Mortgage Rates Decline 16 Basis Points in Week

Coin WorldTuesday, Jun 3, 2025 3:14 am ET
1min read

On June 3, 2025, the average interest rate for a 30-year, fixed-rate mortgage in the U.S. was reported at 6.842%, with the current average refinance rate for a 30-year, fixed-rate home loan standing at 6.97%. This represents a slight decrease from the previous week's average rate of 6.97%. Consequently, the monthly payment for every $100,000 borrowed at the current average rate is $657.93 in principal and interest, marking a $2.01 reduction from the previous week.

The recent decline in mortgage rates is part of a broader trend that has seen rates fall over the past few days. The average rate for a 30-year fixed-rate mortgage has decreased by 16 basis points over the week, reaching 6.99%. This drop is significant when compared to the one-year high of 7.15% reached recently. Similarly, the average rate for a 15-year fixed-rate mortgage has decreased by 3 basis points to 6.01%, which is notably cheaper than the mid-April reading of 6.31%. However, jumbo 30-year mortgage rates have seen a slight increase of 2 basis points to 6.96%, following a multi-day decline.

The recent decline in mortgage rates can be attributed to various factors, including the Federal Reserve's monetary policy and the bond market. The Fed's decision to hold rates steady at its March meeting, along with the expectation of just two quarter-point rate cuts for the rest of the year, has contributed to the current rate environment. Additionally, the bond market, particularly 10-year Treasury yields, plays a significant role in determining mortgage rates. The complex interaction of these factors has led to the recent fluctuations in mortgage rates.

It is important to note that mortgage rates can vary widely across lenders, and borrowers should shop around for the best rates. The rates published are based on an 80% loan-to-value ratio and a credit score in the 680–739 range, which may differ from advertised teaser rates. Borrowers should also consider factors such as their credit score, income, and down payment when securing a mortgage rate.