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.