Mortgage rates fell slightly this week, with the average 30-year fixed rate dropping to 6.81% as of Wednesday, June 25, 2025. This marks a 2-basis-point dip from the previous day and a 10-basis-point improvement over last week.
Here’s how today’s mortgage trends could impact buyers and homeowners.
Current mortgage rate averages
According to Zillow’s latest update:
- 30-year fixed: 6.81% (down from 6.91% last week)
- 15-year fixed: 5.87% (unchanged)
- 5-year ARM: 7.39% (up from 7.33%)
These averages reflect rates for borrowers with excellent credit and a 20% down payment.
Week-over-week changes and loan comparisons
Rates have shifted slightly across the board this week. Here’s how common loan types compare:
Conforming Loans
- 30-year fixed: 6.82% APR 7.35% (↓ 0.10%)
- 15-year fixed: 5.87% APR 6.24% (↓ 0.09%)
- 5-year ARM: 7.39% APR 7.99% (↑ 0.19%)
Government Loans
- FHA 30-year: 6.25% APR 7.26% (↓ 1.07%)
- VA 30-year: 6.35% APR 6.57% (↓ 0.05%)
Jumbo Loans
- 30-year fixed: 6.86% APR 7.15% (↓ 0.41%)
- 15-year fixed: 6.10% APR 6.26% (↓ 0.50%)
Why are mortgage rates fluctuating?
Several factors are influencing mortgage rates this week:
- Economic outlook: Signs of cooling inflation have supported lower long-term rates.
- Federal Reserve policy: While the Fed hasn’t cut rates yet in 2025, investors are pricing in future adjustments.
- Bond market trends: Yield shifts in U.S. Treasury bonds directly affect mortgage pricing.
How to get the best mortgage rate
To secure the lowest possible rate:
- Shop around: Compare quotes from at least three lenders.
- Boost your credit: Higher scores often unlock better rates.
- Increase your down payment: 20% or more may reduce your interest rate.
- Compare APRs: Don’t just look at the interest rate—APR reflects total borrowing cost.
Should you buy or refinance now?
With 30-year fixed rates below 7%, some borrowers may find now a favorable time to lock in a loan—especially those seeking to refinance from higher rates earlier this year. However, buyers should consider how monthly payments fit into their long-term financial plan.
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