Mortgage rates in the U.S. climbed once more on Friday with the national average 30-year fixed mortgage rate ticking up to 6.98%, according to new data from Zillow. This increase follows a week of gradual upticks, further tightening affordability for prospective buyers.
Current mortgage rate averages
As of June 20, 2025:
- 30-year fixed rate: 6.98% (up from 6.95%)
- 15-year fixed rate: 6.03% (up from 6.01%)
- 5-year ARM: 7.06% (up from 6.94%)
These increases represent a continued upward trend, especially notable for adjustable-rate mortgages, which saw a 12 basis point surge week-over-week.
Weekly and historical mortgage rate trends
Compared to this time last week, the average 30-year fixed mortgage rate rose by 5 basis points. Over the past three months, volatility has been consistent:
- Early April saw 30-year fixed rates as low as 6.41%
- Rates peaked above 6.94% in mid-May
- 5-year ARMs briefly surpassed 7.55%
Short-term fluctuations remain tied to inflation signals and Federal Reserve policy expectations.
What’s behind the mortgage rate increase?
Several factors continue to influence rate movements:
- Federal Reserve signals: Lingering inflation has reduced hopes for near-term rate cuts.
- Economic data: Strong job market and consumer spending support higher rates.
- Investor sentiment: Shifts in bond yields push mortgage rates in tandem.
Tips to secure the best mortgage rate
With borrowing costs near recent highs, borrowers should:
- Compare multiple lenders: Don’t settle for the first quote.
- Improve credit score: Higher scores often unlock better rates.
- Increase down payment: A 20%+ down payment can reduce your rate tier.
- Consider shorter terms or ARM options: These often offer lower initial rates.
Should you buy or refinance now?
Homebuyers might consider locking in rates before potential future increases. However, refinancing makes less sense unless your current rate is significantly higher than today’s average. As always, personal financial goals and time horizon should guide decisions.
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