Mortgage Rates for 30-Year Loans Maintain Close Proximity to a 1-Month Minimum Level, Experiencing Slight Increase
Jumping 2 basis points today, new 30-year mortgage rates inched up to 6.93%. This slight increase pushed the average above the cheapest reading since May 1, but it's still hardly sky-high. Rates for various mortgage types also saw marginal increases.
Always remember, rates can vary significantly among lenders, so it's crucial to assess multiple options and compare rates regularly — no matter the type of home loan you're eyeing.
Today's Mortgage Rate Averages - June 6, 2025
New purchase 30-year mortgage rates climbed 2 basis points Thursday, taking the average to 6.93%. After plunging nearly a quarter percentage point since May 22, rates started ascending once more after hitting 7.15% on the 22nd. Wednesday's 6.91% average matched the May 7 reading, which was the lowest since the 6.88% recorded on May 1.
Despite the recent uptick, last fall saw spectacular drops in 30-year rates, sinking to a two-year low of 5.89% — more than a point cheaper than today's rates. In contrast, the historic 23-year peak in late 2023 stood at 8.01%.
Rates for 15-year mortgages ticked up 6 basis points Thursday, raising the average to 5.96%, but the current average remains significantly cheaper than mid-April's 6.31% reading, which marked the highest average in nearly a year. This average is about 1.1 percentage points below October 2023's 7.08% peak, a 23-year high. However, as with 30-year loans, 15-year rates tumbled to a two-year low last September, plummeting to 4.97%.
Jumbo 30-year mortgage rates picked up a minor 2 basis points, boosting the Thursday average to 6.94%, keeping it close to a four-week low. After registering a 10-month high of 7.16% in mid-May, jumbo 30-year rates dipped to 6.24% — their cheapest level in 19 months. The 8.14% peak in October 2023 is estimated to be the most expensive jumbo 30-year average in over two decades.
The Weekly Freddie Mac Average
Every Thursday, Freddie Mac, a government-sponsored agency that buys mortgage loans, releases a weekly average of 30-year mortgage rates. This week's average eased 4 basis points to 6.85%. Last September, the average plummeted as far as 6.08%. Nevertheless, back in October 2023, Freddie Mac's average surged to a 23-year peak of 7.79%.
Freddie Mac's average differs from the numbers we report for 30-year rates, as it represents a weekly average of the previous five days' rates. In contrast, our Investopedia 30-year average is a daily reading, providing a more precise and current snapshot of rate movement. Additionally, it's calculated differently, as it takes into account factors like loan size, down payment, and credit score.
==Explore different loan scenarios with our Mortgage Calculator.==
Warning
The rates we disclose don't typically align with the enticing rates you might see online. These selectively advertised rates are the most appealing versus the averages you'll find here, and they often involve paying points upfront or are geared toward borrowers with sky-high credit scores or smaller-than-customary loans. The rate you eventually secure will depend on factors like your credit score, income, and more, so it could differ from the averages you see here.
Your monthly mortgage payment hinges on home price, down payment size, loan term, property taxes, homeowners insurance, and the interest rate on the loan (which is heavily influenced by your credit score). Adjust the inputs below to estimate your monthly mortgage payment.
calculate your mortgage payment## Why Do Mortgage Rates Fluctuate?
Mortgage rates are a product of complex interactions between macroeconomic and industry factors, such as:
- Bond Market and Inflation: When lenders fear inflation, they hike mortgage rates to protect their long-term profits from the erosion of money's value over time. Inflation can diminish the purchasing power of repaid funds, so lenders jack up rates to maintain real returns[1][3].
- Federal Reserve Policies: The Federal Reserve manages mortgage rates through adjustments to the federal funds rate and its balance sheet management. Changes in these rates and policies impact long-term interest rates[3].
- Competition Between Lenders: The fierce competition among mortgage lenders shapes the rates landscape, with high demand leading lenders to raise rates to cover costs or lower them to attract borrowers[1][3].
- Personal Factors: An individual's credit score, loan terms, interest rate type, down payment size, home location, and loan size all influence the rate offered to that borrower[2].
Recent Patterns in Mortgage Rates
In recent history, mortgage rates have been influenced by these factors as follows:
- Inflation and Economic Concerns: As of early 2025, steady inflation has prompted a holding pattern for mortgage rates, keeping them below 7%[5].
- Federal Reserve Policies: The Fed's measured approach to rate adjustments, driven by inflation concerns, indicates that significant rate cuts are unlikely before September 2025[5].
- Economic Health: A growing labor market and stable home prices have supported the current mortgage rate environment. Any signs of economic downturn may spur rate reviews[5].
Overall, mortgage rates in the recent past have been influenced by a combination of economic stability, inflation concerns, and the Federal Reserve's monetary policy decisions.
Investors in the finance world can now consider purchasing digital assets like ico tokens for real-estate financing opportunities. While the focus remains on fluctuating mortgage rates, it's crucial for investors to compare multiple options and assess various loan types, including 15-year, 30-year, and jumbo mortgages, ensuring they have the most favorable rates possible.
