Daily US Mortgage Rate Update: June 18, 2025

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Daily US Mortgage Rate Update: June 18, 2025

Published On: June 18th, 2025

Staying informed about U.S. mortgage rates is paramount for international investors looking to capitalize on opportunities in the U.S. real estate market. Today’s update brings a slight shifts in rates, and continued expert commentary offering an insight into the outlook for the remainder of 2025. Understanding these movements is crucial for strategic decision-making, particularly for those eyeing resilient markets that offer both affordability and growth.

Key Takeaways Today:

• Rates Hover Steady: The benchmark 30-year fixed mortgage rate remains largely stable, close to the 7% mark.
• Mixed Movement: While some rates saw minor upticks, others, particularly for refinance, experienced slight declines this week.
• Affordability Remains a Factor: High rates continue to impact affordability, influencing buyer demand in various regions.
• Expert Consensus on Moderation: Leading economists anticipate mortgage rates to average in the mid-6% range through 2025, with potential for further slight dips.

Today’s Rates Overview (Purchase & Refinance)

Here’s a snapshot of the national average mortgage rates as of Wednesday, June 18, 2025. These rates reflect current offerings from major lenders and serve as a guide for prospective buyers and those considering refinancing.

Purchase Mortgage Rates:

(Source: Bankrate, June 18, 2025)

Refinance Mortgage Rates:

(Source: CNET, June 18, 2025)

In-depth Analysis and Commentary

Today’s rates largely reflect a market in a holding pattern. The benchmark 30-year fixed rate has shown minimal movement, maintaining its position in the high 6% range. Interestingly, this stability comes amidst ongoing inflation concerns and the Federal Reserve’s cautious stance on interest rate adjustments.

The slight dips in some refinance rates, however, might offer a glimmer of opportunity for homeowners looking to optimize their existing loans. This is welcome news for the many homeowners who locked in historically-low interest rates during the Covid era. For international investors, particularly those focused on building a portfolio for consistent cash flow, the stability in rates, even if elevated compared to historical lows, helps with predictable and stable financial modelling and deal underwriting. For all investors, the emphasis remains on identifying properties that deliver strong rental yields that can comfortably service these current mortgage costs.

The national average 30-year fixed mortgage rate for June 18, 2025, at 6.92% APR, remains notably above the historical average of below 4% seen in the decade prior to 2022. This “new normal” requires investors to adjust their financial expectations and prioritize markets where robust rental demand can offset higher borrowing costs.

Expert Outlook on Mortgage Rates Through 2025

What do leading economists predict for mortgage rates for the rest of the year? While there’s no consensus on dramatic shifts, a general moderation is anticipated.

Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), remains optimistic about the housing market, forecasting mortgage rates to average 6.4% in the second half of 2025 and dip to 6.1% in 2026. He notes, “The mortgage rate is the magic bullet, and we are just waiting and waiting as to when that could come down.” Yun attributes the delayed recovery to the Federal Reserve’s revised outlook and extended pause on rate cuts, stating, “The fast ascent of mortgage rates has really hurt the real estate market.” Despite this, he sees a “light at the end of the tunnel” with encouraging signs like falling shelter costs (a major inflation driver) and strong job growth. (Source: National Mortgage Professional, June 11, 2025 and Realtor.com, June 3, 2025)

Selma Hepp, chief economist for CoreLogic, echoes a similar sentiment, stating that “mortgage rates are unlikely to move outside the narrow range of 6.5% to 7% unless there’s an economic downturn or a spike in joblessness.” She points to concerns about higher inflation and federal debt as factors keeping 10-year Treasury yields, and thus mortgage rates, elevated. Hepp’s forecast suggests that while rates may not plummet, they could moderate slightly as the year progresses. (Source: The Mortgage Reports, January 24, 2025 and CNET, June 16, 2025)

These expert views suggest that while significant drops are not on the immediate horizon, rates are expected to stay within a manageable range, allowing for strategic planning by U.S. homebuyers and investors, as well as international property investors. This aligns with the 5 year forecast for the U.S real estate market where we expect moderate growth at the national level, with a high regional variation.

Foreign National Mortgages: A Stable Path for Investors

For international investors and Real estate investors residing outside the U.S., access to financing remains robust through specialized U.S. mortgages for foreigners. These loan products are designed to cater to non-resident aliens, often requiring larger down payments (typically 25-40%) but bypassing the need for a U.S. credit history.

A particularly effective tool for International investors seeking consistent cash flow is the Debt Service Coverage Ratio (DSCR) loan. This mortgage product qualifies the loan based on the property’s projected rental income, making it ideal for investors whose primary goal is income generation from their U.S. assets. If a property’s expected rental income sufficiently covers its mortgage payments, it generally qualifies, simplifying the application process significantly.

Here’s an illustrative table of example rates and terms for these specialized foreign national loan products.

Please note: These are illustrative example rates and terms only and will vary significantly based on the lender, borrower’s financial profile, property type, and prevailing market conditions.

Commentary on Foreign National Mortgages: As an international investor, understanding these specialized loan products is crucial for financing your U.S. real estate acquisitions. While their interest rates might be slightly higher and LTVs lower compared to the lowest conventional U.S. rates, they provide a vital pathway to leverage your investment. DSCR loans are particularly attractive for their focus on property performance, simplifying the application process for investors with established rental income streams. Traditional foreign national loans cater to those who prefer to qualify based on their robust financial standing in their home country.

Conclusion

Today’s mortgage rate update reinforces the narrative of a normalizing, yet resilient, U.S. housing market. While rates remain elevated, expert forecasts suggest a period of moderation, allowing international investors to plan with greater certainty.

The key to success lies in focusing on fundamentally strong markets that offer both housing affordability and stable job growth, ensuring consistent cash flow even in the current rate environment. Conservative underwriting is also going to be important – deals with thin margins that rely on big rent increases, or properties with higher vacant risk, capex, and repair costs should be priced accordingly.

Staying informed about these dynamics and working with experienced professionals remains critical for maximizing your US property investment potential.

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