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.
More mortgage news
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.
