Today’s Mortgage Rates – June 8, 2025: Slight Drop But Rates Are Still High for Borrowers

As of today, June 8, 2025, mortgage rates for various home loan types show varying trends. The national average for a 30-year fixed mortgage rate slightly declined to 7.03%, marking a decrease from the previous week. The refinance rates have softened overall but still remain higher than many borrowers would prefer. Let’s take a deeper dive into the current mortgage and refinance rates, as well as the broader economic context that influences these figures.

Today’s Mortgage Rates – June 8, 2025: Slight Drop But Rates Are Still High for Borrowers

Key Takeaways

• 30-Year Fixed Mortgage Rates: 7.03%, down from 7.04% last week.
• 15-Year Fixed Mortgage Rates: 6.14%, a slight decrease from 6.16%.
• 5-Year ARM Rates: Dropped to 7.74%, down from 7.83%.
• Average Refinance Rate for 30-Year Fixed: Currently 7.25%, down from 7.28%.

Current Mortgage Rates Overview

Changing mortgage rates can have significant implications for homebuyers and the housing market as a whole. According to Zillow, here are the current rates for the most common loan types:

Loan Type	Current Rate	1 Week Change	APR	1 Week Change
30-Year Fixed Rate	7.03%	+0.02%	7.49%	+0.02%
20-Year Fixed Rate	6.92%	-0.06%	7.32%	-0.07%
15-Year Fixed Rate	6.14%	+0.07%	6.45%	+0.08%
10-Year Fixed Rate	5.97%	-0.10%	6.05%	-0.42%
7-Year ARM	8.41%	+0.86%	8.75%	+0.83%
5-Year ARM	7.74%	+0.19%	8.05%	+0.09%

National mortgage rates updated on June 8, 2025, sourced from Zillow.

This data reflects the trends over the last week, with the most significant changes being a slight drop in some fixed-rate options and an increase in others like the 7-year ARM. For many homebuyers, understanding these nuances can make a substantial difference in their long-term financial commitments.

Government and Jumbo Loan Rates

For those looking into government-backed loans and jumbo loans, the rates are recalibrated, as shown below:

Government Loan Rates

Loan Type	Current Rate	1 Week Change	APR	1 Week Change
30-Year Fixed Rate FHA	7.20%	+0.32%	8.23%	+0.32%
30-Year Fixed Rate VA	6.56%	+0.08%	6.78%	+0.09%
15-Year Fixed Rate FHA	5.97%	+0.40%	6.94%	+0.37%
15-Year Fixed Rate VA	6.08%	+0.06%	6.44%	+0.07%

Jumbo Loan Rates

Loan Type	Current Rate	1 Week Change	APR	1 Week Change
30-Year Fixed Rate Jumbo	7.61%	+0.08%	8.00%	+0.06%
15-Year Fixed Rate Jumbo	7.35%	+0.81%	7.61%	+0.80%
7-Year ARM Jumbo	7.53%	-0.17%	8.06%	+0.07%
5-Year ARM Jumbo	7.41%	-0.84%	7.92%	-0.49%

Sourced from Zillow.

The State of Refinance Rates

For homeowners looking to refinance, understanding the current rates is crucial. Here’s the current status of refinance rates as of June 8, 2025:

Loan Type	Current Rate	1 Week Change	APR	1 Week Change
30-Year Fixed Refinance	7.25%	-0.03%	7.49%	+0.02%
20-Year Fixed Refinance	6.92%	-0.06%	7.32%	-0.07%
15-Year Fixed Refinance	6.20%	0.00%	6.44%	+0.08%
10-Year Fixed Refinance	5.97%	-0.10%	6.05%	-0.42%
5-Year ARM Refinance	8.06%	+0.05%	8.05%	+0.09%

Refinancing remains an attractive option for many homeowners looking to save money or consolidate debt. However, potential refinancers must weigh the benefits of lower rates against closing costs and any potential changes in loan terms.

Understanding Mortgage Rates

To determine the best mortgage for your situation, it’s essential to differentiate between fixed-rate and adjustable-rate mortgages (ARMs).

Fixed-Rate Mortgages

Fixed-rate mortgages offer stability and predictability in payments over the life of the loan. The most popular option is the 30-year fixed-rate mortgage. With this type of loan, borrowers benefit from knowing that their interest rate and monthly payments will remain consistent throughout the life of the loan. This predictability can be advantageous, especially in a rising interest rate environment.

Adjustable-Rate Mortgages (ARMs)

In contrast, adjustable-rate mortgages (ARMs) start with a lower rate but can fluctuate based on market conditions. For instance, a 5-year ARM offers lower initial payments for the first five years, after which the rate can adjust annually. This can be a good option for borrowers who anticipate moving or refinancing within a short time frame. However, the risk lies in potentially higher payments if rates increase substantially after the initial period.

In choosing between a fixed-rate mortgage and an ARM, borrowers should consider their future plans and risk tolerance. If stability is a priority, fixing rates might be the way to go. Conversely, those willing to accept some risk might benefit from lower introductory rates associated with ARMs.

Factors Influencing Current Mortgage and Refinance Rates

Several factors can influence mortgage rates, including:

1. Economic Conditions: General economic health plays a huge role. For example, higher inflation can lead to increased interest rates as lenders seek to maintain profit margins. The labor market's strength, consumer spending, and growth forecasts are all indicators that can affect rates.
2. Federal Reserve Policy: Actions taken by the Federal Reserve, such as adjusting the federal funds rate or purchasing government-backed securities, can impact mortgage rates. Recently, the Fed’s focus has been on combating inflation, which might lead to higher long-term borrowing costs.
3. Market Competition: The mortgage market is competitive, and lenders regularly adjust their rates. Keeping an eye on current trends can lead to finding attractive offerings. Utilizing online mortgage comparison tools can also provide an overview of the best rates available in the market.
4. Personal Financial Factors: A borrower’s credit score, debt-to-income ratio, and even employment stability can greatly influence the mortgage rates they are offered. Higher credit scores typically qualify for lower rates, while higher debt-to-income ratios may result in higher rates or even denied applications.
5. Housing Market Dynamics: Supply and demand in the housing market itself can affect mortgage rates as well. A hot housing market may lead to increased loan demand, thus driving rates higher. In contrast, a buyer’s market might lead to lower rates as lenders compete for business.

What Lies Ahead for Mortgage Rates in 2025?

Forecasting mortgage rates can be tricky, but there are insights based on recent data. According to the Mortgage Bankers Association, rates are expected to hover around 6.6% by the end of 2025, signaling relative stability in the market after fluctuations experienced over the past few years. Economic growth, coupled with changing demographic preferences and homebuyer behavior, suggests that even with a few expected drops, rates will remain relatively high compared to historical lows seen in the past decade.

Forecasting Highlights:

• National Association of REALTORS® predicts a +6% increase in existing home sales for 2025, indicating a rebound in buyer interest.
• Fannie Mae revised its forecast for mortgage rates, projecting them to end at 6.1% in 2025, slightly dropping from earlier estimates.

With anticipated steady growth in the housing market, first-time buyers and refinance seekers may find favorable conditions, but they should remain aware of potential market headwinds.

The Psychological Aspect of Borrowing

It’s also essential to consider the psychological factors at play when borrowing. Homeownership is often regarded as a vital part of the American Dream. As such, interest rates and market trends can heavily influence consumer sentiment and behavior. If rates are perceived to be on the rise, potential homebuyers may rush to secure loans, further driving demand and potentially pushing prices higher. Conversely, if rates are stable or declining, it often leads to increased confidence among buyers, stimulating more activity in the market.

Closing Remarks

If you’re planning to buy or refinance, today’s mortgage rates showcase both some opportunities and challenges. It’s important to compare rates and products and keep abreast of foreseen changes in the market. Every percentage can make a difference when considering long-term payments. Therefore, staying informed and proactive can be beneficial in maximizing your financial outcomes.