Mortgage rates experienced a slight decline this week, with the average 30-year fixed rate falling to 6.81% as of June 25, 2025. This represents a reduction of 2 basis points from the previous day and a notable 10 basis points lower than last week.
In addition to the overall trends, here are the current mortgage rate averages according to Zillow:
– 30-year fixed: 6.81% (down from 6.91% last week)
– 15-year fixed: 5.87% (unchanged)
– 5-year adjustable-rate mortgage (ARM): 7.39% (up from 7.33%)
These figures are primarily applicable to borrowers with excellent credit and a 20% down payment.
Analyzing changes across various loan types, here are the most recent adjustments:
Conforming Loans
– 30-year fixed: 6.82% APR, down 0.10%
– 15-year fixed: 5.87% APR, down 0.09%
– 5-year ARM: 7.39% APR, up 0.19%
Government Loans
– FHA 30-year: 6.25% APR, down 1.07%
– VA 30-year: 6.35% APR, down 0.05%
Jumbo Loans
– 30-year fixed: 6.86% APR, down 0.41%
– 15-year fixed: 6.10% APR, down 0.50%
Factors contributing to the fluctuation in mortgage rates this week include a generally positive economic outlook, as signs of cooling inflation have assisted in lowering long-term rates. Furthermore, while the Federal Reserve has not made any rate cuts in 2025, investors are anticipating possible adjustments in the future. Bond market trends, particularly shifts in U.S. Treasury bonds, also play a crucial role in influencing mortgage pricing.
For those looking to secure the best mortgage rates, consider the following tips:
– Shop around for quotes from at least three lenders to find the best deal.
– Maintain a high credit score, as higher scores generally result in more favorable rates.
– Increasing your down payment to 20% or more could also lead to reduced interest rates.
– Don’t forget to compare APRs, as they reflect the total borrowing cost beyond just the interest rate.
With 30-year fixed rates now below 7%, it may be an opportune time for some borrowers to lock in a loan, particularly for those considering refinancing from higher rates encountered earlier this year. However, it is essential for potential buyers to evaluate how monthly payments align with their long-term financial strategies.
This environment of slightly lower mortgage rates can be encouraging for homebuyers and those looking to refinance, potentially easing the financial burden in a volatile economic climate. Staying informed and proactive can allow borrowers to navigate the lending landscape effectively.