Today’s Mortgage Rates: 5-Year ARM Surges by 2 Basis Points to 7.62%

Are you keeping a close eye on mortgage rates? You should be, especially if you're planning to buy a home or refinance soon! As of June 30, 2025, today's mortgage rates show some interesting movement, particularly with the 5-year ARM (Adjustable-Rate Mortgage), which has seen an increase. According to the latest data from Zillow, the national average for a 5-year ARM has risen 2 basis points to 7.62%. Let's dive into what this means for you and the broader housing market.

Today's Mortgage Rates: 5-Year ARM Surges to 7.62% on June 30, 2025

Navigating the world of mortgage rates can feel like trying to solve a complex puzzle. There are so many numbers, terms, and factors that influence where rates are headed. What's a basis point and why should I care that it's “up” or “down”? Let's break it down. A basis point is just one-hundredth of a percentage point (0.01%). So really it's not too complicated once you put it in perspective. Even small changes can add up when you're talking about hundreds of thousands of dollars over the life of a loan.

Fixed vs. Adjustable: Understanding Your Options

The most common types of mortgages are fixed-rate and adjustable-rate.

• Fixed-rate mortgages have an interest rate that stays the same for the entire loan term, which could be 15, 20, or 30 years. This provides stability and predictability in your monthly payments. If you like certainty, or you plan on staying in your new home for a long time, a fixed rate might be right for you.
• Adjustable-rate mortgages (ARMs), on the other hand, have an interest rate that is fixed for an initial period (e.g., 3, 5, 7, or 10 years), and then adjusts periodically based on a benchmark index, such as the Secured Overnight Financing Rate (SOFR) plus a margin (a fixed spread).

The 5-year ARM is just one of many options, and it's crucial to understand the nuances of each to make an informed decision.

The 5-Year ARM: Why the Jump?

Okay, so the 5-year ARM went up slightly. Why? There are a number of influencing factors that can cause mortgage rates to move.

• Economic Data: Strong economic data, such as robust job growth or unexpectedly high inflation, can push rates higher. This is because a strong economy can signal higher demand for credit and potentially lead to the Federal Reserve tightening monetary policy.
• Federal Reserve Policy: The Federal Reserve plays a huge role in setting the overall tone for interest rates. Their decisions on the federal funds rate directly impact short-term borrowing costs, which can then influence mortgage rates.
• Inflation Expectations: If investors expect inflation to rise, they typically demand higher yields on bonds to compensate for the eroding purchasing power of their investment. This, in turn, can lead to higher mortgage rates.
• Global Events: Unforeseen events – wars, geopolitical issues, even natural disasters can affect global financial markets by raising uncertainty causing rates to fluctuate.

While I can't pinpoint the exact reason for the increase on June 30, 2025, it's likely a combination of these factors at play. Even small news items can move the market enough that you will see the change in mortgage rates.

Current Mortgage Rate Snapshot (June 30, 2025)

Let's take a look at a table summarizing the current mortgage rates from ZIllow as of June 30, 2025:

Conforming Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	6.75%	down 0.03%	7.21%	down 0.02%
20-Year Fixed Rate	6.05%	down 0.21%	6.31%	down 0.32%
15-Year Fixed Rate	5.74%	down 0.07%	6.05%	down 0.06%
10-Year Fixed Rate	5.78%	up 0.09%	6.04%	up 0.04%
7-year ARM	7.00%	down 0.14%	7.91%	up 0.09%
5-year ARM	7.62%	up 0.16%	8.01%	up 0.08%
3-year ARM	—	0.00%	—	0.00%

Note: APR (Annual Percentage Rate) includes other costs of the loan expressed as a yearly rate.

Government Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate FHA	7.25%	up 0.01%	8.29%	up 0.01%
30-Year Fixed Rate VA	6.29%	up 0.02%	6.50%	up 0.02%
15-Year Fixed Rate FHA	5.72%	down 0.55%	6.68%	down 0.56%
15-Year Fixed Rate VA	5.79%	up 0.01%	6.13%	up 0.02%

Jumbo Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate Jumbo	7.10%	down 0.05%	7.58%	up 0.02%
15-Year Fixed Rate Jumbo	6.45%	down 0.09%	6.74%	down 0.06%
7-year ARM Jumbo	7.42%	0.00%	8.00%	0.00%
5-year ARM Jumbo	7.22%	down 0.25%	7.81%	down 0.13%
3-year ARM Jumbo	—	0.00%	—	0.00%

Key Takeaways from the Table

• 30-year fixed mortgage rates are slightly down at 6.75%, which is good news for those seeking stability.
• 15-year fixed mortgage rates are at 5.74%, making them an attractive option for those looking to pay off their mortgage faster.
• The 5-year ARM is sitting at 7.62%, with an increase of 0.16% from the previous week.
• Notice how Government loans such as FHA and VA loans still have a high demand – this is mostly due to their low down payment options making them accessible to many first-time home buyers giving a leg up to entering the housing market.

Is a 5-Year ARM Right for You?

With the 5-year ARM seeing an uptick, you might be wondering if it's still a viable option. Here are few things to consider. I think these are good pointers to keep in mind which I will share with you:

• Lower Initial Interest Rate: ARMs often start with a lower interest rate than fixed-rate mortgages, making your initial monthly payments more affordable. The question I would ask myself is “Is this a true reflection of affordability?”
• Short-Term Homeownership: If you plan to move or refinance before the adjustment period begins, you could benefit from the lower initial rate. This is especially true if you're only planning on living in the home for the next five or less years.
• Risk Tolerance: Are you comfortable with the possibility of your interest rate increasing after the fixed period? If you can stomach the risk, an ARM might be worth considering.
• Consider the “Worst Case” Scenario: This means evaluating the loan documents and seeing what the maximum interest rate is. Could you afford it?

Personally, I would suggest running different scenarios and talking to a financial advisor before committing to an ARM.

Fixed-Rate vs. ARM: A Detailed Comparison

To help you make a more informed decision, let's compare fixed-rate and adjustable-rate mortgages:

Feature	Fixed-Rate Mortgage	Adjustable-Rate Mortgage (ARM)
Interest Rate	Remains constant throughout the loan term.	Initial rate is fixed for a period, then adjusts based on a benchmark index.
Monthly Payments	Predictable and consistent.	Can fluctuate after the initial fixed period.
Risk Level	Low; no surprises with interest rate changes.	Higher; interest rate can increase or decrease.
Best Suited For	Homeowners who value stability and plan to stay in their home for the long term.	Homeowners who plan to move or refinance within the fixed period, or who are comfortable with interest rate risk.
Initial Interest Rate	Higher compared to ARMs.	Lower than fixed-rate mortgages.

Tips for Navigating the Mortgage Market

The mortgage market can be daunting, but with the right approach, you can find the best loan for your needs:

• Shop Around: Don't settle for the first offer you receive. Get quotes from multiple lenders to compare rates and fees.
• Check Your Credit Score: A good credit score can help you qualify for a lower interest rate. Check your credit report for errors and take steps to improve your score if necessary.
• Get Pre-Approved: Pre-approval gives you a clear idea of how much you can borrow and makes you a more attractive buyer to sellers.
• Understand the Fine Print: Read all loan documents carefully and ask questions about anything you don't understand.

The Bottom Line

While the rise in the 5-year ARM rate on June 30, 2025, might cause some pause, it's important to put it into perspective. Mortgage rates fluctuate constantly, and a slight increase in one type of loan shouldn't necessarily derail your plans of purchasing a home.

Focus on:

• Your individual financial situation
• Long-term goals
• Working with trusted professionals
• Staying informed

By taking a well-informed and pragmatic approach, you can navigate the mortgage market with confidence on your journey towards homeownership.