As of June 14, 2025, mortgage rates have seen a slight upward movement. According to Zillow, the average 30-year fixed mortgage rate is currently at 6.94%, which is an increase of 2 basis points from the previous day's rate of 6.92%. Remarkably, this rate is down 5 basis points from the previous week's average of 6.99%. The average 30-year fixed refinance rate stands at 7.18%, reflecting a modest 6 basis point increase from last week. These fluctuations are essential for anyone considering home purchasing or refinancing.

Today’s Mortgage Rates – June 14, 2025: Rates Drop Slightly

Key Takeaways

• Current 30-Year Fixed Rate: 6.94%
• Current 30-Year Fixed Refinance Rate: 7.18%
• Comparison: Rates have slightly increased this week.
• 15-Year Fixed Mortgages: 6.02%, up by 2 basis points.
• Market Outlook: Predictions suggest rates may stabilize in the mid-to-upper 6% range.

Mortgage rates are pivotal in determining your monthly payments when purchasing a home or refinancing an existing mortgage. On June 14, 2025, the 30-year fixed mortgage rate specifically drew attention because it marks a crucial point for potential homeowners. While there is a noticeable increase from the previous day, it's important to contextualize these figures against the backdrop of fluctuating economic conditions and governmental policies.

Current Mortgage Rates Overview

The following table summarizes the recent mortgage rates across different loan types:

Loan Type	Rate	1W Change	APR	1W Change
30-Year Fixed Rate	6.94%	down 0.04%	7.39%	down 0.05%
20-Year Fixed Rate	6.53%	down 0.30%	6.96%	down 0.28%
15-Year Fixed Rate	6.02%	down 0.05%	6.31%	down 0.06%
10-Year Fixed Rate	6.03%	up 0.10%	6.13%	down 0.04%
7-Year ARM	7.58%	down 0.24%	8.08%	down 0.15%
5-Year ARM	7.29%	down 0.33%	7.67%	down 0.33%

Source: Zillow

Government Loan Rates

Additionally, when discussing government loans such as FHA and VA loans, here's an insightful summary based on recent data:

Loan Type	Rate	1W Change	APR	1W Change
30-Year Fixed Rate FHA	7.00%	up 0.08%	8.02%	up 0.08%
30-Year Fixed Rate VA	6.40%	down 0.05%	6.56%	down 0.10%
15-Year Fixed Rate FHA	5.75%	up 0.06%	6.72%	up 0.04%
15-Year Fixed Rate VA	5.97%	down 0.01%	6.32%	0.00%

Current Refinance Rates

For homeowners looking to refinance, the situation is as follows:

Loan Type	Rate	1W Change	APR	1W Change
30-Year Fixed Refinance Rate	7.18%	up 0.06%	7.39%	down 0.05%
20-Year Fixed Refinance Rate	6.53%	down 0.30%	6.96%	down 0.28%
15-Year Fixed Refinance Rate	6.12%	up 0.12%	6.31%	down 0.06%
10-Year Fixed Refinance Rate	6.03%	up 0.10%	6.13%	down 0.04%
5-Year ARM Refinance Rate	5.97%	0.00%	6.45%	0.00%

What Influences Mortgage Rates?

The fluctuations in mortgage rates aren't random; various factors play a critical role:

• Federal Reserve Policy: The actions of the Federal Reserve often have a ripple effect on mortgage rates. When the Fed adjusts its benchmark rate, it can influence mortgage rates but not always in a direct manner. For instance, if the Fed raises rates to combat inflation, mortgage rates typically follow suit, although the correlation may vary.
• Inflation: Typically, higher inflation correlates with increased mortgage rates. When inflation is high, lenders demand higher rates to compensate for the diminishing purchasing power of future payments. This correlation means that if inflation persists or accelerates, we may see mortgage rates push upwards.
• Economic Growth: A thriving economy often leads to higher mortgage rates as demand surges. When people feel financially secure, they're more likely to buy homes, increasing demand for loans. Conversely, a sluggish economy can push rates downward due to decreased demand for home loans.
• Investor Sentiment: The health of the mortgage-backed securities market can also shape mortgage rates. If investors feel optimistic about the economy's direction, they buy mortgage-backed securities, driving rates down. On the flip side, if uncertainty looms, rates might increase as investors pull back.
• Supply and Demand: Ultimately, the basic economic principle of supply and demand applies to mortgage rates. If more people want to buy homes (high demand), lenders can increase rates. If fewer people are looking to buy (lower demand), lenders may offer lower rates to stimulate the market.

Future Predictions on Mortgage Rates

Looking forward, experts have divided opinions about the trajectory of mortgage rates. While current trends show a slight uptick, several forecasts suggest that rates may stabilize in the near future.

• According to Freddie Mac, rates are expected to hover around 6.08% to 7.04% throughout 2025, implying a very modest downward trend towards the year-end. This range suggests a stabilization, meaning buyers could experience fewer shocks in their mortgage costs as the year progresses.
• Notably, J.P. Morgan forecasts a slight easing, with rates projected to settle around 6.7% by the year’s end, while the National Association of Realtors suggests an average of 6.4% for the year. These projections offer a glimmer of hope for potential homeowners who are wary of rising rates.
• The insights from the Mortgage Reports indicate that the anticipated trajectory for June 2025 shows mortgage rates stabilizing, with analysts believing the 30-year rate may hover around 6.8% to 6.9%. This represents a potential for borrowers to find consistent terms, albeit at a level that's still considered high relative to years prior.

Considering these forecasts, it becomes clear that while rates may fluctuate slightly, there is an overarching trend towards stabilization. However, borrowers should remain vigilant and consult with mortgage professionals to understand the most current conditions affecting their specific situations.

Refinancing Scenarios for Homeowners in 2025

With the current landscape of mortgage rates, homeowners might wonder if it's the right time to refinance. Like purchasing a home, refinancing comes with its own set of calculations. It's always wise to weigh the costs of refinancing against potential savings.

Suppose you currently have a 30-year fixed mortgage at a rate of 7.5% and you're considering refinancing to the current rate of 7.18%. Here's how you can evaluate whether refinancing is beneficial:

1. Calculate Your Savings: Use the interest savings to inform your decision. For instance, on a loan amount of $300,000, the difference in monthly payment can be calculated.
   • Current Monthly Payment:
     • Using a 7.5% rate results in approximately $2,096.55 monthly.
   • New Monthly Payment:
     • At 7.18%, this decreases to around $2,056.24 monthly.
   • Monthly Savings:
     • $2,096.55 – $2,056.24 = $40.31 saved each month.
2. Evaluate Closing Costs: Keep in mind that refinancing typically incurs closing costs ranging from 2% to 5% of the loan amount. In this case, if your closing costs are about $6,000, it would take approximately 149 months (a little over 12 years) to break even on those costs by saving $40.31 a month.
3. Adjust for Future Market Changes: If forecasts suggest rates will dip further, you might also factor that into whether you should wait to refinance. Ultimately, this will depend on your personal financial circumstances and future plans regarding homeownership.
4. Consult with a Financial Advisor: Given the intricacies involved, it's essential to rise above the numbers and seek professional insight, as they can offer personalized advice compensating for fluctuating market conditions.

Summary:

As an observer of the mortgage market, it is evident that understanding how today's mortgage rates impact your financial decisions is crucial. The data reveals a nuanced picture: while certain rates have increased this week, the overall trend suggests a steady landscape where informed decisions can lead to optimal financial outcomes.

It's imperative to remain vigilant about the changing rates and consult reliable sources as you consider your next steps in homeownership or refinancing.

Looking to snag the best mortgage rate possible? As of today, June 13, 2025, the states with the cheapest 30-year new purchase mortgage rates are New York, Colorado, California, Connecticut, Washington, D.C., Massachusetts, and Washington, where average rates range from 6.73% to 6.80%. But remember, this is just a snapshot, and securing the best rate for you requires a bit more digging.

States With Lowest Mortgage Rates Today – June 13, 2025

The world of mortgages can seem like a maze of numbers, terms, and fine print. As someone who's spent years navigating this field, I understand how overwhelming it can be. That's why I'm here to break down today's mortgage rate situation, state by state, and give you the insights you need to make smart decisions. This analysis is based on the latest data from Investopedia, offering a clear understanding of the current mortgage rates.

Why Do Mortgage Rates Vary By State?

You might be wondering, “Why doesn't everyone just get the same rate?” It's a fair question! Several factors contribute to the variation we see across different states:

• Lender Presence and Competition: Not all lenders operate in every state. Where there's less competition, rates may be higher.
• State-Level Regulations: State laws governing mortgages can differ, impacting lender costs and, consequently, rates.
• Credit Score Averages: States with higher average credit scores might see slightly better rates overall, as lenders perceive less risk.
• Average Loan Sizes: If the average loan size in a state is larger, lenders might adjust rates accordingly to manage their portfolios.
• Risk Management Strategies: Each lender has its own approach to risk. Some might be more aggressive in offering lower rates to attract business, while others might prioritize profitability.

The Highs and Lows: A State-by-State Breakdown

Let's dive into the specifics. Earlier, I mentioned the states with the lowest rates. Here's a quick recap and comparison of the highest too.

States with the Lowest 30-Year Fixed Mortgage Rates (New Purchase) – June 13, 2025

• New York: 6.73%
• Colorado: 6.75%
• California: 6.76%
• Connecticut: 6.77%
• Washington, D.C.: 6.78%
• Massachusetts: 6.79%
• Washington: 6.80%

States with the Highestr 30-Year Fixed Mortgage Rates (New Purchase) – June 13, 2025

• West Virginia: 6.95%
• Alaska: 6.97%
• North Dakota: 6.98%
• Mississippi: 6.99%
• Wyoming: 7.00%
• Rhode Island: 7.01%

It's crucial to remember that these are just averages. Your individual rate will depend on your unique financial situation.

National Mortgage Rate Trends: Where Are We Heading?

It's not just about individual states; the national picture matters too. Here's a look at where national average mortgage rates stand right now, according to Zillow:

• 30-Year Fixed (New Purchase): 6.87%
• FHA 30-Year Fixed: 6.95%
• 15-Year Fixed: 5.91%
• Jumbo 30-Year Fixed: 6.84%
• 5/6 ARM: 7.13%

Rates on 30-year new purchase mortgages have been incrementally dropping for the past week, recovering from a surge, and are down from a high of 7.15% in May. While rates dipped to 6.50% in March, their lowest average of 2025, and 5.89% in September of the past year, we need to keep a close watch on the market.

Understanding the Fine Print: “Teaser Rates” vs. Actual Rates

You've probably seen those super-low mortgage rates advertised online. They can be tempting, but it's important to understand what you're really getting. These “teaser rates” often come with strings attached:

• Points: You might have to pay points (an upfront fee) to get that low rate.
• Ultra-High Credit Scores: The rate might only be available to borrowers with near-perfect credit.
• Small Loan Amounts: Some lenders offer lower rates on smaller loans.

The rate you actually secure will be based on your credit score, income, down payment, and other factors. Don't be afraid to ask lenders for a Loan Estimate to see the full picture.

What Drives Mortgage Rate Fluctuations?

Understanding the factors that influence mortgage rates is like understanding the financial weather forecast. Several key elements are at play.

• The Bond Market: Look into the 10-year treasury yields in the bond market and watch for changes there.
• The Federal Reserve (The Fed): The Fed is still purchasing bonds to a degree but at a tapered volume. The Fed has been incrementally cutting rates – starting with a cut of 0.50 percentage points and following with two more cuts of 0.25 points each. Keep in mind that the Fed has eight scheduled rate-setting meetings per year that could result in a hold announcement.
• Competition: This is true across all types of loan offerings, more competition will drive costs down.
• Inflation: Higher inflation will cause mortgage rates to increase.

What Can You Do to Get the Best Rate?

Okay, so you know where rates are and why they change. Now, let's talk about what you can do to land the best possible rate.

• Shop Around. Shop Around. Shop Around! I can't stress this enough. Get quotes from multiple lenders – banks, credit unions, online lenders – and compare them carefully.
• Boost Your Credit Score: Even a small improvement in your credit score can make a big difference in your interest rate. Pay bills on time, reduce your credit card balances, and correct any errors on your credit report.
• Save for a Larger Down Payment: A bigger down payment means less risk for the lender, which can translate to a lower rate.
• Consider a Shorter Loan Term: 15-year mortgages typically have lower interest rates than 30-year mortgages, although your monthly payments will be higher.
• Be Prepared to Negotiate: Don't be afraid to ask lenders if they can match or beat a competitor's offer. You might be surprised at their willingness to work with you.

The Bottom Line:

The mortgage market is constantly evolving. What's true today might not be true tomorrow. Stay informed, do your research, and work with trusted professionals who can guide you through the process. Buying a home is one of the biggest financial decisions you'll ever make. Take your time, and make sure you're making the right choice for you.

As of June 13, 2025, mortgage rates have shown fluctuations, with the average 30-year fixed mortgage rate currently remaining at 6.88%, which marks a substantial decrease of 11 basis points from last week's average of 6.99%. The national average for the 15-year fixed mortgage has risen slightly to 5.96%, while the 5-year adjustable-rate mortgage (ARM) rate has decreased to 7.17%. Here are more details about the current mortgage rate trends across various loan types.

Today’s Mortgage Rates – June 13, 2025: A Big Drop in Rates From Last Week

Key Takeaways

• 30-Year Fixed Mortgage Rate: 6.88%, down from 6.99%
• 15-Year Fixed Mortgage Rate: 5.96%, up from 5.94%
• 5-Year ARM Rate: 7.17%, down from 7.21%
• Current Refinance Rates: 30-Year fixed refinance at 7.08%, down from 7.09%
• Market Outlook: Rates expected to remain stable or slightly decrease through 2025

Current Mortgage Rates

Mortgage Rates fluctuate regularly based on various economic indicators, market conditions, and lender strategies. The following table outlines the average rates for various types of home loans as of June 13, 2025:

Loan Type	Rate (%)	1W Change (%)	APR (%)	1W Change (%)
30-Year Fixed Rate	6.88	-0.11	7.32	-0.13
20-Year Fixed Rate	6.55	-0.27	6.79	-0.45
15-Year Fixed Rate	5.96	+0.02	6.25	-0.11
10-Year Fixed Rate	6.03	+0.10	6.13	-0.04
7-Year ARM	6.64	-1.17	7.51	-0.72
5-Year ARM	7.17	-0.45	7.84	-0.16

Source: Zillow

A fixed-rate means your interest rate remains constant throughout the loan's duration, making it simpler to plan payments. On the other hand, ARMs might start lower, but they can increase after an introductory period, leading to unexpected fluctuations in monthly payments.

What Are Current Refinance Rates?

For those looking to refinance, the rates have also seen some changes. The current refinance rates are as follows:

Refinance Loan Type	Rate (%)	1W Change (%)	APR (%)	1W Change (%)
30-Year Fixed Refinance	7.08	-0.01	7.32	-0.13
15-Year Fixed Refinance	5.99	+0.07	6.25	-0.11
5-Year ARM Refinance	7.69	0.00	–	–

Source: Zillow

The 30-year fixed refinance rate has decreased by 1 basis point, now resting at 7.08%, down from last week's 7.09%. This decline can be beneficial for homeowners wishing to reduce their current mortgage payments, tap into equity for home improvements, or consolidate debt.

Understanding Mortgage Refinancing Costs

When refinancing, it’s essential to consider not only the rate change but also the costs involved. Refinancing entails several expenses which may offset any potential savings from a lower rate:

• Origination Fees: This is a fee charged by the lender for evaluating and preparing your mortgage. It can range from 0.5% to 1% of the total loan amount.
• Appraisal Fees: Typically costing between $300 to $700, these fees assess the property's value to ensure it meets the loan amount criteria.
• Closing Costs: Generally ranging from 2% to 5% of the loan amount, closing costs include various fees, such as title insurance and attorney fees.
• Prepayment Penalties: If your original mortgage has a prepayment penalty for paying off the loan early, this could significantly impact your refinancing decision.

For example, if you're refinancing a $300,000 loan, the closing costs could range from $6,000 to $15,000, which you need to weigh against the savings of a lower interest rate. An astute borrower would aim to evaluate the break-even point, which is the time it takes for the savings from lower monthly payments to surpass the costs associated with refinancing.

How to Find the Best Mortgage Rates in 2025?

Finding the ideal mortgage rate requires diligence. Here are several strategies to ensure you secure the best possible rate in 2025:

1. Research Multiple Lenders: Different lenders offer various rates and terms, so it’s necessary to shop around. Websites like Bankrate and Zillow provide comprehensive comparisons of rates from various lenders.
2. Check Your Credit Score: Your credit score plays an essential role in determining your mortgage rate. A higher credit score typically translates to lower rates. Before applying, check your credit report and work to enhance your score as needed.
3. Stay Informed on Market Trends: Pay attention to economic news and market trends, as these factors can influence mortgage rates. Understanding cycles in inflation, employment rates, and economic growth can gauge when to lock in a favorable rate.
4. Consider Loan Types: Review different loan types such as FHA, VA, conventional, and ARMs. Each loan type has its requirements, benefits, and potential risks.
5. Consult a Mortgage Broker: Mortgage brokers have access to a wide array of lenders and can often negotiate better rates on your behalf. They can filter through numerous options to find a mortgage that aligns with your financial situation.

Mortgage Rates Outlook for the Rest of 2025

Looking ahead, mortgage rates are expected to remain steady with varying forecasts predicting slight fluctuations. According to the National Association of REALTORS®:

• Forecast for 2025:
  • Existing Home Sales: Expected to see an increase of 6%
  • New Home Sales: Anticipated to rise by 10%
  • Median Home Prices: Projected to increase by 3%
  • Expected Mortgage Rate: Anticipated to settle at around 6.4%

Fannie Mae’s forecast also supports a softening of rates, predicting an end-of-year rate of 6.1%, down from 6.2% previously. Meanwhile, the Mortgage Bankers Association projects 30-year rates to stabilize near 6.7% through the summer months.

Freddie Mac, on the other hand, notes that while buyers may hope for a decrease in rates, it is more probable that they will remain elevated throughout 2025. High rates might deter some potential buyers, yet they might prompt others to act earlier due to the ongoing uncertainty in the market.

This current high-rate environment could encourage homeowners wishing to sell to enter the housing market sooner rather than later, leading to increased activity in home sales despite the overall level of sales still remaining below historical averages. According to Freddie Mac, the “rate lock-in” phenomenon—where homeowners feel stuck with their low-rate mortgages—may gradually decrease, allowing more inventory to hit the market.

Prices are also anticipated to appreciate, although at a more moderate pace compared to recent years. The home price growth, coupled with a projected increase in home sales, is likely to drive purchase volumes higher than in 2024. Slightly lower rates in 2025 should translate to increased refinancing activity as well, which is good news for lenders and potential borrowers alike.

In summary, today's mortgage rates reflect a complex web of economic factors and market strategies. Understanding these dynamics is crucial for anyone considering buying or refinancing a home in June 2025, as small changes in rates can have significant long-term financial impacts.

Looking for the best mortgage rates? As of today, June 12, 2025, the states boasting the lowest 30-year new purchase mortgage rates are New York, Massachusetts, Colorado, California, New Jersey, Washington, Texas, Florida, and Virginia. These states currently register average rates between 6.79% and 6.89%. Figuring out where to buy a home is tough enough; finding the lowest mortgage rate shouldn't be!

States With Lowest Mortgage Rates Today – June 12, 2025

I know what you're thinking: “Why do rates even change from state to state?” Well, let's dive in and see what impacts the mortgage rates and which states have the best deals right now.

Why Mortgage Rates Differ by State

Mortgage rates aren't uniform across the United States. Several factors play a role in these geographic variations. Here are a couple of main reasons that could affect the rate:

• Lender Presence: Not all lenders operate in every state. The competitive landscape can change based on which lenders are actively trying to gain market share in a specific region. More competition often leads to lower rates.
• State-Level Regulations: Mortgage regulations can vary significantly from state to state. These regulations can affect the cost of doing business for lenders and, consequently, the rates they offer.
• Credit Score Averages: States with higher average credit scores might see slightly better rates, as lenders perceive borrowers as less risky.*
• Average Loan Size: The average size of mortgages can impact rates since bigger the amount more the risk involved. If a state has a trend for taking bigger loans, there could be a rise in rate of interest.
• Risk Management Strategies: Different lenders have varying approaches to risk. Some might be more aggressive in offering lower rates to attract borrowers, while others might be more conservative.

These variations can significantly impact what you will ultimately pay for your mortgage. It always pays to be informed!

The Best Bang for Your Buck: States With the Lowest Mortgage Rates

Alright, let's get down to brass tacks. According to Investopedia, as of today, here's the breakdown of the states offering the most attractive 30-year new purchase mortgage rates:

• New York: The Empire State is starting to look enticing.
• Massachusetts: Chowda' and low rates? Sounds like a good deal.
• Colorado: The Rocky Mountain High is in Mortgage rate here
• California: Surprisingly, the Golden State makes the cut.
• New Jersey: The Garden State is home to big savings on mortgages.
• Washington: Escape to the great Northwest.. and save some money doing so.
• Texas: Everything's bigger in Texas. Including savings, apparently.
• Florida: The Sunshine State continues to get brighter.
• Virginia: The Old Dominion lives up to its nickname.

These states are currently offering average rates between 6.79% and 6.89%. Now, keep in mind this is just a snapshot in time and factors such as market volatility impact on rate of interest, but it gives you a solid starting point for your research.

The Other Side of the Coin: States With Higher Mortgage Rates

On the flip side, some states are seeing less favorable mortgage rates today. These states might have a combination of the factors mentioned above, leading to higher borrowing costs. For June 12, 2025, the states with the highest 30-year new purchase mortgage rates include:

• Alaska: Maybe the cost of living up north is just higher in general.
• West Virginia: Rates are among the highest in the nation.
• Mississippi: Buyers should be aware of these high rates.
• North Dakota: High rates are hitting this wheat-growing region.
• Maine: Rates are less than ideal in this coastal state.
• Kansas: Mortgage rates are pretty expensive here.
• New Mexico: Rates are not favorable for new home purchases.
• South Dakota: Home buyers may want to think twice.
• Wyoming: Rates are sky high during this period.

These states are registering refinance averages between 6.99% and 7.08%. If you're in one of these states, don't despair! Shopping around and improving your credit score can still help you secure a better rate.

Decoding National Mortgage Rate Trends

It's not just about state-specific rates. The national mortgage rate scene plays a big role. As of today, June 12, 2025, the national average for a 30-year new purchase mortgage is around 6.91%.

We've seen some movement in recent months. 30-year rates had dropped every day this week, fully erasing last week's two-day surge. The rates also witnessed an all time high mid-May, when the flagship average climbed to a one-year high of 7.15%. However, things can change quickly!

Here's a quick look at how rates have fluctuated this year:

• March: 30-year rates hit their lowest average of 2025 at 6.50%.
• September (Previous Year): Rates plunged to a two-year low of 5.89%.

Understanding these trends can help you time your mortgage application strategically, but remember that trying to time the market perfectly is almost impossible.

To get a better picture, here are the national averages for different loan types, as provided by the Zillow:

Loan Type	New Purchase Rate
30-Year Fixed	6.91%
FHA 30-Year Fixed	7.03%
15-Year Fixed	5.98%
Jumbo 30-Year Fixed	6.90%
5/6 ARM	7.15%

What's Driving These Fluctuations?

So, what's behind these ups and downs in mortgage rates? It's a complex mix of factors, including:

• Bond Market: Mortgage rates often follow the trajectory of the bond market, especially the 10-year Treasury yield.
• Federal Reserve (The Fed): The Fed's monetary policy, particularly its bond-buying programs and decisions about the federal funds rate, can significantly impact mortgage rates.
• Lender Competition: Competition among lenders can drive rates down as they try to attract borrowers and stay more competitive.

Remember the period between November 2021 and July 2023 and the aggressive measure taken by the Fed to combat the inflation? The Fed decided to raise the interest rate upto 5.25 percentage points over the period of sixteen months.

Calculating Your Potential Mortgage Payment

Okay, enough with the macroeconomics. Let's get practical. How do you figure out what your monthly mortgage payment might look like? Check out this example:

• Home Price: $440,000
• Down Payment: $88,000 (20%)
• Loan Term: 30 years
• APR (Interest Rate): 6.67%

Based on these figures, your estimated monthly payment would be around $2,649.04. Keep in mind this includes principal, interest, property taxes, and homeowners insurance. You will also need to consider things like Private Mortgage Insurance (PMI) if your down payment is less than 20%.

Don't forget that rates, insurance, and taxes are subject to change. Make sure you get the most updated information before making any decisions.

Shopping Around is Key

No matter what state you're in, shopping around for the best mortgage rate is an absolute must. Don't just take the first offer you get. Get quotes from multiple lenders and compare them carefully.

Here are a few tips for getting the best mortgage rate:

• Improve Your Credit Score: A higher credit score can qualify you for a lower rate.
• Save for a Larger Down Payment: Putting more money down can reduce the lender's risk and potentially lower your rate.
• Consider Different Loan Types: Explore options like adjustable-rate mortgages (ARMs) or government-backed loans (FHA, VA) to see if they offer better terms.
• Negotiate Fees: Don't be afraid to negotiate with lenders on fees like origination fees or points.

The Bottom Line

Mortgage rates are a moving target. While certain states currently offer lower rates, the overall market is constantly changing. By understanding the factors that influence rates and shopping around for the best deal, you can position yourself to save money on your home purchase. Staying informed is the key tool to crack the best mortgage options.

Mortgage rates are a vital indicator of the health of the housing market and have a profound impact on consumer purchasing power, refinancing decisions, and overall economic confidence. As of June 12, 2025, mortgage rates have shown signs of slight decline, sparking cautious optimism among prospective homebuyers and current homeowners.

Today’s Mortgage Rates – June 12, 2025: Rates Are Notably Down Amid Economic Shifts

The latest data from Zillow shows a subtle but noteworthy dip in mortgage rates compared to prior weeks. After months of relatively elevated rates, even small decreases can make a substantial difference in affordability for many homebuyers.

National Average Mortgage Rates

Loan Type	Current Rate	Change from Last Week	APR	APR Change
30-Year Fixed	6.91%	-0.08%	7.34%	-0.11%
15-Year Fixed	5.97%	-0.03%	6.25%	-0.11%
5-Year ARM	7.30%	No change	7.83%	-0.17%

Key Observations:

• The national average for 30-year fixed-rate mortgages fell slightly from 6.99% last week to 6.91%.
• The 15-year fixed mortgage rate slipped below 6% for the first time in weeks.
• The 5-year ARM rate remains steady, but its APR slightly improved, reflecting marginally better borrowing costs.

This slight decline could stem from a mix of market reactions to economic data releases, inflation trends, and investor expectations for Federal Reserve monetary policy.

Detailed Mortgage Rates by Loan Type

Mortgage rates are not uniform; they differ by loan program, loan term, and borrower qualifications. Below is a breakdown of rates across the major loan categories:

Conforming Loan Rates

Program	Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed	6.91%	-0.08%	7.34%	-0.11%
20-Year Fixed	6.31%	-0.51%	6.73%	-0.51%
15-Year Fixed	5.97%	-0.09%	6.25%	-0.11%
10-Year Fixed	5.93%	No Change	6.26%	+0.09%
7-Year ARM	6.64%	-1.17%	7.51%	-0.72%
5-Year ARM	7.30%	-0.32%	7.83%	-0.17%

The 7-year ARM and 20-year fixed loans show the steepest weekly decline, signaling lender competition in these niches.

Government-Backed Loans

Program	Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed FHA	6.81%	-0.11%	7.83%	-0.11%
30-Year Fixed VA	6.36%	-0.09%	6.57%	-0.09%
15-Year Fixed FHA	5.70%	+0.01%	6.67%	0.00%
15-Year Fixed VA	5.89%	-0.08%	6.24%	-0.09%

Government loans consistently offer slightly better rates for qualified borrowers due to backing by federal agencies, which reduces lender risk.

Jumbo Loans

Program	Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed Jumbo	7.30%	-0.12%	7.76%	-0.04%
15-Year Fixed Jumbo	6.54%	-0.23%	6.82%	-0.19%
7-Year ARM Jumbo	7.53%	No Change	8.06%	No Change
5-Year ARM Jumbo	7.16%	-0.51%	7.77%	-0.28%

Insights:

• Jumbo loan rates remain higher than conforming loans, reflecting greater lender risk due to larger loan amounts.
• Adjustable-rate jumbo loans have also shown downward movement, which could appeal to high-income borrowers seeking smaller payments in early years.

Factors Influencing Current Mortgage Rates

Understanding what drives mortgage rates helps borrowers anticipate trends and make better decisions.

Federal Reserve Monetary Policy

While mortgage rates do not directly track the Fed’s federal funds target rate, Fed policy heavily influences long-term interest rates through bond markets. Currently, the Federal Reserve is in a holding pattern, waiting on further economic data to determine if rate cuts are warranted. If the Fed cuts rates later this year, mortgage rates could fall in response.

Inflation and Economic Data

Mortgage rates generally rise with inflation since lenders demand higher yields to offset declining purchasing power. Recent inflation trends showing moderating price increases have contributed to downward pressure on mortgage rates.

Bond Market Movements

Mortgage rates closely correlate to yields on 10-year Treasury notes. Increased demand for safe-haven Treasuries can drive yields lower, leading to better mortgage rate offers.

Housing Market Conditions

A slowdown in home sales and price appreciation can indirectly influence rates by altering lender risk appetite and competition.

How To Get The Best Mortgage Rates Today

Securing the lowest possible rate requires more than timing the market. Here are actionable tips to optimize your mortgage application:

1. Strengthen Your Credit Profile

Your credit score is one of the most significant factors affecting your mortgage rate. Steps include:

• Paying down credit card balances.
• Avoiding new credit inquiries.
• Correcting errors on your credit report.
  Lenders reward higher credit scores with lower interest rates because those borrowers are statistically less risky.

2. Maintain Stable Income and Employment

Verifiable and steady income reassures lenders, sometimes resulting in better loan offers.

3. Save for a Larger Down Payment

Higher down payments reduce loan-to-value ratios, decreasing lender risk and unlocking better rates and loan programs.

4. Shop and Negotiate with Multiple Lenders

Don’t settle for the first offer — get rate quotes from banks, credit unions, mortgage brokers, and online lenders. Compare not only interest rates but also APRs and closing costs to understand the total cost.

5. Consider Points and Loan Terms

Paying mortgage points upfront can reduce the interest rate. Additionally, choosing a shorter loan term (e.g., 15 years) usually yields lower rates, though monthly payments increase.

6. Lock Your Rate at the Right Time

Once you find a favorable rate, lock it to protect against upward volatility during the underwriting process. Rate lock durations vary, so ask your lender about options.

Will Mortgage Rates Go Down?

Predicting future mortgage rates remains inherently uncertain but analysis from expert organizations provides insight:

Expert Forecasts for 2025 and Beyond

• Fannie Mae expects the 30-year fixed mortgage rate to average near 6.1% by the end of 2025.
• Freddie Mac reports rates have ranged from 6.08% to 7.04% during early 2025.
• The National Association of Realtors projects an average 6.4% in 2025, gradually falling to 6.1% in 2026.
• Realtor.com anticipates rates dropping slightly to 6.2% toward year-end.

Factors That Could Lower Rates:

• Federal Reserve rate cuts if economic growth slows.
• Continued moderation in inflation, easing bond yields.
• Increased demand for mortgage-backed securities (MBS) supporting loan pricing.

Risks That Could Keep Rates Elevated:

• Persistent inflation pressures.
• Robust economic growth driving bond yields higher.
• Global economic instability increasing market volatility.

Understanding Current Refinance Rates

Refinancing remains an important strategy for many homeowners seeking to capitalize on falling rates or adjust loan terms.

Refinance Rates Snapshot as of June 12, 2025

Loan Type	Refinance Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed	7.09%	-0.06%	7.40%	-0.10%
15-Year Fixed	6.00%	-0.01%	6.26%	-0.03%
5-Year ARM	7.81%	+0.87%	8.10%	+0.15%
30-Year Fixed FHA	6.53%	-0.16%	7.55%	-0.17%
30-Year Fixed VA	6.71%	+0.13%	6.93%	+0.16%

Refinance rates tend to be slightly higher than purchase mortgage rates due to underwriting risk and fees. The 5-year ARM refinance rate saw a notable increase, reflecting possible changes in adjustable rate market demand.

Should You Refinance Your Mortgage in 2025?

Refinancing is not a one-size-fits-all solution. Consider your individual financial situation:

When to Refinance:

• Lower Interest Rates: Refinancing makes sense when current rates are at least 0.5% to 1% lower than your original mortgage. This gap helps offset closing costs and makes monthly payments more affordable.
• Shortening Loan Term: Refinancing to a shorter-term loan can save thousands in interest over the life of the mortgage, though monthly payments increase.
• Switching from ARM to Fixed: Homeowners concerned about future rate hikes may refinance from an adjustable-rate mortgage to a fixed-rate loan for payment stability.
• Cash-Out Refinancing: Accessing equity through refinancing can fund home improvements, college tuition, or debt consolidation but increases loan balance and monthly payments.

Important Considerations:

• Calculate the break-even point to determine how long it will take for the savings to cover refinancing costs.
• Evaluate the impact on your credit score, which may dip temporarily after refinancing.
• Assess your plans for staying in the home; refinancing is more beneficial if you plan to keep the property long term.

Meeting with a mortgage advisor for a personalized analysis is highly recommended.

Key Takeaways

• Mortgage rates across the board are trending slightly downward as of June 12, 2025, providing opportunities for buyers and refinancers.
• Rates vary considerably by loan type, with government-backed loans generally offering more favorable terms.
• Economic factors, Federal Reserve policy, and inflation continue to be primary drivers of mortgage rate fluctuations.
• Borrowers can secure better rates through strong credit, diligent lender shopping, and prudent financial planning.
• Expert forecasts suggest modest rate declines in the latter half of 2025 but expect some ongoing volatility.
• Refinancing remains a powerful tool if rates are favorable and long-term savings surpass refinancing costs.

Summary

As of mid-2025, mortgage rates demonstrate a modest easing, with the 30-year fixed rate averaging 6.91%. This environment offers a cautiously optimistic outlook for homebuyers and homeowners seeking to refinance. Understanding the numerous factors that influence rates, from Federal Reserve decisions to inflation data, empowers consumers to navigate the housing finance landscape more effectively.

Securing the best mortgage rate requires preparation, credit strength, and market insight, while the decision to refinance hinges on individual financial goals and current rate comparisons. Although uncertainty remains regarding the pace of future rate declines, staying informed and proactive will enable borrowers to capitalize on opportunities as the year progresses.

Looking for the best deal on a mortgage? As of today, June 11, 2025, the states with the lowest 30-year new purchase mortgage rates are New York, Colorado, California, Virginia, Connecticut, and New Jersey, closely followed by Florida and Texas. These states boast average rates ranging from 6.82% to 6.93%. Let's dive into why this is the case and what it means for you.

States With Lowest Mortgage Rates Today – June 11, 2025

Why Do Mortgage Rates Vary By State?

This isn't just some random occurrence – several factors contribute to these differences. As someone who's followed the mortgage market for years, I can tell you that it's rarely simple. Here's a breakdown of the key influences:

• Lender Presence: Not every bank or mortgage company operates in every state. The level of competition among lenders can significantly impact rates. If there are more lenders vying for your business, you're more likely to get a better deal.
• Credit Scores: Average credit scores vary state by state. States with higher average credit scores tend to see slightly better rates overall. It's all about perceived risk for the lender.
• Average Loan Size: The size of the average mortgage loan can also play a role. States with higher property values might see lenders adjusting rates accordingly.
• State Regulations: Each state has its own set of regulations governing the mortgage industry. These regulations can influence how lenders operate and, consequently, the rates they offer.
• Lender Risk Management: Ultimately, it boils down to how lenders manage risk. Some lenders might be more aggressive in certain markets, offering lower rates to attract more business.

The Cheapest Vs. The Most Expensive: A Tale of Two Economies

While some states are enjoying rates below 7%, others aren't so lucky. According to Investopedia's report, the states with the highest 30-year new purchase mortgage rates today are Alaska, West Virginia, Mississippi, Kansas, North Dakota, Arkansas, South Dakota, and Wyoming, averaging between 7.02% and 7.10%. That's a pretty significant difference, and it could impact your ability to afford a home in those states.

It's important to note that these are just averages. Your individual rate will depend on your unique financial situation.

National Mortgage Rate Trends: A Bird's Eye View

Let's take a step back and look at the bigger picture. According to Zillow, the national average for a 30-year new purchase mortgage currently sits at 6.96%. This is lower than the mid-May high of 7.15%, which is encouraging. Here's a quick summary of recent trends:

• Current Average (June 11, 2025): 6.96%
• Mid-May 2025 High: 7.15%
• March 2025 Low: 6.50%
• September (Two-Year) Low: 5.89%

As you can see, rates have been fluctuating quite a bit. It's a good reminder that the mortgage market is dynamic and influenced by many external forces. Staying informed is key!

A Quick Look at National Averages for Different Loan Types

Here's a table showing the current national averages for various loan types:

Loan Type	New Purchase Rate
30-Year Fixed	6.96%
FHA 30-Year Fixed	7.10%
15-Year Fixed	6.01%
Jumbo 30-Year Fixed	6.94%
5/6 ARM	7.15%

Understanding Teaser Rates

You've probably seen those incredibly low mortgage rates advertised online. Be careful! Those are often “teaser rates” designed to grab your attention. They might require you to:

• Pay points upfront (effectively pre-paying interest)
• Have an exceptionally high credit score
• Qualify for a smaller-than-typical loan

In reality, the rate you actually get will depend on your individual circumstances, including your credit score, income, debt-to-income ratio, and down payment. So, it's essential to compare real offers, not just be swayed by advertised rates.

How to Shop Around for the Best Mortgage Rate

• Check with local banks and credit unions: They sometimes have better deals than larger, national lenders.
• Obtain quotes from 3-5 different lenders: Don't settle for the first offer you get. Comparisons can save you money.
• Negotiate aggressively: Let lenders know that you are shopping around and are very willing to move on to the next competitive lender if they can't compete.
• Understand all the fees involved: Don't just focus on the interest rate. Look at the total cost of the mortgage, including origination fees, appraisal fees, and other closing costs.

Decoding the Mortgage Payment Puzzle

A mortgage payment is more than just principal and interest. It also includes:

• Principal: The amount you borrow
• Interest: The cost of borrowing the money
• Property Taxes: Taxes levied by your local government
• Homeowners Insurance: Covers damage to your home

Use a mortgage calculator to estimate your monthly payment based on different loan scenarios.

Mortgage Calculator Example

• Home Price: $440,000
• Down Payment: $88,000 (20%)
• Loan Term: 30 years
• APR: 6.67%

Estimated Monthly Payment: $2,649.04/month

Breakdown:

• Principal & Interest: $2,264.38
• Property Taxes: $256.67
• Homeowners Insurance: $128.00
• Mortgage Interest*: $463,176.16
• Total Mortgage Paid*: $815,176.16

The Forces Behind Mortgage Rate Fluctuations

Understanding what causes mortgage rates to rise or fall can help you make informed decisions about when to buy or refinance. Here are the main factors:

• The Bond Market: Mortgage rates tend to follow the movement of 10-year Treasury yields. Basically, if bond yields rise, mortgage rates often follow suit, and vice versa.
• The Federal Reserve (The Fed): The Federal Reserve's monetary policy plays a significant role. Actions like buying bonds or adjusting the federal funds rate can indirectly influence mortgage rates.
• Competition Among Lenders: When lenders are competing fiercely for business, they might lower rates to attract borrowers.
• Inflation: High inflation can push rates higher as lenders demand a greater return to offset potential losses in purchasing power.

The Bottom Line

Navigating the mortgage market can feel overwhelming, but knowledge is power. By understanding the factors that influence mortgage rates and shopping around for the best deal, you can increase your chances of securing an affordable home loan. Keep an eye on the states with the lowest mortgage rates and be prepared to act when the time is right.