🏠 Today’s Mortgage Rates – June 1, 2025: Rates Drop Substantially Once More 📉

As of June 1, 2025, mortgage rates have dropped notably—especially for long-term loans. The 30-year fixed mortgage is now at 6.77%, down 7 basis points from yesterday. However, the 15-year fixed ticked up slightly to 6.02%. These changes suggest improved conditions for long-term borrowers, while short-term rates remain relatively stable.

📌 Key Takeaways

• 🔻 30-Year Fixed: 6.77% (down 0.07%)

• 🔺 15-Year Fixed: 6.02% (up 0.03%)

• 📈 Market Forecast: 30-year rates likely to hold near 6.7% through September

• 🔁 Average Refinance Rate (30-Year): 6.89%

• ⚠️ Watch for Economic Shifts that could alter rate trends

🧮 Current Mortgage Rates (as of June 1, 2025)

📍 Source: Zillow | Rates are national averages and can vary by lender and borrower profile.

🔁 Current Mortgage Refinance Rates

💬 Note: Refi rates often run higher than purchase mortgage rates. Always compare offers.

🔍 Fixed vs. Adjustable-Rate Mortgages (ARMs)

🔒 Fixed-Rate Mortgages

✅ Consistent monthly payments
✅ Ideal for long-term homeowners
✅ Popular options: 30-year & 15-year fixed

🔄 Adjustable-Rate Mortgages (ARMs)

🔁 Lower initial rates
⚠️ Risk of rate increases over time
📆 Best for short-term plans or future relocations

💰 Example Mortgage Payments (Loan = $300,000)

📊 The 15-year option saves significantly in interest but has higher monthly payments.

📈 What’s Moving the Market?

• 🏦 Federal Reserve Policy: Cautious stance, may delay cuts until fall

• 📉 Inflation: Lower inflation data is helping ease rate pressure

• 💼 Job Growth: Strong labor market supports homebuying confidence

• 🧮 10-Year Treasury Yield: Stable yields mean less volatility in rates

🔮 Mortgage Rate Forecasts: 2025 & Beyond

📘 MBA: Rates to hover around 6.7% until Sept, then decline
📗 NAR:

• 📈 Existing home sales to rise 6%

• 🏗️ New home sales to jump 10%
  📘 Fannie Mae:

• 📉 Rates to end 2025 at 6.1%, drop to 5.8% in 2026
  📙 Freddie Mac:

• 🚨 Expects rates to remain elevated longer than previously forecast

🧭 Refinance Trends: Strategic Timing Matters

✅ Lower rates can unlock monthly savings
✅ Can lead to reinvestment in property upgrades
✅ Fuels broader consumer spending and market health
💡 Consider total costs: fees, break-even period, long-term savings

🌎 Local Rate Variations

📍 Urban vs. Rural: Cities = higher rates, rural = lower but with fewer options
📍 State-Level Policy: Lending rules vary across states
📍 Lender Competition: Local credit unions vs. national lenders may offer different terms

🧾 Summary: What It All Means for You

Mortgage rates are on the move again, with a significant dip in the 30-year fixed rate offering buyers a potential window of opportunity. As we move deeper into 2025, keeping a pulse on economic data, Fed updates, and local market trends will be essential. Whether you’re buying your first home, upgrading, or refinancing, this climate rewards proactive, well-informed decisions.

📝 Tip: Compare quotes from multiple lenders and consider locking in your rate if it aligns with your long-term goals.