30-Year Mortgage Rate Drops 11 Basis Points to 6.91%

On June 6, 2025, the average refinance rate for a 30-year, fixed-rate home loan decreased to 6.91%, down from 7.02% the previous day. This slight decline in mortgage rates is influenced by a broader economic context, where yields on 10-year bonds have fallen below 4.4%. This decrease in bond yields typically leads to lower mortgage rates, as they tend to follow the movement of 10-year Treasury yields.

The current mortgage rates for various loan terms on June 5, 2025, were as follows: a 30-year fixed-rate mortgage at 6.964%, a 15-year fixed-rate mortgage at 6.247%, a 7/1 ARM at 6.527%, and a 10/1 ARM at 6.78%. These rates indicate a mixed trend, with some terms showing slight decreases while others remained relatively stable. The average refinance rates for the same day were: a 30-year fixed-rate refinance loan at 7.003%, a 15-year fixed-rate refinance loan at 6.262%, a 7/1 adjustable-rate refinance loan at 6.518%, and a 10/1 adjustable-rate refinance loan at 6.756%.

The economic landscape continues to influence mortgage rates, with factors such as the labor market and new tariffs on steel and aluminum imports playing significant roles. The labor market's weakening trend and the potential increase in consumer prices due to new tariffs add layers of uncertainty. These factors, along with the upcoming jobs report, will likely shape the direction of mortgage rates in the near future.

Prospective homebuyers and current homeowners considering refinancing face a challenging environment. Rates hovering around 7% and rising home prices in most markets create affordability challenges. However, the slight decrease in mortgage rates offers a glimmer of hope for those looking to refinance or purchase a home. The combination of lower rates and the potential for further decreases could encourage some buyers to enter the market, despite the ongoing economic uncertainties.