Mortgage rates edged lower again this weekend, offering a modest break for prospective buyers and refinancers. According to Zillow, the average 30-year fixed-rate mortgage dropped to 6.73% on Saturday, June 28, down from 6.75% the day before.
Current mortgage rates snapshot
Here’s where average U.S. mortgage rates stand today, according to Zillow:
- 30-year fixed: 6.73% (↓ 0.02%)
- 15-year fixed: 5.74% (↓ 0.01%)
- 5-year ARM: 7.53% (↓ 0.03%)
These slight declines come after weeks of incremental drops, with the 30-year rate down 18 basis points from last week’s 6.91%.
Weekly trends and long-term outlook
Mortgage rates have remained below 7% for over five months, providing some stability in an otherwise volatile housing market. However, analysts say the road to significantly lower rates remains uncertain.
- Freddie Mac reported 30-year rates have ranged from 6.08% to 7.04% over the past year.
- 10-year Treasury yield—a key mortgage rate indicator—was 4.30% on June 27, down slightly from May.
Experts caution that unless the Federal Reserve initiates additional rate cuts, mortgage rates will likely hover around current levels for the remainder of 2025.
What’s driving the rates?
Several factors continue to impact mortgage rate movements:
- Federal Reserve policy: The Fed has held rates steady since early 2025, with hints of possible cuts later this year.
- Inflation and consumer spending: Signs of cooling inflation and increased savings may influence lender risk assessments.
- Bond market behavior: The yield spread between 10-year Treasury notes and mortgage rates remains elevated at 2.50%, indicating lenders’ caution.
Should you buy or refinance now?
With rates still well above the historic lows of 2020-2021 but below last year’s highs, many buyers are asking if now is the time to act. The answer depends on personal financial readiness and market timing:
Pros of acting now:
- Home prices are stabilizing.
- Slightly lower rates can still yield long-term savings.
- Refinance opportunities exist for those with older, higher-rate loans.
Cons of waiting:
- Rates may not fall significantly in 2025.
- Housing inventory remains tight, pushing prices higher.
- Refinancing later is always an option if rates drop.
How to secure the best mortgage rate
Here are proven strategies to lock in the lowest possible rate:
- Shop around: Compare offers from multiple lenders.
- Boost your credit score: Higher scores yield better rates.
- Increase your down payment: 20% or more can qualify you for lower tiers.
- Consider shorter terms or ARMs: 15-year loans or adjustable-rate mortgages may offer initial savings.
- Negotiate lender fees: Pay attention to APR and closing costs.
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