Today’s Mortgage Rates – June 13, 2025: A Big Drop in Rates From Last Week

As of June 13, 2025, mortgage rates have shown fluctuations, with the average 30-year fixed mortgage rate currently remaining at 6.88%, which marks a substantial decrease of 11 basis points from last week's average of 6.99%. The national average for the 15-year fixed mortgage has risen slightly to 5.96%, while the 5-year adjustable-rate mortgage (ARM) rate has decreased to 7.17%. Here are more details about the current mortgage rate trends across various loan types.

Today’s Mortgage Rates – June 13, 2025: A Big Drop in Rates From Last Week

Key Takeaways

• 30-Year Fixed Mortgage Rate: 6.88%, down from 6.99%
• 15-Year Fixed Mortgage Rate: 5.96%, up from 5.94%
• 5-Year ARM Rate: 7.17%, down from 7.21%
• Current Refinance Rates: 30-Year fixed refinance at 7.08%, down from 7.09%
• Market Outlook: Rates expected to remain stable or slightly decrease through 2025

Current Mortgage Rates

Mortgage Rates fluctuate regularly based on various economic indicators, market conditions, and lender strategies. The following table outlines the average rates for various types of home loans as of June 13, 2025:

Loan Type	Rate (%)	1W Change (%)	APR (%)	1W Change (%)
30-Year Fixed Rate	6.88	-0.11	7.32	-0.13
20-Year Fixed Rate	6.55	-0.27	6.79	-0.45
15-Year Fixed Rate	5.96	+0.02	6.25	-0.11
10-Year Fixed Rate	6.03	+0.10	6.13	-0.04
7-Year ARM	6.64	-1.17	7.51	-0.72
5-Year ARM	7.17	-0.45	7.84	-0.16

Source: Zillow

A fixed-rate means your interest rate remains constant throughout the loan's duration, making it simpler to plan payments. On the other hand, ARMs might start lower, but they can increase after an introductory period, leading to unexpected fluctuations in monthly payments.

What Are Current Refinance Rates?

For those looking to refinance, the rates have also seen some changes. The current refinance rates are as follows:

Refinance Loan Type	Rate (%)	1W Change (%)	APR (%)	1W Change (%)
30-Year Fixed Refinance	7.08	-0.01	7.32	-0.13
15-Year Fixed Refinance	5.99	+0.07	6.25	-0.11
5-Year ARM Refinance	7.69	0.00	–	–

Source: Zillow

The 30-year fixed refinance rate has decreased by 1 basis point, now resting at 7.08%, down from last week's 7.09%. This decline can be beneficial for homeowners wishing to reduce their current mortgage payments, tap into equity for home improvements, or consolidate debt.

Understanding Mortgage Refinancing Costs

When refinancing, it’s essential to consider not only the rate change but also the costs involved. Refinancing entails several expenses which may offset any potential savings from a lower rate:

• Origination Fees: This is a fee charged by the lender for evaluating and preparing your mortgage. It can range from 0.5% to 1% of the total loan amount.
• Appraisal Fees: Typically costing between $300 to $700, these fees assess the property's value to ensure it meets the loan amount criteria.
• Closing Costs: Generally ranging from 2% to 5% of the loan amount, closing costs include various fees, such as title insurance and attorney fees.
• Prepayment Penalties: If your original mortgage has a prepayment penalty for paying off the loan early, this could significantly impact your refinancing decision.

For example, if you're refinancing a $300,000 loan, the closing costs could range from $6,000 to $15,000, which you need to weigh against the savings of a lower interest rate. An astute borrower would aim to evaluate the break-even point, which is the time it takes for the savings from lower monthly payments to surpass the costs associated with refinancing.

How to Find the Best Mortgage Rates in 2025?

Finding the ideal mortgage rate requires diligence. Here are several strategies to ensure you secure the best possible rate in 2025:

1. Research Multiple Lenders: Different lenders offer various rates and terms, so it’s necessary to shop around. Websites like Bankrate and Zillow provide comprehensive comparisons of rates from various lenders.
2. Check Your Credit Score: Your credit score plays an essential role in determining your mortgage rate. A higher credit score typically translates to lower rates. Before applying, check your credit report and work to enhance your score as needed.
3. Stay Informed on Market Trends: Pay attention to economic news and market trends, as these factors can influence mortgage rates. Understanding cycles in inflation, employment rates, and economic growth can gauge when to lock in a favorable rate.
4. Consider Loan Types: Review different loan types such as FHA, VA, conventional, and ARMs. Each loan type has its requirements, benefits, and potential risks.
5. Consult a Mortgage Broker: Mortgage brokers have access to a wide array of lenders and can often negotiate better rates on your behalf. They can filter through numerous options to find a mortgage that aligns with your financial situation.

Mortgage Rates Outlook for the Rest of 2025

Looking ahead, mortgage rates are expected to remain steady with varying forecasts predicting slight fluctuations. According to the National Association of REALTORS®:

• Forecast for 2025:
  • Existing Home Sales: Expected to see an increase of 6%
  • New Home Sales: Anticipated to rise by 10%
  • Median Home Prices: Projected to increase by 3%
  • Expected Mortgage Rate: Anticipated to settle at around 6.4%

Fannie Mae’s forecast also supports a softening of rates, predicting an end-of-year rate of 6.1%, down from 6.2% previously. Meanwhile, the Mortgage Bankers Association projects 30-year rates to stabilize near 6.7% through the summer months.

Freddie Mac, on the other hand, notes that while buyers may hope for a decrease in rates, it is more probable that they will remain elevated throughout 2025. High rates might deter some potential buyers, yet they might prompt others to act earlier due to the ongoing uncertainty in the market.

This current high-rate environment could encourage homeowners wishing to sell to enter the housing market sooner rather than later, leading to increased activity in home sales despite the overall level of sales still remaining below historical averages. According to Freddie Mac, the “rate lock-in” phenomenon—where homeowners feel stuck with their low-rate mortgages—may gradually decrease, allowing more inventory to hit the market.

Prices are also anticipated to appreciate, although at a more moderate pace compared to recent years. The home price growth, coupled with a projected increase in home sales, is likely to drive purchase volumes higher than in 2024. Slightly lower rates in 2025 should translate to increased refinancing activity as well, which is good news for lenders and potential borrowers alike.

In summary, today's mortgage rates reflect a complex web of economic factors and market strategies. Understanding these dynamics is crucial for anyone considering buying or refinancing a home in June 2025, as small changes in rates can have significant long-term financial impacts.