Today's Mortgage Rates on June 28, 2025: All Interest Rates Take a Notable Plunge
As of late June and early July 2025, the housing market is experiencing a shift in mortgage rates due to a combination of economic conditions, geopolitical events, and Federal Reserve policies.
Mortgage rates have seen a modest decline, with the 30-year fixed rate falling from around 6.81% to 6.69% since mid-June. This drop is attributed to cooling inflation, geopolitical risk lowering Treasury yields, and cautious Fed policy.
The 15-year fixed mortgage rate has also decreased, from 5.96% to 5.89%, providing an option for those seeking a shorter repayment term.
The recent decline in rates comes after several months of persistence near or slightly above 7% in early 2025. Current rates now range from the high 5% to high 6% range, depending on loan type.
Economic conditions and inflation play a significant role in mortgage rates. As inflation cools closer to the Federal Reserve's 2% target, it has contributed to some easing in rates. However, uncertainty about future economic impacts such as tariffs and job market stability keeps the Federal Reserve cautious, and rates somewhat elevated.
Mortgage rates tend to move in tandem with the yields on 10-year U.S. Treasury bonds. A drop in the 10-year Treasury yield, due to geopolitical tensions like the conflict between Israel and Iran and U.S. involvement, has recently pushed mortgage rates down.
The Fed's monetary policy also affects mortgage rates indirectly by influencing Treasury yields. In earlier years, bond-buying kept rates low, but tapering and rate increases since 2021 raised them. As of mid-2025, the Fed has been cautious about changing rates amid mixed economic signals, contributing to some volatility and the recent modest drop in mortgage rates.
For homebuyers and those considering refinancing, key strategies include getting pre-approved, shopping around for lenders, and considering temporary rate buydowns. If inflation is under control, there's potential for rates to lower, influenced by periodic adjustments from the Fed.
Looking ahead, the Mortgage Bankers Association (MBA) suggests that rates might stabilize slightly lower than current levels by the end of 2025. However, uncertainty due to global events, inflation pressures, and changes in government policy can cloud mortgage rate predictions.
Investing smarter in a high-rate environment is advised, by focusing on cash-flowing investment properties in strong rental markets. Norada helps investors find turnkey real estate deals that deliver predictable returns, even when borrowing costs are high.
For those in the military or veterans, the 30-year fixed rate for VA loans is at 6.25%, while for FHA loans, it is at 7.50%. The 10-year fixed rate is at 5.78%, and the 30-year fixed refinance rate is at 7.12%. The 7-year ARM rate is at 7.29%, and the 5-year ARM rate is at 7.50%.
The monthly payment for a $300,000 mortgage at the current rate is approximately $1,948. Some experts foresee a gradual decrease in rates based on signs of easing inflation and more favorable economic conditions.
It's prudent for potential buyers and refinancing homeowners to stay updated as predictions can change based on the latest economic indicators.
- The housing market's shift in mortgage rates in mid-June 2025 is due to a combination of economic conditions, geopolitical events, and Federal Reserve policies.
- The 30-year fixed mortgage rate has decreased from around 6.81% to 6.69%, providing an option for buyers and those considering refinancing.
- The 15-year fixed mortgage rate has also decreased, offering a shorter repayment term for those seeking it.
- For investors, focusing on cash-flowing investment properties in strong rental markets can deliver predictable returns, even in a high-rate environment.
- The Federal Reserve's cautious approach to monetary policy, influenced by economic uncertainties, keeps mortgage rates somewhat elevated.
- The Mortgage Bankers Association (MBA) predicts that rates might stabilize slightly lower than current levels by the end of 2025, but uncertainty due to global events can cloud these predictions.
- To invest smarter, personal-finance strategies for homebuyers and homeowners include getting pre-approved, shopping around for lenders, and considering temporary rate buydowns, as there's potential for rates to lower if inflation remains under control.
