Today’s Mortgage Refinance Rates Surge Above 7% – June 20, 2025

If you're thinking about refinancing your mortgage, you're probably wondering what's happening with interest rates. As of today, national average 30-year fixed refinance rates have surged beyond 7%, climbing to 7.15%. This increase might make you question whether refinancing is still a smart financial move. But don't worry, I'm here to take a closer look at what's driving these rates and help you decide if refinancing makes sense for your situation.

Today's Mortgage Refinance Rates Surge Above 7%: Is Refinancing Still Worth It?

Let's face it, keeping up with mortgage rates is like riding a rollercoaster. One minute they're down, the next they're spiking. According to Zillow, as of June 20, 2025, the average 30-year fixed refinance rate sits at 7.15%, a slight increase from the previous week's 7.14%. The 15-year fixed refinance rate also saw a bump, inching up to 6.04%.

Breaking Down the Numbers

To give you a clearer picture, here’s a breakdown of current refinance rates for various loan types:

Conforming Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	6.95%	up 0.02%	7.40%	up 0.01%
20-Year Fixed Rate	6.79%	up 0.30%	7.14%	up 0.23%
15-Year Fixed Rate	6.02%	up 0.01%	6.31%	0.00%
10-Year Fixed Rate	5.87%	down 0.13%	6.23%	down 0.04%
7-year ARM	7.56%	up 0.24%	7.94%	up 0.02%
5-year ARM	7.59%	up 0.26%	7.98%	up 0.12%
3-year ARM	—	0.00%	—	0.00%

Government Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate FHA	6.25%	down 0.46%	7.26%	down 0.48%
30-Year Fixed Rate VA	6.56%	down 0.01%	6.78%	up 0.01%
15-Year Fixed Rate FHA	5.99%	up 0.22%	6.96%	up 0.22%
15-Year Fixed Rate VA	5.98%	up 0.01%	6.34%	up 0.04%

Jumbo Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate Jumbo	7.25%	down 0.36%	7.48%	down 0.48%
15-Year Fixed Rate Jumbo	6.86%	up 0.45%	7.00%	up 0.43%
7-year ARM Jumbo	—	0.00%	—	0.00%
5-year ARM Jumbo	9.03%	down 0.22%	8.74%	down 0.18%
3-year ARM Jumbo	—	0.00%	—	0.00%

These rates change daily, so stay vigilant.

Why Are Refinance Rates on the Rise?

Several factors contribute to the fluctuations in mortgage refinance rates. These include:

• Economic Conditions: Overall economic health, including inflation, employment rates, and GDP growth, plays a significant role. Stronger economic data often leads to higher rates.
• Federal Reserve Policy: The Federal Reserve's monetary policy, particularly decisions regarding the federal funds rate, has a direct impact on interest rates across the board.
• Bond Market Activity: Mortgage rates are closely tied to the bond market, specifically the yield on 10-year Treasury bonds. When bond yields rise, mortgage rates tend to follow suit.
• Investor Sentiment: Market sentiment and investor confidence can also influence rates. Uncertainty or volatility in the market can lead to rate fluctuations.

Is Refinancing Still a Good Idea with Rates Above 7%?

Okay, so rates are up. Does that automatically disqualify refinancing? Not necessarily. Here's my take on it:

• Assess Your Current Situation: Start by looking at your existing mortgage. What's your current interest rate, loan term, and monthly payment? How much equity do you have in your home? For example, are you paying on an interest rate higher than 8%? If so, refinancing might prove to be advantageous.
• Crunch the Numbers: Use a mortgage refinance calculator to figure out the interest rate that would make refinancing worthwhile. Factor in all the costs involved, such as appraisal fees, closing costs, and any prepayment penalties on your existing loan. It's almost basic math… Don't get fooled by too good-to-be-true offers.
• Consider Your Goals: What are you hoping to achieve by refinancing? Are you looking to lower your monthly payment, shorten your loan term, switch from an adjustable-rate to a fixed-rate mortgage, or tap into your home equity for other financial needs? All these are advantages.
• Think Long-Term: Even if you don't see immediate savings, refinancing could still be beneficial in the long run. For example, switching from an ARM (Adjustable Rate Mortgage) to a fixed-rate loan provides more predictable monthly payments.

Reasons to Refinance (Even with Higher Rates)

Even with rates above 7%, refinancing can still make sense for several reasons:

• Consolidate Debt: Refinance to take out cash and pay off high-interest debt like credit cards or personal loans.
• Home Improvements: Use the extra cash to fund renovations that increase your home's value.
• Eliminate PMI: If you’ve gained enough equity in your home, refinancing can allow you to eliminate private mortgage insurance (PMI), saving you money each month.
• Change Loan Type: Transition from an adjustable-rate mortgage (ARM) to a stable, fixed-rate mortgage for predictable payments.
• Shorten Loan Term: Shift from a 30-year to a 15-year mortgage to pay off your home faster and save on interest, even if the monthly payment is slightly higher.

Understanding Different Loan Types

When considering a refinance, it's essential to understand the different loan types available:

• Fixed-Rate Mortgage: The interest rate remains constant throughout the life of the loan, providing predictable monthly payments.
• Adjustable-Rate Mortgage (ARM): The interest rate is initially fixed for a set period, then adjusts periodically based on market conditions. ARMs may offer lower initial rates but come with the risk of future rate increases.
• FHA Loans: Insured by the Federal Housing Administration, these loans are geared toward borrowers with lower credit scores and smaller down payments.
• VA Loans: Guaranteed by the Department of Veterans Affairs, these loans are available to eligible veterans and active-duty service members. They often come with favorable terms and no down payment requirements.
• Jumbo Loans: These loans exceed the conforming loan limits set by Fannie Mae and Freddie Mac and are used for higher-priced properties.

Tips for Getting the Best Refinance Rate

If you decide to move forward with refinancing, here are some tips to help you secure the best possible rate:

• Improve Your Credit Score: A higher credit score demonstrates lower risk to lenders and can result in a better interest rate.
• Shop Around: Get quotes from multiple lenders to compare rates and fees. Don't settle for the first offer you receive.
• Consider a Shorter Loan Term: Shorter-term loans typically offer lower interest rates.
• Offer a Larger Down Payment: If possible, increasing your equity in the home can qualify you for a lower rate.
• Negotiate: Don't be afraid to negotiate with lenders to see if they can match or beat competing offers. This is where I always see people hesitate, you should go for it!
• Keep an eye on mortgage rates: Fluctuations in the market can work to your advantage.

The Bottom Line

While mortgage refinance rates are currently above 7%, it doesn't mean that refinancing is off the table. Carefully evaluate your financial situation, goals, and potential savings to determine if it's the right move for you. Consider consulting with a financial advisor or mortgage professional for personalized guidance to make informed decisions.