Today’s Mortgage Rates July 4, 2025: Small Increase for 30-Year FRM and 15-Year FRM

As of today, July 4, 2025, average mortgage rates in the United States show a slight increase compared to the previous week. According to Zillow, the national average for a 30-year fixed mortgage rate is currently 6.80%, up one basis point from last week’s rate of 6.79%. Additionally, the 15-year fixed mortgage rate is holding steady at 5.85%, while the 5-year adjustable-rate mortgage (ARM) has dipped slightly to 7.71% from 7.73%. If you are looking to buy or refinance a home, understanding these rates is essential for making informed financial decisions.

Today's Mortgage Rates – July 4, 2025: Small Increase for 30-Year FRM and 15-Year FRM

Key Takeaways

• Current Average Rates:
  • 30-year fixed: 6.80%
  • 15-year fixed: 5.85%
  • 5-year ARM: 7.71%
• Rates on July 4, 2025: Small increase for 30-year fixed and 15-year fixed; decrease for 5-year ARM.
• Refinance Rates: 30-year fixed refinance rate is at 7.10%, up from previous weeks.
• Financial Planning: Understand your payment amounts based on mortgage size and current rates.

Current Mortgage and Refinance Rates

The mortgage market can be quite dynamic, with rates fluctuating frequently based on economic indicators. Here’s a breakdown of the current mortgage rates as of July 4, 2025, for different types of loans:

Loan Type	Rate	1W Change	APR	1W Change
30-Year Fixed	6.80%	+0.01%	7.24%	0.00%
20-Year Fixed	6.08%	-0.18%	6.56%	-0.07%
15-Year Fixed	5.85%	+0.04%	6.14%	+0.04%
10-Year Fixed	5.58%	-0.12%	5.77%	-0.23%
7-Year ARM	7.50%	+0.36%	7.75%	-0.07%
5-Year ARM	7.71%	+0.24%	8.02%	+0.09%

For refinancing, the rates have also changed slightly:

Type	Rate	1W Change	APR	1W Change
30-Year Fixed	7.10%	+0.03%	7.99%	+0.04%
15-Year Fixed	5.93%	+0.05%	6.19%	+0.08%
5-Year ARM	7.96%	+0.05%	8.17%	+0.11%

Monthly Payment on a $300k Mortgage

To calculate how much a typical monthly payment would be for a $300,000 mortgage at the current 30-year fixed rate of 6.80%, we find that your monthly payment would be approximately $1,949. This includes principal and interest only and assumes no down payment or additional costs which may arise from taxes, insurance, or PMI premiums.

Here’s how that payment breaks down:

• Principal & Interest: About $1,949
• Estimated Insurance and Taxes: This can vary significantly based on local rates.

Monthly Payment on a $400k Mortgage

For a $400,000 mortgage at the same interest rate of 6.80%, the monthly payment would amount to around $2,599. Similar considerations apply regarding other costs related to homeownership, but the principal and interest calculation focuses on the loan’s interest alone.

Here’s what to expect:

• Principal & Interest: Approximately $2,599
• Estimated Insurance and Taxes: Again, this should be factored into your total monthly budget.

Monthly Payment on a $500k Mortgage

If you're looking at a $500,000 mortgage at the 6.80% rate, your monthly payments would jump to about $3,249. Just like the previous examples, this projection focuses strictly on principal and interest, leaving out additional costs associated with homeownership.

Payment breakdown:

• Principal & Interest: About $3,249
• Estimated Insurance and Taxes: Varies; be sure to consult local estimates.

Understanding Mortgage Rates

Mortgage rates are influenced by various factors, including the broader economic climate, actions taken by the Federal Reserve, and individual borrower specifics, such as credit score and down payment. Often, lower rates correlate with strong credit due to decreased risk for lenders.

Why Do Mortgage Rates Matter?

Understanding mortgage rates is crucial for multiple reasons:

• Total Interest Paid: Even a slight difference in rates can significantly impact the total amount paid over the life of a loan.
• Monthly Budgeting: Choosing the right rate can help manage monthly payment amounts to fit into your budget.
• Potential Savings: For current homeowners, lower rates can mean a great opportunity for refinancing.

The Future of Mortgage Rates

Forecasting the future of mortgage rates is tricky, but economists closely watch trends and indicators. Looking ahead, experts suggest that mortgage rates may stabilize but will likely remain elevated compared to historical lows. Current projections indicate rates may average around 6.65% to 6.75% in July, influenced by various economic factors:

• Economic Uncertainty: Persistent concerns over inflation and employment data create an unpredictable climate that may affect rates. Economic growth indicates higher consumer spending, which could drive rates up as the Fed may feel pressured to increase interest rates to cool off spending.
• Federal Reserve Policy: The Fed has paused its rate adjustments recently, observing economic trends before making any changes. Their decisions greatly influence mortgage rates; a favorable jobs report could lead them to consider adjustments that might elevate rates further.
• Geopolitical Tensions: Global events can impact investor sentiment, often leading to fluctuations in housing market rates. For example, escalating tensions could lead investors to seek safer assets like U.S. Treasuries, subtly pushing mortgage rates down due to weaker demand for loans.

Bottom Line:

As mortgage rates inch up slightly moving into July 2025, it may signal different strategies for buyers and refinancers in the real estate market. With current rates, you can still achieve favorable terms for homes ranging from $300,000 to $500,000, but it’s essential to act wisely and stay informed about changing conditions.