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Today’s Mortgage Rates – June 9, 2025: Marginal Dip in Rates Across the Board

June 9, 2025 by Marco Santarelli

Today’s Mortgage Rates - June 9, 2025: Marginal Dip Rates Across the Board

As of June 9, 2025, national mortgage rates have shown slight movement, with the average 30-year fixed mortgage rate decreasing to 7.00%, down from 7.03% last week. Additionally, the 15-year fixed mortgage rate has seen a minor decline to 6.11% from 6.14%. This information is crucial for anyone considering buying a home or refinancing an existing mortgage, as understanding current rates can significantly impact monthly payments and overall home affordability.

Today’s Mortgage Rates – June 9, 2025: Marginal Dip in Rates Across the Board

Key Takeaways:

  • 30-Year Fixed Mortgage Rate: 7.00% (down 3 basis points)
  • 15-Year Fixed Mortgage Rate: 6.11% (down 3 basis points)
  • 5-Year ARM Mortgage Rate: 7.78% (down 2 basis points)
  • 30-Year Fixed Refinance Rate: 7.26% (remained stable)

With the current rates slightly lowering, it's an opportune time to explore your options.

Current Mortgage and Refinance Rates

To gauge how mortgage rates are currently positioned, we can look at several key categories: conforming loans, government loans, and jumbo loans. Below is the breakdown of the current rates by loan type.

Mortgage Rates Overview (as of June 9, 2025) 

Loan Type Rate 1W Change APR 1W Change
Conforming Loans
30-Year Fixed 7.00% up 0.01% 7.48% up 0.04%
20-Year Fixed 6.80% down 0.02% 7.29% up 0.05%
15-Year Fixed 6.11% up 0.05% 6.43% up 0.07%
10-Year Fixed 5.97% up 0.04% 6.05% down 0.12%
7-Year ARM 8.41% up 0.60% 8.75% up 0.52%
5-Year ARM 7.78% up 0.16% 8.12% up 0.12%
3-Year ARM — 0.00% — 0.00%
Government Loans
30-Year Fixed Rate FHA 7.09% up 0.18% 8.12% up 0.18%
30-Year Fixed Rate VA 6.47% up 0.02% 6.66% 0.00%
15-Year Fixed Rate FHA 6.17% up 0.48% 7.14% up 0.47%
15-Year Fixed Rate VA 5.99% up 0.02% 6.30% down 0.03%
Jumbo Loans
30-Year Fixed Rate Jumbo 8.07% up 0.65% 8.55% up 0.74%
15-Year Fixed Rate Jumbo 8.05% up 1.28% 8.40% up 1.39%
7-Year ARM Jumbo 7.53% 0.00% 8.06% 0.00%
5-Year ARM Jumbo 7.51% down 0.16% 8.01% down 0.04%
3-Year ARM Jumbo — 0.00% — 0.00%

(Data source: Zillow)

The mortgage rates are essential to understanding how the market is evolving. Borrowers can see the differences based on loan type, which is vital when deciding between fixed and adjustable-rate mortgages as well as considering whether they meet standards set for government-backed loans.

Understanding Mortgage Types

When you explore your mortgage options, understanding different types of loans is critical. Each mortgage type has its own advantages and disadvantages, depending on your financial situation and how long you plan on staying in a home.

Fixed-Rate Mortgages: These loans are straightforward. The interest rate remains constant throughout the life of the loan, making budgeting easier. They are ideal for people who plan to stay in their homes long-term. With rates slightly lower now, first-time buyers might find a favorable opportunity to lock in a better rate. A fixed-rate mortgage is akin to having a stable monthly expense, making financial planning much easier.

For example, with a 30-year fixed mortgage at 7%, if you borrow $300,000, your monthly payment (excluding taxes and insurance) would be approximately $1,996. Over the life of the loan, you'd pay around $419,547 in interest alone. While this indicates a larger total cost, knowing that your payment will not fluctuate is beneficial for long-term planning.

Adjustable-Rate Mortgages (ARMs): These loans offer a lower initial interest rate for a fixed period (like the first 5 or 7 years) after which the rate adjusts based on the market. For example, the 5-year ARM is currently priced at 7.78%, appealing to those who may plan to sell before the adjustment occurs. However, the risk lies in the rate changes that can lead to higher payments later on.

Calculating Payments with ARMs

Suppose you opt for a 7-year ARM at 8.41% after which the rate may adjust annually. If you initially borrow the same amount of $300,000, your first monthly payment would be approximately $2,405. After five years, if interest rates rise to 10%, your payment could potentially increase to around $3,221.

Choosing an ARM involves weighing the potential benefits of lower initial payments against the risk of rate increases. If you plan to sell or refinance within the initial fixed-rate period, an ARM can save you significant money upfront.

Refinancing Options

Current refinance rates are another critical component of the mortgage market. As of June 9, 2025, the average 30-year fixed refinance rate is 7.26%. This rate has stayed stable but is slightly up from 7.22% the previous week. Refinancing allows homeowners to replace their existing mortgage with a new loan, often to secure a lower interest rate or change the loan terms.

Refinance Rates Overview (as of June 9, 2025)

Refinance Loan Type Rate 1W Change APR 1W Change
Conforming Loans
30-Year Fixed Refinance 7.26% 0.00% 7.74% up 0.03%
20-Year Fixed Refinance 6.80% down 0.02% 7.29% up 0.05%
15-Year Fixed Refinance 6.10% down 0.05% 6.43% up 0.07%
10-Year Fixed Refinance 5.97% up 0.04% 6.05% down 0.12%
5-Year ARM Refinance 8.07% 0.00% 8.12% 0.00%
3-Year ARM Refinance — 0.00% — 0.00%
Government Loans
30-Year Fixed Rate FHA Refinance 6.38% down 0.32% 7.39% down 0.33%
30-Year Fixed Rate VA Refinance 6.74% up 0.16% 6.96% up 0.18%
15-Year Fixed Rate FHA Refinance 6.21% up 0.45% 7.18% up 0.44%
15-Year Fixed Rate VA Refinance 6.14% up 0.15% 6.50% up 0.20%
Jumbo Loans
30-Year Fixed Rate Jumbo Refinance 7.25% down 0.61% 7.88% down 0.41%
15-Year Fixed Rate Jumbo Refinance 6.57% 0.00% 7.01% 0.00%

(Data source: Zillow)

Refinancing options remain appealing to many homeowners, especially if they can lower their rates significantly. With current rates being relatively stable, the opportunity to refinance and save on interest can be a solid financial strategy. However, homeowners must weigh the closing costs of refinancing against potential savings to ensure that it is worthwhile.

Reasons to Refinance

Homeowners might consider refinancing for various reasons, including:

  • Lowering Monthly Payments: Securing a lower interest rate can lead to substantial savings on monthly payments.
  • Shortening Loan Terms: Switching from a 30-year loan to a 15-year loan can save on interest over the life of the loan.
  • Changing Loan Type: Switching from an adjustable-rate mortgage to a fixed-rate mortgage can provide peace of mind.
  • Cash-Out Refinancing: This option allows homeowners to tap into their home equity for expenses like home improvements or debt consolidation.

Read More:

Mortgage Rates Trends as of June 8, 2025

Will Mortgage Rates Go Down in June 2025: Expert Forecast

Mortgage Rate Forecast 2025: When Will Rates Go Below 6%?

Market Reactions and Predictions

Looking ahead, mortgage rate predictions indicate a potential for gradual declines. According to the National Association of REALTORS® and Fannie Mae, mortgage rates could average around 6.4% through the end of 2025. This is a slight decrease compared to previous predictions, suggesting that as we advance into the latter half of the year, homebuyers and owners may face more favorable borrowing conditions.

This prediction of declining rates may lead to a more active housing market. As rates stabilize, more buyers might enter the market, looking to capitalize on favorable terms. High demand can lead to increased home prices; however, buyers might also feel pressured to purchase before potential future increases.

However, Freddie Mac notes that while rates are expected to decline, they may remain higher for prolonged periods, significantly affecting home sales. As potential buyers adjust their expectations, we might see an active market as individuals no longer wait for better rates to proceed with their purchasing decisions.

Influence of Economic Conditions on Mortgage Rates

Mortgage rates are influenced by various factors, including inflation, employment rates, and Federal Reserve policies. As economic conditions fluctuate, so do mortgage rates, making it essential for prospective buyers and homeowners to stay informed.

For instance, if inflation rates continue to rise, we might expect the Federal Reserve to increase interest rates in response. This could push mortgage rates higher, impacting affordability for future home buyers. Conversely, if inflation trends downward, rates might stabilize or decline, creating opportunities for more advantageous borrowing conditions.

Final Thoughts on Today's Mortgage Rates

Current mortgage and refinance rates show minor fluctuations, with some categories slightly improving and others remaining stable. For prospective buyers and homeowners considering refinancing, it’s crucial to monitor the trends closely. The slight drop in mortgage rates might just be what buyers need to make informed decisions in their journey toward homeownership.

Prices vary across loan types with specific factors affecting each category. Whether it’s fixed or adjustable-rate mortgages or the decision to refinance, understanding these nuances can empower borrowers to choose the best mortgage plan for their unique financial situations and future goals.

In conclusion, as the housing market experiences continuous shifts, prospective buyers, current homeowners, and investors must stay up-to-date on mortgage trends. With diligent research and an understanding of personal financial goals, navigating the landscape of mortgage rates can lead to informed and beneficial choices.

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.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

Dave Ramsey Predicts Mortgage Rates Will Go Down Soon in 2025

June 8, 2025 by Marco Santarelli

Dave Ramsey Predicts Mortgage Rates Will Probably Drop Soon in 2025

If you're anything like me, the thought of buying a home or even just keeping up with mortgage payments in today's economy can feel a little overwhelming. That's why when someone like Dave Ramsey, a guy who's built a career on giving straightforward financial advice, talks about the housing market, people tend to listen.

And recently, he's made a pretty significant prediction: major mortgage rate changes are likely on the horizon soon. In fact, Ramsey believes these changes, specifically a drop in rates, could be the key to unlocking a more active housing market. So, what exactly did he say, and more importantly, what does it mean for those of us dreaming of owning a home or looking to make our current mortgage more manageable? Let's dive in.

Dave Ramsey Predicts Mortgage Rates Will Drop Soon in 2025

Who is Dave Ramsey and Why Should We Care?

For those who might not be as familiar, Dave Ramsey is a personal finance guru. He's the author of several best-selling books, most notably The Total Money Makeover, and hosts the nationally syndicated The Ramsey Show. What I appreciate about Ramsey is his down-to-earth approach to money. He doesn't speak in complicated financial jargon; he tells it like it is.

Having navigated his own financial ups and downs, including a bankruptcy early in his career, he speaks from experience. He's built a massive following by offering practical, no-nonsense advice on getting out of debt, saving, and building wealth. When he talks about mortgages, people pay attention, especially because he often advocates for more conservative approaches like the 15-year fixed-rate mortgage.

Ramsey's Forecast: Lower Mortgage Rates Ahead

In a recent interview with TheStreet, Ramsey shared his prediction that mortgage rates will “probably fall.” This isn't just a casual hunch; he believes this potential decrease could be the spark that the current housing market needs to see a significant uptick in activity. While he didn't throw out specific numbers, he suggested that even a one to two percentage point drop could lead to what he called a “home buying frenzy” due to the pent-up demand that's been building up.

This prediction comes at a crucial time. We've seen mortgage rates climb quite a bit, which has understandably made many potential homebuyers hesitant. Ramsey's optimistic outlook is interesting because, while some experts are cautiously optimistic, others anticipate rates staying relatively high for a while longer. His focus on a potential near-term drop suggests he sees factors at play that could lead to improved affordability for buyers.

The Current Mortgage Rate Landscape (May 2025)

To put Ramsey's prediction into context, let's take a look at where mortgage rates stand right now, in May 2025.

  • The average rate for a 30-year fixed mortgage is hovering around 6.8%. Sources like Freddie Mac reported it at 6.76% for the week ending May 8th, 2025, while Bankrate showed a slightly higher 6.91% for the same type of refinance.
  • If you're considering a shorter term, the 15-year fixed-rate mortgage is averaging between 5.89% and 5.92%. This lower rate comes with higher monthly payments but saves you significantly on interest over the life of the loan, something Ramsey often emphasizes.
  • For those looking to refinance a 30-year fixed mortgage, the average is around 6.91%, according to Bankrate.
  • Even jumbo mortgages, for higher-priced homes, are sitting at about 6.80%.

It's worth remembering that these rates are down a bit from their peak of 7.79% in October 2023, but they're still considerably higher than the sub-3% rates we saw just a few years ago. This jump is a big reason why many people are feeling the pinch when it comes to buying or refinancing a home.

What Drives Mortgage Rates? A Look Under the Hood

Understanding why mortgage rates fluctuate is key to making sense of any predictions. Several factors play a significant role:

  • Inflation: When the cost of goods and services rises (inflation), lenders often demand higher interest rates to ensure their returns don't lose purchasing power over time. Recent reports have highlighted that persistent inflation is a major reason why rates have remained elevated.
  • Federal Reserve Policies: The Federal Reserve (the Fed) sets the federal funds rate, which is the rate banks charge each other for overnight borrowing. While this doesn't directly set mortgage rates, it significantly influences them. Even though the Fed cut rates a few times in 2024, mortgage rates haven't mirrored that decrease completely, indicating other market forces are at play.
  • Economic Growth: A strong economy usually means more demand for credit, which can push interest rates higher. Conversely, if the economy slows down, rates might decrease to encourage borrowing and spending.
  • Bond Market Yields: Mortgage rates tend to closely follow the yield on the 10-year Treasury note. This yield reflects investors' confidence in the economy and their expectations for future inflation.
  • Global and Geopolitical Events: Things happening around the world, like trade disputes, fears of recession, and instability in financial markets, can also impact mortgage rates by affecting bond yields. For instance, recent tariff announcements have been cited as a factor influencing bond markets.

Because these factors are constantly shifting and interacting, predicting future mortgage rates with absolute certainty is incredibly difficult. Ramsey's prediction likely takes these dynamics into account, but ultimately reflects his belief that the scales will tip towards lower rates in the near future.

What Other Experts Are Saying

It's always a good idea to see how Ramsey's prediction aligns with what other experts in the field are saying. Here's a snapshot of some forecasts:

  • The National Association of Home Builders (NAHB) projects the average 30-year fixed-rate mortgage to be around 6.62% by the end of 2025 and slightly above 6% by the end of 2026.
  • Analysts at U.S. News anticipate rates to stay in the mid-6% range throughout 2025 and 2026, citing ongoing economic uncertainty and a cautious approach from the Federal Reserve.
  • Both Freddie Mac and the Mortgage Bankers Association (MBA) are also forecasting a gradual decline, with rates stabilizing around 6.5% by late 2025.

While these projections generally point towards a downward trend, they seem a bit more measured in their optimism compared to Ramsey's suggestion of a potential “frenzy.” Most experts agree that a return to the very low rates of the early 2020s is unlikely, a point Ramsey himself has acknowledged.

Read More:

Mortgage Rates Forecast: May 8-14, 2025 – What Experts Predict

Will Mortgage Rates Finally Go Down in May 2025?

Future of Mortgage Rates Post-Fed Decision: Will Rates Drop?

Fed's Decision Signals Mortgage Rates Won't Go Down Significantly

Mortgage Rate Forecast 2025: When Will Rates Go Below 6%?

Potential Ripple Effects: How Lower Rates Could Impact You and the Housing Market

If Ramsey's prediction, or even the more conservative expert forecasts, come to pass, we could see some significant effects on both homebuyers and the broader housing market:

  • Lower Monthly Payments: Even a small drop in interest rates can make a big difference in your monthly mortgage payment. For example, if the rate on a $300,000 30-year fixed mortgage drops from 6.8% to 6%, the monthly payment could decrease by around $157. Over the life of the loan, that adds up to significant savings – over $56,000 in interest! This increased affordability could bring more people into the market.
  • Increased Buying Power: Lower rates mean you can afford to borrow more money for the same monthly payment. This could open up options for buyers to consider larger homes or homes in more desirable locations.
  • Refinancing Opportunities: For current homeowners with mortgages at higher interest rates, a drop could present an opportunity to refinance and secure a lower rate. This could reduce their monthly payments or allow them to shorten their loan term, saving them money on interest in the long run.
  • Market Dynamics: As more buyers enter the market due to improved affordability, we could see increased competition for available homes. Ramsey believes that this strong demand will likely keep home prices stable or even push them higher.

However, it's important to remember that the housing market faces other challenges. Limited inventory and home prices that have risen faster than wages are still significant hurdles. The fact that only 33% of 27-year-olds own homes today, compared to 40% of baby boomers at the same age, underscores the affordability issues many face. While lower rates would be a welcome development, they need to be considered alongside these existing market realities.

Ramsey's Advice for Navigating the Current Market

Regardless of when and how much mortgage rates might change, Dave Ramsey's advice for homebuyers remains consistent: don't try to time the market. He emphasizes that trying to predict the absolute lowest point for rates is a risky game. Instead, he advises purchasing a home when you are truly financially ready.

For Ramsey, being financially ready means:

  • Being debt-free (excluding the mortgage itself).
  • Having a 3–6 month emergency fund in place.
  • Opting for a 15-year fixed-rate mortgage where the monthly payment, including taxes and insurance, doesn't exceed 25% of your take-home pay.

He is a strong advocate for the 15-year mortgage over the traditional 30-year term, highlighting the massive amount of interest you can save over the shorter loan period. For those considering refinancing, his advice is to carefully evaluate whether the lower interest rate and potentially shorter term justify the associated closing costs.

Final Thoughts: Staying Informed in a Changing Landscape

Dave Ramsey's prediction of upcoming mortgage rate changes offers a beacon of hope for a housing market that has felt out of reach for many. While the exact timing and extent of these changes remain to be seen, his forecast aligns with a general expectation among experts for a gradual decline in rates. For those of us navigating the complexities of buying a home or managing a mortgage, staying informed about these trends and understanding the underlying economic factors is crucial. Ultimately, Ramsey's core advice – to be financially prepared and make wise, long-term decisions – remains timeless, no matter where mortgage rates go.

Invest Smarter in a High-Rate Environment

With mortgage rates remaining elevated so far this year, it's more important than ever to focus on cash-flowing investment properties in strong rental markets.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

Should You Refinance Your Mortgage Now in June 2025?

June 8, 2025 by Marco Santarelli

Should You Refinance Your Mortgage Now in June 2025 or Wait?

Thinking about your mortgage can feel like trying to predict the weather – a little bit science, a little bit guesswork. If you're like me, you're always looking for ways to save money and make your financial life a bit easier. That's why the question of whether to refinance your mortgage in June 2025 or wait is such a big one for many homeowners.

And here's the short answer right up front: for many homeowners with significantly higher interest rates right now, refinancing in June 2025 could be a smart move, offering immediate savings and potentially more financial flexibility. However, it’s not a decision to jump into without careful thought. Let's dig deeper into what's going on with mortgage rates, what the experts are saying, and how to figure out what's best for you.

Should You Refinance Your Mortgage in June 2025?

Understanding Where Mortgage Rates Stand in June 2025

As we look at the mortgage market in early June 2025, the numbers tell an interesting story. According to sources like Freddie Mac, the average interest rate for a 30-year fixed-rate mortgage is hovering around 6.85% to 6.97%. Other financial news outlets, such as Bankrate and Investopedia, are reporting similar figures.

To put this into perspective, we've seen quite a bit of movement in mortgage rates recently. Remember back in late 2023 when rates peaked above 8%? The current rates are definitely better than that. And while they aren't the rock-bottom rates we saw in late 2024 (around 5.89%), they still present a potential opportunity for savings for many.

Here’s a quick look at some of the average rates you might be seeing:

  • 30-Year Fixed: 6.85% – 6.97%
  • 15-Year Fixed: 5.90% – 6.16%
  • 5/1 ARM: Around 6.17%

My take: If you're currently locked into a mortgage rate that's significantly higher than these averages – say, north of 7% – then the potential for a lower monthly payment and significant long-term interest savings by refinancing now is definitely worth exploring.

What the Future Might Hold: Mortgage Rate Predictions for the Rest of 2025

Trying to predict the future is always tricky, especially when it comes to something as influenced by so many factors as mortgage rates. We’re talking about inflation, the Federal Reserve's decisions on interest rates, the overall health of the economy, and even global events.

However, some experts are willing to put their predictions out there. For instance:

  • Fannie Mae is projecting that 30-year fixed rates could end 2025 around 6.1%.
  • The National Association of Realtors anticipates an average of 6.4% for 2025, with a further dip to 6.1% by 2026.
  • Realtor.com is also forecasting an average of 6.3% in 2025, with a slight decrease to 6.2% by the end of the year.

On the other hand, some analysts at places like HousingWire caution that if inflation remains stubborn or if new economic policies drive up costs, we could even see rates stay elevated or potentially climb back above 7%.

Important Factors Influencing These Predictions:

  • Inflation: If prices keep rising, the Federal Reserve might be hesitant to lower interest rates, which could keep mortgage rates higher.
  • Federal Reserve Policy: The Fed's decision in May 2025 to keep the federal funds rate steady suggests a cautious approach. Any future rate cuts (some anticipate them in July or later, according to Forbes Advisor) could lead to lower mortgage rates.
  • Economic Growth: A strong economy can sometimes put upward pressure on interest rates, while a slowing economy might lead to lower rates as a way to stimulate borrowing.

My perspective: While the forecasts generally lean towards slightly lower rates in the second half of 2025, there's no guarantee. Waiting for a potential dip comes with the risk that rates might not fall as much as predicted, or they could even go up. It's a bit of a gamble.

Key Questions to Ask Yourself Before Refinancing

Deciding whether to refinance now or wait isn't just about looking at the current and predicted rates. It's deeply personal and depends on your unique financial situation and goals. Here are some crucial questions I always advise people to consider:

  1. How Does My Current Mortgage Rate Compare?This is the most obvious starting point. If your existing interest rate is significantly higher than the current average (say, a full percentage point or more), the potential for savings is substantial.
    • Example: Let's say you have a $300,000 mortgage with a 7% interest rate (30-year term). Your monthly payment is roughly $1,995.80. Refinancing to a 6.85% rate would bring that down to around $1,965.75, saving you about $30 per month. If you could snag a 6.5% rate, your payment would be closer to $1,929.68, saving you over $66 each month.

    My advice: Don't underestimate even a seemingly small rate reduction. Over the life of a 30-year loan, even a quarter of a percent can add up to significant savings.

  2. What Will the Closing Costs Be, and What's My Break-Even Point?Refinancing isn't free. You'll encounter closing costs, which can typically range from 2% to 6% of your total loan amount, according to The Mortgage Reports. For a $300,000 loan, that could be anywhere from $6,000 to $18,000. These costs cover things like:
    • Appraisal fees
    • Title insurance
    • Lender origination fees

    To figure out if refinancing makes financial sense for you, you need to calculate your break-even point. This is the amount of time it will take for your monthly savings to offset the upfront closing costs.

    • Formula: Total Closing Costs ÷ Monthly Savings = Break-Even Point (in months)
    • Scenario 1 Revisited: If your closing costs are $9,000 and you save $30.05 per month (going from 7% to 6.85%), your break-even point is about 300 months, or 25 years. For most people, that's too long to wait to recoup the costs.
    • Scenario 2 Revisited: If your closing costs are $6,000 and you save $66.12 per month (going from 7% to 6.5%), your break-even point is roughly 91 months, or about 7.6 years. If you plan to stay in your home longer than that, refinancing could be a good move.

    My experience: I always tell people to get a detailed breakdown of all closing costs upfront and to do this calculation honestly based on how long they realistically plan to stay in the home.

  3. How Long Do I Plan to Stay in My Home?As the break-even analysis shows, your timeline is crucial. If you're planning to move in a year or two, the upfront costs of refinancing might outweigh any potential savings from a lower interest rate. Refinancing is generally most beneficial for homeowners who plan to stay in their homes for several years past the break-even point.
  4. What's My Credit Score and How Much Home Equity Do I Have?
    • Credit Score: A higher credit score typically means you'll qualify for better interest rates. Lenders generally reserve their best offers for borrowers with scores above 740.
    • Home Equity: Having at least 20% equity in your home is usually needed to avoid paying private mortgage insurance (PMI) if you have a conventional loan. If you're currently paying PMI, refinancing could be an opportunity to eliminate it if your home's value has increased or you've paid down enough of your mortgage, according to Freddie Mac. This can add significantly to your monthly savings.
  5. Are There Other Financial Goals I Could Achieve Through Refinancing?Sometimes, refinancing isn't just about getting a lower interest rate. It can be a tool to achieve other financial goals:
    • Switching from an ARM to a Fixed-Rate Mortgage: If you have an adjustable-rate mortgage (ARM), refinancing to a fixed-rate loan can provide more predictable monthly payments and protect you from potential interest rate increases down the road.
    • Debt Consolidation (Cash-Out Refinance): You could potentially refinance for a larger loan amount than what you currently owe and use the extra cash to pay off high-interest debt, like credit cards or personal loans. However, this increases your mortgage balance and the total interest you'll pay over the life of the loan, so weigh this carefully.
    • Shortening Your Loan Term: Refinancing from a 30-year mortgage to a 15-year mortgage means you'll pay off your loan faster and pay less interest overall. However, your monthly payments will be higher.
  6. How Stable Are My Personal Finances?Refinancing requires going through the mortgage application process again. Lenders will want to see that you have a stable income, manageable debt, and a good credit history. Make sure your financial house is in order before you apply.

When Refinancing in June 2025 Might Be a Good Idea for You

Based on the current situation and the factors we've discussed, refinancing your mortgage in June 2025 could be a smart move if:

  • Your current interest rate is noticeably higher than the current average of around 6.85%–6.97%.
  • You plan to stay in your home long enough to recoup the closing costs through your monthly savings.
  • You have sufficient home equity to eliminate PMI or achieve other financial goals like switching to a fixed-rate loan.

When Waiting Might Be the More Prudent Choice

On the other hand, waiting might be a better strategy if:

  • Your current mortgage rate is already close to or even below the current market rates. The savings might be minimal and not worth the cost of refinancing.
  • You genuinely believe and are comfortable with the risk that mortgage rates will drop significantly in the latter half of 2025. However, remember that this is not guaranteed.
  • You are planning to sell your home in the near future. You might not stay long enough to break even on the refinancing costs.

Other Important Things to Keep in Mind

  • Tax Deductibility of Mortgage Interest: Remember that mortgage interest might be tax-deductible if you itemize deductions, but this depends on your individual tax situation. It's always a good idea to consult with a tax professional to understand any potential benefits, as NerdWallet points out.
  • “No-Cost” Refinancing: Be cautious of offers for “no-cost” refinancing. Often, the closing costs are simply rolled into a higher interest rate, which can actually cost you more in the long run. Always scrutinize the terms and compare them to offers with transparent fees. The Mortgage Reports has good resources on this.
  • Market Volatility: Keep in mind that economic conditions can change quickly. Unexpected events could cause mortgage rates to fluctuate unpredictably, making the optimal timing for refinancing a moving target.

Making the Decision That's Right for You

Ultimately, the decision of whether to refinance your mortgage in June 2025 or wait is a personal one. There's no one-size-fits-all answer. I encourage you to:

  • Use an online mortgage calculator (there are many free ones available) to estimate potential monthly payments and savings based on current rates.
  • Get personalized quotes from several different lenders to understand the closing costs involved and the interest rates you qualify for based on your credit score and financial situation.
  • Carefully calculate your break-even point.
  • Think honestly about your long-term financial goals and how refinancing might help you achieve them.
  • Don't hesitate to consult with a trusted mortgage professional who can provide personalized advice based on your specific circumstances.

By taking the time to do your research and carefully consider your options, you can make an informed decision that will put you in the best financial position moving forward.

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Recommended Read:

  • Should I Refinance My Mortgage Now or Wait Until 2026?
  • When You Refinance a Mortgage Do the 30 Years Start Over?
  • Should You Refinance as Mortgage Rates Reach Lowest Level in Over a Year?
  • NAR Predicts 6% Mortgage Rates in 2025 Will Boost Housing Market
  • Mortgage Rates Predictions for 2025: Expert Forecast
  • Half of Recent Home Buyers Got Mortgage Rates Below 5%
  • Mortgage Rates Need to Drop by 2% Before Buying Spree Begins
  • Will Mortgage Rates Ever Be 3% Again: Future Outlook
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions for 2025: Expert Forecast

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, mortgage rates, Mortgage Rates Predictions

Today’s Mortgage Rates – June 8, 2025: Slight Drop But Rates Are Still High for Borrowers

June 8, 2025 by Marco Santarelli

Today’s Mortgage Rates - June 8, 2025: Slight Drop But Rates Are Still High for Borrowers

As of today, June 8, 2025, mortgage rates for various home loan types show varying trends. The national average for a 30-year fixed mortgage rate slightly declined to 7.03%, marking a decrease from the previous week. The refinance rates have softened overall but still remain higher than many borrowers would prefer. Let’s take a deeper dive into the current mortgage and refinance rates, as well as the broader economic context that influences these figures.

Today’s Mortgage Rates – June 8, 2025: Slight Drop But Rates Are Still High for Borrowers

Key Takeaways

  • 30-Year Fixed Mortgage Rates: 7.03%, down from 7.04% last week.
  • 15-Year Fixed Mortgage Rates: 6.14%, a slight decrease from 6.16%.
  • 5-Year ARM Rates: Dropped to 7.74%, down from 7.83%.
  • Average Refinance Rate for 30-Year Fixed: Currently 7.25%, down from 7.28%.

Current Mortgage Rates Overview

Changing mortgage rates can have significant implications for homebuyers and the housing market as a whole. According to Zillow, here are the current rates for the most common loan types:

Loan Type Current Rate 1 Week Change APR 1 Week Change
30-Year Fixed Rate 7.03% +0.02% 7.49% +0.02%
20-Year Fixed Rate 6.92% -0.06% 7.32% -0.07%
15-Year Fixed Rate 6.14% +0.07% 6.45% +0.08%
10-Year Fixed Rate 5.97% -0.10% 6.05% -0.42%
7-Year ARM 8.41% +0.86% 8.75% +0.83%
5-Year ARM 7.74% +0.19% 8.05% +0.09%

National mortgage rates updated on June 8, 2025, sourced from Zillow.

This data reflects the trends over the last week, with the most significant changes being a slight drop in some fixed-rate options and an increase in others like the 7-year ARM. For many homebuyers, understanding these nuances can make a substantial difference in their long-term financial commitments.

Government and Jumbo Loan Rates

For those looking into government-backed loans and jumbo loans, the rates are recalibrated, as shown below:

Government Loan Rates

Loan Type Current Rate 1 Week Change APR 1 Week Change
30-Year Fixed Rate FHA 7.20% +0.32% 8.23% +0.32%
30-Year Fixed Rate VA 6.56% +0.08% 6.78% +0.09%
15-Year Fixed Rate FHA 5.97% +0.40% 6.94% +0.37%
15-Year Fixed Rate VA 6.08% +0.06% 6.44% +0.07%

Jumbo Loan Rates

Loan Type Current Rate 1 Week Change APR 1 Week Change
30-Year Fixed Rate Jumbo 7.61% +0.08% 8.00% +0.06%
15-Year Fixed Rate Jumbo 7.35% +0.81% 7.61% +0.80%
7-Year ARM Jumbo 7.53% -0.17% 8.06% +0.07%
5-Year ARM Jumbo 7.41% -0.84% 7.92% -0.49%

Sourced from Zillow.

The State of Refinance Rates

For homeowners looking to refinance, understanding the current rates is crucial. Here’s the current status of refinance rates as of June 8, 2025:

Loan Type Current Rate 1 Week Change APR 1 Week Change
30-Year Fixed Refinance 7.25% -0.03% 7.49% +0.02%
20-Year Fixed Refinance 6.92% -0.06% 7.32% -0.07%
15-Year Fixed Refinance 6.20% 0.00% 6.44% +0.08%
10-Year Fixed Refinance 5.97% -0.10% 6.05% -0.42%
5-Year ARM Refinance 8.06% +0.05% 8.05% +0.09%

Refinancing remains an attractive option for many homeowners looking to save money or consolidate debt. However, potential refinancers must weigh the benefits of lower rates against closing costs and any potential changes in loan terms.

Understanding Mortgage Rates

To determine the best mortgage for your situation, it’s essential to differentiate between fixed-rate and adjustable-rate mortgages (ARMs).

Fixed-Rate Mortgages

Fixed-rate mortgages offer stability and predictability in payments over the life of the loan. The most popular option is the 30-year fixed-rate mortgage. With this type of loan, borrowers benefit from knowing that their interest rate and monthly payments will remain consistent throughout the life of the loan. This predictability can be advantageous, especially in a rising interest rate environment.

Adjustable-Rate Mortgages (ARMs)

In contrast, adjustable-rate mortgages (ARMs) start with a lower rate but can fluctuate based on market conditions. For instance, a 5-year ARM offers lower initial payments for the first five years, after which the rate can adjust annually. This can be a good option for borrowers who anticipate moving or refinancing within a short time frame. However, the risk lies in potentially higher payments if rates increase substantially after the initial period.

In choosing between a fixed-rate mortgage and an ARM, borrowers should consider their future plans and risk tolerance. If stability is a priority, fixing rates might be the way to go. Conversely, those willing to accept some risk might benefit from lower introductory rates associated with ARMs.

Factors Influencing Current Mortgage and Refinance Rates

Several factors can influence mortgage rates, including:

  1. Economic Conditions: General economic health plays a huge role. For example, higher inflation can lead to increased interest rates as lenders seek to maintain profit margins. The labor market's strength, consumer spending, and growth forecasts are all indicators that can affect rates.
  2. Federal Reserve Policy: Actions taken by the Federal Reserve, such as adjusting the federal funds rate or purchasing government-backed securities, can impact mortgage rates. Recently, the Fed’s focus has been on combating inflation, which might lead to higher long-term borrowing costs.
  3. Market Competition: The mortgage market is competitive, and lenders regularly adjust their rates. Keeping an eye on current trends can lead to finding attractive offerings. Utilizing online mortgage comparison tools can also provide an overview of the best rates available in the market.
  4. Personal Financial Factors: A borrower’s credit score, debt-to-income ratio, and even employment stability can greatly influence the mortgage rates they are offered. Higher credit scores typically qualify for lower rates, while higher debt-to-income ratios may result in higher rates or even denied applications.
  5. Housing Market Dynamics: Supply and demand in the housing market itself can affect mortgage rates as well. A hot housing market may lead to increased loan demand, thus driving rates higher. In contrast, a buyer’s market might lead to lower rates as lenders compete for business.

Read More:

Mortgage Rates Trends as of June 7, 2025

Will Mortgage Rates Go Down in June 2025: Expert Forecast

Mortgage Rate Forecast 2025: When Will Rates Go Below 6%?

What Lies Ahead for Mortgage Rates in 2025?

Forecasting mortgage rates can be tricky, but there are insights based on recent data. According to the Mortgage Bankers Association, rates are expected to hover around 6.6% by the end of 2025, signaling relative stability in the market after fluctuations experienced over the past few years. Economic growth, coupled with changing demographic preferences and homebuyer behavior, suggests that even with a few expected drops, rates will remain relatively high compared to historical lows seen in the past decade.

Forecasting Highlights:

  • National Association of REALTORS® predicts a +6% increase in existing home sales for 2025, indicating a rebound in buyer interest.
  • Fannie Mae revised its forecast for mortgage rates, projecting them to end at 6.1% in 2025, slightly dropping from earlier estimates.

With anticipated steady growth in the housing market, first-time buyers and refinance seekers may find favorable conditions, but they should remain aware of potential market headwinds.

The Psychological Aspect of Borrowing

It’s also essential to consider the psychological factors at play when borrowing. Homeownership is often regarded as a vital part of the American Dream. As such, interest rates and market trends can heavily influence consumer sentiment and behavior. If rates are perceived to be on the rise, potential homebuyers may rush to secure loans, further driving demand and potentially pushing prices higher. Conversely, if rates are stable or declining, it often leads to increased confidence among buyers, stimulating more activity in the market.

Closing Remarks

If you’re planning to buy or refinance, today’s mortgage rates showcase both some opportunities and challenges. It’s important to compare rates and products and keep abreast of foreseen changes in the market. Every percentage can make a difference when considering long-term payments. Therefore, staying informed and proactive can be beneficial in maximizing your financial outcomes.

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.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

Mortgage Rates Rise Back to 7% Once Again in June 2025

June 7, 2025 by Marco Santarelli

Mortgage Rates Rise Back to 7% Once Again in June 2025

Well, here we are again. As of June 7, 2025, the national average for a 30-year fixed mortgage rate has climbed to 7.04%. This news likely brings a wave of concern for anyone looking to buy a home or refinance their existing mortgage. I know I felt a jolt when I saw the latest figures from Zillow.

It feels like just yesterday we were talking about rates hovering a bit lower, and now, here we are with that familiar 7% mark looming large. So, what exactly is going on, and more importantly, what does this mean for you and the housing market? Let's dive in and really break this down.

Mortgage Rates Rise Back to 7% Once Again in June 2025

Understanding the Current Spike

According to the data from Zillow, this latest increase is a continuation of a trend we've been watching. The national average for the 30-year fixed mortgage edged up by 2 basis points from 7.02% the previous day, and it's up 3 basis points from the 7.01% average just a week prior. It's not just the 30-year fixed either. The 15-year fixed rate has also seen an increase, jumping to 6.15%, up from 6.12%. Interestingly, the 5-year ARM saw a slight dip to 7.78%.

The report also points to a key driver behind this upward pressure: the bond market. A robust jobs report on Friday gave a boost to the stock market, but it also caused bond market yields to rise. Specifically, the 10-year Treasury yield, which is often a good indicator of where mortgage rates are heading, saw a significant increase of over 2.5% on Friday alone. As I've learned over the years, when these Treasury yields go up, mortgage rates often follow suit. It looks like that trend is holding true this week.

Breaking Down the Different Loan Types

It's important to remember that not all mortgage rates are created equal. Here's a closer look at how different loan types are currently trending, based on the latest data:

Conforming Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 7.04% up 0.03% 7.52% up 0.05%
20-Year Fixed Rate 6.83% down 0.14% 7.35% down 0.04%
15-Year Fixed Rate 6.15% up 0.09% 6.47% up 0.11%
10-Year Fixed Rate 5.97% down 0.10% 6.05% down 0.42%
7-year ARM 7.56% up 0.01% 8.07% up 0.15%
5-year ARM 7.78% up 0.24% 8.08% up 0.12%
3-year ARM — 0.00% — 0.00%

Government Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 7.75% up 0.88% 8.80% up 0.89%
30-Year Fixed Rate VA 6.56% up 0.09% 6.76% up 0.07%
15-Year Fixed Rate FHA 5.99% up 0.42% 6.96% up 0.40%
15-Year Fixed Rate VA 6.16% up 0.14% 6.47% up 0.10%

Jumbo Loans:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate Jumbo 7.53% 0.00% 7.81% down 0.14%
15-Year Fixed Rate Jumbo 7.25% up 0.71% 7.38% up 0.57%
7-year ARM Jumbo 7.53% down 0.17% 8.06% up 0.07%
5-year ARM Jumbo 7.93% down 0.32% 8.16% down 0.25%
3-year ARM Jumbo — 0.00% — 0.00%

As you can see, the increases aren't uniform across all loan types. Notably, FHA loans have seen a more significant jump in their 30-year fixed rate. This could disproportionately affect first-time homebuyers or those with lower credit scores who often rely on these types of loans.

Refinancing in This Environment

If you're a homeowner with an existing mortgage, you're likely wondering if refinancing makes sense with these higher rates. Let's take a look at the current refinance rates:

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 7.31% up 0.05% 7.52% up 0.05%
20-Year Fixed Rate 6.83% down 0.14% 7.35% down 0.04%
15-Year Fixed Rate 6.22% up 0.10% 6.47% up 0.11%
10-Year Fixed Rate 5.97% down 0.10% 6.05% down 0.42%
7-year ARM 7.56% up 0.01% 8.07% up 0.15%
5-year ARM 8.06% up 0.02% 8.08% up 0.12%
3-year ARM — 0.00% — 0.00%
30-Year Fixed Rate FHA 6.71% down 0.03% 7.73% down 0.02%
30-Year Fixed Rate VA 6.47% down 0.02% 6.67% 0.00%
15-Year Fixed Rate FHA 6.06% up 0.23% 7.03% up 0.22%
15-Year Fixed Rate VA 5.92% down 0.02% 6.24% up 0.02%
30-Year Fixed Rate Jumbo 8.19% up 0.25% 8.76% up 0.43%
15-Year Fixed Rate Jumbo 5.93% down 0.67% 6.16% down 0.61%
7-year ARM Jumbo — 0.00% — 0.00%
5-year ARM Jumbo 9.19% up 0.50% 8.88% up 0.31%
3-year ARM Jumbo — 0.00% — 0.00%

Interestingly, some refinance rates, particularly for certain government and jumbo loans, have seen slight decreases. However, for the most common 30-year fixed refinance, rates have also risen to 7.31%. Generally speaking, refinancing only makes sense if you can secure a significantly lower interest rate than what you currently have, or if you're looking to change your loan term. With rates on the rise, the window for advantageous refinancing is likely narrowing for many.

Looking Ahead: What the Experts Predict

So, where do we go from here? It's always helpful to look at what the experts are predicting, though it's crucial to remember that these are just forecasts and the actual market can always surprise us.

  • National Association of REALTORS®: Their forecast suggests that mortgage rates will average 6.4% in 2025 and then dip slightly to 6.1% in 2026. They also anticipate increases in both existing and new home sales.
  • Fannie Mae: Their outlook is similar, predicting mortgage rates to end 2025 at 6.1% and 2026 at 5.8%, a slight decrease from their previous forecast. They've also revised their home sales outlook for 2025 upwards.
  • Mortgage Bankers Association (MBA): The MBA expects 30-year rates to remain near 6.7% through September 2025 and then end the year around 6.6%. This suggests they don't foresee any major drops in the immediate future.
  • Freddie Mac: They highlight that the prevailing sentiment in early 2025 is that rates will likely stay higher for longer than initially anticipated. They believe this might prompt some buyers and sellers who were waiting for lower rates to make a move sooner, potentially increasing home sales compared to the previous year, even if rates don't significantly decline. They also anticipate a moderation in house price appreciation but still with a positive trend.

Read More:

Will Mortgage Rates Go Down in June 2025: Expert Forecast

Mortgage Rate Forecast 2025: When Will Rates Go Below 6%?

My Take on the Situation

Having followed the housing market for quite some time now, my personal feeling is that we're in a period of continued uncertainty. While some forecasts predict a gradual easing of rates, the recent climb back to 7% serves as a stark reminder that the factors influencing mortgage rates are complex and can shift quickly. The strength of the job market, inflation data, and the Federal Reserve's actions will all play a significant role in where rates ultimately head.

I agree with Freddie Mac's assessment that the anticipation of rates staying higher might actually spur some activity in the market. People who have been on the fence might decide that waiting for a significant drop is no longer a viable strategy and instead opt to move forward with their home buying or selling plans. This could lead to a more robust market than some might expect, even with these elevated rates.

However, it's also important to acknowledge the impact these rates have on affordability. A 7% mortgage means higher monthly payments, which can be a significant barrier for many potential homebuyers, especially first-timers. This could lead to some cooling in demand, particularly in more expensive housing markets.

What Should You Do?

If you're currently in the market to buy a home or refinance, here's my advice:

  • Don't Panic, but Be Prepared: Understand that rates are volatile. Work closely with a mortgage professional to explore your options and get pre-approved so you know what you can realistically afford.
  • Shop Around: Interest rates can vary between lenders, so it pays to get quotes from multiple sources. Even a small difference in rate can save you a significant amount over the life of the loan.
  • Consider Your Long-Term Goals: If you're buying a home, think about how long you plan to stay there. An adjustable-rate mortgage (ARM) might offer a lower initial rate, but be sure you understand the potential for the rate to increase in the future. For most people seeking stability, a fixed-rate mortgage is still the preferred choice.
  • Refinancing Requires Careful Calculation: Before you decide to refinance, carefully calculate your breakeven point – how long will it take for your savings from a lower monthly payment to offset the closing costs of the refinance? With rates currently around where they are, refinancing might not be advantageous for everyone.
  • Stay Informed: Keep an eye on economic news and market trends. While you shouldn't make rash decisions based on daily fluctuations, understanding the broader factors at play can help you make more informed choices.

The Bottom Line

The return of mortgage rates to the 7% mark in June 2025 is a development that demands attention. While forecasts suggest some potential for rates to ease slightly later in the year and into 2026, the immediate reality is that borrowing costs for aspiring homeowners have increased. Whether you're a buyer, seller, or homeowner considering refinancing, it's crucial to stay informed, understand your options, and make decisions that align with your individual financial situation and long-term goals. This isn't the time to sit on the sidelines; it's the time to be proactive and knowledgeable.

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.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

Today’s Mortgage Rates – June 7, 2025: Rates Rise Minimally Post Jobs Data

June 7, 2025 by Marco Santarelli

Today's Mortgage Rates - June 7, 2025: Rates Rise Minimally Post Jobs Data

As of June 7, 2025, the national average 30-year fixed mortgage rate is currently at 7.04%, reflecting a slight increase from the previous week’s rate of 7.01%. According to Zillow, the 15-year fixed mortgage rate has also seen a modest rise to 6.15% from 6.12%, while the 5-year ARM mortgage rate has slightly decreased to 7.78% from 7.79%.

Today's Mortgage Rates – June 7, 2025: Rates Rise Minimally Post Jobs Data

Key Takeaways

  • 30-Year Fixed Rate: 7.04% as of June 7, showing minimal upward movement.
  • 15-Year Fixed Rate: Increased to 6.15% from last week.
  • 5-Year ARM: Decreased to 7.78%.
  • Refinance Rates: 30-year refinance rates average 7.31%.
  • Market Trends: Job reports and rising bond yields are affecting mortgage rates.

Mortgage rates are an essential factor for anyone considering buying a home or refinancing an existing mortgage. They can have a significant impact on monthly payments, overall loan costs, and the housing market's vibrancy. Understanding the context behind these rates can help you make more informed decisions.

Current Mortgage Rates Overview

To better understand the current landscape, let's look at the updated mortgage rates from Zillow for various loan types, both for purchasing and refinancing.

Mortgage Rates Table

Loan Type Current Rate 1W Change (%) APR 1W Change (%)
30-Year Fixed Rate 7.04% +0.03% 7.52% +0.05%
20-Year Fixed Rate 6.83% -0.14% 7.35% -0.04%
15-Year Fixed Rate 6.15% +0.09% 6.47% +0.11%
10-Year Fixed Rate 5.97% -0.10% 6.05% -0.42%
7-Year ARM 7.56% +0.01% 8.07% +0.15%
5-Year ARM 7.78% +0.24% 8.08% +0.12%
3-Year ARM – – – –

Refinancing Rates Table

Loan Type Current Rate 1W Change (%) APR 1W Change (%)
30-Year Fixed Rate 7.31% +0.05% 7.52% +0.05%
20-Year Fixed Rate 6.83% -0.14% 7.35% -0.04%
15-Year Fixed Rate 6.22% +0.10% 6.47% +0.11%
10-Year Fixed Rate 5.97% -0.10% 6.05% -0.42%
7-Year ARM 7.56% +0.01% 8.07% +0.15%
5-Year ARM 8.06% +0.02% 8.08% +0.12%

Analyzing the Current Economic Situation

Several factors are impacting mortgage rates on June 7, 2025. A robust jobs report rating has led to a more favorable economic outlook, which, combined with rising bond market yields, typically resets the mortgage landscape. Currently, the yield on the 10-year Treasury has risen over 2.5%, which has historically indicated higher mortgage rates.

According to Zillow, the national average 30-year fixed mortgage rate climbed 2 basis points from 7.02% to 7.04%, representing a 3 basis point increase from the previous week’s average of 7.01%.

The Impact of Economic Trends on Mortgage Rates

Understanding the dynamics of the employment sector and the bond market plays a crucial role in predicting mortgage rates. This June, the labor market has shown strength with job gains, and this positive momentum increases consumer confidence, often leading to more home purchases. As demand for mortgages increases, lenders can afford to raise rates.

Bond Yields and Their Relation to Mortgage Rates

Mortgage rates often correlate with bond yields, particularly the 10-year Treasury yield. When bond prices rise, yields fall, leading to lower mortgage rates and vice versa. In recent weeks, as jobs reports have come in strong, investors shifted capital towards equities, pushing bond prices down and yields up. This upward trend in yields has contributed to the rise in mortgage rates.

It's essential to note that while current rates are on the higher end compared to some past years, they are seen as relatively stable within the economic context. Lenders are adjusting their rates based on market demands, but fluctuations have remained controlled relative to the volatility seen in previous years.

Mortgage Rate Projections

Looking ahead, many analysts expect mortgage rates to remain steady through the year, albeit at levels that might not be as desirable as prospective buyers would hope for. Here are some key insights based on predictions from various institutions regarding future mortgage rates:

  • Freddie Mac projects that mortgage rates will remain higher than anticipated for the foreseeable future, affecting potential buyers and sellers who may feel the pressure to step into the market early, given that rates are not expected to decline significantly anytime soon (source).
  • Fannie Mae also expects a modest reduction, predicting that rates may edge down to about 6.1% by the end of 2025 (source).
  • The National Association of Realtors has a similarly cautious outlook, projecting mortgage rates to average around 6.4% through 2025.

Detailed Analysis of Loan Types

Conforming Loans

Conforming loans are a popular choice among buyers, as they meet the requirements set by Fannie Mae and Freddie Mac. As shown in the mortgage rates table, the 30-year fixed-rate loan currently sits at 7.04%, which is slightly higher than rates seen in the previous weeks.

A 20-year fixed-rate mortgage provides a middle ground between the stability of fixed rates and lower overall interest payments compared to a longer-term loan. This rate currently stands at 6.83%.

Fixed vs. Adjustable-Rate Mortgages (ARMs)

For those considering more flexibility in their mortgage plans, Adjustable-Rate Mortgages (ARMs) might be appealing. The 5-year ARM currently reflects a rate of 7.78%, providing significantly different options for buyers to explore variable rates after the initial fixed period.

Government Loans

Government-backed loans usually present favorable terms for first-time homebuyers or those with lower credit scores. FHA and VA loans are prominent in this category. Here are some key current rates:

  • 30-Year Fixed Rate FHA Loan: 7.75%
  • 30-Year Fixed Rate VA Loan: 6.56%

These loans are designed to make homeownership more accessible to eligible buyers. FHA loans, with their lower down payment requirements, can be particularly attractive to those entering the housing market.

Read More:

Mortgage Rates Trends as of June 6, 2025

Mortgage Rate Predictions for June 2025: Will Rates Go Down?

Mortgage Rate Forecast 2025: When Will Rates Go Below 6%?

Refinancing Trends and Home Buying Dynamics

Given the higher mortgage rates, many existing homeowners might consider refinancing their mortgages. Today, the national average 30-year fixed refinance rate stands at 7.31%, up 5 basis points from 7.26% last week. Here are the key points regarding the current refinance market:

  • The average 15-year fixed refinance rate is up to 6.22% from 6.12%.
  • The 5-year ARM refinance rate is also seeing an increase, arriving at 8.06%.

This indicates a trend that might push some homeowners to refinance rather than purchasing a new home if they currently possess a lower mortgage rate. It’s essential for homeowners to weigh the benefits of refinancing against the current rates before making decisions.

Final Thoughts on the 2025 Market Dynamics

As we progress through 2025, various external factors will continue to play a significant role in shaping the mortgage landscape. Ongoing geopolitical events, currency fluctuations, and inflation remain key components to monitor.

The Mortgage Bankers Association has forecasted a near-future where 30-year rates hover around 6.7% through September, suggesting that although there may be marginal bumps in rates based on market conditions, no significant declines are anticipated in the immediate future.

Overall, mortgage rates on June 7, 2025 are slightly increasing, but rates are expected to stabilize as the market adjusts to ongoing economic conditions. Whether you are considering purchasing a home or refinancing, monitoring these rates closely can help you make a more informed decision.

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.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

Today’s Mortgage Rates – June 6, 2025: Rates Drop Again Providing Hope for Buyers

June 6, 2025 by Marco Santarelli

Today's Mortgage Rates - June 6, 2025: Rates Drop Again Providing Hope for Buyers

As of June 6, 2025, mortgage rates have seen a slight decline, offering some relief for prospective homebuyers. According to Zillow, the current average rate for a 30-year fixed mortgage is 6.95%, reflecting a drop from the previous week’s rate of 7.01%. This reduction, while modest, paints a promising picture for individuals looking to secure a home loan in the current economic climate, where fluctuations in rates are influenced by a variety of factors. Additionally, refinance rates have seen a notable increase, now averaging 7.33%, which is essential for those considering refinancing options.

Today's Mortgage Rates – June 6, 2025: Rates Slightly Decline, Providing Hope for Homebuyers

Key Takeaways

  • Mortgage Rates Drop: The average 30-year fixed mortgage rate is now 6.95%, down from 7.01%.
  • Refinance Rates Increase: The average refinance rate for a 30-year fixed mortgage stands at 7.33%, up from 7.18%.
  • Slight Variations by Loan Type: Other loan types have also experienced changes in rates, with the 15-year fixed mortgage rate rising to 6.02%.
  • Economic Impact on Rates: Market conditions and economic indicators continue to directly affect mortgage rates.

Fixed-Rate Mortgages

Understanding current rates is crucial for making informed financial decisions, whether you are purchasing a new home or refinancing an existing mortgage. Here’s a closer look at today’s rates, broken down by loan type:

Fixed-rate mortgages are the most common type of home loan. They offer a consistent interest rate for the life of the loan, making budgeting easy for homeowners. Here’s a breakdown of various fixed-rate mortgage products as they stand today, according to Zillow:

Loan Type Current Rate 1 Week Change APR 1 Week APR Change
30-Year Fixed 6.95% Down 0.06% 7.37% Down 0.10%
20-Year Fixed 6.83% Down 0.14% 7.35% Down 0.04%
15-Year Fixed 6.02% Up 0.04% 6.29% Down 0.08%
10-Year Fixed 5.89% Down 0.18% 6.28% Down 0.19%

30-Year Fixed Mortgage

The 30-year fixed mortgage is the most popular option among homebuyers due to its stability and predictability. At 6.95%, this loan type is slightly more affordable than last week's 7.01%. Homeowners value this extended repayment period as it allows for manageable monthly payments. The APR (Annual Percentage Rate) for this option is 7.37%, reflecting associated costs, making it easier for buyers to understand the total cost of their loan over time.

20-Year Fixed Mortgage

The 20-year fixed mortgage is also seeing competitive rates, currently set at 6.83%. This option appeals to those who want to pay off the loan sooner than the standard 30-year term while still benefitting from the fixed interest rate. The shorter loan duration means higher monthly payments, but homeowners will pay significantly less interest over the term of the loan.

15-Year Fixed Mortgage

With a rate of 6.02%, the 15-year fixed mortgage is ideal for buyers looking to pay off their homes quickly and save on interest costs in the long run. The APR here is 6.29%. The lower interest rate coupled with a shorter repayment period can contribute to substantial long-term savings for borrowers who can afford the higher monthly payments.

10-Year Fixed Mortgage

Lastly, the 10-year fixed mortgage is currently available at 5.89%, making it the least expensive option in terms of interest rates. However, it also comes with the highest monthly payment due to the brief repayment period. The APR for this type is 6.28%, again emphasizing the total loan cost. This option is best for buyers who are financially prepared for higher payments and desire to own their home outright in a shorter time frame.

Adjustable-Rate Mortgages (ARMs)

Adjustable-rate mortgages offer initial lower rates compared to fixed-rate loans, but the rates can fluctuate over time based on market conditions. This can be a double-edged sword—while these loans may start off at lower rates, they carry the risk of increasing rates in the future.

Loan Type Current Rate 1 Week Change APR 1 Week APR Change
7-Year ARM 7.56% Up 0.01% 8.07% Up 0.15%
5-Year ARM 7.63% Up 0.09% 7.97% No Change

7-Year ARM

The 7-year ARM has a current interest rate of 7.56%. These loans offer a fixed rate for the first seven years, after which the rate adjusts annually based on market conditions. This product might suit buyers who plan to sell or refinance within a few years, as the initial lower rate can provide savings during the fixed period.

5-Year ARM

With an interest rate of 7.63%, the 5-year ARM offers a similar initial low-rate advantage, fixed for the first five years before adjusting yearly. This option may be attractive to those who anticipate changing their housing situation in the near future but does involve a risk of rate increases.

Current Refinance Rates

Refinancing your mortgage can often lead to significant savings if rates drop below your current rate, or if your financial situation has changed. The trend in refinance rates is essential for homeowners considering this option.

Loan Type Current Rate 1 Week Change APR 1 Week APR Change
30-Year Fixed 7.33% Up 0.15% 7.37% Down 0.10%
20-Year Fixed 6.83% Down 0.14% 7.35% Down 0.04%
15-Year Fixed 6.09% Up 0.05% 6.29% Down 0.08%
10-Year Fixed 5.89% Down 0.18% 6.28% Down 0.19%

The rise in the 30-year fixed refinance rate, now at 7.33%, forms a crucial part of mortgage market dynamics. Homeowners seeking new mortgage terms often compare current refinance rates to their existing rates to decide if refinancing is beneficial.

Government Loans and Other Options

In addition to conventional loans, government-backed loans play a significant role in the market. These include FHA and VA loans, which often come with competitive rates and more flexible qualification requirements. Here’s a snapshot of these options:

Loan Type Current Rate 1 Week Change APR 1 Week APR Change
30-Year Fixed Rate FHA 7.52% Up 0.65% 8.56% Up 0.65%
30-Year Fixed Rate VA 6.46% Down 0.02% 6.68% Down 0.01%
15-Year Fixed Rate FHA 5.49% Down 0.08% 6.45% Down 0.11%
15-Year Fixed Rate VA 6.02% 0.00% 6.38% Up 0.01%

Government loans typically offer low down payment options, making them a popular choice for first-time buyers. For instance, the 30-year fixed FHA loan at 7.52% provides opportunities for those with lower credit scores to enter the housing market.

Similarly, VA loans are available for veterans and eligible service members, providing favorable rates such as 6.46% for a 30-year term without requiring down payments, thus promoting home ownership among those who have served the country.

Read More:

Mortgage Rates Trends as of June 5, 2025

Dave Ramsey Predicts Mortgage Rates Will Probably Drop Soon in 2025

Mortgage Rate Forecast 2025: When Will Rates Go Below 6%?

Market Influences on Mortgage Rates

The fluctuation in mortgage rates is not solely linked to lender practices but also to broader economic trends. Various factors contribute to the current climate:

  • U.S. Treasury Bond Yields: Historically, mortgage rates are influenced by treasury yields. When bond yields rise, mortgage rates generally follow suit. Conversely, lower yields can create more favorable borrowing conditions.
  • Federal Reserve Actions: The Federal Reserve plays a critical role in interest rates. Its decisions on the federal funds rate can significantly affect mortgage rates. For instance, if the Fed lowers its rates, this can lead to lower mortgage rates.
  • Economic Indicators: Inflation, employment rates, and general economic activity can influence rates. For example, rising inflation may prompt a hike in rates to curb spending, whereas lower inflation could encourage a drop in rates.

Future Outlook on Mortgage Rates

As speculated by various financial experts, the expectation is for mortgage rates to experience some stability in the coming months. The Mortgage Bankers Association anticipates that rates may remain near 6.7% through September, with a potential drop to approximately 6.6% by year-end. Such stability can be beneficial for homebuyers planning to enter the market or those looking to refinance— this steady environment could lead to increased home sales as conditions normalize.

Summary:

The current trends in mortgage rates show a mixed bag; while there are slight decreases in purchasing rates, refinance rates have seen an uptick. Keeping an eye on these changes is crucial for potential buyers and current homeowners considering refinancing options. As always, it’s wise to consult with lenders to explore the most beneficial strategies for your financial situation.

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.

Norada helps investors like you identify turnkey real estate deals that deliver predictable returns—even when borrowing costs are high.

HOT NEW LISTINGS JUST ADDED!

Connect with a Norada investment counselor today (No Obligation):

(800) 611-3060

Get Started Now 

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

States With Lowest Mortgage Rates Today – June 6, 2025

June 6, 2025 by Marco Santarelli

States With Lowest Mortgage Rates Today – June 6, 2025

If you're looking for the states with the lowest mortgage rates today, June 6, 2025, then the answer is: New York, California, Massachusetts, South Carolina, Florida, New Jersey, New Hampshire, South Dakota, and Washington. These nine states have the cheapest 30-year new purchase mortgage rates, as reported by Investopedia, registering averages between 6.75% and 6.91%. Let's dive deeper into understanding why these rates vary from state to state and what factors you should consider before making your home-buying decision.

States With Lowest Mortgage Rates Today – June 6, 2025

Why Do Mortgage Rates Vary by State?

It's a question I get asked all the time: “Why are mortgage rates different depending on where I live?” The truth is that several factors can influence these variations. Here are some of the common reasons:

  • Lender Presence and Competition: Not all mortgage lenders operate in every state. The level of competition among lenders in a given area can significantly impact rates. The more lenders vying for your business, the more likely you are to find a better deal.
  • State-Level Regulations: Mortgage regulations vary from state to state. These differences can affect the costs and risks associated with lending, ultimately influencing the rates offered.
  • Credit Score Averages: The average credit score in a state can give lenders an idea about the overall risk profile of borrowers in that area. States with higher average credit scores might see slightly lower rates.
  • Average Loan Size: The average loan amount also matters. Larger loan amounts may carry slightly different rates compared to smaller loans due to market demand and risk considerations.
  • Risk Management Strategies: Every lender assesses risk differently. Some might be more aggressive in offering lower rates to attract customers, while others may prioritize profitability and maintain higher rates.

A Look at the States with the Lowest and Highest Rates on June 6, 2025

Let’s take a closer look at the states with the most favorable mortgage rates and those with the least favorable rates, as of today:

  • States with Cheapest 30-Year Mortgage Rates:
    • New York
    • California
    • Massachusetts
    • South Carolina
    • Florida
    • New Jersey
    • New Hampshire
    • South Dakota
    • Washington

Rates in these states range between 6.75% and 6.91%.

  • States with Most Expensive 30-Year Mortgage Rates:
    • Alaska
    • West Virginia
    • Iowa
    • Kansas
    • Mississippi
    • North Dakota
    • Maine
    • Oklahoma
    • Vermont
    • Wyoming

Rates in these states range between 6.98% and 7.10%.

National Mortgage Rate Trends: What's Going On?

As of June 6, 2025, the national average for a 30-year new purchase mortgage sits at 6.93%. This is a slight increase after a couple of weeks of decline from a recent yearly high of 7.15%. To put things in perspective:

  • In March 2025, the average rate was 6.50%, the lowest we’ve seen so far this year.
  • Back in September, we even saw a two-year low of 5.89%.

National Averages of Lender's Best Mortgage Rates

Here's a quick overview of the national average rates for different types of mortgages:

Loan Type New Purchase
30-Year Fixed 6.93%
FHA 30-Year Fixed 7.37%
15-Year Fixed 5.96%
Jumbo 30-Year Fixed 6.94%
5/6 ARM 7.29%

Data: Zillow

Understanding Those “Teaser” Rates You See Online

It's important to be aware of the difference between the average rates I’m sharing and those eye-catching “teaser” rates you often see advertised. These teaser rates are usually based on very specific scenarios or may involve paying points upfront, having a super-high credit score, or applying for a smaller-than-typical loan.

Remember, your actual rate will depend on your unique financial situation, including your credit score, income, debt-to-income ratio, and the size of your down payment. Always shop around with multiple lenders to find the best deal for you!

How Mortgage Rates are Determined

Mortgage rates don't just appear out of thin air. Several factors work together to influence them:

  • The Bond Market: The bond market has significant influence. In particular, keep a close watch on the yield of the 10-year Treasury bond. Mortgage rates often follow the trend of these yields.
  • The Federal Reserve (The Fed): The Federal Reserve's monetary policy plays a big role. The Fed influences interest rates through various actions, impacting the mortgage market.
  • Lender Competition: The level of competition among mortgage lenders is a key factor. When many lenders are competing for your business, you're more likely to score a lower rate.
  • Loan Type: Different types of mortgages come with unique rate structures. Fixed-rate mortgages offer predictability, while adjustable-rate mortgages (ARMs) can start lower but fluctuate over time.

Read More:

States With the Lowest Mortgage Rates on June 4, 2025

When Will Mortgage Rates Go Down from Current Highs in 2025?

A Little History: Recent Fed Rate Changes

To truly understand the current state of mortgage rates, it's helpful to look back at recent actions by the Federal Reserve. In response to the economic pressures of the pandemic, the Fed engaged in large-scale bond-buying, which helped keep mortgage rates relatively low for much of 2021.

However, starting in November 2021, the Fed began to taper its bond purchases which was reduced to zero by March, 2022. Then, between that time and July 2023, the Fed aggressively raised the federal funds rate to combat inflation. This is a benchmark interest rate that banks charge one another for overnight lending.

While the federal funds rate doesn't directly determine mortgage rates, it has a pronounced effect. The rapidity and magnitude of the Fed's rate hikes significantly impacted mortgage rates during that period.

What's Happened Since and What to Expect?

The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But in September, the central bank announced its first rate cut of 0.50 percentage points, and then followed that with smaller reductions in later months.

However, at its first meeting of this year, 2025, the Fed opted to hold rates steady – and it's entirely possible that the central bank may not make another rate cut for months. With eight scheduled rate-setting meetings per year, we could see multiple rate-hold announcements in 2025.

How to Get the Best Rate for You

So, what can you do to secure the best mortgage rate possible? Here are some tried-and-true tips:

  • Boost Your Credit Score: This is one of the most important factors. Pay your bills on time and keep your credit utilization low.
  • Save for a Larger Down Payment: A larger down payment reduces the lender's risk and can lead to a lower interest rate.
  • Shop Around: Don't settle for the first offer you receive. Get quotes from multiple lenders, including banks, credit unions, and online mortgage companies.
  • Consider Different Loan Types: Explore different types of mortgages, such as fixed-rate, adjustable-rate, and government-backed loans (FHA, VA, USDA).
  • Negotiate: Don't be afraid to negotiate with lenders. See if they're willing to match or beat a competitor's offer.
  • Time the Market (Carefully): While it's impossible to predict exactly when rates will be at their lowest, keeping an eye on economic indicators and Federal Reserve announcements can help you time your purchase strategically.

A Final Thought:

Buying a home is a significant investment, and understanding mortgage rates is crucial. While today's rates might not be at their all-time lows, there are still opportunities to find affordable options and achieve your homeownership dreams. Don't be afraid to do your research, shop around, and seek advice from a qualified mortgage professional.

Invest in Real Estate in the Top U.S. Markets

Investing in turnkey real estate can help you secure consistent returns with fluctuating mortgage rates.

Expand your portfolio confidently, even in a shifting interest rate environment.

Speak with our expert investment counselors (No Obligation):

(800) 611-3060

Get Started Now

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

States With Lowest Mortgage Rates Today – June 5, 2025

June 5, 2025 by Marco Santarelli

States With Lowest Mortgage Rates Today – June 5, 2025

Looking for the states where you can snag the cheapest mortgage rates right now? As of June 5, 2025, the states boasting the lowest 30-year mortgage rates are primarily New York, California, Massachusetts, Washington, Connecticut, Colorado, Pennsylvania, and Texas. These states are seeing averages between 6.74% and 6.89%.

Buying a home is a huge deal, and one of the biggest factors in your decision is going to be the mortgage rate you can get. Rates can change a lot from day to day, and they also vary depending on where you live. So, let's dive into which states are offering the most attractive rates today and what factors are at play.

States With Lowest Mortgage Rates Today – June 5, 2025

Cheapest vs. Most Expensive: A Snapshot of Today's Rates

According to Investopedia, here's a quick overview of where you'll find the best and worst 30-year mortgage rates on June 5, 2025:

  • States with Lowest Rates (6.74% – 6.89%):
    • New York
    • California
    • Massachusetts
    • Washington
    • Connecticut
    • Colorado
    • Pennsylvania
    • Texas
  • States with Highest Rates (6.98% – 7.09%):
    • Alaska
    • Kansas
    • Mississippi
    • Vermont
    • Iowa
    • Maine
    • New Mexico
    • North Dakota
    • West Virginia

Why the Differences? Understanding the State-by-State Variations

You might be wondering, why this geographical disparity? What makes some states hotspots for low mortgage rates while others lag behind?

Several factors contribute to these state-level differences. It isn't as simple as one single reason:

  • Lender Presence & Competition: Different lenders operate in different regions, and the level of competition between them can significantly impact rates. Areas with more lenders vying for your business tend to offer better rates.
  • Credit Score Averages: States with higher average credit scores often see lower rates overall. This is because lenders view borrowers in these states as less risky.
  • Average Loan Size: The average loan size in a state can also influence rates. Larger loans may come with slightly different rates than smaller ones.
  • State Regulations: State-specific laws and regulations governing the mortgage industry can also play a role in determining interest rates. Some states may have policies that promote or hinder competition, affecting rate levels.
  • Varying Risk Management Strategies: Each lender has its own way of assessing and managing risk. These internal strategies influence the rates they offer, leading to disparities even within the same state.

National Mortgage Rate Trends: Things are Changing

Although we're focusing on state-level data, it's important to look at the bigger picture. Here's how national rates are trending:

  • Rates on 30-year mortgages have generally decreased over the last couple of weeks, reaching their lowest in over a month. This could indicate an easing of pressure on borrowers.
  • Earlier this year, in March, 30-year rates dipped to their lowest average for 2025.
  • And, thinking longer term, rates fell to a two-year low in September of the previous year.

To give you a bird’s-eye view, take a look at the averages of lenders’ best mortgage rates:

Loan Type New Purchase
30-Year Fixed 6.91%
FHA 30-Year Fixed 7.37%
15-Year Fixed 5.90%
Jumbo 30-Year Fixed 6.92%
5/6 ARM 7.23%

Source: Zillow

Don't Believe the Hype: Understanding “Teaser” Rates

I want to give you a word of warning: be very cautious about advertised rates you see online! These “teaser” rates are often the absolute best-case scenario, not the reality for most borrowers. They are cherry-picked to be the most attractive versus the averages that you see here.

These rates are often tied to:

  • Paying points upfront: This can lower your interest rate but means you're paying more out of pocket initially.
  • Ultra-high credit scores: Only borrowers with exceptional credit will qualify.
  • Smaller-than-typical loans: These may have different rate structures.

Remember, your actual mortgage rate will depend on your individual factors like:

  • Credit score
  • Income
  • Debt-to-income ratio
  • Down payment amount

Factor in All the Costs: Playing With the Numbers

Getting a low interest rate is great, but it's only one piece of the puzzle. You also need to consider all the other costs associated with buying a home. I always recommend playing with a mortgage calculator to get a sense of what your total monthly payment will be. This helps you to estimate potential monthly payments.

Here are some of the key costs to factor in, as the mortgage calculator shows:

  • Principal & Interest: This pays off your actual loan.
  • Property Taxes: These can vary drastically depending on your location.
  • Homeowners Insurance: Protects your home against damage and liability.

Calculating your Monthly Payments:

Factors Amount
Home Price $440,000
Down Payment $88,000
Loan Term 30 years
APR 6.67%
Monthly Payment $2,649.04
Principal & Interest $2,264.38
Property Taxes $256.67
Homeowners Insurance $128.00
Mortgage Size $352,000.00
Mortgage Interest $463,176.16
Total Mortgage Paid $815,176.16


Read More:

States With the Lowest Mortgage Rates on June 4, 2025

When Will Mortgage Rates Go Down from Current Highs in 2025?

Why Do Mortgage Rates Change? Peeling Back Layers

Understanding the why behind mortgage rate fluctuations can empower you to make better decisions about when to buy. Mortgage rates aren't pulled out of thin air; they're determined by a complex web of economic factors.

Here are some of the most important things that impact rates:

  • The Bond Market: Keep an eye on 10-year Treasury yields. These are a major benchmark for mortgage rates.
  • The Federal Reserve (The Fed): The Fed’s monetary policy and decisions on things like bond buying have a BIG impact.
  • Competition Between Lenders: More competition = potentially lower rates for you.
  • Inflation: Is inflation on the rise, or going down. This impacts all rate-sensitive products.

It's difficult to pin down any single factor as the sole cause of rate changes because they often move together. But those are the big ones to watch.

Expert Tips for Securing the Best Mortgage Rate

Based on my experience, here are some tips to keep in mind when shopping for a mortgage:

  • Shop around! Get quotes from multiple lenders. Don't just settle for the first offer you see.
  • Improve your credit score. Even a small improvement can make a big difference in your rate.
  • Save for a larger down payment. This can lower your risk profile and lead to better rates.
  • Consider a shorter loan term. 15-year mortgages usually have lower interest rates than 30-year ones (but higher monthly payments).
  • Get pre-approved. This shows sellers you're a serious buyer and can give you leverage in negotiations.
  • Don't be afraid to negotiate. Ask lenders if they can match or beat competitor's offers.

Mortgage rates are constantly changing, and they depend on a lot of stuff. Getting the best rate takes time and effort, but it's well worth it in the long run.

Invest in Real Estate in the Top U.S. Markets

Investing in turnkey real estate can help you secure consistent returns with fluctuating mortgage rates.

Expand your portfolio confidently, even in a shifting interest rate environment.

Speak with our expert investment counselors (No Obligation):

(800) 611-3060

Get Started Now

Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

Today’s Mortgage Rates – June 5, 2025: Rates Decline Sharply Across the Board

June 5, 2025 by Marco Santarelli

Today's Mortgage Rates - June 5, 2025: Rates Decline Sharply Across the Board

As of June 5, 2025, mortgage rates have decreased significantly, with the national average for a 30-year fixed mortgage rate sitting at 6.88%, a decline from 6.90% just a day prior. This decline represents a drop of 13 basis points from last week's average of 7.01%. These figures indicate a favorable climate for both new homebuyers and those considering refinancing. Investors and potential homeowners alike should take note of the financial implications of these changes as they navigate their housing needs.

Today's Mortgage Rates – June 5, 2025: Rates Drop Sharply Across the Board

Key Takeaways

  • Mortgage rates: 30-year fixed rates at 6.88%, down from 6.90%.
  • Refinance rates: 30-year refinance rates have also decreased to 7.04%.
  • Downward trend: Both mortgage and refinance rates are lower than last week's averages.
  • Loan type impacts: Significant differences exist between fixed-rate and adjustable-rate mortgages.
  • Market observation: Stay alert for daily changes as rates can fluctuate quickly.

Understanding mortgage rates, their fluctuations, and their implications can help homebuyers make informed financial decisions. Let’s break down today’s rates further, discuss how refinancing works, and analyze relevant economic factors.

Understanding Mortgage Rates Today

What Influences Mortgage Rates?

Mortgage rates are influenced by many factors, including economic indicators, market conditions, and individual borrower circumstances. Here's a closer look at how these variables come into play:

  1. Economic Indicators: Mortgage rates closely align with the 10-year Treasury yield, which recently fell by 2%. This is significant because the yield typically has a spread of 2% or more above mortgage rates. A declining yield often indicates lower borrowing costs, as lenders adjust rates in response to broader economic conditions. Conversely, when the economy shows strength, rates can rise to temper spending.
  2. Market Trends: The recent bond market has been favorable, resulting in a decrease in mortgage rates. Reports indicate that this week’s bond rally is related to declining inflation rates and shifts in economic policy, which could signal even lower borrowing costs moving forward. Homebuyers looking to finance or refinance should pay attention to these market trends as they can affect lending rates.
  3. Individual Borrower Factors: Many aspects of an individual’s financial health can influence mortgage rates directly:
    • Credit Score: Higher credit scores generally result in better interest rates, as lenders view these borrowers as less risky.
    • Debt-to-Income Ratio: A lower ratio implies stronger financial health, allowing borrowers to qualify for lower rates.
    • Down Payment Amount: The more a borrower can pay upfront, the better their chances of securing a favorable mortgage.

Given these variables, buyers should stay informed about current rates and consider how their personal financial health impacts their mortgage options.

Today's Mortgage Rates Breakdown

The following table summarizes the current mortgage rates for the most common types of home loans updated as of June 5, 2025:

Current Mortgage Rates

Program Rate 1W Change APR 1W Change
30-Year Fixed Rate 6.88% down 0.13% 7.28% down 0.19%
15-Year Fixed Rate 5.89% down 0.18% 6.15% down 0.22%
20-Year Fixed Rate 6.83% down 0.14% 7.35% down 0.04%
5-Year ARM 7.51% down 0.03% 7.87% down 0.09%
7-Year ARM 7.56% up 0.01% 8.07% up 0.15%

Data source: Zillow

Current Trends in Mortgage Types

The significant drop in 30-year fixed rates to 6.88% makes them a viable option for first-time buyers. Fixed-rate mortgages allow borrowers to lock in their interest rates for the loan's duration, ensuring predictability in monthly payments. The attractiveness of these loans becomes evident when compared to the inconsistencies of adjustable-rate mortgages (ARMs).

Adjustable-rate mortgages can offer lower initial rates, as evidenced by the 5-year ARM currently at 7.51%. However, these rates can fluctuate over time, potentially leading to higher payments as rates adjust. Borrowers must weigh whether the potential savings during the initial phase justify the risk of future rate hikes.

Understanding Refinance Rates

Refinancing represents another option for homeowners aiming to capitalize on lower rates. As of June 5, the average 30-year fixed refinance rate is at 7.04%, down from 7.16% previously. This drop allows homeowners to consider whether refinancing could lower their monthly payments or free up equity for other expenses.

Current Refinance Rates Breakdown

Program Rate 1W Change APR 1W Change
30-Year Fixed Rate 7.04% down 0.12% 7.28% down 0.19%
15-Year Fixed Rate 5.95% down 0.07% 6.15% down 0.22%
5-Year ARM 8.04% up 0.01% 8.40% 0.00%

Data source: Zillow

By refinancing, homeowners can effectively lower the amount paid in interest over time. For example, shifting from a 30-year to a 15-year fixed mortgage not only reduces the interest rate but also shortens loan duration, allowing homeowners to own their properties outright sooner.

Expenses Associated with Refinancing

It’s important to note that refinancing isn't without costs. Borrowers should expect various fees, including closing costs, appraisal fees, and sometimes origination fees. These can add up to about 2-5% of the loan amount, so homeowners must evaluate whether the long-term savings outweigh these upfront costs. A mortgage refinance calculator can help determine the interest rate needed to make refinancing worthwhile.

Details on Various Loan Types

Apart from fixed-rate and adjustable-rate mortgages, there are several other important loan types that homebuyers and homeowners should consider:

Government Loans

  1. FHA Loans (Federal Housing Administration)
    • Current Rate: 7.04% for 30-year fixed rate (down 0.17%).
    • Benefits: FHA loans are designed for low-to-moderate-income borrowers who may have lower credit scores. They typically require a lower minimum down payment of 3.5%, which makes homeownership more accessible to many individuals.
  2. VA Loans (Department of Veterans Affairs)
    • Current Rate: 6.41% for 30-year fixed rate (down 0.07%).
    • Benefits: VA loans are exclusive to veterans, active-duty personnel, and certain members of the National Guard and Reserves. They offer competitive interest rates and often do not require any down payment, making them an excellent option for qualifying individuals.
  3. USDA Loans (U.S. Department of Agriculture)
    • Benefits: USDA loans offer financing for rural and suburban homebuyers who meet certain income requirements. While rates for USDA loans fluctuate based on market conditions, they can provide excellent terms, including no down payment and lower insurance costs.

Jumbo Loans

Jumbo loans are non-conforming loans that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). They generally come with higher interest rates because they are not backed by Fannie Mae or Freddie Mac, which means lenders take on a higher risk.

  • Current Rates:
    • 30-Year Fixed Rate Jumbo : 7.35% (down 0.18%).
    • 15-Year Fixed Rate Jumbo: 6.44% (down 0.10%).

Jumbo loans are typically used for purchasing high-end properties. While they often require a larger down payment (usually 20% or more), they can be beneficial for buyers looking to invest in more expensive real estate markets.

The Appeal of 30-Year vs. 15-Year Mortgages

When choosing a mortgage, borrowers often debate between the 30-year and 15-year fixed mortgage rates. Each option has distinct advantages depending on financial goals:

  • 30-Year Fixed Mortgage:
    • Pros: Lower monthly payments, which can enhance cash flow for other investments or expenses. This option is particularly attractive for higher-priced homes, allowing buyers to keep monthly obligations manageable.
    • Cons: The trade-off is a higher total interest payment over the life of the loan due to the extended payment period. Some borrowers might find the long-term debt burdensome.
  • 15-Year Fixed Mortgage:
    • Pros: Lower interest rates result in a cheaper overall cost, and homeowners can pay off their mortgage much more quickly. This option appeals to those wanting to minimize long-term financial obligations.
    • Cons: The monthly payments are significantly higher, which could strain budgets and reduce disposable income.

Deciding between the two ultimately comes down to personal circumstances. Borrowers need to assess their capacity to manage either monthly payment against their individual goals, such as long-term financial freedom versus immediate affordability.

Read More:

Mortgage Rates Trends as of June 4, 2025

Dave Ramsey Predicts Mortgage Rates Will Probably Drop Soon in 2025

Mortgage Rate Forecast 2025: When Will Rates Go Below 6%?

Locking in Rates and Market Strategies

For those looking to lock in rates, timing is critical. As rates fluctuate due to economic conditions and market shifts, potential homebuyers should monitor these changes closely. A downward trend indicates it may be a good opportunity to secure a lower rate, while an upward movement suggests there’s no time like the present to lock in lower rates before any potential increases.

Realtors and lenders often recommend taking action quickly when favorable rates are noted. This could mean locking in rates on the same day they are announced, especially if a buyer is in the process of purchasing a new home.

Current Market Sentiment

As of today, the overall market sentiment leans toward optimism due to continued lower rates. This trend invites increased buyer activity. Reports suggest that many would-be buyers who had been sidelined by higher rates are now looking to enter the market while conditions are favorable. Similarly, with refinancing options becoming increasingly viable, more homeowners may be inclined to reevaluate their financial positions and seek out cost-saving measures.

Consumer confidence plays a large role in shaping housing market dynamics. Recent surveys indicate that while the public remains cautious, the prospect of sustained low rates encourages optimism. This situation often encourages potential homeowners to start looking for properties as affordability improves with decreases in borrowing costs. Furthermore, as more people look to buy, demand can increase, leading to better market conditions.

Summary:

Today’s mortgage rates reflect a continued downward trajectory, making it an attractive moment for prospective homebuyers and current homeowners considering refinancing. As the dynamics of the financial market evolve, staying informed can lead to smarter financial decisions, ultimately resulting in more favorable homeownership experiences.

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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Also Read:

  • Will Mortgage Rates Go Down in 2025: Morgan Stanley's Forecast
  • Expect High Mortgage Rates Until 2026: Fannie Mae's 2-Year Forecast
  • Mortgage Rate Predictions 2025 from 4 Leading Housing Experts
  • Mortgage Rates Forecast for the Next 3 Years: 2025 to 2027
  • 30-Year Mortgage Rate Forecast for the Next 5 Years
  • 15-Year Mortgage Rate Forecast for the Next 5 Years
  • Why Are Mortgage Rates Going Up in 2025: Will Rates Drop?
  • Why Are Mortgage Rates So High and Predictions for 2025
  • Will Mortgage Rates Ever Be 3% Again in the Future?
  • Mortgage Rates Predictions for Next 2 Years
  • Mortgage Rate Predictions for Next 5 Years
  • Mortgage Rate Predictions: Why 2% and 3% Rates are Out of Reach
  • How Lower Mortgage Rates Can Save You Thousands?
  • How to Get a Low Mortgage Interest Rate?
  • Will Mortgage Rates Ever Be 4% Again?

Filed Under: Financing, Mortgage Tagged With: Interest Rate, mortgage, Mortgage Rate Trends, mortgage rates, Mortgage Rates Predictions, Mortgage Rates Today

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