Mortgage rates edged upward again this week, with the national average for a 30-year fixed mortgage rising to 6.94%, according to Zillow’s latest data released on Thursday, June 19, 2025.
The movement comes as economic uncertainty and Federal Reserve policy continue to influence borrowing costs nationwide.
Current mortgage rate trends
Zillow reports the 30-year fixed rate increased by 3 basis points from last week’s 6.91%. Meanwhile, the 15-year fixed mortgage rose slightly from 5.96% to 5.97%, and the 5-year ARM saw a significant drop from 7.03% to 6.88%.
National averages as of June 19, 2025:
- 30-Year Fixed: 6.94% (up 0.03%)
- 15-Year Fixed: 5.97% (up 0.01%)
- 5-Year ARM: 6.88% (down 0.15%)
Weekly changes and comparisons
Here’s how common mortgage types changed over the last seven days:
- 30-Year Fixed FHA: Up 0.42% to 7.25%
- 15-Year Fixed VA: Up 0.01% to 5.94%
- 30-Year Fixed Jumbo: Up 0.12% to 7.45%
- 5-Year ARM Jumbo: Down a sharp 1.11% to 6.60%
What’s driving mortgage rate fluctuations?
Several factors are impacting mortgage rates:
- Federal Reserve policy: While the Fed hasn’t raised rates recently, its cautious outlook keeps mortgage rates elevated.
- Inflation and economic data: Mixed signals from inflation reports and consumer spending continue to influence lender behavior.
- Investor confidence: Yields on 10-year Treasury notes—often tied to mortgage rate trends—have been volatile amid recession concerns.
How to secure the best mortgage rate
Experts recommend several strategies to help buyers and homeowners lock in the best possible rates:
- Shop around: Get loan estimates from at least three lenders.
- Improve your credit: A higher credit score can significantly reduce your interest rate.
- Increase your down payment: Putting down 20% or more often qualifies borrowers for lower rates.
- Explore loan types: Adjustable-rate mortgages (ARMs) may offer better short-term rates, while fixed-rate loans provide long-term predictability.
Should you buy or refinance now?
With the average rate for 30-year fixed loans nearing 7%, some buyers may choose to wait. However, those expecting further hikes could benefit by locking in a rate now—especially if they plan to refinance later.
Refinancing may still make sense for homeowners with older, higher-rate loans, especially those switching to shorter terms or leveraging equity.