also developed the Dream Boyd Theater, an apartment building next to the bank building that opened its doors earlier this year.

Reporter Lindsay Weber can be reached at Liweber@mcall.com.

The average rate on a 30-year U.S. mortgage edged higher this week, though it remains relatively near its low point so far this year.

The uptick brings the average long-term mortgage rate to 6.22% from 6.19% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.6%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week. The rate averaged 5.54%, up from 5.44% last week. A year ago, it averaged 5.84%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year yield was at 4.12% at midday Thursday, slightly higher than it was a week ago.

The rise in mortgage rates comes a day after the Federal Reserve cut its main interest rate for the third time this year and indicated another cut may be ahead in 2026.

The Fed doesn’t set mortgage rates, so even when it cuts its short-term rates that doesn’t necessarily mean rates on home loans will necessarily decline.

That’s what happened last fall after the central bank cut its main rate for the first time in more than four years. Instead of falling, mortgage rates marched higher, eventually cresting above 7% in January this year. At that time, the 10-year Treasury yield was climbing toward 5%.

Mortgage rates began declining this summer ahead of the central bank’s September rate cut, its first in a year. The average rate on a 30-year mortgage got as low as 6.17%, the lowest level in more than a year, on Oct. 30.

That pullback in rates helped lift sales of previously occupied U.S. homes in October on an annual basis for the fourth straight month.

Still, affordability remains a challenge for many aspiring homeowners, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.

The overall decline in mortgage rates this fall has been a boon for homeowners eager to refinance their home loan to a lower rate.

Applications for mortgage refinancing loans jumped 14% last week from the previous week, and accounted for about 58% of all home loan applications, according to the Mortgage Bankers Association. Applications for loans to buy a home climbed nearly 5%.

Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year.

“While this is unlikely to deliver the sharp relief some buyers are hoping for, rates are expected to be low enough to help counterbalance continued, but modest, home price growth,” said Anthony Smith, senior economist at Realtor.com.

“We’re going to court,” Marc B. Kaplin said Tuesday.

Wilson plans to join the company’s lawsuit.

Kaplin said Scannell officials might also appeal the Easton Planning Board’s decision to Easton City Council and bring “several independent lawsuits.”

“The reasons that were given for rejecting us, they are not legally sufficient,” Kaplin said. Representatives with Indianapolis-based Scannell did not respond to requests for comment.

City officials have spent months reviewing plans for the Easton Commerce Center, a 1 million-square-foot warehouse on Wood Avenue, near North 13th Street and Route 22. On Dec. 3, the city planning commission denied Scannell’s plans.

The site is the former Pfizer Pigments plant, which was demolished about five years ago to make way for future development.

The company provided expert testimony over several hearings on how it would deal with the property, including a plan to reroute a stream connected to the Bushkill Creek.

But the planning commission was not satisfied with the company’s presentations.

Commission members “felt [Scannell] didn’t adequately submit information for the application,” said Dwayne Tillman, the city’s director of codes and planning, which earlier in the hearings had recommended the company’s proposal to the commission.

“It was a really big win,” said Cody J. Harding, an attorney representing the Stop the Wood Ave Warehouse Coalition, which formed to oppose the warehouse over concerns including environment, traffic, noise and neighborhood impacts.

Harding said the planning commission listed a host of reasons for denying the project. “If [Scannell officials] want to appeal this, they have a very steep hill.”

The building is 90% in Wilson, and Borough Council approved the proposed development in September 2024. But 10% of the warehouse would be in Easton, with about 30% of the land in city boundaries, so Scannell also needs Easton’s approval.

Wilson solicitor Stanley J. Margle said Borough Council voted Monday night to join Scannell’s lawsuit, which he said would be filed against Easton’s planning commission.

“We stand to benefit by the improvements of that brownfield, which is an eyesore,” Margle said. “And the warehouse is a minimally intrusive development located far away from any housing.”

The Lehigh Valley Planning Commission and Easton Area School Board also opposed the proposal over traffic congestion concerns, but Margle said Scannell was planning to “sink millions of dollars” into traffic improvements.

Easton is not finished reviewing Scannell’s proposal. The city’s zoning hearing board is scheduled to continue a hearing at 6 p.m. Jan. 15 over exceptions Scannell wants, including a plan to reroute the Bushkill Creek tributary and build a road.

The anti-warehouse coalition’s work also has not ended, according to Harding. The group has presented changes to zoning it would like to see for that land. Current zoning for Wilson and Easton allows more than 60 types of “adaptive” reuses, including warehousing, he said. Warehousing is a by-right permitted use for the site in Wilson and Easton.

“Years ago, they made sense, when you had more industry,” Harding said of the reuses. “But [Easton] has changed.”

The pigment plant operated from the late 1800s until 2017, including as Pfizer from 1962 to 1990. A maker of rust-colored pigments used in various businesses, the plant was later known as Harcros Pigments, then Elementis Pigments, and was owned by Hunstman Corp. of Texas when it closed.

Contact Morning Call reporter Anthony Salamone at asalamone@mcall.com.