Mortgage rates in the U.S. showed mixed movement on July 2, 2025, as homebuyers continue watching for signs of relief in a still-tight housing market. Nationally, the 30-year fixed mortgage rate ticked up slightly to 6.76%, according to data from Zillow.
Current average mortgage rates
The latest rate averages reflect subtle changes across loan types:
- 30-year fixed: 6.76% (↑ from 6.73%)
- 15-year fixed: 5.77% (↑ from 5.73%)
- 5-year ARM: 7.42% (↓ from 7.56%)
These shifts suggest slight volatility as lenders respond to broader economic indicators.
Week-over-week rate changes
Compared to last week, the 30-year fixed rate dropped 3 basis points (from 6.79%). Meanwhile, the 15-year fixed rose by 4 basis points, and 5-year ARMs saw a significant 14-point decrease.
Factors influencing today’s mortgage rates
- Federal Reserve stance: With rates unchanged as of June 18, the Fed has adopted a wait-and-see approach amid ongoing inflation and trade tensions.
- Market pressures: Rising bond yields, labor uncertainty, and persistent inflation are keeping rates elevated.
- Home prices: High listing prices and ownership costs continue to dampen buyer demand despite interest rate fluctuations.
What is a good mortgage rate right now?
The best mortgage rate depends on your financial profile. Borrowers with higher credit scores and larger down payments often qualify for the most favorable terms. For example:
- A 15-year fixed loan offers a lower rate and shorter term but comes with higher monthly payments.
- An ARM (adjustable-rate mortgage) may start lower but adjusts annually after the initial period.
How to get the best mortgage rate
Here are five tips to help secure the lowest available mortgage rate:
- Compare lenders: Shop around and get quotes from at least three providers.
- Watch fees: Look beyond rates and evaluate lender fees and closing costs.
- Boost your down payment: 20% or more often unlocks better rates.
- Improve your credit score: Aim for 740+ to access top-tier rates.
- Choose the right loan: Evaluate fixed vs. adjustable options based on your plans.
Should you buy or refinance now?
With no immediate rate cuts from the Fed and home prices still high, some buyers are opting to wait or refinance cautiously. If your current mortgage rate is significantly higher than today’s averages, refinancing may offer monthly savings — even after accounting for closing costs.
What happens next?
Analysts project rates could slowly decline toward 6.1% by year’s end, but the outlook remains uncertain. Market watchers should stay alert to Fed announcements and economic shifts, especially inflation and labor data.