US Mortgage and Refinance Rates June 3rd 2025 – Rate Edge up Slightly
David Garner
🏠 Today’s Mortgage Rates – June 3, 2025
Rates Show a Marginal Increase, but Forecasts Hint at Change Ahead
As of June 3, 2025, the national average for 30-year fixed mortgage rates has increased slightly to 7.02%, reflecting a minor but noticeable shift in borrowing conditions. Though this uptick is modest—just 2 basis points from the previous day—it underscores a broader trend of relative rate stability with a slight upward lean.
📊 Key Takeaways:
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30-Year Fixed Mortgage Rate: 7.02% 📈 (up 0.01%)
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15-Year Fixed Mortgage Rate: 6.08% 📈 (up 0.01%)
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5-Year ARM: 7.03% 📉 (down 0.51%)
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30-Year Fixed Refinance Rate: 7.27% 📈
🔍 Mortgage Rate Trends and What They Mean
Staying on top of today’s mortgage rates is essential—especially in a market where minor fluctuations can significantly impact affordability. According to Zillow, the 7.02% 30-year fixed rate is up just slightly from last week (7.01%), suggesting an environment of cautious optimism with lingering inflation concerns.
Meanwhile, 15-year fixed rates also crept up to 6.08%, reinforcing their appeal for buyers who want to build equity faster—albeit with higher monthly payments.
The standout? The 5-year ARM, which dropped 25 basis points to 7.03%. For borrowers comfortable with future rate adjustments, this could offer short-term savings.
For us foreign investors buying rental properties in the United States, we rely on long-term fixed interest rates to ensure positive cashflow from our rental properties – so we tend to use 30-year fixed interest DSCR loans.
🧮 Conforming Loan Rate Breakdown (as of June 3, 2025):
| 💼 Loan Type | 📊 Rate (%) | 1W Change | 📈 APR | 1W Change |
|---|---|---|---|---|
| 30-Year Fixed | 7.02% | +0.01% | 7.51% | +0.04% |
| 20-Year Fixed | 6.45% | -0.53% | 6.93% | -0.46% |
| 15-Year Fixed | 6.08% | +0.01% | 6.39% | +0.02% |
| 10-Year Fixed | 6.07% | 0.00% | 6.47% | 0.00% |
| 7-Year ARM | 7.56% | +0.01% | 7.78% | -0.14% |
| 5-Year ARM | 7.03% | -0.51% | 7.60% | -0.36% |
🏛️ Government-Backed Loans: FHA & VA
| 🏠 Loan Type | 🔢 Rate | 1W Change | 📈 APR | 1W Change |
|---|---|---|---|---|
| 30-Year FHA | 7.75% | +0.88% | 8.80% | +0.89% |
| 30-Year VA | 6.51% | +0.03% | 6.73% | +0.04% |
| 15-Year FHA | 5.63% | +0.06% | 6.63% | +0.07% |
| 15-Year VA | 6.02% | 0.00% | 6.38% | +0.01% |
👉 Notable jump in FHA rates may affect first-time buyers. VA loans remain more affordable for qualified veterans.
🏡 Jumbo Mortgage Rates
| 💰 Loan Type | 🔢 Rate | 1W Change | 📈 APR | 1W Change |
|---|---|---|---|---|
| 30-Year Fixed Jumbo | 7.39% | -0.14% | 7.79% | -0.15% |
| 15-Year Fixed Jumbo | 6.49% | -0.06% | 6.76% | -0.05% |
| 5-Year ARM Jumbo | 9.06% | +0.81% | 8.80% | +0.39% |
📉 Fixed-rate jumbo loans are trending down—good news for luxury buyers. However, ARM jumbo loans are climbing, adding risk for adjustable-rate seekers.
🔁 US Mortgage Rates for Foreign Nationals
Foreigners buying investment property in the USA tend to use DSCR loans:
| 💼 Loan Type | 📊 Rate Range (%) | Loan to Value |
|---|---|---|
| DSCR 30-Year Fixed | 6.75% to 8% | 75% |
| DSCR 15-Year Fixed | 6.5% to 7.75% | 75% |
📉 Fixed-rate DSCR loans use the property’s income to underwrite the loan. Your interest rate will vary based on the net cashflow of the property relative to the loan payment, and the loan-to-value
🔁 Refinancing Landscape (June 3, 2025)
Refinance rates closely mirror purchase rates but with subtle differences:
Conforming Refinance Loans
| 🔁 Loan Type | 🔢 Rate | 1W Change | 📈 APR | 1W Change |
|---|---|---|---|---|
| 30-Year Fixed | 7.02% | +0.01% | 7.51% | +0.04% |
| 20-Year Fixed | 6.45% | -0.53% | 6.93% | -0.46% |
| 15-Year Fixed | 6.08% | +0.01% | 6.39% | +0.02% |
Government Refinance Loans
| 🔁 Loan Type | 🔢 Rate | 1W Change | 📈 APR | 1W Change |
|---|---|---|---|---|
| 30-Year FHA | 6.54% | -0.20% | 7.56% | -0.20% |
| 30-Year VA | 6.79% | +0.30% | 7.01% | +0.35% |
Jumbo Refinance Loans
| 🔁 Loan Type | 🔢 Rate | 1W Change | 📈 APR | 1W Change |
|---|---|---|---|---|
| 30-Year Fixed Jumbo | 7.46% | -0.47% | 7.73% | -0.60% |
| 15-Year Fixed Jumbo | 5.93% | -0.67% | 6.16% | -0.61% |
🔮 Mortgage Rate Forecasts for 2025–2026
📉 National Association of REALTORS®
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Avg. 2025 rate: 6.4%
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Avg. 2026 rate: 6.1%
📉 Fannie Mae
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End of 2025: 6.1%
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End of 2026: 5.8%
📈 Mortgage Bankers Association
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Stays around 6.7% through September 2025
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Ends year near 6.6%
📈 Freddie Mac
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Rates expected to stay higher for longer
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More home sales and refinancing activity projected in 2025
💭 Personal Thoughts & Advice
While today’s rates might seem high, context matters. Inflation, Fed policies, and shifting inventory trends all contribute to this environment.
For those considering 5-year ARMs, now might be a strategic entry point—but caution is advised. ARM products require risk awareness, especially in uncertain rate cycles.
FHA borrowers should note the recent spike in rates, which could impact affordability. Meanwhile, VA loans remain a bright spot for eligible borrowers.
For investors buying rental properties – stick to DSCR loans and make sure your properties cashflow and you don’t over-leverage.
🧠 Final Word
The mortgage market today is one of nuance and strategy. Rates have inched up, but the broader outlook hints at relief. Whether buying or refinancing, now is the time to review your financial goals and speak with a trusted mortgage advisor to chart the best course forward.
GROW YOUR WEALTH WITH U.S. REAL ESTATE
Start your US real estate investment journey today, and book a Free 1-2-1 Discovery Call with a member of our senior management team.
“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
🏡 Jumbo Mortgage Rates
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