Mortgage rates nudged higher again Tuesday, with the national average for a 30-year fixed mortgage now sitting at 7.03%, according to the latest Zillow data. Rates for 15-year fixed and adjustable-rate mortgages (ARMs) also saw modest increases.
Current average mortgage rates
As of June 3, 2025, here are the latest national averages for major loan types:
- 30-Year Fixed: 7.03% (+0.03%)
- 15-Year Fixed: 6.11% (+0.04%)
- 5-Year ARM: 7.28% (no change)
- 7-Year ARM: 7.56% (+0.01%)
- FHA 30-Year Fixed: 7.75% (+0.88%)
- VA 30-Year Fixed: 6.56% (+0.08%)
- Jumbo 30-Year Fixed: 7.19% (−0.34%)
Week-over-week changes
Compared to last week:
- The 30-year fixed rate rose 2 basis points (from 7.01%).
- The 15-year fixed increased by 4 basis points (from 6.07%).
- The 5-year ARM remained unchanged.
Government-backed and jumbo loans showed more volatility, with FHA rates spiking nearly a full percentage point week-over-week.
What’s driving mortgage rate trends?
Several factors continue to pressure mortgage rates upward:
- Sticky inflation: Recent consumer price data has dashed hopes for quick Federal Reserve rate cuts.
- Bond market fluctuations: Treasury yields, which mortgage rates typically follow, remain elevated.
- Uncertainty around Fed policy: Mixed economic signals are leaving investors and lenders cautious.
How to secure the best mortgage rate
Even with rates climbing, borrowers can still take steps to minimize costs:
- Shop multiple lenders to compare offers and fees.
- Boost your credit score before applying.
- Increase your down payment to access better rate tiers.
- Explore different loan options, such as ARMs or shorter terms.
- Consider timing: Locking a rate when favorable conditions appear can save thousands long-term.
Should you buy or refinance now?
If you’re considering a purchase or refinance, timing is key. Rates are trending upward, but daily fluctuations present short-term opportunities. Buyers with strong credit and solid financials may benefit by acting before further increases occur.
Key takeaways
- Mortgage rates rose slightly, with the 30-year fixed now at 7.03%.
- Economic uncertainty and inflation concerns continue to drive rate volatility.
- Smart borrowing strategies can still lower total loan costs.