Loan Type	Rate (%)	1W Change (bps)	APR (%)	1W Change (bps)
30-Year Fixed	6.82	-5	N/A	N/A
20-Year Fixed	N/A	N/A	N/A	N/A
15-Year Fixed	6.00	-4	N/A	N/A
10-Year Fixed	6.01	-4	N/A	N/A
5/1 ARM	6.15	-11	N/A	N/A
30-Year Fixed Jumbo	6.89	-3	N/A	N/A

(Source: CNET, June 20, 2025 and Bankrate, June 20, 2025)

U.S. Refinance Mortgage Rates:

Loan Type	Rate (%)	1W Change (bps)	APR (%)	1W Change (bps)
30-Year Fixed Refi	6.79	-3	6.85	N/A
15-Year Fixed Refi	6.11	-3	6.20	N/A
10-Year Fixed Refi	6.07	-4	N/A	N/A

(Source: CNET, June 20, 2025 and Bankrate, June 20, 2025)

In-depth Analysis and Commentary

Today’s continued marginal decline in average U.S. mortgage rates offers modest positive news for prospective buyers, further easing some of the affordability issues that have characterized the U.S. housing market. The 30-year fixed rate, a key indicator, has now dropped by 5 basis points (bps) in the last week, settling at 6.82%. This trend indicates a market cautiously responding to economic signals.

For international investors, these subtle shifts are important. While a dramatic return to exceptionally low rates isn’t anticipated in the immediate future, any sustained moderation helps to stabilize the market. This stability is beneficial for long-term investment planning, particularly for properties aimed at generating consistent cash flow. The persistent demand in the rental market, often fuelled by ongoing affordability challenges for homebuyers, continues to underpin the value of well-chosen investment properties.

The Federal Reserve’s decision on June 18 to hold interest rates steady (at 4.25%-4.50%) for the fourth consecutive time indicates a cautious approach amid lingering inflation concerns and slowing GDP growth forecasts. However, the Fed’s updated projections still signal the possibility of two rate cuts later in 2025, which could further influence mortgage rates.

Expert Outlook on Mortgage Rates Through 2025-2026

What do leading economists predict for mortgage rates in the coming months and years? A consensus points towards moderation, but with varying degrees of optimism and caution.

• Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), continues to forecast mortgage rates to average 6.4% in the second half of 2025 and dip to 6.1% in 2026. He emphasizes that mortgage rates are the “magic bullet” for market recovery and believes the Fed should consider how inflation has eased. (Source: National Mortgage Professional, June 11, 2025 and TheStreet, June 19, 2025)

• Selma Hepp, Chief Economist for Cotality (formerly CoreLogic), notes 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 persistent concerns about higher inflation and federal debt potentially keeping bond yields and mortgage rates elevated. (Source: Bankrate, June 19, 2025 and CNET, June 16, 2025)

• Fannie Mae anticipates rates around 6.1% by the end of 2025 and 5.8% by the end of 2026. (Source: CNET, June 20, 2025)

These expert perspectives collectively suggest that while the era of historically low rates may be behind us for now, the market is adjusting to a new normal. This provides international investors with a clearer framework for assessing long-term profitability and identifying resilient investment opportunities.

Foreign National Mortgages: Key Financing Options for International Investors

For international investors seeking to finance U.S. property with a U.S. mortgage for foreigners, understanding the available options is essential for navigating the market effectively and securing consistent cash flow.

Loan Type	Key Features	Benefits for International Investors
Foreign National Mortgage	Designed for non-U.S. citizens/residents. – Typically requires larger down payments (e.g., 25-40%). – Underwriting often uses foreign credit history and income documentation.	Access to U.S. Market: Provides a direct path to financing U.S. properties without needing a U.S. credit score. Leverage: Allows investors to acquire multiple properties with less upfront capital than all-cash purchases.
DSCR Loan	Debt Service Coverage Ratio (DSCR): Qualifies the loan primarily based on the investment property’s projected rental income covering its expenses (PITI). – Often no personal income or employment verification required from the borrower.	Income-Driven Qualification: Ideal for international investors focused on consistent cash flow. Streamlined Process: Simplifies underwriting by minimizing personal financial documentation, focusing on the asset’s performance. Portfolio Expansion: Easier to scale a portfolio as new loans don’t heavily rely on individual debt-to-income.

Conclusion

Today’s marginal rate movements, coupled with expert forecasts and the Federal Reserve’s recent signals, underscore a U.S. housing market that is adapting and finding its equilibrium. For international investors, this means a continued emphasis on strategic market selection. By focusing on fundamentally strong, affordable regions with robust rental demand, and by leveraging specialized financing tools, global property investors can confidently navigate the current landscape to achieve resilient portfolios and consistent cash flow for years to come.

Staying informed about these daily and projected market dynamics, and partnering with experienced local teams, remains the cornerstone of successful U.S. property investment.