June 5, 2025
Mortgage

Mortgage rates today fall slightly as 30-year fixed dips to 6.96%


The average 30-year fixed mortgage rate fell to 6.96% on Monday, according to Zillow. This marks a 5-basis-point decline from last week’s average of 7.01%.

Current mortgage rates for June 2, 2025

Conforming loans

  • 30-Year Fixed: 6.96% (↓ 0.05%), APR 7.37%
  • 20-Year Fixed: 6.79% (↓ 0.18%), APR 7.03%
  • 15-Year Fixed: 6.01% (↓ 0.05%), APR 6.28%
  • 10-Year Fixed: 6.07% (↔), APR 6.47%

Adjustable-rate mortgages (ARMs)

  • 7-Year ARM: 7.56% (↑ 0.01%), APR 7.78%
  • 5-Year ARM: 7.38% (↓ 0.17%), APR 7.87%

Government-backed loans

  • FHA 30-Year Fixed: 6.41% (↓ 0.47%), APR 7.44%
  • VA 30-Year Fixed: 6.48% (↔), APR 6.70%

Jumbo loans

  • 30-Year Fixed Jumbo: 7.00% (↓ 0.54%), APR 7.62%
  • 5-Year ARM Jumbo: 8.45% (↑ 0.20%), APR 8.55%

Week-over-week changes

Rates were mostly down across fixed-rate loans and government-backed options. Jumbo and adjustable-rate mortgages saw more mixed movement, with some short-term ARMs rising slightly.

Factors impacting today’s mortgage rates

  • Federal Reserve policy: Investors are watching closely for any signs of rate cuts later this year.
  • Inflation: Core inflation remains a concern, keeping pressure on longer-term borrowing costs.
  • Housing market conditions: Low inventory and strong demand continue to influence lender risk assessments.

How to get a lower mortgage rate

  • Boost your credit score above 740
  • Increase your down payment to 20% or more
  • Compare multiple loan estimates from different lenders
  • Explore both fixed and adjustable options
  • Consider locking your rate if you’re near closing

Should you buy or refinance now?

If you’re in the market to buy, today’s slight dip may offer a narrow window of opportunity. Refinancing could also be beneficial for borrowers holding loans above current averages.

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