Mortgage rates today fall slightly: 30-year fixed dips to 6.73%

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Mortgage rates edged lower again to start July. As of July 1, 2025, the national average 30-year fixed mortgage rate dropped to 6.73%, down one basis point from last week’s 6.74%, according to Zillow. Rates on 15-year fixed and 5-year ARM loans also saw modest declines.

Latest national averages

Here are the current average mortgage rates across major loan types:

  • 30-Year Fixed: 6.73% (APR: 7.20%)
  • 20-Year Fixed: 6.01% (APR: 6.36%)
  • 15-Year Fixed: 5.70% (APR: 6.00%)
  • 10-Year Fixed: 5.62% (APR: 5.77%)
  • 5-Year ARM: 7.54% (APR: 7.96%)
  • 7-Year ARM: 7.00% (APR: 7.91%)

Week-over-week changes

Compared to last week, most mortgage rates have fallen slightly:

  • 30-year fixed: Down 6 basis points
  • 15-year fixed: Down 3 basis points
  • 5-year ARM: Down 4 basis points

Government-backed loans show mixed movement. FHA 30-year rates increased slightly, while VA loans saw notable declines.

Mortgage rates by state

Mortgage rates continue to vary significantly by location due to regional credit trends and lender availability. On June 30, the states with the lowest average 30-year fixed mortgage rates included:

  • New York
  • Connecticut
  • New Jersey
  • Arkansas
  • California
  • Washington
  • Florida
  • Massachusetts

These states reported averages between 6.55% and 6.73%.

In contrast, the highest average rates were found in:

  • Alaska
  • West Virginia
  • New Mexico
  • Iowa
  • Nebraska
  • Nevada
  • North Dakota
  • Wyoming

High-rate states posted averages from 6.85% to 6.93% for 30-year refinance loans.

Why mortgage rates are falling

Rates have declined amid broader market stabilization. A drop in Treasury yields and continued rate-holding by the Federal Reserve are contributing factors. The Fed has paused rate hikes for now, holding the federal funds rate steady for the fourth time this year.

How to get the best mortgage rate

Borrowers can secure lower rates by:

  • Improving their credit score
  • Increasing their down payment (20% or more often qualifies for better rates)
  • Comparing offers from multiple lenders
  • Exploring shorter-term or ARM loans if applicable

Should you buy or refinance now?

With rates easing off recent highs, now could be a strategic time to lock in a mortgage rate—especially for well-qualified buyers. Those holding older loans with higher interest rates may also want to explore refinancing options.


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