On June 4, 2025, mortgage rates showed some slight upward movement for the national average 30-year fixed rate, climbing to 6.98%. This marks a minor increase of 1 basis point from the previous day but is still lower than the average rate from the week prior. For those looking to finance a home or considering a refinance, understanding these current mortgage trends is crucial. Let's dive deeper into the specifics of today's rates across different loan types and explore what these numbers mean for you.

Today's Mortgage Rates – June 4, 2025: Rates Fluctuate Across Different Loan Types

Key Takeaways:

• The national average 30-year fixed mortgage rate is currently 6.98%, up slightly from yesterday but down from last week.
• 15-year fixed mortgage rates have also seen a small increase, reaching 5.99%.
• Refinance rates for a 30-year fixed loan are at 7.25%, showing a modest rise from the previous day and a slight decrease from the week before.
• Rates vary significantly depending on the loan type (conforming, government, jumbo) and loan term.
• Experts predict mortgage rates in 2025 to potentially moderate slightly towards the end of the year.

Current Mortgage Rate Overview

Keeping a close eye on today's mortgage rates is essential whether you're a first-time homebuyer, looking to upgrade, or thinking about refinancing your existing mortgage. Several factors influence these rates daily, and even small fluctuations can impact your monthly payments and the overall cost of your loan over time. According to data released by Zillow, as of Wednesday, June 4, 2025, the national average for a 30-year fixed-rate mortgage has edged up.

It's interesting to note that while the daily change shows a slight increase, the weekly trend for the popular 30-year fixed rate indicates a decrease. This suggests that while there might be some short-term volatility, the overall direction in the past week has been slightly downward. For prospective homeowners, this could be a signal to keep monitoring the market closely for potential opportunities.

Let's break down the current mortgage rates by different loan types to provide a more detailed picture:

Conforming Home Loans

These are loans that meet specific standards set by Fannie Mae and Freddie Mac and are the most common type of mortgage. Here’s how the rates look for conforming loans:

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	6.98%	down 0.03%	7.40%	down 0.08%
20-Year Fixed Rate	6.83%	down 0.14%	7.35%	down 0.04%
15-Year Fixed Rate	5.99%	down 0.07%	6.27%	down 0.10%
10-Year Fixed Rate	5.89%	down 0.18%	6.28%	down 0.19%
7-year ARM	7.56%	up 0.01%	8.07%	up 0.15%
5-year ARM	7.26%	down 0.28%	7.81%	down 0.16%
3-year ARM	—	0.00%	—	0.00%

As you can see from the table, the mortgage interest rates today for most conforming fixed-rate loans have decreased compared to last week. Adjustable-rate mortgages (ARMs) show a mixed bag, with the 7-year ARM seeing a slight increase while the 5-year ARM decreased. The 3-year ARM has no change reported. For borrowers considering the stability of a fixed rate, the current environment might be encouraging.

Government Home Loans

Government-backed loans, such as FHA and VA loans, often have different eligibility requirements and can be attractive options for certain borrowers. Here’s a look at their current rates:

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate FHA	7.75%	up 0.88%	8.78%	up 0.87%
30-Year Fixed Rate VA	6.51%	up 0.03%	6.71%	up 0.02%
15-Year Fixed Rate FHA	5.53%	down 0.05%	6.49%	down 0.07%
15-Year Fixed Rate VA	5.99%	down 0.03%	6.31%	down 0.06%

Interestingly, while conforming loan rates mostly decreased over the past week, government loans show a more varied picture. The 30-year fixed FHA loan saw a significant increase, while VA loan rates experienced more modest increases for the 30-year term and decreases for the 15-year term. This highlights the importance of comparing rates across different loan types based on your individual circumstances and eligibility.

Jumbo Loans

Jumbo loans are for mortgages that exceed the conforming loan limits. These often come with slightly higher interest rates due to the larger loan amount and potentially higher risk for lenders. Here are the current rates for jumbo loans:

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	7.45%	down 0.08%	7.78%	down 0.17%
15-Year Fixed Rate	6.31%	down 0.24%	6.54%	down 0.27%
7-year ARM	7.69%	0.00%	7.99%	0.00%
5-year ARM	7.69%	down 0.56%	8.24%	down 0.17%
3-year ARM	—	0.00%	—	0.00%

For jumbo loans, the trend over the past week has largely been downward for fixed-rate options, which could be good news for those looking to purchase higher-priced properties. The ARM rates are more stable, with the 7-year ARM remaining unchanged and the 5-year ARM showing a significant decrease.

Understanding Refinance Rates Today

For homeowners who already have a mortgage, refinance rates are just as important. Refinancing involves taking out a new mortgage to pay off your existing one, often with the goal of securing a lower interest rate, reducing monthly payments, or changing the loan term. Let's look at the current refinance rates as of June 4, 2025, according to Zillow.

The national average 30-year fixed refinance rate is currently 7.25%, up 4 basis points from the previous day but down 1 basis point from last week. Similarly, the national average 15-year fixed refinance rate is 6.12%, an increase of 6 basis points from yesterday. The 5-year ARM refinance rate remains steady at 7.97%.

Here's a more detailed breakdown of refinance rates by loan type:

Conforming Refinance Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	6.98%	down 0.03%	7.40%	down 0.08%
20-Year Fixed Rate	6.83%	down 0.14%	7.35%	down 0.04%
15-Year Fixed Rate	5.99%	down 0.07%	6.27%	down 0.10%
10-Year Fixed Rate	5.89%	down 0.18%	6.28%	down 0.19%
7-year ARM	7.56%	up 0.01%	8.07%	up 0.15%
5-year ARM	7.26%	down 0.28%	7.81%	down 0.16%
3-year ARM	—	0.00%	—	0.00%

Government Refinance Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate FHA	7.21%	up 0.47%	8.25%	up 0.49%
30-Year Fixed Rate VA	6.59%	up 0.10%	6.71%	up 0.04%
15-Year Fixed Rate FHA	5.75%	down 0.09%	6.72%	down 0.09%
15-Year Fixed Rate VA	6.03%	up 0.10%	6.19%	down 0.03%

Jumbo Refinance Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	8.63%	up 0.69%	8.91%	up 0.58%
15-Year Fixed Rate	5.93%	down 0.67%	6.16%	down 0.61%
7-year ARM	—	0.00%	—	0.00%
5-year ARM	9.31%	up 0.62%	8.90%	up 0.33%
3-year ARM	—	0.00%	—	0.00%

When considering a refinance, it's important to look beyond just the interest rate. Factors like closing costs and the length of your new loan term will also play a significant role in whether refinancing makes financial sense for you. As Zillow notes, you should ensure the new refinance interest rate is low enough to offset the costs associated with the new loan. Using a mortgage refinance calculator can be a helpful tool in making this determination.

Expert Perspectives on Mortgage Rates in 2025

Looking ahead, several organizations have offered their mortgage rates predictions for 2025. These forecasts can provide some context for understanding potential future trends.

The National Association of REALTORS® anticipates that the average mortgage rate will be around 6.4% in 2025. Their forecast also suggests a positive outlook for the housing market with increases in both existing and new home sales, as well as a moderate rise in median home prices.

Fannie Mae has revised its forecast, now expecting mortgage rates to end 2025 at 6.1% and 2026 at 5.8%, slightly lower than their previous predictions. They also foresee an increase in home sales and mortgage origination volumes.

The Mortgage Bankers Association (MBA) predicts that 30-year mortgage rates will remain near 6.7% through September 2025 and then slightly decrease to around 6.6% by the end of the year. This suggests a relatively stable home loan interest rate environment for the coming months.

Freddie Mac highlights that after higher-than-expected rates in 2024, the sentiment in early 2025 is that rates will likely remain higher for a longer period. However, they anticipate that even with potentially stable or modestly declining rates, increased amortization and a cooling of the rate lock-in effect could bring more inventory to the market and boost home sales compared to the previous year. They also expect a moderate pace of house price appreciation and an overall increase in both purchase and refinance volumes in 2025.

These expert forecasts suggest a general expectation of some moderation in mortgage rates throughout 2025, although the timing and extent of these decreases may vary. It’s important to remember that these are predictions and actual rates can be influenced by a wide range of economic factors.

What Does This Mean for You?

Understanding today's mortgage rates and the potential future outlook is crucial for anyone involved in the housing market. Whether you are looking to buy a new home or refinance your existing mortgage, keeping informed about these trends can help you make more strategic decisions. The slight decrease in many fixed rates compared to last week could be an encouraging sign, but the daily fluctuations remind us that the market is dynamic.

For potential homebuyers, it’s essential to consider your individual financial situation, including your credit score, down payment, and loan type, as these will significantly influence the rate you qualify for. Getting pre-approved for a mortgage can give you a clearer picture of the rates you can expect.

For current homeowners, evaluating whether now is a good time to refinance depends on several factors, including your current interest rate, the terms of your existing loan, and the potential savings versus the costs of refinancing. Even a small decrease in your interest rate could lead to substantial savings over the life of your loan.

Searching for the states with the best mortgage rates today? As of today, June 3, 2025, the states offering the cheapest 30-year mortgage rates for new home purchases are New York, California, Hawaii, and Tennessee. These states boast average rates hovering between 6.86% and 6.97%. Keep reading as I unpack what that means for you, how those rates stack up nationally, and what forces are shaping these numbers.

States With Lowest Mortgage Rates Today – June 3, 2025

It's tempting to jump into the numbers, but before we do that, there's an important note to keep in mind about those tantalizing “teaser” rates you are seeing advertised online. Steer clear of that thinking!

Understanding Mortgage Rate Variations

Mortgage rates are a bit like snowflakes – no two are exactly alike. Why? Several factors influence them:

• Lender Differences: Different lenders have different operational costs, risk tolerances, and business goals, resulting in varying rates. Some lenders might specialize in certain types of loans or cater to specific credit profiles, allowing them to offer more competitive rates in those areas.
• State-Level Factors: States have different economic conditions, regulations, and housing market dynamics. Factors like average credit scores, loan sizes, and foreclosure rates can all affect the rates lenders offer in a particular state.
• Your Financial Profile: Your credit score, income, debt-to-income ratio, and down payment all play a crucial role in determining the interest rate you'll receive. A strong financial profile signals lower risk to the lender, translating into a better rate.

Because of these variations, it's crucial to shop around and compare rates from multiple lenders before making a decision. Don't just settle for the first rate you receive!

States With the Most Affordable Mortgage Rates (June 3, 2025)

Here are the states where you'll find the most appealing 30-year mortgage rates right now, based on averages reported by Investopedia:

• New York: ~6.86%
• California: ~6.90%
• Hawaii: ~6.93%
• Tennessee: ~6.97%
• Georgia, Pennsylvania, and Texas: ~6.97% (These are in a tie with Tennessee)

States With the Highest Mortgage Rates (June 3, 2025)

On the other end of the spectrum, these states currently have the highest 30-year mortgage rates:

• Alaska: ~7.05%
• West Virginia: ~7.10%
• Mississippi: ~7.13%
• Montana: ~7.17%
• Maryland: ~7.20%
• South Dakota and Vermont: ~7.22%

Why the Discrepancies?

You might be wondering what causes such significant variations in rates across different states. Here are a few potential factors:

• Housing Market Conditions: States with robust housing markets and high demand might see slightly higher rates simply because lenders face less competition to attract borrowers.
• Economic Stability: States with stronger economies and lower unemployment rates may be perceived as lower risk by lenders, leading to more favorable rates.
• Lender Presence: The number of lenders operating in a particular state can impact competition and, consequently, rates. More lenders typically mean more competitive rates.

National Mortgage Rate Trends: A Bird's Eye View

To put these state-specific rates into perspective, let's zoom out and look at the national averages. According to Zillow, the average rate for a 30-year fixed-rate mortgage is 7.00%. This is an improvement from the 7.15% mark we saw at the end of May but still above the 6.50% low we saw in March.

Here's a table summarizing the national averages for various types of mortgages, based on data sourced from Zillow:

Loan Type	New Purchase Rate
30-Year Fixed	7.00%
FHA 30-Year Fixed	7.37%
15-Year Fixed	6.04%
Jumbo 30-Year Fixed	7.03%
5/6 ARM	7.03%

Key Takeaways from the National Averages:

• 15-Year Fixed: Offers a significantly lower rate compared to the 30-year fixed, but comes with higher monthly payments.
• FHA Loans: Typically have slightly higher rates than conventional loans, but can be a good option for borrowers with lower credit scores or smaller down payments. FHA loans are government-backed, which means that if you stop making payments, the government will help you pay them back.
• ARMs: Adjustable-rate mortgages (ARMs) start with a fixed rate for a set period, then adjust periodically based on market conditions. While they may offer a lower initial rate, they carry the risk of increased payments if rates rise.

The Big Picture: What's Driving Mortgage Rate Fluctuations?

Understanding why mortgage rates change is just as important as knowing what the current rates are. Here are the main factors at play:

• The Bond Market: Mortgage rates are closely tied to the 10-year Treasury yield. When Treasury yields rise, mortgage rates tend to follow suit, and vice versa.
• The Federal Reserve: The Federal Reserve's monetary policy has a significant impact on mortgage rates. The Fed influences interest rates by buying and selling government bonds.
• Economic Conditions: Factors like inflation, economic growth, and employment rates can all influence mortgage rates. Stronger economic growth often leads to higher rates, while weaker growth can lead to lower rates.
• Inflation: Inflation is like an evil thing for the economy for homeowners. If inflation keeps on rising, then the Federal Reserve will want to raise the funds, which will ultimately affect the mortgage rates for new and existing home buyers.

Looking Ahead to the Rest of 2025

Predicting the future of mortgage rates is always a tricky endeavor. We've already seen that the Fed has opted to hold rates steady for its first few meetings of the year. While the Fed may eventually cut rates later in the year, the timing and magnitude of those cuts remain uncertain.

Right now, I think you should be prepared for modest fluctuation in rates. It's unlikely we'll see a dramatic drop back to the lows of 2021 anytime soon.

Shopping Smart: Tips for Securing the Best Mortgage Rate

Regardless of the overall rate environment, there are steps you can take to increase your chances of securing the most favorable mortgage rate:

• Improve Your Credit Score: A higher credit score demonstrates to lenders that you're a responsible borrower and significantly increases your odds of qualifying for a lower rate.
• Save for a Larger Down Payment: A larger down payment reduces the lender's risk and can result in a better rate. Also, putting more than 20% down payments usually means you may not have to buy private insurance (PMI).
• Shop Around and Compare Rates: As I emphasized earlier, comparing rates from multiple lenders is crucial. Get quotes from banks, credit unions, and mortgage brokers.
• Consider Different Loan Types: Explore whether a 15-year fixed-rate mortgage, FHA loan, or ARM might be a better fit for your financial situation.
• Negotiate Fees: Don't be afraid to negotiate lender fees, such as origination fees and application fees.

Final Thoughts

Navigating the mortgage market can feel overwhelming however, but doing your research will ultimately pay off and help you get the lowest mortgage rates in New York, California, Hawaii, and Tennessee – June 3, 2025.

As of June 3, 2025, the national average for 30-year fixed mortgage rates has slightly increased to 7.02%, according to the latest data from Zillow. This marginal rise of 2 basis points from the previous day and 1 basis point from the week prior indicates a relatively stable but upward trending mortgage rate environment.

For those considering refinancing, the national average for a 30-year fixed refinance rate stands at 7.27%, also showing a slight increase. Understanding these current mortgage rates and refinance rates is crucial for anyone looking to buy a home or adjust their current mortgage.

Today's Mortgage Rates – June 3, 2025: Rates Show a Marginal Increase

Key Takeaways:

• 30-Year Fixed Mortgage Rates: Increased to 7.02%, up slightly from the previous day and week.
• 15-Year Fixed Mortgage Rates: Also saw a small increase, reaching 6.08%.
• 5-Year ARM Mortgage Rates: Experienced a notable decrease, falling to 7.03%.
• 30-Year Fixed Refinance Rates: Rose to 7.27%, indicating a slightly higher cost for refinancing.
• Mortgage Rate Forecasts: Predictions for the remainder of 2025 suggest a potential decrease in rates by year-end, although current sentiment leans towards rates staying higher for longer.

Current Mortgage Rate Trends

Keeping a close eye on today's mortgage rates is essential whether you're a first-time homebuyer, looking to upgrade, or considering an investment property. The fluctuations in these rates can significantly impact your monthly payments and the overall cost of your loan.

According to Zillow's data updated on June 3, 2025, the national average 30-year fixed mortgage rate is 7.02%. This benchmark rate is the most popular choice for homebuyers due to its predictable monthly payments over the life of the loan. However, it's important to note the subtle upward trend, with a 1 basis point increase from the previous week's average of 7.01%.

For those seeking a shorter loan term, the 15-year fixed mortgage rate has also seen a slight uptick, currently at 6.08%, up 1 basis point from the previous day and the previous week. While the monthly payments on a 15-year mortgage are typically higher, the overall interest paid over the loan's life is significantly less, and homeowners build equity faster.

Interestingly, 5-year Adjustable-Rate Mortgages (ARMs) have shown a significant decrease, dropping by 25 basis points from 7.28% to 7.03%. ARMs offer a fixed interest rate for an initial period (in this case, five years), after which the rate adjusts periodically based on market conditions. While they can offer lower initial rates, they come with the risk of rate increases in the future.

A Deeper Look at Conforming Loan Rates

Conforming loans are mortgages that meet specific guidelines set by Fannie Mae and Freddie Mac and are the most common type of home loan. Here's a more detailed breakdown of current conforming mortgage rates as of June 3, 2025:

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	7.02%	up 0.01%	7.51%	up 0.04%
20-Year Fixed Rate	6.45%	down 0.53%	6.93%	down 0.46%
15-Year Fixed Rate	6.08%	up 0.01%	6.39%	up 0.02%
10-Year Fixed Rate	6.07%	0.00%	6.47%	0.00%
7-year ARM	7.56%	up 0.01%	7.78%	down 0.14%
5-year ARM	7.03%	down 0.51%	7.60%	down 0.36%
3-year ARM	—	0.00%	—	0.00%

Observing this table, we can see varied movements across different loan terms. The 20-year fixed rate experienced a significant decrease over the past week, which could be an appealing option for those wanting a shorter term than 30 years but potentially lower monthly payments than a 15-year loan.

Government Loan Interest Rates

Government-backed loans, such as FHA and VA loans, often have different eligibility requirements and interest rate trends compared to conforming loans. Let's examine the current government mortgage rates as of June 3, 2025:

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	6.51%	up 0.03%	6.73%	up 0.04%
15-Year Fixed Rate FHA	5.63%	up 0.06%	6.63%	up 0.07%
15-Year Fixed Rate VA	6.02%	0.00%	6.38%	up 0.01%

It's noteworthy that 30-year fixed FHA loan rates saw a substantial increase over the past week. FHA loans are popular with first-time homebuyers and those with lower credit scores, so this jump could impact affordability for this segment of the market. On the other hand, VA loan rates for 30-year fixed mortgages remain comparatively lower, reflecting the benefits offered to eligible veterans and active-duty military personnel.

Understanding Jumbo Mortgage Rates

Jumbo loans are used for purchasing higher-priced properties that exceed the conforming loan limits. Here’s a snapshot of today's jumbo mortgage rates:

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate Jumbo	7.39%	down 0.14%	7.79%	down 0.15%
15-Year Fixed Rate Jumbo	6.49%	down 0.06%	6.76%	down 0.05%
7-year ARM Jumbo	7.69%	0.00%	7.99%	0.00%
5-year ARM Jumbo	9.06%	up 0.81%	8.80%	up 0.39%
3-year ARM Jumbo	—	0.00%	—	0.00%

Interestingly, the rates for 30-year and 15-year fixed-rate jumbo loans have decreased over the past week, potentially offering some relief to buyers in the higher-end housing market. However, the 5-year ARM jumbo loan saw a significant increase, highlighting the volatility that can sometimes be associated with adjustable-rate mortgages, especially in the jumbo loan sector.

Current Refinance Rate Landscape

For homeowners considering refinancing their existing mortgage, understanding the current refinance rates is just as important. Refinancing can help lower monthly payments, shorten the loan term, or tap into home equity.

As of June 3, 2025, the national average 30-year fixed refinance rate is 7.27%, a slight increase from the previous day and week (Zillow).

Here’s a more detailed look at current refinance mortgage rates by loan type:

Conforming Refinance Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	7.02%	up 0.01%	7.51%	up 0.04%
20-Year Fixed Rate	6.45%	down 0.53%	6.93%	down 0.46%
15-Year Fixed Rate	6.08%	up 0.01%	6.39%	up 0.02%
10-Year Fixed Rate	6.07%	0.00%	6.47%	0.00%
7-year ARM	7.56%	up 0.01%	7.78%	down 0.14%
5-year ARM	7.03%	down 0.51%	7.60%	down 0.36%
3-year ARM	—	0.00%	—	0.00%

Government Refinance Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate FHA	6.54%	down 0.20%	7.56%	down 0.20%
30-Year Fixed Rate VA	6.79%	up 0.30%	7.01%	up 0.35%
15-Year Fixed Rate FHA	5.72%	down 0.12%	6.71%	down 0.10%
15-Year Fixed Rate VA	6.12%	up 0.18%	6.48%	up 0.27%

Jumbo Refinance Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate Jumbo	7.46%	down 0.47%	7.73%	down 0.60%
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	9.31%	up 0.62%	8.90%	up 0.33%
3-year ARM Jumbo	—	0.00%	—	0.00%

When comparing mortgage and refinance rates, it's interesting to observe that, in some cases, the refinance rates for certain loan types are slightly different from the rates for new mortgages. For instance, the 30-year fixed refinance rate for conforming loans is the same as the mortgage rate at 7.02%, while for FHA loans, the refinance rate is lower at 6.54% compared to the mortgage rate of 7.75%. These differences can be influenced by various factors, including the perceived risk associated with existing loans versus new originations.

Expert Insights and Mortgage Rate Predictions

While understanding today's mortgage rates is crucial, looking ahead provides valuable context for potential homebuyers and those considering refinancing. Several organizations offer forecasts on where mortgage rates might be heading.

The National Association of REALTORS® anticipates mortgage rates to average around 6.4% in 2025 and further decrease to 6.1% in 2026. This projection suggests a potential easing of borrowing costs in the near future.

Fannie Mae's forecast aligns with this trend, predicting mortgage rates to end 2025 at 6.1% and fall to 5.8% by the end of 2026. They have also revised their home sales outlook upwards, indicating an expected increase in market activity.

The Mortgage Bankers Association (MBA) offers a slightly different perspective, forecasting 30-year mortgage rates to remain near 6.7% through September 2025 and end the year around 6.6%. This suggests a period of relative stability in mortgage rates in the coming months, with a modest decrease towards the end of the year.

Freddie Mac's outlook suggests that the sentiment in early 2025 is that rates will likely stay higher for longer compared to previous expectations of decline. However, they anticipate that the “rate lock-in effect” (where homeowners with low rates are hesitant to sell) will cool off due to mortgage balance amortization, potentially increasing housing inventory. Despite potentially flat or modestly declining rates, Freddie Mac expects increased home sales and refinance volumes in 2025, leading to higher overall origination volumes.

Personal Thoughts

As someone who has followed the mortgage market for a considerable time, the current environment presents a nuanced picture. While the slight uptick in today's mortgage rates might give some potential buyers pause, the forecasts from various reputable organizations suggest a potential downward trend later in the year and into 2026. This could mean that waiting to buy might be beneficial for some, but it also carries the risk of increased competition if more buyers enter the market expecting lower rates.

The decrease in 5-year ARM rates is an interesting development. While ARMs can be attractive due to their initial lower rates, borrowers need to carefully consider their risk tolerance and financial situation, as rates can adjust upwards after the fixed period. For those planning to stay in a home for a shorter period or who anticipate their income increasing significantly, an ARM might be a viable option, but it requires careful planning and understanding of potential future rate adjustments.

The differing trends in government loan rates compared to conforming loans highlight the specific dynamics within these sectors. The significant increase in FHA rates is something to watch, as it could affect affordability for first-time buyers who often rely on these types of loans. Conversely, the relatively stable and lower VA rates continue to provide a valuable benefit to eligible military members and veterans.

In my opinion, the key takeaway from today's mortgage rates and the forecasts is the uncertainty that still exists in the market. Economic factors, such as inflation and the Federal Reserve's policies, will continue to play a significant role in shaping where rates ultimately head. Borrowers should focus on their individual financial situations and goals rather than solely trying to time the market. Consulting with a mortgage professional is always a wise step to understand the best options based on your specific circumstances.

As of June 2, 2025, the national average for the 30-year fixed mortgage rate has slightly decreased to 6.95%. This minor dip follows a larger decrease observed over the past week. For homeowners considering a change, the national average for the 30-year fixed refinance rate has also seen a notable drop to 7.18%. Keeping a close eye on these mortgage rate trends and refinance rate trends is crucial for anyone looking to buy a home or adjust their current mortgage.

Today's Mortgage Rates – June 2, 2025: Rates Edge Down Significantly

Key Takeaways:

• 30-year fixed mortgage rates are currently averaging 6.95%, a slight decrease today and a more significant decrease over the past week.
• The 15-year fixed mortgage rate remains stable at 6.02%.
• 5-year ARM mortgage rates have increased to 7.39%.
• The national average for the 30-year fixed refinance rate has fallen to 7.18%.
• The 15-year fixed refinance rate has decreased to 6.04%.
• The 5-year ARM refinance rate is currently at 6.00%.

Let's delve deeper into the specifics of today's mortgage rates and today's refinance rates.

Current Mortgage Rate Overview

For individuals looking to purchase a home, understanding the different types of mortgage interest rates available is essential. The most common types are fixed-rate mortgages and adjustable-rate mortgages (ARMs). Fixed-rate mortgages, like the popular 30-year and 15-year options, offer a consistent interest rate throughout the life of the loan, providing predictability in monthly payments. On the other hand, ARMs have an initial fixed interest rate period, after which the rate adjusts periodically based on market conditions.

According to the latest data from Zillow, as of Monday, June 2, 2025, the national averages for various mortgage types are as follows:

National Average Mortgage Rates – June 2, 2025

Loan Program	Rate	1-Week Change	APR	1-Week Change
30-Year Fixed Rate	6.95%	Down 0.06%	7.41%	Down 0.07%
15-Year Fixed Rate	6.02%	Down 0.04%	6.32%	Down 0.05%
5-Year ARM	7.39%	Up 0.07%	7.92%	Down 0.04%

As you can see, the 30-year fixed mortgage rate has moved slightly downward. This is welcome news for prospective homebuyers who may have been waiting for a slight easing in borrowing costs. The stability in the 15-year fixed mortgage rate offers another reliable option for those looking for a shorter loan term and typically lower overall interest paid. However, the increase in the 5-year ARM mortgage rate suggests that the initial lower rate that ARMs offer might be coming with a slightly higher immediate cost.

It's interesting to observe these small shifts in rates. Even minor changes can impact the affordability of a home, especially when considering the long-term nature of a mortgage. For instance, on a $300,000 loan, a 0.02% decrease in the interest rate on a 30-year fixed mortgage can translate to a savings of roughly $10-$15 per month in the principal and interest payment. Over the 30-year term, this seemingly small difference can add up to thousands of dollars.

Looking back at the past 90 days, we can see some interesting movement in these rates for a purchase with a credit score of 740 or higher and a 20% or higher loan-to-value ratio:

90-Day Trend of 5-Year ARM Purchase Rates

Date	Percent Interest Rate	Annual Percentage Rate
March 4, 2025	5.973%	6.886%
April 2, 2025	6.564%	7.020%
May 2, 2025	6.923%	7.165%
June 2, 2025	6.879%	7.130%

90-Day Trend of 15-Year Fixed Purchase Rates

Date	Percent Interest Rate	Annual Percentage Rate
March 4, 2025	5.487%	5.611%
April 2, 2025	5.872%	5.883%
May 2, 2025	5.976%	5.985%
June 2, 2025	6.008%	6.014%

90-Day Trend of 30-Year Fixed Purchase Rates

Date	Percent Interest Rate	Annual Percentage Rate
March 4, 2025	6.200%	6.272%
April 2, 2025	6.498%	6.503%
May 2, 2025	6.712%	6.717%
June 2, 2025	6.779%	6.783%

These tables illustrate the fluctuations that can occur within a relatively short period. The 30-year fixed rate, for example, has shown a clear upward trend over the past three months, although we are seeing a slight dip today. The 15-year fixed rate has also generally increased, while the 5-year ARM has experienced more volatility.

Understanding Refinance Rates Today

For current homeowners, the decision to refinance their mortgage depends on a variety of factors, with prevailing refinance interest rates being a primary consideration. Refinancing involves taking out a new mortgage to pay off an existing one, potentially to secure a lower interest rate, change the loan term, or access cash.

According to Zillow's data from June 2, 2025, the national averages for common refinance loan types are as follows:

National Average Refinance Rates – June 2, 2025

Loan Program	Rate	1-Week Change
30-Year Fixed Rate	7.18%	Down 0.08%
15-Year Fixed Rate	6.04%	Down 0.04%
5-Year ARM	6.00%	No Change

It's notable that the 30-year fixed refinance rate has seen a more significant decrease compared to the purchase mortgage rates. This might create an opportunity for homeowners who are looking to lower their monthly payments or reduce the total interest paid over the life of their loan. The small decrease in the 15-year fixed refinance rate could be attractive to those wanting to pay off their mortgage faster. The stable 5-year ARM refinance rate provides an option for those comfortable with potential future rate adjustments.

The decision of whether or not to refinance often hinges on the “break-even point,” which is the time it takes for the savings from the lower monthly payment to outweigh the costs associated with refinancing (such as appraisal fees, closing costs, etc.).

Consider a homeowner who took out a 30-year fixed mortgage for $250,000 five years ago at an interest rate of 4.5%. Their current monthly principal and interest payment is approximately $1,267. Now, if they were to refinance into a new 30-year fixed mortgage at today's average rate of 7.18%, their new monthly payment would be around $1,693. In this scenario, even with the recent drop in refinance rates, it might not be financially beneficial unless their original rate was significantly higher or their goals were different (like shortening the loan term).

However, let's consider another example. Suppose a homeowner has a remaining balance of $200,000 on a 30-year fixed mortgage they took out at 6% ten years ago. Their current monthly payment is roughly $1,199. If they can refinance into a new 20-year fixed mortgage (since they've already paid for 10 years) at an interest rate of, say, 5.5% (these are illustrative and not based on the provided refinance data, which doesn't include 20-year fixed refinance rates), their new monthly payment would be around $1,378. While the monthly payment is slightly higher, they would save significantly on total interest paid and shorten their loan term by 10 years.

It's always a good idea to use a mortgage refinance calculator to see how different rates and loan terms would impact your specific financial situation.

Factors Influencing Mortgage and Refinance Rates

Today's mortgage rates and today's refinance rates are influenced by a complex interplay of economic factors. These include:

• The Federal Reserve's monetary policy: Actions taken by the Fed, such as adjusting the federal funds rate, can indirectly influence mortgage rates.
• The health of the U.S. economy: Factors like job growth, inflation, and consumer confidence can impact investor behavior and bond yields, which often move in tandem with mortgage rates.
• The bond market: Mortgage rates are closely tied to the yield on U.S. Treasury bonds, particularly the 10-year Treasury note.
• Investor demand for mortgage-backed securities: The supply and demand for these securities, which bundle mortgages together for sale to investors, can affect rates.

It is my understanding that predicting the future direction of mortgage rates is challenging, as these economic indicators can be quite dynamic. However, staying informed about these underlying factors can help individuals make more educated decisions about when to buy or refinance.

As of June 1, 2025, today's mortgage rates show a notable decrease for 30-year fixed loans, which are now at 6.77%, down by seven basis points. Conversely, the 15-year fixed mortgage rates have risen slightly to 6.02%. This trend suggests that long-term borrowing costs are becoming more favorable, while shorter-term borrowing has seen a small uptick. Understanding these changes can greatly impact your financial decisions, whether you are looking to buy a home or refinance your existing mortgage.

Today's Mortgage Rates – June 1, 2025: Rates Drop Substantially Once More

Key Takeaways:

• Current Rates (30-Year Fixed): 6.77% (down 7 basis points)
• Current Rates (15-Year Fixed): 6.02% (up 3 basis points)
• Market Forecast: 30-year rates expected to remain around 6.7% through September 2025.
• Average Refinance Rate (30-Year): 6.89%
• Pressure Points: Economic shifts could alter rate forecasts.

Current Mortgage Rates Overview

Understanding the current mortgage rates is crucial for anyone looking to purchase a home or refinance. Below is a table summarizing the different types of mortgage rates as of today:

Mortgage Type	Current Rate
30-Year Fixed	6.77%
20-Year Fixed	6.51%
15-Year Fixed	6.02%
5/1 Adjustable-Rate (ARM)	6.74%
7/1 ARM	6.73%
30-Year VA	6.34%
15-Year VA	6.34%
5/1 VA	6.34%

Source: Zillow

These rates are national averages and can change based on individual circumstances, including credit score, loan amount, and down payment size.

Current Mortgage Refinance Rates

If you are considering refinancing your existing mortgage, here are the current refinance rates:

Refinance Type	Current Rate
30-Year Fixed	6.89%
20-Year Fixed	6.85%
15-Year Fixed	6.15%
5/1 ARM	7.25%
7/1 ARM	7.40%
30-Year VA	6.41%
15-Year VA	6.41%
5/1 VA	5.98%

Source: Zillow

Refinancing can sometimes be at higher rates compared to purchasing a new mortgage, which is not always intuitive but often holds true.

Understanding Fixed-Rate vs. Adjustable-Rate Mortgages

To choose the right type of mortgage for your situation, let’s break down the differences between fixed-rate and adjustable-rate mortgages (ARMs):

1. Fixed-Rate Mortgages:
   • Your interest rate remains the same throughout the loan period.
   • Offers stability and predictability—your monthly payments do not change.
   • It's typically chosen by those who plan to stay in their home for many years.
2. Adjustable-Rate Mortgages (ARMs):
   • Your rate is fixed for an initial period, after which it may adjust periodically based on market conditions.
   • Generally starts lower than fixed rates but comes with the risk of increases, depending on post-initial period market fluctuations.
   • Attracts buyers who may not be planning to stay long-term in their home.

Example Calculations of Mortgage Payments

To provide a clearer financial picture, let’s take a look at hypothetical payment calculations for both the 30-year and 15-year fixed mortgages for a loan amount of $300,000.

• 30-Year Fixed at 6.77%:
  • Monthly Payment: Approximately $1,950
  • Total Interest Paid Over 30 Years: $401,922
• 15-Year Fixed at 6.02%:
  • Monthly Payment: Approximately $2,535
  • Total Interest Paid Over 15 Years: $156,266

As noted, while the 15-year mortgage has a lower interest rate, the monthly payment is significantly higher. Thus, deciding which term fits your financial situation is essential.

Mortgage Rate Influences and Economic Factors

The mortgage rate environment does not operate in a vacuum. Understanding the broader economic context is vital when evaluating current rates and making decisions about home financing.

1. The Federal Reserve's Impact:
   • The actions of the Federal Reserve play a pivotal role in shaping mortgage rates. When the Fed raises its benchmark interest rate to combat inflation, it often translates to higher mortgage rates. Conversely, lower rates from the Fed can encourage borrowing and stimulate the housing market. The current sentiment anticipates that the Fed will be cautious in its adjustments, keeping rates at levels that encourage economic stability.
2. Consumer Inflation Rates:
   • Inflation directly affects purchasing power and interest rates. When inflation is high, lenders adjust rates to mitigate the risk of losing money in the future; this trickles down to borrowers as higher mortgage costs. A close watch on inflation reports can provide clues about potential movements in mortgage rates.
3. Employment Data:
   • Job growth can indicate economic health. If the employment numbers are strong, it can lead to increased consumer confidence and spending, pushing housing demand—and thus mortgage rates—higher. Current job projections anticipate meaningful growth in 2025 and 2026, potentially impacting housing and loan markets positively.

Market Expectations and Future Mortgage Rate Predictions for 2025

Looking ahead, several forecasting bodies provide insights into the mortgage rates for the remainder of 2025 and into 2026. The Mortgage Bankers Association anticipates rates to stay around 6.7% until September and decreasing slightly to about 6.6% by the end of the year. They emphasized that significant economic shifts would need to occur to substantially affect these predictions.

According to the National Association of REALTORS®, existing home sales are projected to increase by 6% in 2025 with new home sales rising by 10%. Home prices are expected to see a modest increase, indicating that demand remains strong despite the current interest rate environment.

Fannie Mae predicts rates to end 2025 at 6.1% and drop further to 5.8% in 2026. Their positive outlook for home sales, from 4.92 million units in 2025, suggests that potential buyers continue to engage with the housing market.

Freddie Mac, meanwhile, anticipates that mortgage rates will stay higher for longer than expected and predicted in previous years. The outlook suggests an increase in housing inventory as sellers are more willing to enter the market, even with lower mortgage rates compared to historically low levels seen in prior years.

The Impact of Refinancing on the Housing Market

Refinancing is a crucial aspect of home financing that can significantly impact both homeowners and the housing market as a whole. As rates change, many homeowners might consider refinancing their existing loans to take advantage of new, lower rates. While refinance rates are generally higher than those for purchasing a home, they offer an opportunity for borrowers to adjust their financial obligations.

For example, if a homeowner locks in a lower rate through refinancing, they not only save on monthly payments but also reduce the interest amount paid over the life of the loan. This can lead to increased disposable income, allowing for greater consumer spending in other areas, thereby benefiting the economy.

Renovations and upgrades are another essential element following refinancing. Homeowners who refinance may choose to reinvest the savings into upgrading their properties, contributing positively to local economies and potentially increasing home values. This cycle of refinancing and reinvestment is vital for maintaining a healthy, vibrant housing market.

Local Market Dynamics: Variation in Mortgage Rates

It's essential to note that while national averages provide a baseline, local markets might experience significant variations in mortgage rates. Factors such as state policies, local economic conditions, and specific lender offerings can lead to different rates for consumers in different regions.

• Urban vs. Rural Areas: Urban areas often experience higher demand for housing, which can push mortgage rates up. Conversely, rural areas may offer lower rates but come with their set of challenges in terms of finding suitable properties.
• State Regulations: Different states may have regulations that affect mortgage lending, leading to variations in rates offered by lenders. Understanding these nuances can help borrowers make more informed decisions.

Summary: The Road Ahead in Mortgage Rates

As we move further into 2025, it is critical for potential homeowners and those looking to refinance to stay informed about changing mortgage rates and market trends. While the long-term outlook suggests mild decreases in rates, remaining vigilant and aware of economic indicators will guide sound financial decisions. Given the current landscape, consumers are encouraged to communicate openly with lenders about their options, ensuring they secure the best possible rates based on their individual financial situations.

In the upcoming months, monitoring these ever-important indicators will be vital for anyone involved in buying or refinancing a home, allowing them to leverage market conditions to their advantage.

As of May 31, 2025, mortgage rates have decreased, offering homeowners and potential buyers advantageous conditions for both purchasing new homes and refinancing existing loans. The 30-year fixed mortgage rate has declined to 6.84%, while the 15-year fixed mortgage rate has notably dipped to 5.99%. This trend signals a favorable environment for borrowers, especially as the Federal Reserve's inflation measures suggest a stable outlook for rates, with expectations for cuts in short-term rates possibly postponed until September.

Today's Mortgage Rates – May 31, 2025: Rates Go Down for Homebuyers

Key Takeaways

• Mortgage rates are lower today compared to recent weeks.
• The 30-year fixed rate is currently 6.84% and the 15-year fixed rate is 5.99%.
• Refinance rates are also lower, making it a good time for existing homeowners considering refinancing.
• The housing market remains competitive, but with signs of easing inflation, conditions may improve further.

Today's Mortgage Rates Overview

Understanding current mortgage rates is crucial for anyone looking to buy a home or refinance their existing mortgage. Below is a comprehensive summary of the mortgage and refinance rates today, as per data from Zillow:

Current Mortgage Rates (as of May 31, 2025)

Type of Loan	Mortgage Rate
30-Year Fixed	6.84%
20-Year Fixed	6.54%
15-Year Fixed	5.99%
5/1 Adjustable Rate Mortgage (ARM)	7.01%
7/1 Adjustable Rate Mortgage (ARM)	7.11%
30-Year VA	6.36%
15-Year VA	5.71%
5/1 VA	6.37%

The rates shown above are the national averages rounded to the nearest hundredth, and they provide a baseline for what borrowers might expect when evaluating their financing options.

Current Mortgage Refinance Rates

If you're considering refinancing your existing mortgage, here are the current refinance rates that you should be aware of:

Type of Loan	Refinance Rate
30-Year Fixed	6.90%
20-Year Fixed	6.53%
15-Year Fixed	6.15%
5/1 ARM	7.43%
7/1 ARM	7.24%
30-Year VA	6.38%
15-Year VA	5.84%
5/1 VA	6.19%

Just as with the purchase rates, the refinance rates provided are national averages and can vary based on specific lender criteria and individual borrower qualifications.

Factors Influencing Today's Mortgage Rates

Today's mortgage rates are influenced by a variety of factors, both economic and systemic.

1. Inflation Measures: Recent data indicate a dip in the Federal Reserve's preferred inflation measures, which can influence expectations for future interest rate adjustments. A lower inflation rate can lead to lower mortgage rates as borrowing costs decline.
2. 10-Year Treasury Yield: The yield on the 10-year Treasury note often acts as a benchmark for mortgage rates. While this yield has increased slightly, the prevailing sentiment about inflation and the economy has led to substantial declines in mortgage rates.
3. Market Sentiment: The outlook for mortgage rates is shaped by economic forecasts, including anticipated job gains and median home price adjustments. According to the National Association of REALTORS®, existing home sales are predicted to rise, which may put upward pressure on prices and, consequently, mortgage rates.

Understanding Mortgage Rate Types

When considering a mortgage, it's essential to understand the different types of mortgage rates available—fixed and adjustable rate mortgages (ARMs).

Fixed-Rate Mortgages

• 30-Year Fixed: This mortgage is popular due to its stable monthly payments spread out over 30 years. While the interest rate is often higher than that of shorter terms, the predictability it offers is a significant advantage.
• 15-Year Fixed: Many buyers prefer this option for its lower interest rates. While your monthly payments will be higher compared to a 30-year loan, you can save significantly in interest over the life of the loan.

Adjustable-Rate Mortgages (ARMs)

ARMs, such as the 5/1 or 7/1, start with lower rates compared to fixed-rate options, but their rates can increase after an initial period. This could lead to unpredictable payments later in the loan's life.

• 5/1 ARM: This type has a fixed rate for the first five years, after which it adjusts annually based on market conditions.
• 7/1 ARM: This option has similar characteristics to the 5/1 ARM but has a fixed rate for the first seven years.

Refinance Rates and Their Implications

Refinancing your mortgage can be a beneficial strategy, particularly in a climate where rates are lower. The refinancing options listed above reflect national trends. Homeowners often choose to refinance to achieve lower monthly payments or secure more favorable terms on their loans.

Why might refinancing be appealing now? As mortgage rates have dipped, many homeowners can take advantage of the lower payments, especially if they secured a higher rate loan in previous years. It's vital for homeowners to analyze their specific situations and consider the overall costs associated with refinancing, including closing costs and lender fees.

The Housing Market Context

With home prices stabilizing compared to the significant increases observed during the pandemic, May 2025 presents a preliminary but encouraging landscape for buyers. While it's essential to stay informed about mortgage rates, buyers should also consider the overall market trends. Forecasters expect home prices to moderately rise, indicating that acting sooner, rather than later, might be prudent.

Furthermore, with the Federal Reserve's recent decisions influencing the market, potential buyers and refinancers should analyze their financial goals. The allure of a lower mortgage rate cannot be understated, yet borrowers must also focus on their long-term financial strategies and housing needs.

Key Forecasts for 2025

According to the National Association of REALTORS® and industry analyses, here are some expectations for mortgage rates in the coming years:

• The average mortgage rate could stabilize around 6.4% by the end of 2025.
• Home sales are projected to rise by 10% for new homes.
• Job growth will also contribute to a more robust economy, enhancing consumer confidence in purchasing homes.

Summary

Today's mortgage rates, declining as of May 31, 2025, represent a favorable opportunity for borrowers and homeowners considering refinancing. The slight dip in rates amidst an easing inflation context echoes broader economic trends. As individuals and families look to secure financing for homes, understanding the types of loans and the implications of current rates will be essential for informed decision-making. As the housing market evolves, staying aware of trends will benefit potential buyers and existing homeowners alike.

Looking for the states with the lowest mortgage rates today, May 30, 2025? As of today, the states offering the most affordable 30-year fixed-rate mortgages for new purchases are New York, California, North Carolina, Texas, Colorado, Washington, and Florida. These states boast average rates ranging from 6.78% to 6.98%. Let's dive deeper into why these states are leading the pack and what it means for you if you're looking to buy a home.

States With Lowest Mortgage Rates Today – May 30, 2025

Alright, let's break down what's happening with mortgage rates as of today. It feels like just yesterday rates were soaring, and while we're not back to the rock-bottom levels of a few years ago, there's definitely some movement to pay attention to. Nationally, the average rate on a 30-year fixed-rate mortgage for new purchases is sitting around 7.00% (Zillow).

That's down a bit from last week's average of 7.15%, which was actually the highest we'd seen since May of 2024. We need to remember that back in March of 2025, these rates were actually at 6.50%— the lowest of the year thus far. The lowest point in recent times was September when rates sunk to a two-year low of 5.89%.

Why Do Mortgage Rates Vary by State?

You might be scratching your head, wondering why mortgage rates aren't the same across the board. It's a valid question! Several factors contribute to these differences. According to Investopedia, it's due to a combination of things:

• Lender Presence: Not all lenders operate in every state. The level of competition can affect rates.
• State-Level Regulations: Each state has its own regulations around mortgages.
• Credit Scores: Average credit scores in a state can influence rates.
• Average Loan Size: This can vary by state based on housing costs.
• Lender Risk Management: Lenders have different strategies for managing risk.

Essentially, it all boils down to the fact that the mortgage market is complex and hyper-local.

The States With the Lowest Rates: A Closer Look

So, why are New York, California, North Carolina, Texas, Colorado, Washington, and Florida coming out on top right now? Here's my take:

• New York & California: These states are economic powerhouses with high demand for housing. While that usually means higher prices, it also attracts a lot of lenders, creating competition and potentially driving down rates. However, keep in mind that even with lower rates, the overall cost of buying a home in these states can be significantly higher.
• Texas, North Carolina, & Florida: These states have experienced significant population growth in recent years. This influx of new residents has fueled the housing market, again creating opportunities for lenders and potentially more competitive rates. Plus, some of these states have more business-friendly environments, which can also play a role.
• Colorado & Washington: Strong economies with growing tech sectors. These states are attractive to young professionals, leading to stable housing markets.

States With the Highest Rates

Now, let's flip the coin. The states with the highest 30-year mortgage rates right now are: Alaska, West Virginia, New Mexico, Mississippi, Montana, North Dakota, and Washington, D.C. The average rates in these areas range from 7.07% to 7.11%.

• Smaller Markets: States like Alaska, Montana, and North Dakota often have smaller populations and fewer lenders, which can translate to less competition and higher rates.
• Economic Factors: States like West Virginia and Mississippi might face economic challenges that make lenders perceive them as higher risk.
• Regulatory Environment: It's possible the regulatory environment in D.C. contributes to the higher rates

National Mortgage Rate Averages

Loan Type	New Purchase
30-Year Fixed	7.00%
FHA 30-Year Fixed	7.37%
15-Year Fixed	6.04%
Jumbo 30-Year Fixed	6.94%
5/6 ARM	7.25%

Source: Zillow Mortgage

Important Considerations When Shopping for a Mortgage

Okay, so you know which states have the lowest rates, but here's the thing: those are just averages. Your rate will depend on your individual circumstances.

• Credit Score: This is HUGE. The better your credit score, the lower your rate will be.
• Down Payment: A larger down payment can often get you a better rate.
• Debt-to-Income Ratio (DTI): Lenders want to see that you can comfortably afford your mortgage payments.
• Loan Type: Different loan types (e.g., FHA, VA, conventional) come with different rates and requirements.
• Points: You can often pay “points” upfront to lower your interest rate.

Why Did Rates Change?

Understanding the overall trends is more complicated. Various reasons could trigger a rise or fall in Mortgage rates, such as:

• Bond Market: Mortgage rates often track the 10-year Treasury yield.
• Federal Reserve: The Fed's monetary policy impacts interest rates overall.
• Competition: Lender competition can play a part.

My Advice: Shop Around and Be Prepared

My number one piece of advice is always to shop around. Get quotes from multiple lenders and compare them carefully. Don't just look at the interest rate; consider the fees, closing costs, and overall terms of the loan. It might take extra time and effort, but it's worth it. Make sure to get pre-approved. Also, always compare rates regularly, no matter the type of home loan you seek.

Looking Ahead: What to Expect

Predicting the future of mortgage rates is always tricky. The Federal Reserve could keep rates steady for a prolonged period of time. We could also see more rate cuts later in the year if the economy slows down. All of this information might be overwhelming but remember, it’s important to stay informed.

As of May 30, 2025, mortgage rates have edged higher and are now at their highest levels since February 2025. The average interest rate for a 30-year fixed mortgage is currently 6.89%, while the 15-year fixed rate stands at 6.03%. This uptick in rates affects both purchasing and refinancing decisions for many homeowners across the nation.

Today's Mortgage Rates – May 30, 2025: Rates Rise to New Highs

Key Takeaways

• Current rates as of May 30, 2025:
  • 30-year fixed: 6.89%
  • 15-year fixed: 6.03%
  • 20-year fixed: 6.69%
• Increase in rates: This marks the highest level for 30-year rates since early February.
• Comparison: Last year, the average for a 30-year mortgage was 7.03%.
• Advice from Experts: Buyers should shop around to secure the best mortgage interest rates.

Mortgage rates fluctuate in response to various economic indicators and market trends, and understanding their current state is vital for potential buyers and homeowners considering refinancing.

Understanding the Current Mortgage Rates

Mortgage rates can be perplexing to many, especially with the recent increases. According to data from Freddie Mac, the 30-year fixed mortgage rate is up three basis points at 6.89%. The slight rise reflects ongoing economic conditions that influence financial markets. Sam Khater, Freddie Mac's chief economist, notes the importance of shopping around for competitive rates. A significant difference in rates among lenders can translate into significant savings over the life of a mortgage.

Current Mortgage Rates Overview

Here's a detailed table summarizing today's mortgage rates from Zillow:

Loan Type	Current Rate (%)
30-Year Fixed	6.87
15-Year Fixed	6.05
20-Year Fixed	6.69
5/1 ARM	7.14
7/1 ARM	7.18
30-Year VA	6.37
15-Year VA	5.85
5/1 VA	6.34

Looking at the rates above, it is evident that the trends vary between different loan types. The 5/1 and 7/1 adjustable-rate mortgages (ARMs) are higher than the fixed-rate options. This indicates that while fixed-rate mortgages offer stability, ARMs can often come with lower initial rates, albeit with potential fluctuations as the loan term progresses.

Current Refinance Rates

Refinancing offers existing homeowners the opportunity to reduce their monthly payments or tap into home equity. Here’s what's currently happening in the refinancing sector:

Refinance Loan Type	Current Rate (%)
30-Year Fixed	6.89
15-Year Fixed	6.10
20-Year Fixed	6.60
5/1 ARM	7.22
7/1 ARM	7.26
30-Year VA	6.34
15-Year VA	5.85

Given the refinance rates, homeowners looking to reduce their interest rates may find opportunities, but the current trends suggest that the prices are on the higher side compared to previous years. It is therefore essential for homeowners to evaluate whether refinancing is suitable given the rising interest rates.

How Mortgage Interest Rates Work

Understanding how mortgage interest rates operate is essential for potential borrowers. These rates represent the cost of borrowing money expressed as a percentage, and they can be fixed or adjustable.

• Fixed-Rate Mortgages: As the name suggests, these rates remain constant throughout the loan's life. For instance, if a borrower secures a 30-year mortgage at 6%, that rate does not change—providing stability in monthly payments. This is beneficial for budgeting and financial planning.
• Adjustable-Rate Mortgages (ARMs): These mortgages typically have lower initial rates compared to fixed-rate loans. For example, a 7/1 ARM might offer a fixed rate for the first seven years, after which the rate can adjust annually based on market conditions. Borrowers must weigh the benefits of initially lower payments against the risk of future rate increases.

Factors Impacting Mortgage Rates

Several factors influence mortgage rates, including:

• Economic Conditions: The overall health of the economy affects interest rates. Strong economic growth typically leads to higher rates due to increased demand for borrowing and inflation concerns.
• Federal Reserve Policies: The Federal Reserve controls the short-term interest rate, a key part of monetary policy. When the Fed raises rates, borrowing costs generally increase across the board, including for mortgages.
• Inflation: Higher inflation generally leads to higher mortgage rates as lenders need compensation for the reduced purchasing power of future mortgage payments.
• Housing Market Trends: A competitive housing market with high demand can also push rates higher as lenders adjust to increased risk and costs associated with lending.

The Current Housing Market and Future Predictions

While today’s mortgage rates may feel high to some, they are still slightly lower than the rates observed a year prior. As economic forecasts suggest, the rates may remain elevated for some time. According to a recent report from Fannie Mae, mortgage rates are projected to end 2025 around 6.1%, with predictions of slight reductions in 2026.

The landscape for homebuyers appears to be shifting. With aspirations for lower rates, many potential buyers had previously waited on the sidelines. This year, the sentiment is shifting, prompting earlier movements in the market as buyers anticipate rates to either stabilize or rise further. As we delve into summer, expect continued interest in homes despite the accompanying higher mortgage costs.

Expert Opinions on the Current Situation

Industry experts suggest that while higher rates can discourage some buyers, others may find motivation in current pricing trends. Sam Khater's commentary reflects a common thread among experts—homebuyers should take the initiative in exploring multiple lenders to find the best possible mortgage terms. Homeownership remains a cornerstone of wealth creation, and even at slightly higher rates, it can be a worthwhile investment for many.

Home sales are projected to increase this year despite the elevated costs, as urgent buyer demand continues to drive the market. The overall expectation is that while rates might not drop significantly in the near future, they will not remain stagnant indefinitely. The balance between housing demand and financing costs will invariably shape future market dynamics.

Summary:

Mortgage rates, as of May 30, 2025, reflect an upward trend, reaching levels last seen in early February. Understanding the current landscape of mortgage and refinance rates is crucial for anyone looking to buy or refinance a home. Information about rates, loan types, and future projections arms potential buyers with the knowledge necessary to make informed decisions. As we head into the summer months, staying informed about these trends will enable savvy choices when navigating the housing market.

Hunting for the best mortgage rate can feel like searching for buried treasure. As of today, May 29, 2025, the states offering the lowest 30-year new purchase mortgage rates are: New York, California, New Jersey, Georgia, Hawaii, North Carolina, Texas, and Washington. These states boast average rates ranging from 6.87% to 7.05%. Finding the best rate for your dream home could potentially save you thousands of dollars over the life of your loan, so read on to find out more.

States With Lowest Mortgage Rates Today – May, 29 2025

Why Mortgage Rates Vary So Much

It's something I've always found fascinating: why can two people, applying for seemingly similar mortgages, end up with wildly different interest rates? The answer lies in a complex interplay of factors, from the state you're in to the lender's risk assessment.

• Location, Location, Location: Mortgage rates aren't uniform across the country. Different lenders have different operating regions, and the local economic climate impacts their risk assessments.
• State-Level Variations: Each state has its own unique set of regulations, average credit scores, and typical loan sizes. These factors all influence the rates lenders are willing to offer.
• Lender's Risk Appetite: Each lender employs its own risk management strategies. A lender that wants to be more aggressive may offer lower rates to attract more business, while a more conservative lender might charge a premium.
• Your Financial Profile: Your credit score, income, debt-to-income ratio, and the size of your down payment all play a significant role in determining your mortgage rate.

The States Where You'll Find The Best Mortgage Rates

As I mentioned earlier, the states currently enjoying the lowest average 30-year mortgage rates are:

• New York
• California
• New Jersey
• Georgia
• Hawaii
• North Carolina
• Texas
• Washington

These states have average rates that fall between 6.87% and 7.05%.

The States Where Mortgage Rates Are Higher

On the other end of the spectrum, the states with the highest average 30-year mortgage rates today are:

• Alaska
• West Virginia
• Nevada
• Maine
• North Dakota
• South Dakota
• Wyoming
• Nebraska
• Washington, D.C.

The average rates in these areas range from 7.14% to 7.20%.

A Word of Caution About “Teaser Rates”

You've probably seen those unbelievably low mortgage rates advertised online. Be careful! These are often “teaser rates” designed to grab your attention. They might require you to pay points upfront, have an exceptionally high credit score, or be based on a much smaller loan amount than you need. The rate you actually qualify for will depend on your unique financial situation.

National Mortgage Rate Trends

Let's take a step back and look at the bigger picture. Here's what's happening with national average mortgage rates:

• 30-Year Fixed-Rate Mortgages: The current national average is 7.08% (Zillow). This is an improvement from last week's 7.15%, but still higher than the 6.50% we saw in March of 2025.
• Historical Context: Remember back in September 2024, when 30-year rates hit a two-year low of 5.89%? Those days seem like a distant memory now!

Here's a quick rundown of national averages for different loan types:

Loan Type	New Purchase Rate
30-Year Fixed	7.08%
FHA 30-Year Fixed	7.37%
15-Year Fixed	6.08%
Jumbo 30-Year Fixed	7.01%
5/6 ARM	7.22%

Calculate Your Mortgage Payment

Understanding how much you can afford each month is crucial before diving into the homebuying process. There are lots of free mortgage calculators online, like the one I use that considers:

• Home Price
• Down Payment
• Loan Term
• Property Taxes
• Homeowners Insurance
• Interest Rate

Let's say you're looking at a $440,000 home with a 20% down payment ($88,000) and a 30-year loan at a 6.67% APR. Your estimated monthly payment would be around $2,649.04. This includes principal, interest, property taxes, and homeowners insurance.

What Influences Mortgage Rates?

If you are like me, you are probably wondering what factors influence and decide mortgage rates. Mortgage rates are a complex beast, influenced by a range of economic factors. Here are some of the key drivers:

• Bond Market: Mortgage rates often track the performance of the bond market, especially the 10-year Treasury yield.
• Federal Reserve Policy: The Fed's monetary policy, including its bond-buying programs and decisions about the federal funds rate, significantly impacts mortgage rates.
• Competition Among Lenders: Competition in the mortgage market can drive rates down as lenders vie for your business.

The Fed's Role in Recent Rate Fluctuations

The Federal Reserve's actions have had a significant impact on mortgage rates in recent years. In response to the economic pressures of the pandemic, the Fed initially bought billions of dollars in bonds, keeping rates low. However, starting in November 2021, the Fed began to taper its bond purchases.

Then, in 2022 and 2023, the Fed aggressively raised the federal funds rate to combat high inflation. While the fed funds rate doesn't directly control mortgage rates, its indirect influence led to a dramatic increase in mortgage rates.

As of September 2025, the central bank announced a first rate cut of 0.50 percentage points, and then followed that with quarter-point reductions in November and December.

My Advice: Shop Around and Be Prepared

Buying a home is a huge financial decision. Here's my take on getting the best possible mortgage rate:

1. Shop Around: Don't settle for the first rate you're offered. Get quotes from multiple lenders to see who can give you the best deal.
2. Improve Your Credit Score: A higher credit score translates to a lower interest rate. Work on paying down debt and correcting any errors on your credit report.
3. Save for a Larger Down Payment: A bigger down payment reduces the lender's risk and can help you qualify for a lower rate.
4. Get Pre-Approved: Getting pre-approved for a mortgage gives you a better understanding of how much you can borrow and strengthens your negotiating position when you find a home.
5. Consider Different Loan Types: Explore different mortgage options, such as fixed-rate mortgages, adjustable-rate mortgages, and government-backed loans (like FHA or VA loans), to see which one best fits your needs.

Final Thoughts

While national trends provide a general overview, the best mortgage rate for you depends on your individual circumstances and the specific lender you choose. By doing your research, shopping around, and being prepared, you can increase your chances of securing a favorable rate and achieving your homeownership goals. Good luck with your home buying journey!

As of May 29, 2025, today's mortgage rates have seen a small increase from previous levels, reflecting a rise due to ongoing economic uncertainties surrounding tariffs and government fiscal policies. The average rates on key mortgage products have increased slightly, making it imperative for potential homebuyers and those considering refinancing to stay informed about these changes, as they may impact monthly payments and overall budget constraints.

Today's Mortgage Rates – May 29, 2025: Slight Increase Amid Economic Uncertainty

Key Takeaways:

• Current Trends: Mortgage rates are up slightly, with a 30-year fixed mortgage at 6.88%.
• Factors Impacting Rates: Economic uncertainty due to tariffs and discussions of a government tax bill are influencing rates.
• Refinance Rates: Current refinance rates are echoing purchase rates, with the 30-year refinance rate at 6.88%.
• Future Predictions: While rates have risen this month, ongoing economic developments will play a critical role in determining the direction of rates moving forward.

Today's mortgage landscape is shaped significantly by various economic factors. As reported from multiple financial sources, today's average 30-year fixed mortgage rate resides at 6.88%, a modest increase from previous assessments. Similarly, 15-year fixed rates are up to 6.07%, which indicates a rising trend in borrowing costs. Investors are on high alert, keenly observing how proposed tariffs and the unfolding story of the GOP tax bill will affect the economy, thereby influencing mortgage rates.

Understanding Today's Mortgage Rates

Mortgage rates are integral to the buying process in the housing market and are influenced by several factors that create a competitive environment for both lenders and borrowers. Here are the current rates from Zillow observed in various mortgage categories:

Loan Type	Average Rate (%)
30-Year Fixed	6.88
20-Year Fixed	6.46
15-Year Fixed	6.07
5/1 Adjustable-Rate Mortgage	7.09
7/1 Adjustable-Rate Mortgage	6.69
30-Year VA	6.41
15-Year VA	5.90
5/1 VA	6.39

Refinance rates mirror those for purchases closely. Here’s how they stack up:

Refinance Type	Average Rate (%)
30-Year Fixed	6.88
20-Year Fixed	6.71
15-Year Fixed	6.13
5/1 Adjustable-Rate Mortgage	7.33
7/1 Adjustable-Rate Mortgage	6.95
30-Year VA	6.42
15-Year VA	5.94
5/1 VA	6.13

These figures represent national averages rounded to the nearest hundredth, and the actual rates may vary based on specific circumstances like credit score and loan amount.

Factors Influencing Mortgage Rates

Economic Indicators

Challenging economic conditions often drive fluctuations in mortgage rates. The recent uptick in rates is largely attributed to investor concerns surrounding new tariffs and the potential for a U.S. credit downgrade. As inflationary pressures mount, lenders typically respond by increasing mortgage rates. Reports indicate a notable connection between bond yields and mortgage rates; when bond yields rise, as they have in recent weeks, mortgage rates tend to follow suit. This cycle has left many borrowers wondering how long current economic circumstances will linger, influencing borrowing behaviors significantly.

Additionally, broader economic indicators such as employment rates, inflation indices, and consumer confidence all contribute to how lenders price their rates. When the economy is perceived to be flourishing, lending becomes more competitive, potentially driving rates higher to cool consumer spending.

Government Policy Changes

Changes anticipated in U.S. fiscal policy, specifically centered around the GOP tax bill, are noteworthy contributors to the current trend. This proposed legislation is projected to add significantly to the national deficit, raising flags among investors about inflationary impacts. Should these policies push inflation upward, the housing market could experience even higher rates. Discussions and potential amendments to the bill could shift market reactions swiftly, leading to fluctuations in both mortgage and refinance rates.

How Mortgage and Refinance Rates Work

At their essence, mortgage rates act as fees charged for borrowing money from lenders, presented as an annual percentage rate (APR). Two primary categories of mortgage rates exist: fixed-rate and adjustable-rate mortgages.

• Fixed-rate mortgages lock in a specific interest rate for the life of the loan. Borrowers appreciate this feature as it allows for predictable monthly payments over the term of the loan. For instance, securing a 30-year mortgage at a fixed rate of 6% means that a homeowner will consistently pay that rate for three decades, an appealing aspect for many buyers.
• Adjustable-rate mortgages (ARMs) start with a low fixed rate for an initial period, which may adapt based on the market afterward. For example, someone who chooses a 5/1 ARM enjoys a fixed rate for the first five years but will then face potential adjustments each year for the remaining 25 years. This type of mortgage can be advantageous when rates are low, but it carries risks as the rate could increase significantly later, thereby considerably impacting monthly payments.

Monthly Payments Breakdown

In mortgage repayment structures, a substantial portion of initial monthly payments is allocated towards interest. Over time, more of this payment switches to the mortgage principal, reducing the overall debt owed. This transition emphasizes the importance of the mortgage term, affecting how quickly homeowners can build equity in their properties.

The implications of interest accumulation can profoundly impact a buyer's overall mortgage costs, making the selection of loan types and interest rates critical for long-term financial health.

30-Year vs. 15-Year Mortgages

A common consideration for many borrowers involves choosing between the 30-year and 15-year fixed-rate mortgages. These options present two contrasting approaches to home financing:

• 30-Year Mortgages: This option appeals to many due to lower monthly payments, affording borrowers the flexibility to invest the difference elsewhere. However, this benefit comes with the trade-off of paying higher interest rates over time and thus accruing significantly more total interest across the entire mortgage period.
• 15-Year Mortgages: By shortening the loan term, borrowers can secure lower interest rates and clear their debt faster, leading to reduced total interest payments. Conversely, the monthly payment burden is more substantial, which can strain budgets during the loan term.

Ultimately, the decision hinges on the balance of monthly affordability against total financial obligations over time. Each path has unique implications for potential homebuyers.

Current Trends in Borrowing and Refinancing

In today’s market, refinancing opportunities remain influenced by broader economic fluctuations. The current refinance rates being closely aligned with purchase rates are altering the dynamics for many homeowners contemplating the switch. Although there is still a motivation for some clients looking to lower their monthly payments, the proximity of refinance rates to purchase rates may diminish the appeal for many. Those seeking to capitalize on historic low rates from previous years now face a more complicated landscape.

Moreover, industry experts express concern about a potential “rate lock-in” effect among homeowners. Many lenders are currently experiencing heightened demand as sellers hesitant to let go of low-rate mortgages may remain on the sidelines, adding to inventory challenges as they wait for rates to decline again. This phenomenon highlights the tightrope walk for buyers in the market, where accessing inventory while contending with high rates becomes increasingly difficult.

Current Market Environment and Future Predictions

Moving forward, financial analysts predict the possibility of fluctuating rates over the coming months. The Fannie Mae forecast indicates an expectation for mortgage rates to stabilize around 6.1% by the end of 2025, reflecting tentative optimism as market forces begin to balance out. However, any shifts in government fiscal policy, global economic conditions, and domestic indicators will profoundly affect how lenders adjust their rates. In such a climate, market prediction quickly becomes speculative territory; thus, borrowers must remain vigilant and informed.

Frequently Asked Questions

What Bank is Offering the Lowest Mortgage Rates?

As of the latest data, banks such as Bank of America and Citibank have been recognized for their competitive mortgage offerings. However, to maximize your chances of obtaining a favorable rate, it's advisable to compare multiple lenders—including credit unions and specialized mortgage companies—to identify the best deal.

Is 2.75% a Good Mortgage Rate?

Historically, a 2.75% mortgage rate represents an attractive option. Given current rates that are significantly higher, securing such a low rate is quite improbable unless one assumes a mortgage from a seller who previously locked in such a rate during the low rate environment of 2020–2021.

What is the Lowest-Ever Mortgage Rate?

The 30-year fixed mortgage reached an astounding low of 2.65% in January 2021, according to Freddie Mac. With current rates significantly elevated, it's challenging to foresee a return to those historical lows in the near term.

When Should You Refinance Your Mortgage?

Experts commonly suggest refinancing when new rates are at least 1% to 2% lower than your existing mortgage rate. Personal financial goals and the associated costs of refinancing can also dictate the appropriateness of making such a move.

Summary:

As we approach the midpoint of 2025, understanding current mortgage rates—which have seen a minor uptick—is vital for anyone considering homeownership or refinancing. Staying informed about the elements that influence these rates can significantly affect financial outcomes, enabling buyers and homeowners to navigate today's housing market more effectively.