Today’s Mortgage Rates – June 18, 2025: Steady Rates for the Second Consecutive Day

As of June 18, 2025, mortgage rates are showing a slight decrease, with the national average for a 30-year fixed mortgage rate holding steady at 6.91%. This rate has dropped 2 basis points from last week's average of 6.93%. Similarly, the average 15-year fixed mortgage rate has decreased to 5.95%, while the 5-year adjustable-rate mortgage (ARM) is also down, now at 7.11%. As market conditions continually evolve, understanding today's mortgage rates is essential for borrowers looking to purchase homes or refinance existing loans.

Today's Mortgage Rates – June 18, 2025: Steady Rates for the Second Consecutive Day

Key Takeaways:

• 30-Year Fixed Rates: Remain stable at 6.91%, down 0.03% from last week.
• 15-Year Fixed Rates: Decreased to 5.95%, down 0.06%.
• 5-Year ARM Rates: Dropped to 7.11%, a decrease of 0.22%.
• Current Economic Situation: Federal Reserve's upcoming decisions may affect future rates, with no changes expected at this time.

Understanding Mortgage Rates

Mortgage rates vary based on economic conditions, but they generally remain in a tight range, especially when major decisions by the Federal Reserve are pending. The Fed's decisions impact wider economic factors, but notably do not dictate mortgage rates directly. Instead, lenders adjust their rates based on the risk and market conditions following the Fed’s actions.

Over the next few months, mortgage rates are expected to mirror this stable trend unless significant adverse economic news arises. The current levels indicate a cautious optimism in the housing market as homebuyers and existing homeowners look to manage their finances effectively.

Current Mortgage Rates Overview

The table below shows the current mortgage rates for different types, along with their week-over-week changes:

Loan Program	Rate	1W Change	APR	1W Change
30-Year Fixed Rate	6.91%	down 0.03%	7.35%	down 0.04%
20-Year Fixed Rate	6.65%	up 0.15%	6.95%	up 0.04%
15-Year Fixed Rate	5.95%	down 0.06%	6.24%	down 0.07%
10-Year Fixed Rate	5.87%	down 0.13%	6.23%	down 0.04%
7-Year ARM	7.63%	up 0.30%	8.09%	up 0.17%
5-Year ARM	7.11%	down 0.22%	7.71%	down 0.16%
3-Year ARM	N/A	N/A	N/A	N/A

Source: Zillow

In terms of government loans, here's how the rates stack up:

Loan Program	Rate	1W Change	APR	1W Change
30-Year Fixed Rate FHA	7.00%	up 0.17%	8.03%	up 0.17%
30-Year Fixed Rate VA	6.39%	down 0.01%	6.56%	down 0.05%
15-Year Fixed Rate FHA	5.29%	down 0.49%	6.25%	down 0.50%
15-Year Fixed Rate VA	5.85%	down 0.08%	6.11%	down 0.17%

Source: Zillow

Mortgage Refinance Rates

Refinancing is an option for many homeowners seeking to reduce their monthly payments or take advantage of changing market conditions. Here's an overview of today’s refinance rates:

Refinance Program	Rate	1W Change	APR	1W Change
30-Year Fixed Rate	7.21%	up 0.04%	7.35%	down 0.04%
20-Year Fixed Rate	6.65%	up 0.15%	6.95%	up 0.04%
15-Year Fixed Rate	5.99%	down 0.04%	6.24%	down 0.07%
10-Year Fixed Rate	5.87%	down 0.13%	6.23%	down 0.04%
7-Year ARM	7.63%	up 0.30%	8.09%	up 0.17%
5-Year ARM	5.94%	equal	7.71%	down 0.16%

Conforming Loans vs. Government Loans

Understanding the difference between conforming loans and government loans is essential for potential borrowers.

• Conforming Loans: These loans follow guidelines set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. They usually offer lower interest rates and are generally easier to qualify for, provided that the borrower's credit score and financial health are adequate.
• Government Loans: These include loans backed by federal agencies, such as the VA (Veterans Affairs) and FHA (Federal Housing Administration). These loans are designed to support various demographics and may come with benefits like lower down payments and flexible income requirements, making them an appealing option for first-time homebuyers.

Will Interest Rates Drop Soon?

Looking ahead, experts predict that mortgage rates will likely hover within their current range for the coming months. The economic landscape remains cautious, marked by uncertainties about inflation and the job market. Notably, many analysts expect the Federal Reserve to keep short-term interest rates unchanged after its upcoming meetings, with potential changes postponed until September at the earliest.

Currently, trading markets indicate a strong possibility of maintaining rates through the summer season, unless surprising economic reports shift that outlook. If the Fed does decide to cut rates, even slightly, borrowers might see a decrease in mortgage rates, allowing for some relief in home financing costs.

Federal Reserve’s Influence on Mortgage Rates

The Federal Reserve plays a crucial role in the economic landscape, especially regarding interest rates. Although the Fed does not directly set mortgage rates, its actions heavily influence the broader interest rates offered by lenders.

When the Fed decides to lower the federal funds rate, it typically reduces borrowing costs across the economy, leading to lower mortgage rates. Conversely, if the Fed raises rates to control inflation, mortgage rates often follow suit.

This month, the Fed's decision to keep rates steady reflects a stabilizing approach to navigating the current economic challenges while trying to support both consumers and businesses. Analysts suggest that the Fed might feel pressured to reassess its policies if inflation data wavers or if unemployment rates rise significantly—events which could lead to future rate cuts.

Overall, the housing market remains sensitive to these developments. Homebuyers and those considering refinancing should stay informed about both current rates and any changing economic conditions that could soon influence the landscape further.