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.