US Mortgage Rates: June 13, 2025 – Rates Drop!
David Garner
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Daily US Mortgage Rate Update: June 13, 2025
Published On: June 13th, 2025
Today, June 13, 2025, marks a notable and favourable shift in U.S. mortgage rates with a substantial drop. The the average 30-year fixed mortgage rate decreased by 11 basis points. This movement offers a glimmer of relief for prospective homebuyers, investors, and those considering refinancing, potentially opening up more favourable borrowing conditions.
Let’s dive into today’s rates, analyse the market’s trajectory, and explore specific considerations for international investors.
Key Takeaways:
- Overall Drop: U.S. mortgage rates saw a notable decrease today, with the average 30-year fixed rate falling by 11 basis points.
- 30-Year Fixed: Now stands at 6.88%, offering improved affordability for new homebuyers.
- 20-Year Fixed: Experienced an even more significant drop to 6.55%.
- Mixed Movements: While longer fixed rates dropped, 15-year and 10-year fixed rates saw slight increases.
- ARM Decreases: Both 7-year and 5-year ARMs also saw substantial rate reductions.
- Foreign National Loans: Specialized DSCR and Traditional Foreign National loans remain crucial financing pathways for international investors, with illustrative rates noted.
Today’s Mortgage Rates Overview
The market saw significant adjustments across various loan types today, reflecting a general easing in borrowing costs for many borrowers.
| Loan Type | Rate (%) | 1W Change (%) | APR (%) | 1W Change (%) |
|---|---|---|---|---|
| 30-Year Fixed Rate | 6.88 | -0.11 | 7.32 | -0.13 |
| 20-Year Fixed Rate | 6.55 | -0.27 | 6.79 | -0.45 |
| 15-Year Fixed Rate | 5.96 | +0.02 | 6.25 | -0.11 |
| 10-Year Fixed Rate | 6.03 | +0.10 | 6.13 | -0.04 |
| 7-Year ARM | 6.64 | -1.17 | 7.51 | -0.72 |
| 5-Year ARM | 7.17 | -0.45 | 7.84 | -0.16 |
Commentary: The marquee 30-Year Fixed Rate Mortgage saw a welcome drop to 6.88%, a decrease of 11 basis points from last week. This is a crucial move for the majority of homebuyers, easing persistent affordability issues and making homeownership slightly more accessible. Similarly, the 20-Year Fixed Rate experienced an even more significant dip, falling by 27 basis points to 6.55%, indicating a notable benefit for those seeking a shorter fixed term.
However, not all fixed rates followed this downward trend. The 15-Year Fixed Rate saw a slight increase to 5.96% (+0.02%), and the 10-Year Fixed Rate also ticked up to 6.03% (+0.10%). This suggests that while longer-term fixed rates are softening, shorter fixed-rate products might be reacting to different market dynamics or investor demand.
Adjustable-Rate Mortgages (ARMs) also saw decreases, albeit from higher starting points. The 7-Year ARM registered a substantial decrease of 117 basis points to 6.64%, while the 5-Year ARM dropped by 45 basis points to 7.17%. Despite these declines, the APRs for ARMs remain notably higher than their fixed-rate counterparts, reflecting the inherent interest rate risk associated with adjustable products.
Today’s Refinance Rates Overview
For homeowners looking to refinance, today’s rates present a mixed but generally stable picture.
| Refinance Loan Type | Rate (%) | 1W Change (%) | APR (%) | 1W Change (%) |
|---|---|---|---|---|
| 30-Year Fixed Refinance | 7.08 | -0.01 | 7.32 | -0.13 |
| 15-Year Fixed Refinance | 5.99 | +0.07 | 6.25 | -0.11 |
| 5-Year ARM Refinance | 7.69 | 0.00 | – | – |
Commentary: The 30-Year Fixed Refinance rate saw a marginal decrease of 1 basis point to 7.08%, suggesting a very slight improvement for long-term refinancing strategies. The 15-Year Fixed Refinance rate, however, increased by 7 basis points to 5.99%. This contrasts with the movement in purchase rates for similar fixed terms and indicates that refinancing trends can sometimes diverge from new purchase trends based on lender spreads or specific market segment demand. The 5-Year ARM Refinance rate remained unchanged at 7.69%.
In-depth Analysis and Commentary
Today’s overall rate drop, particularly for the critical 30-year fixed mortgage, can be attributed to several factors influencing the bond market, which directly impacts mortgage rates. When bond yields, specifically those for the 10-year Treasury note (a key benchmark for mortgage rates), decline, mortgage rates tend to follow suit.
Possible drivers for today’s positive movement could include recent economic data releases that signal a cooling in inflation or a softening labor market. For instance, a Consumer Price Index (CPI) report showing inflation easing more than expected, or a weaker-than-anticipated jobs report, could lead investors to anticipate a less aggressive monetary policy stance from the Federal Reserve. Similarly, shifts in global geopolitical stability or investor flight to the perceived safety of U.S. Treasury bonds can also influence yields downward, subsequently easing mortgage rates.
Looking ahead, the market outlook for 2025 remains dynamic, with many analysts expecting rates to remain stable or see slight decreases. This forecast is largely contingent on a continued moderation of inflation and a healthy but not overheating economy. Should inflationary pressures continue to subside, and the Federal Reserve maintain its cautious approach to interest rates, we could see mortgage rates stabilize within a comfortable range, offering sustained opportunities for borrowers. According to Fannie Mae’s latest economic forecast, “Revisions to the home sales forecast were driven in part by the ESR Group’s lower expectations for mortgage rates, which it now forecasts to end 2025 and 2026 at 6.1% and 5.8%, respectively. The latest outlook also projects real gross domestic product growing at 0.7% in 2025 and 2.0% in 2026 on a Q4/Q4 basis.”
For international investors, these shifts are particularly noteworthy. A downward trend or stabilization in U.S. mortgage rates directly improves the yield potential and cash flow of rental properties. While foreign national loans may carry slightly higher rates, a general decline in the broader market provides a more attractive entry point, potentially leading to better long-term returns even with specialized financing. This creates a strategic window for global property investors to secure leveraged U.S. assets with improved borrowing terms, optimizing their investment for both cash flow and future appreciation.
Foreign National Mortgages: A Niche for International Investors
For international investors looking to acquire U.S. real estate, conventional mortgage options available to U.S. citizens and residents may not always be accessible. This is where specialized “Foreign National Mortgages” come into play, designed to cater to the unique circumstances of non-resident aliens. These loans typically involve different underwriting criteria, often requiring higher down payments and sometimes different documentation.
Two common types of foreign national loans that are particularly relevant for investors are:
- DSCR (Debt Service Coverage Ratio) Loans: These are popular for investment properties because they qualify the borrower based on the property’s potential rental income rather than the borrower’s personal income. The DSCR is a ratio that compares the property’s net operating income to its debt service (mortgage payments).
- Traditional Foreign National Loans: These are more akin to conventional mortgages but are specifically tailored for foreign nationals who may not have a U.S. credit history or extensive U.S. income documentation. They typically require verification of foreign income, assets, and sometimes proof of a long-standing banking relationship.
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.
| Loan Type | Example Interest Rate Range (%) | Example LTV (Loan-to-Value) | Key Qualification Criteria |
|---|---|---|---|
| DSCR Loan | 7.50 – 9.00 | Up to 75% | Property’s rental income covers debt service (DSCR > 1.25 usually); no personal income required. |
| Foreign National Loan (Conventional-like) | 7.00 – 8.50 | Up to 70% | Verification of foreign income/assets; strong foreign credit history; typically requires more documentation. |
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 dip in average U.S. mortgage rates, especially for the 30-year fixed, offers a timely opportunity for many in the real estate market. For international investors, navigating these fluctuations while understanding the specialized financing options available is key to successful U.S. property investment. Staying informed about both conventional market trends and niche foreign national loan products allows for strategic decision-making in a dynamic environment.
Always consult with a qualified mortgage professional specializing in international financing to explore the best options tailored to your specific circumstances and investment goals.
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About the Author
David Garner has over 120+ personal property acquisitions in the U.S. real estate market as a Non-Resident Alien foreigner, bringing extensive practical experience to his insights. He specializes in guiding international investors through the complexities of the U.S. property landscape, focusing on cash flow opportunities, financing, and strategic wealth building. His deep understanding of the market, combined with his client-centric approach, makes him a trusted advisor for global investors seeking to establish and grow their U.S. real estate portfolio.
