Mortgage Rates Fluctuate Around 6.835% Amid Economic Uncertainty

On June 13, 2025, the average interest rate for a 30-year, fixed-rate conforming mortgage loan in the U.S. stood at 6.835%, reflecting a slight decrease of approximately 3 basis points from the previous day and an increase of nearly 2 basis points from a week prior. This data, sourced from mortgage data company Optimal Blue, highlights the minimal movement in mortgage rates over the recent period.

For a 30-year conventional mortgage, the current rate is 6.835%, compared to 6.824% a week ago and 6.781% a month ago. The 30-year jumbo mortgage rate is 6.929%, down from 6.945% a week ago and 7.076% a month ago. The 30-year FHA mortgage rate is 6.592%, up from 6.567% a week ago and 6.493% a month ago. The 30-year VA mortgage rate is 6.450%, up from 6.410% a week ago and 6.357% a month ago. The 30-year USDA mortgage rate is 6.490%, up from 6.413% a week ago and 6.583% a month ago. The 15-year conventional mortgage rate is 6.012%, up from 5.968% a week ago and 6.049% a month ago.

The recent trend in mortgage rates has been characterized by a lack of sustained decrease, despite expectations that rates would soften following the Federal Reserve's reduction of the federal funds rate in September 2024. While there was a brief dip in rates preceding the September Fed meeting, rates quickly climbed afterward. By January 2025, the average rate on a 30-year, fixed-rate mortgage surpassed 7% for the first time since May 2024, marking a significant increase from the historic low of 2.65% recorded in January 2021.

Experts agree that mortgage rates in the 2% to 3% range are unlikely to return in the near future, barring another major crisis. However, rates around the 6% mark are possible if the U.S. successfully manages inflation and economic prospects remain optimistic. There was a modest decline in rates at the end of February, with rates dropping nearer to the 6.5% mark, but this was short-lived. In early April, rates briefly dipped below 6.5% before rising again.

Current economic uncertainties, including potential policies such as tariffs and deportations, have raised concerns about a constricting labor market and resurging inflation. Against this backdrop, U.S. homebuyers face high mortgage rates, although options like negotiating rate buydowns with builders for newly constructed properties can make purchases more manageable.

To secure the best mortgage rate, homebuyers should focus on maintaining excellent credit, a low debt-to-income ratio, and getting prequalified with multiple lenders. A credit score of 740 or higher is considered top tier for home loan applications. A debt-to-income ratio of 36% or below is typically best for mortgage approvals. Comparing offers from large banks, local credit unions, and online lenders can help homebuyers evaluate their options and find the best rates.

Historically, mortgage rates around 7% are not unusually high. From the 1970s through the 1990s, such rates were more or less the norm, with a significant spike in the early 1980s. In September, October, and November of 1981, mortgage interest rates exceeded 18%. The recent memory of rates between 2% and 3% makes current rates feel high, but these low rates were possible due to unprecedented government action aimed at preventing recession during the global pandemic.

Several factors impact mortgage interest rates, including the U.S. economy, national debt, demand for home loans, and the Federal Reserve's actions. When lenders fear inflation, they may raise rates to protect their long-term profits. The national debt can drive interest rates higher when the government borrows large sums. Demand for home loans can influence rates, with lenders lowering rates to attract business during low demand and raising rates during high demand. The Federal Reserve influences rates through changes to the federal funds rate and by managing its balance sheet, which can boost the economy by buying assets like mortgage-backed securities.

Comparing rates on different types of loans and shopping around with various lenders are essential steps in obtaining the best mortgage. For homebuyers with excellent credit, a conventional mortgage may be the ideal choice. However, those with lower credit scores may benefit from an FHA loan. Exploring options with different banks, credit unions, and online lenders can make a significant difference in overall costs, with potential annual savings of $600 to $1,200 in a high-interest rate market.