The “State of the Kingdom” Blog

Navigating the Current Mortgage Landscape: Rates Show Modest Declines

Published Tuesday June 11, 2025

For prospective homebuyers and those considering refinancing, keeping an eye on mortgage rates is crucial. As of mid-June 2025, we're seeing some interesting movements in the market, with rates for the popular 30-year fixed mortgage experiencing slight decreases.

Where Do Mortgage Rates Stand Today?

As of June 11, 2025, the national average for a 30-year fixed-rate mortgage is hovering around 6.93%, with an Annual Percentage Rate (APR) of approximately 7.08%. This marks a modest dip from recent figures, offering a potential window of opportunity for borrowers.

Here's a quick snapshot of average rates and representative APRs for other common loan types:

  • 30-Year Fixed-Rate Mortgage: Around 6.93% (APR: 7.08%)

  • 15-Year Fixed-Rate Mortgage: Around 6.00% (APR: 6.21%)

  • 5-Year Adjustable-Rate Mortgage (ARM): Approximately 7.03% (APR: 7.98%)

  • 30-Year Fixed-Rate FHA: Roughly 6.75% (APR: 7.89%)

  • 30-Year Fixed-Rate VA: Around 6.29% (APR: 6.54%)

It's important to remember that these are national averages, and the specific rate and APR you qualify for will depend on various factors like your credit score, down payment, loan type, closing costs, and the specific lender. The APR provides a more comprehensive measure of the cost of a loan, as it includes certain fees and other charges in addition to the interest rate.

What Are the Current Trends?

The recent trend has been one of slight easing in borrowing costs. Over the past week, the 30-year fixed rate has seen a consistent, albeit small, decline. This follows a period where rates had been relatively elevated, staying near or above the 7% mark.

Several factors influence mortgage rate trends, including:

  • Inflation: The Federal Reserve's actions to combat inflation significantly impact interest rates across the board. While inflation has shown signs of cooling, it remains a key driver.

  • Economic Data: Reports on employment, economic growth, and manufacturing can sway market sentiment and, consequently, bond yields, which mortgage rates tend to follow.

  • Treasury Yields: Mortgage rates generally move in tandem with the yield on the 10-year Treasury note. Fluctuations in Treasury yields often signal shifts in the broader economic outlook.

  • Federal Reserve Policy: Any signals or actions from the Federal Reserve regarding interest rate hikes or cuts will directly influence mortgage rates. Recent indications of a potentially weaker labor market and other economic shifts have led to some speculation about future rate cuts by the Fed, which could contribute to further easing of mortgage rates.

What Does This Mean for You?

The current landscape presents a mixed bag. While rates are still higher than the historically low levels seen in recent years, the recent downward trend is a positive development.

  • For Homebuyers: The slight dip might offer a chance to secure a more favorable rate and potentially reduce your monthly mortgage payment. It's crucial to shop around and compare offers from multiple lenders to find the best terms for your situation, paying close attention to both the interest rate and the APR.

  • For Homeowners (Refinancing): If your current mortgage rate is significantly higher than today's averages, exploring refinancing options could be worthwhile. Even a small reduction in your interest rate and APR can lead to substantial savings over the life of the loan.

Looking Ahead

Predicting the future of mortgage rates with certainty is challenging. However, market watchers will continue to monitor economic indicators and Federal Reserve policy closely. Any further signs of slowing inflation or a weakening economy could create an environment for rates to continue their downward trajectory.

Important Disclaimer: This blog post provides general information and should not be considered financial or lending advice. The interest rates and APRs mentioned are national averages based on market data as of June 11, 2025, and are subject to daily fluctuations. Your actual rate and APR will vary based on your individual financial situation, creditworthiness, loan type, loan-to-value ratio, and the specific lender. Always consult with a qualified financial advisor or licensed mortgage professional for personalized guidance and to receive a loan estimate tailored to your specific circumstances.