Mortgage rates across the U.S. ticked down again today, with the average 30-year fixed rate falling to 6.87% as of June 5, according to Zillow. This marks a 0.14 percentage point drop from the previous week and signals continued volatility as buyers and refinancers watch for more favorable lending conditions.
National mortgage rate averages as of June 5
Here’s a look at today’s most common mortgage rates and how they compare to last week:
Conforming loans:
- 30-Year Fixed: 6.87% (↓ 0.14%) | APR: 7.23%
- 20-Year Fixed: 6.83% (↓ 0.14%) | APR: 7.35%
- 15-Year Fixed: 5.90% (↓ 0.16%) | APR: 6.13%
- 10-Year Fixed: 5.89% (↓ 0.18%) | APR: 6.28%
- 5-Year ARM: 7.45% (↓ 0.09%) | APR: 7.78%
Government loans:
- 30-Year FHA: 7.75% (↑ 0.88%) | APR: 8.80%
- 30-Year VA: 6.42% (↓ 0.05%) | APR: 6.63%
Jumbo loans:
- 30-Year Fixed Jumbo: 7.38% (↓ 0.15%) | APR: 7.70%
- 5-Year ARM Jumbo: 7.13% (↓ 1.12%) | APR: 7.59%
Trends and recent movement
The national average for a 30-year fixed mortgage dropped 14 basis points over the past week, declining from 7.01% to 6.87%. Similarly, the average 15-year fixed rate dipped slightly by 1 basis point to 5.90%.
This trend suggests that lenders are reacting to recent economic signals and potential shifts in Federal Reserve policy. Fixed rates continue to show gradual easing, while ARMs remain elevated but volatile.
What’s driving mortgage rates now?
Several factors are influencing current mortgage rate shifts:
- Federal Reserve outlook: Investors are anticipating potential rate cuts later in 2025, which could bring further downward pressure on mortgage rates.
- Inflation and job market: Slower inflation and mixed employment data are contributing to market uncertainty.
- Lender competition: As housing activity remains tepid, lenders may adjust pricing to attract more borrowers.
Tips to get the best mortgage rate
For homebuyers and refinancers, getting the lowest possible mortgage rate means taking steps to strengthen your financial profile:
- Shop multiple lenders to compare real quotes
- Improve your credit score to access better rate tiers
- Increase your down payment to reduce risk to lenders
- Compare APRs, not just base interest rates, to factor in fees
- Ask about rate locks if you’re close to purchase or refinance
Should you buy or refinance now?
With rates down from recent peaks, this may be an opportune time for buyers who were previously priced out or for homeowners to consider refinancing. However, borrowers should weigh their long-term plans, expected savings, and current market conditions before committing.
Related Reading – Housing Market Forecast Summer 2025: Where Prices Are Rising and Falling
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