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Mortgage Rates Today – June 23, 2025: Rates Remain Stable With 30-Year FRM at 6.90%

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As of June 23, 2025, mortgage rates in the United States remain stable, with the average 30-year fixed mortgage rate at 6.90%, down slightly from last week's rate of 6.91%. Meanwhile, the average rate for a 15-year fixed mortgage has risen modestly to 5.93%. These figures indicate a slight decline in long-term fixed mortgage rates, which may provide homebuyers and those looking to refinance an intriguing opportunity.

Mortgage Rates Today – June 23, 2025: Rates Remain Stable With 30-Year FRM at 6.90%

Key Takeaways:

  • Current 30-year fixed mortgage rate: 6.90%
  • Current 15-year fixed mortgage rate: 5.93%
  • Average rates for refinances have decreased, with the 30-year refinance rate now at 7.07%.
  • The housing market is showing signs of recovery, influencing mortgage trends.

Current Mortgage Rates

Here’s a closer look at various mortgage rates available today (June 23, 2025).

Loan Type Current Rate 1 Week Change APR 1 Week Change APR
30-Year Fixed Rate 6.90% Down 0.01% 7.32% Down 0.05%
20-Year Fixed Rate 6.37% Down 0.21% 6.80% Down 0.16%
15-Year Fixed Rate 5.93% Up 0.03% 6.20% Down 0.06%
10-Year Fixed Rate 5.85% Down 0.08% 6.04% Down 0.03%
5-Year ARM 7.03% Down 0.18% 7.73% Down 0.06%

(Source: Zillow)

Current Refinance Rates

For those considering refinancing, here are the current rates (June 23, 2025):

Refinance Type Current Rate 1 Week Change APR 1 Week Change APR
30-Year Fixed Refinance 7.07% Down 0.10% 7.32% Down 0.05%
15-Year Fixed Refinance 5.94% Down 0.08% 6.20% Down 0.06%
5-Year ARM Refinance 5.94% Down 0.52% 7.73% Down 0.06%

(Source: Zillow)

The slight changes in these rates suggest a more stable market, making now a potentially favorable time for buyers and homeowners looking to refinance their existing loans.

Monthly Payments Under Current Rates

Now that we've covered the current mortgage and refinance rates, let’s look at how these rates affect monthly mortgage payments. We’ll calculate the monthly payments for various mortgage amounts under the current average rates.

Monthly Payment on $150,000 Mortgage

At a rate of 6.90% for a 30-year fixed mortgage, the monthly payment would be approximately $990. This includes principal and interest but does not consider other costs such as property taxes and homeowner's insurance.

Monthly Payment on $200,000 Mortgage

For a $200,000 mortgage at the same 6.90% rate, the monthly payment rises to about $1,320. Again, this calculation focuses only on the mortgage payment, not including additional escrow items.

Monthly Payment on $300,000 Mortgage

With a mortgage of $300,000 at 6.90%, expect your monthly mortgage payment to be around $1,980. This figure reflects the principal and interest obligations; other fees may increase your total monthly payment.

Monthly Payment on $400,000 Mortgage

For a broader financial commitment, a $400,000 mortgage at 6.90% translates into a monthly payment of roughly $2,640. The payment structure remains aligned with the fixed-rate model, providing a reliable and predictable payment schedule.

Monthly Payment on $500,000 Mortgage

Lastly, for those needing a larger loan amount of $500,000, the monthly payment would be approximately $3,300 at the same interest rate. This amount, while significant, should be viewed in context with the benefits of homeownership, including potential equity growth over time.

Understanding the Market Context

The current mortgage environment is set against a backdrop of economic recovery, with predictions indicating a potential uptick in home sales throughout 2025. The National Association of Realtors forecasts strong growth in existing and new home sales, anticipating a 6% increase in existing home transactions and a 10% rise in new home sales.

Factors contributing to these trends include:

  • Increased home supply: Home construction rates are projected to pick up, helping to ease the ongoing inventory shortage.
  • Stable interest rates: With mortgage rates projected to average around 6.4% in the latter half of 2025, buyers may find themselves in a more favorable borrowing position, encouraging transactions.
  • Continued buyer demand: Even as rates fluctuate, family formations and lifestyle changes are expected to maintain interest in homebuying.

Economic Indicators Affecting Mortgage Rates

Understanding the broader economic context is essential to grasping how today's mortgage rates are influenced. A few key indicators play a significant role in shaping the trends we see in mortgage rates:

  • Consumer Confidence: Consumer confidence is rising as economic conditions stabilize post-pandemic. When people feel optimistic about their financial situations, they're more likely to invest in purchasing homes.
  • Employment Rates: With unemployment rates staying low, more consumers have steady incomes, which boosts the housing market because consumers are in a better position to apply for mortgages.
  • Inflation Rates: Inflation remains a hot topic. The Federal Reserve's actions to combat inflation have direct implications for interest rates. Even just a hint of inflation can impact interest rates, as lenders may charge higher rates to compensate for the differing value of money over time.
  • Federal Reserve Actions: The Fed's decisions regarding interest rates affect the entire economy, including mortgage rates. While they aim to control inflation, any hikes or cuts in the federal funds rate will ripple through to mortgage rates, impacting the housing market.

The Future of Mortgage Rates

Realtors and analysts are keeping a close watch on future mortgage rates. Recent forecasts from key financial institutions draw a mixed picture, yet generally suggest a modest decline in rates over the next year:

  • National Association of Realtors: Chief Economist Lawrence Yun predicts mortgage rates might lower to an average of 6.4% in the second half of 2025 before further declining to 6.1% in 2026. Yun sees this stabilization as beneficial for buyer affordability, having a profound impact on demand in the housing market.
  • Fannie Mae: In their forecasts, Fannie Mae anticipates rates will end 2025 around 6.1%, providing buyers with better affordability options and potentially enhancing home purchases. Their optimism suggests a growing momentum in housing transactions, as buyers feel less restrained by high interest costs.
  • Mortgage Bankers Association: Their projections state that rates will hover around 6.8% throughout the remainder of the year. While they indicate rates may not drastically change in the short term, an improvement in buyer interest will likely lead to increased housing market activity.

Summary:

As we monitor trends throughout June 2025, the steady mortgage rates and favorable predictions regarding home sales and construction indicate a positive shift in the housing market. While today's rates remain relatively high compared to historical lows, they offer opportunities for many — whether you are buying your first home or refinancing your existing mortgage. The shifting dynamics of economic factors, along with anticipated future rate declines, provide a hopeful outlook for potential homebuyers.

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

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Do Mortgage Rates Go Down During an Economic Recession?

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Do mortgage rates go down during an economic recession? The short answer is, it's complicated, but often, yes, they do. While there's no guarantee, history shows that in recent decades, mortgage rates often decrease during and after a recession. This is largely due to the Federal Reserve's actions to stimulate the economy, but it's important to remember that every recession is different, and factors like inflation play a huge role. Let’s dive into why this happens, looking at past recessions and what it all means for you.

As someone who's followed the housing market and economy for a long time, I know how confusing it can be. Figuring out if now's a good time to buy a home is a big decision, and understanding how recessions affect mortgage rates is a key piece of that puzzle. I'm going to break down the historical data and the factors that drive these changes in a way that's easy to understand.

Let's find out whether mortgage rates typically drop during economic recessions by examining historical data from major U.S. recessions since 1970, drawing from sources like Freddie Mac’s Primary Mortgage Market Survey and other economic analyses.

Do Mortgage Rates Go Down During an Economic Recession?

Historical Analysis of Mortgage Rates During U.S. Recessions

To understand the relationship between mortgage rates and recessions, let’s examine the behavior of 30-year fixed mortgage rates during each major U.S. recession since 1970, based on data from Freddie Mac and other reputable sources.

Recession Period Average Mortgage Rate Range Trend During Recession Key Influences
1973-1975 (Nov 1973 – Mar 1975) 8-9% Stable or increasing High inflation, oil crisis
1980 (Jan 1980 – Jul 1980) 13-14% Increasing Stagflation, Federal Reserve rate hikes
1981-1982 (Jul 1981 – Nov 1982) 16-18% (peaked at 18.63% in Oct 1981) Peaked, then began to decline High inflation, Federal Reserve actions
1990-1991 (Jul 1990 – Mar 1991) ~10% to ~9% Decreasing Stabilizing inflation, economic recovery
2001 (Mar 2001 – Nov 2001) ~8% to ~6.5% Decreasing Federal Reserve rate cuts, dot-com bubble burst
2007-2009 Great Recession (Dec 2007 – Jun 2009) ~6.73% to ~5% Decreasing Federal Reserve quantitative easing, housing market crash
2020 COVID-19 (Feb 2020 – Apr 2020) ~3-4% to <3% Decreasing Federal Reserve emergency measures, low pre-recession rates

1973-1975 Recession

  • Period: November 1973 – March 1975
  • Mortgage Rates: Rates started in the mid-7% range in the early 1970s and rose to around 9.19% by 1974, continuing to climb to 11.2% by 1979 (Atlantic Bay).
  • Trend: Rates did not drop during this recession. The period was marked by high inflation due to the 1973 oil crisis, which drove up borrowing costs as lenders adjusted rates to keep pace with rising prices.
  • Key Influences: The Organization of the Petroleum Exporting Countries (OPEC) oil embargo led to hyperinflation, prompting the Federal Reserve to maintain or increase interest rates to combat rising prices.

1980 Recession

  • Period: January 1980 – July 1980
  • Mortgage Rates: Rates averaged around 13.74% in 1980, reflecting the high inflationary environment of the late 1970s.
  • Trend: Rates continued to rise during this short recession, part of a broader trend that saw rates peak in 1981. The Federal Reserve’s efforts to curb stagflation (high inflation and low growth) kept borrowing costs elevated.
  • Key Influences: Stagflation and the Federal Reserve’s aggressive rate hikes to control inflation were primary drivers, making borrowing expensive.

1981-1982 Recession

  • Period: July 1981 – November 1982
  • Mortgage Rates: Rates reached an all-time high of 18.63% in October 1981, the highest recorded by Freddie Mac (Debexpert). They began to decline slightly toward the end of the recession but remained in the double digits.
  • Trend: Rates peaked during the early part of the recession and started to decline as the Federal Reserve’s policies began to tame inflation. However, they remained high throughout the recession period.
  • Key Influences: The Federal Reserve, under Paul Volcker, raised interest rates to combat inflation, which had risen to 9.5% by 1981. This led to unprecedented borrowing costs, but the subsequent decline in inflation allowed rates to start falling by late 1982.

1990-1991 Recession

  • Period: July 1990 – March 1991
  • Mortgage Rates: Rates were around 10.13% at the start of 1990 and began to decrease, reaching around 9% during the recession and continuing to fall to 6.94% by 1998.
  • Trend: Rates showed a downward trend during this recession, reflecting stabilizing inflation and economic recovery efforts. The 1990s saw a general decline in rates as the economy benefited from low unemployment and solid growth.
  • Key Influences: The stabilization of inflation and the Federal Reserve’s less aggressive monetary policy compared to the 1980s contributed to the decline in rates.

2001 Recession

  • Period: March 2001 – November 2001
  • Mortgage Rates: Rates started at around 8% in early 2001 and dropped to approximately 6.5% by November 2001, according to Freddie Mac data (FRED).
  • Trend: This recession saw a clear decrease in mortgage rates, driven by Federal Reserve rate cuts in response to the dot-com bubble burst and economic slowdown.
  • Key Influences: The Federal Reserve lowered short-term interest rates to stimulate the economy, and the shift of investor focus to fixed-income investments like bonds further reduced mortgage rates.

2007-2009 Great Recession

  • Period: December 2007 – June 2009
  • Mortgage Rates: Rates were around 6.73% in late 2007 and fell to the low-to-mid-5% range by December 2008, reaching 5.4% by 2009.
  • Trend: Rates decreased significantly during this recession, starting even before the official recession period as markets anticipated economic trouble. The decline continued post-recession due to sustained Federal Reserve interventions.
  • Key Influences: The Federal Reserve implemented quantitative easing, buying mortgage bonds to drive down interest rates, and the housing market crash reduced loan demand, further lowering rates.

2020 COVID-19 Recession

  • Period: February 2020 – April 2020
  • Mortgage Rates: Rates were already low, averaging 3.72% in January 2020, and fell to 3.31% by April 2020, dropping to a record low of 2.65% in January 2021.
  • Trend: This brief recession saw mortgage rates decrease sharply, continuing a downward trend that led to historic lows in 2021.
  • Key Influences: The Federal Reserve’s emergency measures, including cutting the federal funds rate to near zero, and low pre-recession rates due to a stable economy, drove rates down.

Why Do Mortgage Rates Behave This Way?

Several factors influence mortgage rate movements during recessions:

  • Federal Reserve Policy: The Federal Reserve plays a pivotal role by adjusting short-term interest rates. During recessions, the Fed often lowers the federal funds rate to encourage borrowing and spending, which indirectly affects long-term mortgage rates. This was evident in the 2001, 2007-2009, and 2020 recessions, where aggressive rate cuts and quantitative easing led to lower mortgage rates (Investopedia).
  • Inflation: High inflation, as seen in the 1970s and early 1980s, pushes mortgage rates upward as lenders demand higher returns to offset rising prices. Conversely, low inflation or deflationary pressures during recessions can lead to lower rates, as observed in the 1990s and 2000s.
  • Economic Demand: Recessions typically reduce demand for mortgages due to job losses and economic uncertainty. Lower demand can lead lenders to offer competitive rates to attract borrowers, contributing to rate declines.
  • Bond Market Dynamics: Mortgage rates are closely tied to the yield on 10-year Treasury bonds. During economic uncertainty, investors often seek safe-haven assets like bonds, increasing bond prices and lowering yields, which pulls mortgage rates down.

Do Mortgage Rates Always Drop During Recessions?

Historical data indicates that mortgage rates do not always drop during recessions. In the 1973-1975 and 1980 recessions, rates were either stable or increasing due to high inflation and economic instability. The 1981-1982 recession saw rates peak at historic highs before beginning to decline. However, in more recent recessions (1990-1991, 2001, 2007-2009, and 2020), rates consistently decreased, often starting before or during the recession and continuing afterward.

This shift reflects changes in Federal Reserve policy over time. Since the 1990s, the Fed has been more proactive in cutting interest rates and implementing measures like quantitative easing to combat recessions, directly impacting mortgage rates. Additionally, lower inflation in recent decades has reduced upward pressure on rates, unlike the high-inflation environment of the 1970s and early 1980s.

Implications for Homebuyers

For homebuyers, a recession can present opportunities if mortgage rates drop, as lower rates reduce borrowing costs and increase affordability. For example, during the 2007-2009 Great Recession, rates fell to the 5% range, making homeownership more accessible for some. Similarly, the record-low rates in 2020-2021 spurred a surge in homebuying and refinancing (LendingTree).

However, recessions also bring economic challenges, such as job losses and reduced consumer confidence, which can make homebuying riskier. Home prices may also decline during recessions due to lower demand, as noted in projections for a potential 2025 recession. Homebuyers should weigh these factors and consult financial advisors to assess their personal circumstances.

In Conclusion

So, to circle back to our original question: Do mortgage rates go down during an economic recession? While it's not a sure thing, historical evidence suggests that they often do, especially in more recent times. This is largely due to the Fed's response to economic downturns, but factors like inflation can also play a role.

Ultimately, the decision of whether or not to buy a home during a recession is a personal one. It depends on your financial situation, your risk tolerance, and your long-term goals. By understanding the factors that influence mortgage rates, you can make a more informed decision.

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Today’s 5-Year Adjustable Rate Mortgage is Down by 5 Basis Points – June 22, 2025

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If you're considering a home purchase or refinance, you're likely wondering about the best option for you. As of June 22, 2025, the national average rate for a 5-Year Adjustable Rate Mortgage (ARM) is 7.03%. Let's explore whether a 5-year ARM is an appropriate option for you, considering the current interest rate environment.

Today's 5-Year Adjustable Rate Mortgage is Down by 5 Basis Points – June 22, 2025

Let's dive right in. According to Zillow, here's a snapshot of the key mortgage rates:

  • 30-Year Fixed Rate Mortgage: 6.90%
  • 15-Year Fixed Rate Mortgage: 5.92%
  • 5-Year ARM Mortgage: 7.03%

While the 30-year fixed rate remains a popular choice, the 5-year ARM is also a significant contender, particularly for those who don't plan to stay in their homes for the long haul.

A Closer Look at the 5-Year ARM

So, what exactly is a 5-year ARM? It's a type of mortgage where the interest rate is fixed for the first five years. After this initial period, the rate adjusts annually based on prevailing market conditions. Think of it as a hybrid – a bit of the stability of a fixed-rate mortgage combined with the potential for savings (or risks) of an adjustable-rate mortgage.

The current national average 5-year ARM mortgage rate is down 5 basis points from 7.08% to 7.03%.

To put it simply, the current rate is:

  • 7.03% on conforming loans
  • 7.65% on Jumbo loans

Why Consider a 5-Year ARM?

There are several reasons why a 5-year ARM might be an attractive option.

  • Lower Initial Interest Rate: Typically, ARMs offer lower initial interest rates compared to fixed-rate mortgages. This can translate to significant savings in your monthly payments during the first five years.
  • Short-Term Homeownership: If you know you'll only be in the home for a few years, a 5-year ARM could be a great choice. You can take advantage of the lower interest rate during your time there and avoid the risk of rate adjustments.
  • Anticipation of Lower Rates: If you believe interest rates will fall in the future, an ARM could be beneficial. When the rate adjusts, it has the potential to decrease, lowering your monthly payments.

The Risks and Considerations of an ARM

It's essential to understand the potential downsides of a 5-year ARM:

  • Interest Rate Adjustments: The biggest risk is the uncertainty of future interest rate adjustments. If rates rise, your monthly payments could increase significantly.
  • Caps on Adjustments: While ARMs have caps on how much the interest rate can adjust, these caps may not be enough to protect you from a substantial increase in your monthly payments.
  • Complexity: ARMs can be more complex than fixed-rate mortgages. It's crucial to understand the terms and conditions of the loan, including how often the rate adjusts, the index it's tied to, and the caps on adjustments.

Comparing Mortgage Rates: A Detailed Breakdown

To help you make an informed decision, let's compare the current mortgage rates for different loan types as of June 22, 2025:

Conforming Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.90% down 0.03% 7.37% down 0.02%
20-Year Fixed Rate 6.27% down 0.23% 6.75% down 0.15%
15-Year Fixed Rate 5.92% down 0.09% 6.23% down 0.08%
10-Year Fixed Rate 6.01% up 0.01% 6.10% down 0.17%
7-year ARM 7.36% up 0.03% 7.83% down 0.09%
5-year ARM 7.03% down 0.30% 7.73% down 0.13%
3-year ARM — 0.00% — 0.00%

Source: Zillow

Government Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 7.40% up 0.57% 8.44% up 0.58%
30-Year Fixed Rate VA 6.39% down 0.01% 6.57% down 0.04%
15-Year Fixed Rate FHA 5.63% down 0.15% 6.64% down 0.11%
15-Year Fixed Rate VA 5.89% down 0.04% 6.18% down 0.09%

Jumbo Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate Jumbo 7.23% down 0.11% 7.63% down 0.13%
15-Year Fixed Rate Jumbo 6.45% down 0.16% 6.72% down 0.15%
7-year ARM Jumbo 7.53% 0.00% 8.06% 0.00%
5-year ARM Jumbo 7.65% down 0.07% 8.05% down 0.06%
3-year ARM Jumbo — 0.00% — 0.00%

Is a 5-Year ARM Right for You?

Deciding whether a 5-year ARM is the right choice depends entirely on your individual circumstances. Consider the following questions:

  • How long do you plan to stay in the home? If it's less than five years, an ARM could be a good option.
  • What is your risk tolerance? Are you comfortable with the possibility of your monthly payments increasing?
  • What are your financial goals? Are you prioritizing saving money in the short term or seeking long-term stability?

Fixed vs ARM: Which One Wins?

In the fixed versus ARM debate, there's no universal winner. Both have their pros and cons:

  • Fixed-Rate Mortgage: Offers stability and predictability. Your interest rate and monthly payments remain the same for the life of the loan.
  • Adjustable-Rate Mortgage: Offers the potential for lower initial interest rates and monthly payments but carries the risk of rate adjustments.

My Final Thoughts and Recommendations

As someone who has navigated the mortgage maze myself, I can tell you that there's no one-size-fits-all solution. I always suggest working closely with a reputable mortgage lender to explore your options and understand the potential risks and rewards. Don't be afraid to ask questions and seek clarification on anything you don't understand.

In conclusion, the 5-year ARM at 7.03% (as of June 22, 2025) can be a strategic financial move if it aligns with your personal circumstances and risk tolerance. Carefully consider your individual situation and consult with a financial professional to make the best decision for your needs.

Capitalize on Lower ARM Rates Before They Rise Again

With fluctuating adjustable-rate mortgages (ARMs), savvy investors are exploring flexible financing options to maximize returns.

Norada offers a curated selection of ready-to-rent properties in top markets, helping you capitalize on current mortgage trends and build long-term wealth.

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Mortgage Rates Today – June 22, 2025: Rates Drop Marginally Across the Board

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As of June 22, 2025, mortgage rates have slightly dropped, with the national average 30-year fixed mortgage rate at 6.88%, down from 6.89% last week, as reported by Zillow. This downward trend can also be seen in the average 15-year fixed mortgage rate, which decreased to 5.91% from 5.92%. These changes signify a modest yet significant moment for potential homebuyers and those looking to refinance their existing loans.

Mortgage Rates Today – June 22, 2025: Rates Drop Marginally Across the Board

Key Takeaways

  • Current average 30-year mortgage rate: 6.88%
  • Current average 15-year mortgage rate: 5.91%
  • Refinance rates for 30-year fixed loans: 7.20%
  • Rates are slightly down compared to last week for most loan types

Current Mortgage Rates Overview

Understanding today’s mortgage rates is crucial for both homebuyers and those looking to refinance an existing loan. On June 22, 2025, data depict that mortgage rates are experiencing a mild decrease, which could benefit those seeking new loans or considering refinancing their current terms. The following tables summarize the current mortgage rates for various loan types.

Mortgage Rates by Loan Type

Loan Type Current Rate 1-Week Change APR 1-Week Change
30-Year Fixed 6.88% down 0.05% 7.36% down 0.03%
20-Year Fixed 6.20% down 0.30% 6.68% down 0.22%
15-Year Fixed 5.91% down 0.10% 6.23% down 0.08%
10-Year Fixed 6.01% up 0.01% 6.10% down 0.17%
7-Year ARM 7.36% up 0.03% 7.83% down 0.09%
5-Year ARM 6.99% down 0.35% 7.73% down 0.13%
3-Year ARM — 0.00% — 0.00%

Refinance Rates by Loan Type

Loan Type Current Rate 1-Week Change APR 1-Week Change
30-Year Fixed Refi 7.20% up 0.04% 7.36% down 0.03%
15-Year Fixed Refi 6.06% up 0.04% 6.23% down 0.08%
5-Year ARM Refi 7.50% unchanged — —

Source: Zillow

Trends in Mortgage Rates

Over the preceding weeks leading up to June 22, 2025, there has been a noticeable trend of decreasing mortgage rates. This decline poses an advantageous opportunity for potential homebuyers. Specifically, the 30-year fixed mortgage rates have decreased by 5 basis points this week alone from a previous average of 6.93%, indicating a positive shift in borrowing costs for consumers. This is particularly encouraging for first-time homebuyers who may have found the higher rates of the past couple of years daunting.

Conversely, for those interested in refinancing, the current national average for 30-year fixed refinance loans is 7.20%, which shows a slight increase from the previous week’s rate of 7.16%. The fluctuation in refinance rates reflects broader economic factors, including changes in the Federal Reserve's monetary policy and market demands.

Refinancing Options in Today’s Market

Refinancing remains a viable option for homeowners looking to either lower their monthly payments or tap into their home equity. Mortgage rates for refinance options include both fixed and adjustable-rate mortgages (ARMs).

  • Fixed-rate loans provide stability in monthly payments, ideal for those looking for predictability over a long term. For example, if you currently have a mortgage at a higher interest rate, refinancing to a lower fixed rate can save you hundreds of dollars each month. This stability can be particularly useful during times of economic uncertainty.
  • Adjustable-rate mortgages (ARMs) can initially offer lower rates compared to fixed options, but they carry a risk as rates can change over time. For instance, a homebuyer who secures a 5-year ARM might benefit from a lower initial payment, but if interest rates rise after the initial period, their payments could significantly increase.

According to a report by the Mortgage Bankers Association, rates are projected to remain around 6.8% through September, before trending slightly lower by year-end. This ongoing variability presents a particularly appealing scenario for those looking to refinance, as even a small drop in rates could result in major savings over the life of a loan.

Fannie Mae and Long-Term Forecasts

The long-term outlook for mortgage rates remains cautiously optimistic, with projections from Fannie Mae estimating rates to fall to 6.1% by the end of 2025, and further to 5.8% in 2026. These predictions should excite potential buyers, as lower rates can lead to cheaper mortgage payments. The Federal Reserve's ongoing efforts to combat inflation have led to frequent adjustments in interest rates, but the overall forecast suggests a more stable environment for borrowers.

Fannie Mae's updated forecast for home sales has also been revised to 4.92 million, indicating a healthy demand for housing despite economic uncertainties. The continued rise in home sales could lead to increased competition and may even drive prices up, meaning potential homebuyers should stay informed and consider their options carefully.

Economic Influences on Mortgage Rates

The current economic environment plays a significant role in shaping mortgage rates. Global economic conditions, inflation rates, and the Federal Reserve's interest rate decisions heavily influence the mortgage market. As inflation continues to pose challenges, mortgage rates might experience variability that can either hinder or help potential buyers.

Economic reports show that as inflation remains above desired levels, the Federal Reserve is likely to maintain its cautious approach. For instance, insights from various economic analysts suggest that average mortgage rates might stabilize between 6.8% and 6.9% over the summer months. For prospective homebuyers, understanding these dynamics is vital. Timing the market can often mean the difference between securing a great rate and settling for one that doesn’t match financial goals.

How to Find Your Way Through Getting a Mortgage

When it comes to obtaining a mortgage, it's not just about the rates. Several factors must be considered:

  1. Credit Score: The higher your credit score, the better the interest rate you may qualify for. Lenders typically reserve their best rates for borrowers with excellent credit. Therefore, focusing on improving your credit score can be a strong strategy for securing a favorable rate.
  2. Down Payment: The size of your down payment can significantly influence your mortgage terms. A larger down payment can potentially lower your monthly payments and eliminate the need for private mortgage insurance (PMI), further reducing your overall costs.
  3. Loan Type: Choosing between conforming loans, FHA loans, VA loans, and others can impact interest rates as well. Each has unique benefits and requirements, catering to different borrower profiles.
  4. Lender Fees: Beyond interest rates, potential borrowers should watch out for origination fees, closing costs, and other lender fees that could inflate the overall cost of the mortgage. It's often advisable to compare multiple offers to find the best overall deal.

Homebuyer Sentiment and Market Reaction

As mortgage rates fluctuate, so does the sentiment among homebuyers. A decline in rates typically translates to increased activity in the housing market as buyers rush to secure lower payments. According to recent surveys, buyers are becoming increasingly optimistic about their home-buying prospects as rates have dipped, demonstrating that confidence can play a huge role in market dynamics.

Real estate experts have noted a resurgence in buyer interest in recent weeks, suggesting that potential homebuyers are responding positively to the lower rates. This renewed enthusiasm can, in turn, stimulate growth in the housing market, creating a ripple effect that benefits various sectors of the economy, including construction, renovation, and real estate services.

Summary:

As we observe the trends in mortgage rates, June 22, 2025, stands as a pivotal date for those interested in home loans or refinancing options. With rates dropping slightly for most types of loans, now may be a favorable time to consider taking a plunge into the housing market or refinancing an existing mortgage. Homebuyers and homeowners alike should stay on top of these developments and work closely with their lenders to make the most informed financial decisions, ensuring favorable outcomes even in uncertain economic times.

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:

Today’s 5-Year Adjustable Rate Mortgage Drops Substantially by 31 Basis Points – June 21, 2025

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Thinking about buying a home or refinancing your current mortgage? You're probably keeping a close eye on interest rates. As of today, June 21, 2025, the national average 5-year Adjustable Rate Mortgage (ARM) rate is 7.10%. This is a significant drop of 31 basis points from last week. Let's dive deeper into what this means for you and whether a 5-year ARM is the right choice. I will explore current mortgage rate trends, the pros and cons of ARMs, and factors to consider before making a decision.

Today's 5-Year Adjustable Rate Mortgage Drops Substantially by 31 Basis Points – June 21, 2025

Mortgage rates are constantly in flux, influenced by a variety of economic factors. As of June 21, 2025, here's a snapshot of where things stand, according to the data available from Zillow:

  • 30-Year Fixed Rate: 6.89% (down from 6.93% last week)
  • 15-Year Fixed Rate: 5.93% (down from 6.01% last week)
  • 5-Year ARM: 7.10% (down from 7.41% last week)

It's interesting to see the 5-year ARM trending lower than the more popular 30- year fixed rate. While a 0.31% decrease to 7.10% gives some relief, it is still crucial to weigh the pros and cons carefully.

Here's a quick comparison of the rate environment for various loan types:

Program Rate 1 Week Change APR 1 Week Change
30-Year Fixed Rate 6.89% Down 0.04% 7.35% Down 0.04%
15-Year Fixed Rate 5.93% Down 0.08% 6.23% Down 0.08%
5-Year ARM 7.10% Down 0.24% 7.76% Down 0.10%

What is a 5-Year ARM and How Does it Work?

A 5-year ARM is a mortgage with an interest rate that's fixed for the first five years. After that, the interest rate adjusts annually based on prevailing market conditions. These mortgages are often appealing because they typically offer lower initial interest rates than fixed-rate mortgages. This can translate to lower monthly payments during the initial fixed-rate period.

Here’s a breakdown:

  • Initial Fixed-Rate Period: The first five years, your interest rate remains the same, regardless of what happens in the market.
  • Adjustment Period: After five years, your interest rate adjusts – usually once per year. The adjustment is typically tied to an index, like the Secured Overnight Financing Rate(SOFR), plus a margin.
  • Rate Caps: ARMs come with rate caps, which limit how much the interest rate can increase:
    • Initial Cap: Limits the first interest rate adjustment.
    • Periodic Cap: Limits how much the interest rate can change in subsequent adjustment periods.
    • Lifetime Cap: Sets the maximum interest rate you'll ever pay over the loan's life. I always emphasize to buyers to understand these caps cold.

Advantages of a 5-Year ARM

  • Lower Initial Interest Rate: This is the biggest draw for most people. A lower rate translates to lower monthly payments in the initial years.
  • Potential Savings: If interest rates remain stable or decline after the fixed-rate period, you could save money over the life of the loan if the adjustable rate goes below the fixed rate you could have secured.
  • Good for Short-Term Homeownership: These are very useful if you anticipate moving or refinancing before the adjustment period begins.

Disadvantages of a 5-Year ARM

  • Interest Rate Risk: The biggest drawback. If interest rates rise after the fixed-rate period, your monthly payments will increase, and those increases can be substantial based on market conditions.
  • Complexity: ARMs can be more complex to understand than fixed-rate mortgages. You need to understand the index, margin, and rate caps. I highly recommend speaking with a mortgage professional.
  • Uncertainty: It's hard to predict where interest rates will be in five years, add budget accordingly. This uncertainty can make it difficult to budget for the future.

Is a 5-Year ARM Right for You? Consider These Factors

Before jumping into a 5-year ARM, ask yourself these questions:

  • How long do you plan to stay in the home? If you expect to move within five years, a 5-year ARM might be a great option as you could avoid the adjustment period altogether.
  • What's your risk tolerance? Are you comfortable with the risk that your interest rate, and therefore your monthly payment, could increase significantly in the future?
  • Can you afford higher payments? If interest rates rise substantially, could you still afford your monthly mortgage payments? I highly recommend stress-testing this possibility.
  • What are your long-term financial goals? How does the potential for adjustable rates fit into your overall financial plan?
  • Look at the Margin and Index: The fully indexed rate should be carefully considered and understood.

Comparing Government and Jumbo Loan 5-Year ARM Rates

It's also helpful to consider how the 5-year ARM rates compare across different loan types:

  • Conforming Loans: As highlighted above, the current rate is 7.10%.
  • Jumbo Loans: The 5-year ARM Jumbo sits higher, at 7.90%, reflecting the increased risk associated with larger loan amounts.
  • Government Loans The 5-year ARM is not available.

Fixed vs. Adjustable: A Quick Table

Feature Fixed-Rate Mortgage Adjustable-Rate Mortgage (ARM)
Interest Rate Remains the same for the life of the loan. Changes periodically after the initial fixed-rate period.
Monthly Payments Predictable and consistent. Can fluctuate, depending on interest rate changes.
Risk Lower, since payments are stable. Higher, due to the potential for rising interest rates.
Complexity Easier to understand. More complex, requiring understanding of indexes, margins, & caps.
Best For Those who value stability and long-term predictability. Those with shorter time horizons or higher risk tolerance.

The Importance of APR (Annual Percentage Rate)

While the interest rate is important, it's also crucial to pay attention to the APR. The APR includes not only the interest rate but also other fees and charges associated with the loan, such as:

  • Origination fees
  • Discount points
  • Other closing costs

Because the APR includes these additional costs, it provides a more accurate picture of the overall cost of the loan. Always compare APRs, not just interest rates, when shopping for a mortgage.

Summary:

The 5-year ARM can be a strategic financial tool if used wisely. Given the current rate environment as of June 21, 2025, with the average hovering around 7.10%, it might be tempting if you're after a lower initial payment. However, it's imperative to weigh the risks carefully. If you're planning on moving in less than five years, or if you are comfortable with the possibility of fluctuating payments, it could be the right choice. But if you crave stability and predictability, a fixed-rate mortgage might be a better fit. Consulting with multiple lenders and financial advisors is essential to assess your particular circumstances and make the right decision.

Remember, knowledge is power. Understand all aspects of a 5-year ARM before committing. Your home is likely the biggest investment you'll ever make, so proceed with caution, do your homework, and make sure it aligns with your long-term financial goals.

Capitalize on Lower ARM Rates Before They Rise Again

With fluctuating adjustable-rate mortgages (ARMs), savvy investors are exploring flexible financing options to maximize returns.

Norada offers a curated selection of ready-to-rent properties in top markets, helping you capitalize on current mortgage trends and build long-term wealth.

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(800) 611-3060

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Mortgage Rates Today – June 21, 2025: 30-Year and 15-Year Fixed Rates Go Down

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As of June 21, 2025, mortgage rates have seen a slight drop. The national average for a 30-year fixed mortgage rate is now at 6.88%, down from 6.91% in the previous week. This decrease reflects recent trends in the housing market and indicates that current mortgage rates are lower compared to previous weeks. Similarly, average refinance rates for various loan types have either decreased or remained steady.

Today's Mortgage Rates – June 21, 2025: Rates Decline Slightly

Key Takeaways

  • 30-Year Fixed Rate: Currently at 6.88%, down 3 basis points from the last week.
  • 15-Year Fixed Rate: Now at 5.93%, experiencing a minor decline.
  • 5-Year ARM: Dropped significantly to 7.05%.
  • 30-Year Fixed Refinance Rate: Increased slightly to 7.15%.
  • Market Trends: The Mortgage Bankers Association projects stability in mortgage rates for the near future.

Understanding Current Mortgage Rates

Today's mortgage rates are shaped by a variety of factors, including economic indicators, Federal Reserve policies, and borrower demand. On June 21, 2025, we can observe that borrowers are benefiting from slightly lower mortgage rates for the most common types of loans.

The current average rates for different mortgage types can be summarized as follows, based on recent data from Zillow:

Loan Type Current Rate 1-Week Change APR 1-Week Change
30-Year Fixed 6.88% -0.05% 7.33% -0.06%
20-Year Fixed 6.44% -0.06% 6.90% 0.00%
15-Year Fixed 5.93% -0.08% 6.21% -0.09%
10-Year Fixed 5.87% -0.13% 6.23% -0.04%
5-Year ARM 7.05% -0.36% 7.74% -0.12%
7-Year ARM 7.56% +0.24% 7.94% +0.02%

This slight downward trend in 30-year fixed rates is remarkable in an environment where larger economic concerns tend to keep interest rates variable. With the Federal Reserve signaling a hold on any rate hikes, this serves to reinforce expectations for stability in mortgage rates throughout the upcoming months.

Current Refinance Rates

For homeowners considering refinancing, the current rates are just as pertinent. The average for a 30-year fixed refinance rate has risen slightly to 7.15%, up 2 basis points from 7.13% observed last week. In contrast, the average 15-year fixed refinance rate has seen a subtle lift to 6.04%, marking a small increase of 1 basis point.

Here’s a breakdown of the current refinance rates based on recent data from Zillow:

Refinance Type Current Rate 1-Week Change APR 1-Week Change
30-Year Fixed 7.15% +0.02% 7.33% -0.06%
15-Year Fixed 6.04% +0.01% 6.21% -0.09%
5-Year ARM 8.05% N/A N/A N/A

Refinancing opportunities remain attractive, even amidst the small increases observed in certain fixed terms. Homeowners wishing to tap into their home's equity or lock in a lower monthly payment can still find options that make it worthwhile.

Fixed Rate vs Adjustable Rate Mortgages

It’s essential to understand the difference between fixed and adjustable-rate mortgages (ARMs) when evaluating mortgage rates. Fixed-rate mortgages offer stability by maintaining a set interest rate for the life of the loan, which makes budgeting more predictable for homeowners. Conversely, ARMs can adapt over time, often starting with lower initial rates but may increase after a predetermined period based on market conditions.

Currently, the 5-year ARM has seen a notable decrease, landing at 7.05%, whereas the 7-year ARM has experienced a slight uptick to 7.56%. The decision between a fixed and adjustable rate mortgage often depends on individual preferences—especially with the potential variability in monthly payments for ARMs in the future.

Economic Factors Affecting Mortgage Rates

The broader economic environment significantly influences mortgage rates. Key factors include the state of the economy, inflation rates, employment statistics, and the actions of the Federal Reserve. Right now, the Fed is holding steady with interest rates, which reassures the market and keeps mortgage rates relatively stable.

One critical point to note is that mortgage rates tend to rise in line with inflation. Despite recent increases in inflationary pressures, consumers and economists alike are hopeful that a robust job market and continued domestic growth will help to keep rates within a manageable range.

Looking Ahead: Market Predictions

With the economic indicators showing a mixed but cautiously optimistic outlook, mortgage rates appear poised to remain steady through the latter half of 2025 and into 2026. According to the Mortgage Bankers Association, there continues to be modest growth in home purchasing applications relative to last year, which is a promising sign for both sellers and potential buyers.

Fannie Mae's forecast suggests that rates may settle around 6.1% by the end of 2025 and further decline to 5.8% by 2026, indicating a slow but steady improvement in borrowing conditions. This outlook not only helps buyers plan their future home purchases but also comforts existing homeowners contemplating refinancing at more favorable terms.

The Importance of Shopping Around

In a fluctuating market, one of the best strategies for consumers is to shop around and compare offers from different lenders. Rates and terms can vary widely depending on the lender’s qualifications and policies. Homebuyers are encouraged to obtain multiple quotes to ensure they secure the best rate possible. Additional factors often come into play, such as discount points, closing costs, and lender fees, all of which can impact the total cost of the mortgage.

Refinancing: A Viable Option for Homeowners

Refinancing remains a viable option for many homeowners seeking lower rates or better payment terms. With mortgage rates hovering around their current levels, many homeowners may find it advantageous to refinance. Keeping track of rate trends can assist homeowners in deciding the best time to enter the refinancing market.

The current uptick in refinancing rates reflects broader economic conditions, yet many homeowners still find substantial savings. It's essential for homeowners to consider their long-term plans, as refinancing involves costs and should align with their financial goals.

Summary: Mortgage rates on June 21, 2025, showcase a slight decline for fixed-rate mortgages while refinancing rates are mixed, indicating that potential homebuyers and existing homeowners looking to refinance should closely monitor the market. Although there is no rush, as current trends suggest that rates will likely stabilize, making smart decisions today can have lasting benefits in the future.

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.

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Today’s 5-Year Adjustable Rate Mortgage Jumps by 68 Basis Points – June 20, 2025

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Are you thinking about buying a home? Or maybe refinancing your existing mortgage? If so, you're probably keeping a close eye on mortgage rates. Today, June 20, 2025, we're seeing some movement in the market, particularly with Adjustable Rate Mortgages (ARMs). According to Zillow, the 5-year Adjustable Rate Mortgage, in particular, has risen significantly, climbing 68 basis points to an average of 7.62%. This means that if you're considering this type of loan, you'll be paying more than you would have just a week ago. Let's break down what's happening and what it might mean for you.

Today's 5-Year Adjustable Rate Mortgage Jumps by 68 Basis Points – June 20, 2025

While the 30-year fixed mortgage rate remains steady at 6.93%, and even the 15-year fixed rate saw a slight decrease to 5.97%, the jump in the 5-year ARM is definitely something to pay attention to. It highlights the dynamic nature of the mortgage market and the factors that influence interest rates.

Here's a quick overview of the key changes as of today:

  • 30-Year Fixed: 6.93% (No change from last week)
  • 15-Year Fixed: 5.97% (Down 0.03% from last week)
  • 5-Year ARM: 7.62% (Up 0.29% from last week)

Digging Deeper: Why the 5-Year ARM Increase Matters

You might be asking, “Okay, so the 5-year ARM went up. Why should I care?” Well, here's the deal: ARMs are different from fixed-rate mortgages. With a fixed-rate mortgage, your interest rate stays the same for the entire loan term (usually 15 or 30 years). With an ARM, the interest rate is fixed for a specific period (in this case, 5 years) and then adjusts periodically based on market conditions.

  • Initial Savings: ARMs often start with lower interest rates than fixed-rate mortgages. This can make them attractive to borrowers who are looking to save money on their initial monthly payments.
  • Risk of Rate Increases: However, the big risk is that your interest rate can go up after the initial fixed-rate period ends. If interest rates rise significantly, your monthly payments could increase substantially, potentially straining your budget.

Who is Considering ARMs

  • First time home buyers
  • People expecting to move within five years
  • People who believe interest rates will reduce in the future

The Impact on Homebuyers: Is a 5-Year ARM Still a Good Idea?

Given the rise in the 5-year ARM rate, it's crucial to carefully consider whether this type of loan is right for you. Here's what I would advise:

  • Assess Your Risk Tolerance: How comfortable are you with the possibility of your mortgage payments increasing in the future? If you're risk-averse, a fixed-rate mortgage might be a better option.
  • Consider Your Short-Term Plans: Do you plan to stay in your home for the long term? If you think you might move within the next 5 years, an ARM could be a good way to save money on interest during that time.
  • Evaluate Your Financial Situation: Can you afford to make higher mortgage payments if interest rates rise? It's essential to run the numbers and make sure you have enough wiggle room in your budget.

Understanding the Numbers: A Detailed Breakdown of Mortgage Rates

To give you a clearer picture, let's take a closer look at the different types of mortgage rates available today:

Table 1: Conforming Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.93% 0.00% 7.38% 0.00%
20-Year Fixed Rate 6.79% Up 0.30% 7.14% Up 0.23%
15-Year Fixed Rate 5.97% Down 0.03% 6.27% Down 0.04%
10-Year Fixed Rate 5.87% Down 0.13% 6.23% Down 0.04%
7-year ARM 7.56% Up 0.24% 7.94% Up 0.02%
5-year ARM 7.62% Up 0.29% 8.00% Up 0.14%
3-year ARM — 0.00% — 0.00%

Table 2: Government Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 7.63% Up 0.80% 8.67% Up 0.82%
30-Year Fixed Rate VA 6.42% Up 0.02% 6.64% Up 0.03%
15-Year Fixed Rate FHA 5.63% Down 0.15% 6.59% Down 0.16%
15-Year Fixed Rate VA 5.97% Up 0.04% 6.33% Up 0.05%

Table 3: Jumbo Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate Jumbo 7.41% Up 0.07% 7.80% Up 0.05%
15-Year Fixed Rate Jumbo 6.82% Up 0.21% 7.01% Up 0.14%
7-year ARM Jumbo 7.53% 0.00% 8.06% 0.00%
5-year ARM Jumbo 7.74% Up 0.02% 8.08% Down 0.03%
3-year ARM Jumbo — 0.00% — 0.00%

Important Considerations Beyond the Interest Rate

  • APR (Annual Percentage Rate): Pay close attention to the APR, which includes not only the interest rate but also other fees and costs associated with the mortgage. The APR gives you a more accurate picture of the total cost of the loan.
  • Points: Lenders may charge points, which are upfront fees that you pay to lower your interest rate. One point is equal to 1% of the loan amount.
  • Closing Costs: Don't forget to factor in closing costs, which can include things like appraisal fees, title insurance, and recording fees.

Looking Ahead: What Could Happen Next?

Predicting the future of mortgage rates is always tricky. Several factors can influence rates, including:

  • The Overall Economy: If the economy is strong, interest rates may rise. If the economy is weak, interest rates may fall.
  • Inflation: High inflation can lead to higher interest rates.
  • Federal Reserve Policy: The Federal Reserve's decisions about interest rates can have a significant impact on mortgage rates.

Ultimately, the best approach is to stay informed, consult with a mortgage professional, and make a decision that aligns with your individual circumstances.

My Final Thoughts:

The rise in the 5-year ARM rate is a reminder that the mortgage market is constantly evolving. Don't let it scare you off from pursuing your homeownership goals, but do take the time to understand the risks and make informed decisions!

Remember, purchasing a home is a huge investment and it is necessary that all options are considered before jumping to any conclusion. And seek professional advice!

Capitalize on Lower ARM Rates Before They Rise Again

With fluctuating adjustable-rate mortgages (ARMs), savvy investors are exploring flexible financing options to maximize returns.

Norada offers a curated selection of ready-to-rent properties in top markets, helping you capitalize on current mortgage trends and build long-term wealth.

HOT NEW LISTINGS JUST ADDED!

Connect with an investment counselor today (No Obligation):

(800) 611-3060

Get Started Now

Today’s Mortgage Refinance Rates Surge Above 7% – June 20, 2025

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If you're thinking about refinancing your mortgage, you're probably wondering what's happening with interest rates. As of today, national average 30-year fixed refinance rates have surged beyond 7%, climbing to 7.15%. This increase might make you question whether refinancing is still a smart financial move. But don't worry, I'm here to take a closer look at what's driving these rates and help you decide if refinancing makes sense for your situation.

Today's Mortgage Refinance Rates Surge Above 7%: Is Refinancing Still Worth It?

Let's face it, keeping up with mortgage rates is like riding a rollercoaster. One minute they're down, the next they're spiking. According to Zillow, as of June 20, 2025, the average 30-year fixed refinance rate sits at 7.15%, a slight increase from the previous week's 7.14%. The 15-year fixed refinance rate also saw a bump, inching up to 6.04%.

Breaking Down the Numbers

To give you a clearer picture, here’s a breakdown of current refinance rates for various loan types:

Conforming Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate 6.95% up 0.02% 7.40% up 0.01%
20-Year Fixed Rate 6.79% up 0.30% 7.14% up 0.23%
15-Year Fixed Rate 6.02% up 0.01% 6.31% 0.00%
10-Year Fixed Rate 5.87% down 0.13% 6.23% down 0.04%
7-year ARM 7.56% up 0.24% 7.94% up 0.02%
5-year ARM 7.59% up 0.26% 7.98% up 0.12%
3-year ARM — 0.00% — 0.00%

Government Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate FHA 6.25% down 0.46% 7.26% down 0.48%
30-Year Fixed Rate VA 6.56% down 0.01% 6.78% up 0.01%
15-Year Fixed Rate FHA 5.99% up 0.22% 6.96% up 0.22%
15-Year Fixed Rate VA 5.98% up 0.01% 6.34% up 0.04%

Jumbo Loans

PROGRAM RATE 1W CHANGE APR 1W CHANGE
30-Year Fixed Rate Jumbo 7.25% down 0.36% 7.48% down 0.48%
15-Year Fixed Rate Jumbo 6.86% up 0.45% 7.00% up 0.43%
7-year ARM Jumbo — 0.00% — 0.00%
5-year ARM Jumbo 9.03% down 0.22% 8.74% down 0.18%
3-year ARM Jumbo — 0.00% — 0.00%

These rates change daily, so stay vigilant.

Why Are Refinance Rates on the Rise?

Several factors contribute to the fluctuations in mortgage refinance rates. These include:

  • Economic Conditions: Overall economic health, including inflation, employment rates, and GDP growth, plays a significant role. Stronger economic data often leads to higher rates.
  • Federal Reserve Policy: The Federal Reserve's monetary policy, particularly decisions regarding the federal funds rate, has a direct impact on interest rates across the board.
  • Bond Market Activity: Mortgage rates are closely tied to the bond market, specifically the yield on 10-year Treasury bonds. When bond yields rise, mortgage rates tend to follow suit.
  • Investor Sentiment: Market sentiment and investor confidence can also influence rates. Uncertainty or volatility in the market can lead to rate fluctuations.

Is Refinancing Still a Good Idea with Rates Above 7%?

Okay, so rates are up. Does that automatically disqualify refinancing? Not necessarily. Here's my take on it:

  • Assess Your Current Situation: Start by looking at your existing mortgage. What's your current interest rate, loan term, and monthly payment? How much equity do you have in your home? For example, are you paying on an interest rate higher than 8%? If so, refinancing might prove to be advantageous.
  • Crunch the Numbers: Use a mortgage refinance calculator to figure out the interest rate that would make refinancing worthwhile. Factor in all the costs involved, such as appraisal fees, closing costs, and any prepayment penalties on your existing loan. It's almost basic math… Don't get fooled by too good-to-be-true offers.
  • Consider Your Goals: What are you hoping to achieve by refinancing? Are you looking to lower your monthly payment, shorten your loan term, switch from an adjustable-rate to a fixed-rate mortgage, or tap into your home equity for other financial needs? All these are advantages.
  • Think Long-Term: Even if you don't see immediate savings, refinancing could still be beneficial in the long run. For example, switching from an ARM (Adjustable Rate Mortgage) to a fixed-rate loan provides more predictable monthly payments.

Reasons to Refinance (Even with Higher Rates)

Even with rates above 7%, refinancing can still make sense for several reasons:

  • Consolidate Debt: Refinance to take out cash and pay off high-interest debt like credit cards or personal loans.
  • Home Improvements: Use the extra cash to fund renovations that increase your home's value.
  • Eliminate PMI: If you’ve gained enough equity in your home, refinancing can allow you to eliminate private mortgage insurance (PMI), saving you money each month.
  • Change Loan Type: Transition from an adjustable-rate mortgage (ARM) to a stable, fixed-rate mortgage for predictable payments.
  • Shorten Loan Term: Shift from a 30-year to a 15-year mortgage to pay off your home faster and save on interest, even if the monthly payment is slightly higher.

Understanding Different Loan Types

When considering a refinance, it's essential to understand the different loan types available:

  • Fixed-Rate Mortgage: The interest rate remains constant throughout the life of the loan, providing predictable monthly payments.
  • Adjustable-Rate Mortgage (ARM): The interest rate is initially fixed for a set period, then adjusts periodically based on market conditions. ARMs may offer lower initial rates but come with the risk of future rate increases.
  • FHA Loans: Insured by the Federal Housing Administration, these loans are geared toward borrowers with lower credit scores and smaller down payments.
  • VA Loans: Guaranteed by the Department of Veterans Affairs, these loans are available to eligible veterans and active-duty service members. They often come with favorable terms and no down payment requirements.
  • Jumbo Loans: These loans exceed the conforming loan limits set by Fannie Mae and Freddie Mac and are used for higher-priced properties.

Tips for Getting the Best Refinance Rate

If you decide to move forward with refinancing, here are some tips to help you secure the best possible rate:

  • Improve Your Credit Score: A higher credit score demonstrates lower risk to lenders and can result in a better interest rate.
  • Shop Around: Get quotes from multiple lenders to compare rates and fees. Don't settle for the first offer you receive.
  • Consider a Shorter Loan Term: Shorter-term loans typically offer lower interest rates.
  • Offer a Larger Down Payment: If possible, increasing your equity in the home can qualify you for a lower rate.
  • Negotiate: Don't be afraid to negotiate with lenders to see if they can match or beat competing offers. This is where I always see people hesitate, you should go for it!
  • Keep an eye on mortgage rates: Fluctuations in the market can work to your advantage.

The Bottom Line

While mortgage refinance rates are currently above 7%, it doesn't mean that refinancing is off the table. Carefully evaluate your financial situation, goals, and potential savings to determine if it's the right move for you. Consider consulting with a financial advisor or mortgage professional for personalized guidance to make informed decisions.

Maximize Your Mortgage Decisions in 2025

Thinking about whether to refinance now? Timing is critical, and having the right strategy can save you thousands over the life of your loan.

Norada's team can guide you through current market dynamics and help you position your investments wisely—whether you're looking to reduce rates, pull out equity, or expand your portfolio.

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Mortgage Rates Today – June 20, 2025: Rates Jump by 5 Basis Points Affecting Buyers

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As of June 20, 2025, today's mortgage rates have seen adjustments, with the average 30-year fixed mortgage rate rising to 7.00%, up by 5 basis points from the previous day. This increase reflects a broader trend impacting both mortgage and refinance rates this week. If you are in the market for buying a home or considering refinancing, knowing these rates is essential for making informed financial decisions.

Mortgage Rates Today – June 20, 2025: Rates Rise by 5 Basis Points Affecting Buyers

Key Takeaways:

  • 30-Year Fixed Mortgage Rates: Up to 7.00%.
  • 15-Year Fixed Mortgage Rates: Increased to 6.05%.
  • 5-Year Adjustable Rate Mortgage (ARM): Rose to 7.17%.
  • Current Refinance Rates: 30-Year Fixed Refinance Rate at 7.17%.
  • Market Influence: Recent rate increases influenced by market conditions and economic factors.

In recent weeks, mortgage rates have fluctuated, causing some confusion among prospective homebuyers and homeowners looking to refinance. The current 30-year fixed mortgage rate is at 7.00%, which is a slight increase from 6.93% last week (Zillow, 2025). This rise in rates comes at a time when the Federal Reserve opted to keep short-term interest rates stable during their recent meeting. As markets react to larger economic concerns, particularly in the Middle East, mortgage rates reflect these uncertainties.

Current Mortgage Rates

Mortgage Rates by Loan Type:

Program Rate 1W Change APR 1W Change
30-Year Fixed Rate 7.00% +0.07% 7.40% +0.01%
20-Year Fixed Rate 6.79% +0.30% 7.14% +0.23%
15-Year Fixed Rate 6.05% +0.04% 6.31% 0.00%
10-Year Fixed Rate 5.87% -0.13% 6.23% -0.04%
5-Year ARM 7.17% +0.23% 7.62% -0.25%
30-Year FHA 7.69% +0.86% 8.74% +0.88%
30-Year VA 6.47% +0.07% 6.69% +0.07%

This table outlines trends among different mortgage products. The 30-year fixed-rate mortgages remain popular due to their stability over longer terms, whereas 7-year and 5-year ARMs tend to fluctuate more with market conditions.

Fluctuations in Today's Refinance Rates

If you already have a mortgage, refinancing might seem like a viable option, especially with 30-year refinance rates now at 7.17%, up from 7.14% just a week ago. The slight increases in mortgage rates reflect an environment in which refinancing rates aren’t necessarily attractive for many homeowners.

Refinance Program Rate 1W Change APR 1W Change
30-Year Fixed Refinance 7.17% +0.03% 7.40% +0.01%
20-Year Fixed Refinance 6.79% +0.30% 7.14% +0.23%
15-Year Fixed Refinance 6.05% +0.04% 6.31% 0.00%

These recent shifts highlight that the appeal of refinancing currently depends largely on individual circumstances and existing mortgage terms. While some homeowners may find it beneficial to refinance when rates are lower, the current average rates present mixed incentives.

Are Mortgage Rates Decreasing?

It's essential to distinguish between the constant changes in individual product rates and the broader market trends. Although mortgage rates are notably higher than a year ago, they are still lower than the peak levels reached in recent months. The Federal Reserve’s decision to maintain interest rates indicates a cautious approach amid global economic pressures. This has led many to speculate about how low rates could go in 2025 and whether waiting for further declines in rates is a smart financial move.

Broadly speaking, industry experts predict that even if mortgage rates stabilize or slightly dip over the coming months, the fluctuations may not offer significant reprieve for those anxious to secure lower payments. Current economic forecasts suggest that rates may settle closer to 6.2% to 6.5% by late 2025 (source: CBS News). This speculative outlook can help individuals gauge their timing when entering or exiting the housing market.

What's Influencing Mortgage Rates Right Now?

Think of mortgage rates as a complex dance, with several key players calling the tune:

  • The Federal Reserve (The Fed): The Fed's monetary policy is probably the biggest single actor. Their decisions on interest rates directly influence the rates banks charge for borrowing money, which then trickles down to mortgage rates. Keep an eye on Fed announcements for clues about future rate movements.
  • Inflation: Inflation is the nemesis of stable interest rates. When inflation is high, meaning the cost of goods and services is rising rapidly, the Fed often raises interest rates to cool down the economy. This, in turn, pushes mortgage rates higher. Conversely, if inflation is low or decreasing, mortgage rates may stay stable or even decline.
  • The Treasury Yield: The 10-year treasury yield has a direct impact on the mortgage industry. It is normally said that when Treasury Yield increases the mortage rate also increases generally.
  • Economic Growth (GDP): A strong economy typically leads to higher interest rates. When businesses are expanding, and people are employed, demand for borrowing increases, pushing rates up. Slower economic growth can lead to lower rates, as the Fed may try to stimulate the economy.
  • The Housing Market Itself: Supply and demand in the housing market play a role. When there's a lot of demand for homes and a limited supply, prices tend to rise, and interest rates may follow.

Understanding The Impact on Buyers and Homeowners

As mortgage rates rise, the most immediate impact is on affordability for homebuyers. With the average 30-year fixed-rate mortgage at 7.00%, monthly payments for a new home purchase can see substantial increases compared to previous years. To illustrate this:

  • A home priced at $350,000 financed at 7.00% results in a monthly payment of approximately $2,330 over 30 years.
  • Conversely, at a lower rate of 5.00%, that same loan's monthly payment would be around $1,879, leading to a significant difference of $451 each month.

This discrepancy underscores the importance of keeping a close watch on rate movements, whether you're looking to buy a home or refinance an existing mortgage.

How to Secure the Best Mortgage Rate

Getting the best possible mortgage rate requires preparation and strategy. Here's my advice:

  • Improve Your Credit Score: Pay your bills on time, reduce your credit card balances, and correct any errors on your credit report.
  • Save for a Larger Down Payment: The more you put down, the lower your interest rate is likely to be.
  • Shop Around Extensively: Get quotes from multiple lenders and compare the rates, fees, and terms.
  • Get Pre-Approved: Getting pre-approved for a mortgage gives you a clear idea of how much you can borrow and strengthens your negotiating position.
  • Consider a Mortgage Broker: A mortgage broker can help you find the best rates and terms from a variety of lenders.
  • Don't Be Afraid to Negotiate: Mortgage rates are not always set in stone. Don't hesitate to negotiate with lenders to see if they can offer you a better deal.

My Thoughts On Today’s Rates

Based on what I'm seeing today, June 20, 2025, here are my personal observations:

  • The Market Feels Uncertain: There's a lot of back-and-forth in the market right now. Economic indicators are sending mixed signals, contributing to rate volatility.
  • Shop Around! This cannot be stressed enough. Don't settle for the first rate you're offered. Get quotes from multiple lenders – banks, credit unions, and mortgage brokers. Rates can vary significantly.
  • Lock It In: If you find a rate you're comfortable with, I'd recommend locking it in, especially if you anticipate rates might rise further.
  • Don't Forget the Fees: APR (Annual Percentage Rate) is more important than interest rates when it comes to comparing mortgages. The true cost of a mortgage includes all fees paid to the lender including points, origination fees, etc.

Invest Smarter in a High-Rate Environment

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

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

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5-Year Adjustable Rate Mortgage Plunges Today by 23 Basis Points – June 19, 2025

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Trying to figure out the best way to finance a home can feel like navigating a maze, right? Well, here’s a little clarity for you on June 19, 2025: The national average for a 5-Year Adjustable Rate Mortgage (ARM) has dropped 23 basis points to 6.80%. This dip could be a welcome sign for some homebuyers, but let's dig deeper into what this means and whether an ARM is the right choice for you.

5-Year Adjustable Rate Mortgage Plunges Today by 23 Basis Points – June 19, 2025

Understanding the Current Mortgage Rate Environment

Before we zero in on the 5-year ARM, let's take a quick look at the broader mortgage rate picture. As of today, June 19, 2025, here's a snapshot:

  • 30-Year Fixed Rate: 6.93% (up 2 basis points from yesterday, equal to last week's average)
  • 15-Year Fixed Rate: 5.99% (up 3 basis points from yesterday)
  • 5-Year ARM: 6.80% (down 23 basis points from yesterday)

This data, provided by Zillow, gives us a good starting point to analyze the trends. The 30-year fixed rate, which is the most popular choice for homebuyers, saw a minor increase. The 15-year fixed rate also inched up. However, the notable movement is the decrease in the 5-year ARM rate.

Why the Drop in the 5-Year ARM Rate Matters

A 23-basis-point drop in the 5-year ARM rate is significant. But what exactly does it mean for potential homebuyers?

Firstly, it can translate to lower initial monthly payments compared to a 30-year fixed-rate mortgage. This can be attractive to buyers who are on a tight budget or expect their income to increase in the near future.

Secondly, it could signal a shift in the market's expectations for future interest rates. While predicting the future is impossible, movements like these often reflect underlying economic factors and investor sentiment.

Delving into Adjustable-Rate Mortgages (ARMs)

Let's break down exactly what an ARM is and how it works because, honestly, the name itself can sound a little intimidating. An ARM is a type of mortgage where the interest rate is not fixed for the entire loan term. Instead, it starts with a fixed rate period and then adjusts periodically based on a benchmark index.

The 5-year ARM, specifically, has a fixed interest rate for the first 5 years. After those 5 years, the interest rate will adjust annually based on a specific index, like the Secured Overnight Financing Rate (SOFR), plus a margin determined by the lender.

Here's a simplified example:

  • Let's say you get a 5-year ARM with an initial rate of 6.80%.
  • For the first 5 years, your interest rate stays at 6.80%.
  • After 5 years, the rate adjusts. The adjustment is based on the index (let's say SOFR currently at 5%) plus a margin (let's say 2.5%).
  • Your new interest rate would be 5% (SOFR) + 2.5% (margin) = 7.5%.

It is worthy to note that ARMs usually come with caps on how much the interest rate can increase at each adjustment and over the life of the loan. These caps are crucial to understand because they limit your potential exposure to rising rates.

Who Should Consider a 5-Year ARM?

A 5-year ARM isn't for everyone. It's important to carefully consider your financial situation and future plans before opting for one. Here are some scenarios where a 5-year ARM might be a good fit:

  • You plan to move or refinance within 5 years: If you don't anticipate staying in the home for more than 5 years, the adjustable rate aspect might not affect you.
  • You expect your income to increase significantly: If you believe your income will rise in the future, you might be comfortable with the risk of a potential rate increase.
  • You’re comfortable with some level of risk: ARMs inherently involve more risk than fixed-rate mortgages. If you're risk-averse, a fixed-rate might be a better choice.
  • You want a lower initial interest rate: ARMs typically offer lower initial interest rates than fixed-rate mortgages, which can result in lower monthly payments during the fixed-rate period.

The Risk Factor: Interest Rate Adjustments

The biggest concern with ARMs is the possibility of rising interest rates. If interest rates increase after the fixed-rate period, your monthly payments could go up, potentially straining your budget.

To mitigate this risk, it's essential to:

  • Understand the index and margin: Know which index your ARM is tied to and what the margin is. This will help you estimate potential rate adjustments.
  • Know the rate caps: Pay close attention to the periodic and lifetime rate caps. These caps limit how much your interest rate can increase.
  • Stress test your budget: Evaluate whether you can afford your mortgage payments if the interest rate rises to the maximum cap.

Comparing Different Mortgage Options

Here's a quick comparison of different mortgage types to help you make an informed decision:

Feature 30-Year Fixed Rate 15-Year Fixed Rate 5-Year ARM
Interest Rate Fixed Fixed Initially Fixed, then Adjustable
Loan Term 30 years 15 years Varies
Monthly Payments Lower Higher Lower initially, potentially higher later
Overall Cost Higher Lower Can be lower or higher depending on rate adjustments
Risk Lower Lower Higher
Suitability Long-term homebuyers, risk-averse individuals Those who want to pay off their mortgage quickly, have a stable income Short-term homebuyers, those who expect their income to increase, comfortable with risk

Beyond the Numbers: Other Factors to Consider

Mortgage rates are important, but they're not the only factors to consider when buying a home. It is important to consider the following:

  • Your credit score: A higher credit score typically qualifies you for lower interest rates.
  • Your down payment: A larger down payment can reduce your loan amount and potentially lower your interest rate.
  • Closing costs: Don't forget to factor in closing costs, which can include appraisal fees, title insurance, and other expenses.
  • Your long-term financial goals: Consider how your mortgage fits into your overall financial plan.

My Take

As a homeowner, investor, and someone who's followed the mortgage market for years, I've seen firsthand how these rates can impact people's lives. While the 23-basis-point drop in the 5-year ARM is noteworthy, it's important to approach ARMs with caution.

From what I have seen from the past, I have noticed that people often get lured into ARMs because of the lower initial rates, only to get shocked by the rate adjustments afterward. Always do your homework, understand the risks, and make sure you can comfortably afford the payments, even if rates rise. It's also helpful to consult with a mortgage professional who can provide personalized advice based on your unique situation.

Final Thoughts: The decrease in the 5-year Adjustable Rate Mortgage rate presents an intriguing option for prospective homeowners. However, it is critical, let me repeat that, CRITICAL to balance the potential benefits with the inherent risks. Thorough research, careful planning, and professional guidance are essential to ensure that you make the best decision for your financial future. As always, focus on your personal needs and make a decision based on that.

Capitalize on Lower ARM Rates Before They Rise Again

With fluctuating adjustable-rate mortgages (ARMs), savvy investors are exploring flexible financing options to maximize returns.

Norada offers a curated selection of ready-to-rent properties in top markets, helping you capitalize on current mortgage trends and build long-term wealth.

HOT NEW LISTINGS JUST ADDED!

Connect with an investment counselor today (No Obligation):

(800) 611-3060

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