Mortgage Refinance Rates Today Drop by 6 Bps – June 23, 2025

If you've been watching mortgage rates closely, you'll be glad to hear that mortgage refinance rates today, June 23, 2025, have decreased by 6 basis points. The average 30-year fixed refinance rate has dropped to 7.11%, according to Zillow, offering a potential opportunity for homeowners to save money. But before you jump in, let's delve deeper into what this means for you and whether refinancing is the right move.

Refinance Rates Dip! Mortgage Refinance Rates Today (June 23, 2025) Fall 6 Bps

Understanding the Refinance Rate Dip

A drop of 6 basis points might seem small, but it can make a difference over the life of a loan. To put it in perspective, consider this:

• The Numbers: The national average for a 30-year fixed refinance loan now sits at 7.11%, a decrease from 7.17% recorded previously.
• The Trend: Compared to last week, the 30-year fixed refinance rate is down 5 basis points from an average of 7.16%.
• Other Loan Types: The 15-year fixed refinance rate has also decreased by 6 basis points, now averaging 5.96%. Meanwhile, the 5-year ARM (Adjustable-Rate Mortgage) refinance rate remains steady at 6.46%.

Why Refinance?

Refinancing your mortgage involves taking out a new loan to replace your existing one. People usually do this for a few key reasons:

• Lower Interest Rate: The most common reason. Securing a lower rate can significantly reduce your monthly payments and the total amount you pay over the life of the loan.
• Shorten Loan Term: Switching from a 30-year to a 15-year mortgage can save you a ton of money on interest, even if the interest rate is slightly higher. You'll build equity faster, too!
• Change Loan Type: Converting from an ARM to a fixed-rate mortgage provides stability and predictability in your monthly payments.
• Consolidate Debt: You can roll other debts, like credit card balances, into your mortgage, potentially securing a lower interest rate and simplifying your finances.
• Cash-Out Refinance: Access equity in your home for renovations, education, or other major expenses.

Current Refinance Rate Overview

Here's a quick look at the current refinance rates for different loan types, as of June 23, 2025:

Conforming Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	6.88%	down 0.04%	7.31%	down 0.06%
20-Year Fixed Rate	6.37%	down 0.21%	6.80%	down 0.16%
15-Year Fixed Rate	5.91%	down 0.05%	6.19%	down 0.07%
10-Year Fixed Rate	5.85%	down 0.08%	6.04%	down 0.03%
7-year ARM	7.50%	up 0.07%	7.73%	down 0.09%
5-year ARM	7.08%	down 0.12%	7.72%	down 0.07%
3-year ARM	—	0.00%	—	0.00%

Government Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate FHA	7.75%	up 0.95%	8.78%	up 0.95%
30-Year Fixed Rate VA	6.62%	up 0.01%	6.63%	down 0.20%
15-Year Fixed Rate FHA	6.37%	up 0.44%	7.34%	up 0.45%
15-Year Fixed Rate VA	5.97%	down 0.07%	6.33%	down 0.06%

Jumbo Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate Jumbo	7.42%	up 0.05%	7.72%	up 0.03%
15-Year Fixed Rate Jumbo	6.88%	up 0.11%	6.98%	up 0.02%
7-year ARM Jumbo	—	0.00%	—	0.00%
5-year ARM Jumbo	9.00%	up 0.01%	8.82%	up 0.05%
3-year ARM Jumbo	—	0.00%	—	0.00%

Important Considerations Before Refinancing

Even with these slightly lower rates, it's wise to proceed with caution, think about whether refinancing makes sense for you:

• Your Credit Score: A good to excellent credit score is crucial for securing the best refinance rates.
• Closing Costs: Refinancing comes with closing costs, which can include appraisal fees, title insurance, and origination fees, consider this cost as well.
• Break-Even Point: Calculate how long it will take to recoup the closing costs through your monthly savings. If you plan to move soon, refinancing might not be worth it.
• Long-Term Financial Goals: Consider how refinancing aligns with your overall financial strategy.
• Loan type : Choose the right loan option. A fixed-rate mortgage offers stability whereas ARM, which offers lower initial rates, but these rates can change over time.

How to Get the Best Refinance Rate

• Shop Around: Don't settle for the first rate you're offered. Get quotes from multiple lenders to compare rates and fees.
• Improve Your Credit Score: Pay down debts and correct any errors on your credit report.
• Negotiate: Don't be afraid to negotiate with lenders, especially if you have a strong credit history and a good relationship with them.
• Consider a Shorter Term: If you can afford the higher monthly payments, a 15-year mortgage can save you a lot of money on interest.

The Role of the Economy

Mortgage rates are intricately linked to the overall economic climate, influenced by factors like:

• Inflation: High inflation often leads to higher interest rates as the Federal Reserve tries to cool down the economy.
• Economic Growth: A strong economy can also push rates higher as demand for borrowing increases.
• Federal Reserve Policy: The Fed's decisions on interest rates have a direct impact on mortgage rates.
• Global Events: Unexpected global events can create economic uncertainty, leading to fluctuations in mortgage rates.

My Thoughts and Expertise

As someone who's followed the mortgage market for years, I can tell you that timing is everything. While a 6-basis-point drop is encouraging, it's essential to look at the bigger picture. Consider where you are in your current mortgage term and how long you plan to stay in your home. Also, pay close attention to economic indicators and forecasts, as they can provide clues about where rates are headed.

Final Thoughts

The decrease in mortgage refinance rates today offers a potential opportunity for homeowners to save money. Evaluate your personal finances, compare offers from multiple lenders, and factor in the long-term implications before making a final call. Don't rush into it. Consult with a financial advisor to ensure refinancing is a smart financial move is always a good idea.