Mortgage interest rates saw a slight decrease on Monday, June 16, 2025, with the average 30-year fixed rate dropping three basis points to 6.70% and the 15-year fixed rate falling two basis points to 5.98%, according to Zillow data.
Looking ahead, the Federal Reserve is expected to maintain a “wait and see” approach on short-term interest rates, with an announcement scheduled for Wednesday. The 10-year Treasury yield, closely tied to mortgage rates, declined last week due to subdued economic reports and geopolitical tensions as Israel and Iran engaged in missile attacks.
Here are the current average mortgage rates from Zillow:
– 30-year fixed: 6.70%
– 20-year fixed: 6.25%
– 15-year fixed: 5.98%
– 5/1 ARM: 6.85%
– 7/1 ARM: 6.96%
– 30-year VA: 6.34%
– 15-year VA: 5.98%
– 5/1 VA: 6.38%
It’s important to note that these rates are national averages and rounded to the nearest hundredth. Mortgage refinance rates tend to be slightly higher than purchase rates.
When considering different mortgage terms, such as a 15-year versus a 30-year loan, it’s essential to weigh the pros and cons. A 15-year mortgage typically offers a lower interest rate and allows for quicker debt payoff, albeit with higher monthly payments.
Adjustable-rate mortgages (ARMs) can provide initial lower rates, but they come with the risk of rate adjustments in the future. It’s crucial to assess your financial goals and timeline for staying in the home before choosing between fixed and adjustable rates.
Lenders generally offer the best rates to borrowers with strong financial profiles, including high down payments, excellent credit scores, and low debt-to-income ratios. Consider ways to improve your financial standing, such as saving more, boosting your credit score, or reducing debt, to secure lower mortgage rates.
Additionally, buyers can explore options like paying for discount points at closing to lower their interest rate permanently or opting for a temporary rate buydown. It’s important to calculate whether the savings from a lower rate outweigh the upfront costs before committing to these strategies.
In conclusion, while the national average mortgage rate stands at 6.70%, individual rates may vary based on location and economic conditions. As we navigate through 2025, factors like inflation and global unrest could influence mortgage rate trends. Stay informed and consult with lenders to find the best mortgage option for your financial situation.
