As of June 20, 2025, today's mortgage rates have seen adjustments, with the average 30-year fixed mortgage rate rising to 7.00%, up by 5 basis points from the previous day. This increase reflects a broader trend impacting both mortgage and refinance rates this week. If you are in the market for buying a home or considering refinancing, knowing these rates is essential for making informed financial decisions.
Mortgage Rates Today – June 20, 2025: Rates Rise by 5 Basis Points Affecting Buyers
Key Takeaways:
- 30-Year Fixed Mortgage Rates: Up to 7.00%.
- 15-Year Fixed Mortgage Rates: Increased to 6.05%.
- 5-Year Adjustable Rate Mortgage (ARM): Rose to 7.17%.
- Current Refinance Rates: 30-Year Fixed Refinance Rate at 7.17%.
- Market Influence: Recent rate increases influenced by market conditions and economic factors.
In recent weeks, mortgage rates have fluctuated, causing some confusion among prospective homebuyers and homeowners looking to refinance. The current 30-year fixed mortgage rate is at 7.00%, which is a slight increase from 6.93% last week (Zillow, 2025). This rise in rates comes at a time when the Federal Reserve opted to keep short-term interest rates stable during their recent meeting. As markets react to larger economic concerns, particularly in the Middle East, mortgage rates reflect these uncertainties.
Current Mortgage Rates
Mortgage Rates by Loan Type:
Program | Rate | 1W Change | APR | 1W Change |
---|---|---|---|---|
30-Year Fixed Rate | 7.00% | +0.07% | 7.40% | +0.01% |
20-Year Fixed Rate | 6.79% | +0.30% | 7.14% | +0.23% |
15-Year Fixed Rate | 6.05% | +0.04% | 6.31% | 0.00% |
10-Year Fixed Rate | 5.87% | -0.13% | 6.23% | -0.04% |
5-Year ARM | 7.17% | +0.23% | 7.62% | -0.25% |
30-Year FHA | 7.69% | +0.86% | 8.74% | +0.88% |
30-Year VA | 6.47% | +0.07% | 6.69% | +0.07% |
This table outlines trends among different mortgage products. The 30-year fixed-rate mortgages remain popular due to their stability over longer terms, whereas 7-year and 5-year ARMs tend to fluctuate more with market conditions.
Fluctuations in Today's Refinance Rates
If you already have a mortgage, refinancing might seem like a viable option, especially with 30-year refinance rates now at 7.17%, up from 7.14% just a week ago. The slight increases in mortgage rates reflect an environment in which refinancing rates aren’t necessarily attractive for many homeowners.
Refinance Program | Rate | 1W Change | APR | 1W Change |
---|---|---|---|---|
30-Year Fixed Refinance | 7.17% | +0.03% | 7.40% | +0.01% |
20-Year Fixed Refinance | 6.79% | +0.30% | 7.14% | +0.23% |
15-Year Fixed Refinance | 6.05% | +0.04% | 6.31% | 0.00% |
These recent shifts highlight that the appeal of refinancing currently depends largely on individual circumstances and existing mortgage terms. While some homeowners may find it beneficial to refinance when rates are lower, the current average rates present mixed incentives.
Are Mortgage Rates Decreasing?
It's essential to distinguish between the constant changes in individual product rates and the broader market trends. Although mortgage rates are notably higher than a year ago, they are still lower than the peak levels reached in recent months. The Federal Reserve’s decision to maintain interest rates indicates a cautious approach amid global economic pressures. This has led many to speculate about how low rates could go in 2025 and whether waiting for further declines in rates is a smart financial move.
Broadly speaking, industry experts predict that even if mortgage rates stabilize or slightly dip over the coming months, the fluctuations may not offer significant reprieve for those anxious to secure lower payments. Current economic forecasts suggest that rates may settle closer to 6.2% to 6.5% by late 2025 (source: CBS News). This speculative outlook can help individuals gauge their timing when entering or exiting the housing market.
What's Influencing Mortgage Rates Right Now?
Think of mortgage rates as a complex dance, with several key players calling the tune:
- The Federal Reserve (The Fed): The Fed's monetary policy is probably the biggest single actor. Their decisions on interest rates directly influence the rates banks charge for borrowing money, which then trickles down to mortgage rates. Keep an eye on Fed announcements for clues about future rate movements.
- Inflation: Inflation is the nemesis of stable interest rates. When inflation is high, meaning the cost of goods and services is rising rapidly, the Fed often raises interest rates to cool down the economy. This, in turn, pushes mortgage rates higher. Conversely, if inflation is low or decreasing, mortgage rates may stay stable or even decline.
- The Treasury Yield: The 10-year treasury yield has a direct impact on the mortgage industry. It is normally said that when Treasury Yield increases the mortage rate also increases generally.
- Economic Growth (GDP): A strong economy typically leads to higher interest rates. When businesses are expanding, and people are employed, demand for borrowing increases, pushing rates up. Slower economic growth can lead to lower rates, as the Fed may try to stimulate the economy.
- The Housing Market Itself: Supply and demand in the housing market play a role. When there's a lot of demand for homes and a limited supply, prices tend to rise, and interest rates may follow.
Related Topics:
Understanding The Impact on Buyers and Homeowners
As mortgage rates rise, the most immediate impact is on affordability for homebuyers. With the average 30-year fixed-rate mortgage at 7.00%, monthly payments for a new home purchase can see substantial increases compared to previous years. To illustrate this:
- A home priced at $350,000 financed at 7.00% results in a monthly payment of approximately $2,330 over 30 years.
- Conversely, at a lower rate of 5.00%, that same loan's monthly payment would be around $1,879, leading to a significant difference of $451 each month.
This discrepancy underscores the importance of keeping a close watch on rate movements, whether you're looking to buy a home or refinance an existing mortgage.
How to Secure the Best Mortgage Rate
Getting the best possible mortgage rate requires preparation and strategy. Here's my advice:
- Improve Your Credit Score: Pay your bills on time, reduce your credit card balances, and correct any errors on your credit report.
- Save for a Larger Down Payment: The more you put down, the lower your interest rate is likely to be.
- Shop Around Extensively: Get quotes from multiple lenders and compare the rates, fees, and terms.
- Get Pre-Approved: Getting pre-approved for a mortgage gives you a clear idea of how much you can borrow and strengthens your negotiating position.
- Consider a Mortgage Broker: A mortgage broker can help you find the best rates and terms from a variety of lenders.
- Don't Be Afraid to Negotiate: Mortgage rates are not always set in stone. Don't hesitate to negotiate with lenders to see if they can offer you a better deal.
My Thoughts On Today’s Rates
Based on what I'm seeing today, June 20, 2025, here are my personal observations:
- The Market Feels Uncertain: There's a lot of back-and-forth in the market right now. Economic indicators are sending mixed signals, contributing to rate volatility.
- Shop Around! This cannot be stressed enough. Don't settle for the first rate you're offered. Get quotes from multiple lenders – banks, credit unions, and mortgage brokers. Rates can vary significantly.
- Lock It In: If you find a rate you're comfortable with, I'd recommend locking it in, especially if you anticipate rates might rise further.
- Don't Forget the Fees: APR (Annual Percentage Rate) is more important than interest rates when it comes to comparing mortgages. The true cost of a mortgage includes all fees paid to the lender including points, origination fees, etc.
Invest Smarter in a High-Rate Environment
With mortgage rates remaining elevated this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.
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