Mortgage Rates Today – July 7, 2025: Rates Rise Across the Board, 30-Year FRM Jumps to 6.81%

As of July 7, 2025, mortgage rates have experienced a slight increase. According to Zillow, the national average for a 30-year fixed mortgage rate now stands at 6.81%, which is a rise of 1 basis point from the previous day and up 4 basis points from last week. Rates for refinancing opportunities are somewhat lower, with the average refinance rate for the same 30-year term at 7.05%.

Mortgage Rates Today – July 7, 2025: Rates Rise Across the Board, 30-Year FRM Jumps to 6.81%

Key Takeaways

• Current mortgage rates: The average 30-year fixed rate is 6.81%, up from 6.77% last week.
• Refinance rates: The average refinance rate for a 30-year fixed loan is 7.05%, decreasing slightly from last week.
• 15-year fixed mortgage rates have increased by 4 basis points, now at 5.89%.
• 5-year ARM rates have risen significantly, reaching 7.62%.
• While predictions suggest a gradual drop in rates later this year, no significant decreases are expected in July.

Current Mortgage Rates Overview

The latest data from Zillow indicates trends in various loan programs, which can benefit potential homebuyers or those considering refinancing. Below are the current mortgage rates as of July 7, 2025:

Table 1: Current Mortgage Rates

Loan Type	Rate	1-Week Change (%)	APR	1-Week Change (%)
30-Year Fixed Rate	6.81%	☝️ 0.04%	7.26%	☝️ 0.04%
20-Year Fixed Rate	6.50%	☝️ 0.15%	6.75%	☝️ 0.06%
15-Year Fixed Rate	5.89%	☝️ 0.08%	6.18%	☝️ 0.08%
10-Year Fixed Rate	5.58%	👇 0.04%	5.77%	0.00%
7-Year ARM	6.73%	👇 0.62%	7.57%	👇 0.23%
5-Year ARM	7.63%	☝️ 0.03%	7.91%	👇 0.07%

Current Refinance Rates

For those interested in refinancing, the following rates apply:

Table 2: Current Refinance Rates

Loan Type	Rate	1-Week Change (%)	APR	1-Week Change (%)
30-Year Fixed Refinance Rate	7.05%	👇 0.03%	7.26%	☝️ 0.04%
20-Year Fixed Refinance Rate	6.50%	☝️ 0.15%	6.75%	☝️ 0.06%
15-Year Fixed Refinance Rate	5.91%	☝️ 0.03%	6.18%	☝️ 0.08%
5-Year ARM Refinance Rate	6.19%	0.00%	6.42%	0.00%

Understanding the Mortgage Rate Changes

The increase in mortgage rates and slight changes in refinance options stem from multiple economic factors. First, the Federal Reserve's monetary policies significantly impact interest rates. As inflation rates fluctuate and economic indicators change, the Fed adjusts rates to stabilize the economy. Currently, the Federal Reserve is expected to meet again at the end of July, and its decisions will ripple through the mortgage market.

Experts forecasting the future of mortgage rates in July 2025 anticipate stability in these rates, with expectations leaning towards a slow decline as the year progresses. Inflation is still a crucial concern, as is the labor market and overall economic growth.

Market analysts predict an overarching trend for the remainder of the year to fluctuate around current rates but possibly see gradual drops if the Federal Reserve opts for rate cuts. The CME FedWatch tool supports this by placing a low probability on immediate cuts, leaving many to think that a wait-and-see approach is best.

Local versus National Mortgage Rates

It’s essential to understand that while national averages provide a useful baseline, local markets may vary significantly. Factors such as housing demand in specific regions, local economic conditions, and the specific lenders you consult can lead to differences in offered rates. This variability underscores the importance of comparing offers from multiple lenders.

What to Expect Going Forward

Looking to the future, it’s vital to focus on broad economic indicators and impending monetary policy shifts. Whether you’re a new homebuyer or looking to refinance, keeping an eye on inflation trends and the Fed’s interest rate decisions will serve as a helpful guide.

1. Inflation Impact: Inflation stats are typically reported monthly and can provide insights into whether the Fed may consider rate adjustments in the future.
2. Federal Decision Timeline: The end of July will be a crucial moment for homeowners and potential buyers, as any decisions made in this timeframe could directly affect current rates.

In summary, mortgage rates on July 7, 2025, have shown a modest uptick. The national average for a 30-year fixed mortgage is currently at 6.81%, while refinance rates have declined slightly to 7.05%. Rate movements will hinge significantly on future Federal Reserve actions and economic indicators, but much anticipation surrounds potential gradual drops in rates later this year rather than sharp declines soon.