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

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.