US Mortgage Rates for June 5th 2025 – Relief at Last as Rates Fall Sharply
David Garner
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📉 US Mortgage Rates for June 5, 2025 – Relief at Last as Rates Fall Sharply
For the first time in weeks, there’s good news for U.S. homebuyers and homeowners: mortgage rates are finally heading lower. As of June 5, 2025, the national average for a 30-year fixed mortgage has dropped to 6.88%, down from 6.90% the day before and a full 13 basis points below last week’s average of 7.01%.
Whether you’re considering buying a home, refinancing your current mortgage, or buying an investment property, these shifts in rates could significantly impact your monthly payments—and your long-term savings.
📌 Key Takeaways
- 📉 30-Year Fixed Rate: 6.88% (down from 6.90%)
- 🔁 30-Year Refinance Rate: 7.04% (down from 7.16%)
- 📉 Weekly Trend: Rates have declined across nearly all loan types
- 🔄 Fixed vs. ARM: Fixed-rate loans are currently more attractive than ARMs
- ⏳ Pro Tip: Lock in today’s rates if you’re in the market—they may not last
💡 What’s Driving the Drop in Mortgage Rates?
Several key forces are pushing mortgage rates lower right now:
- 📉 Falling Treasury Yields:
- The 10-year U.S. Treasury yield fell 2% this week, and since mortgage rates tend to move in tandem with Treasury yields, rates are following suit.
- 💵 Bond Market Rally:
- A strong rally in the bond market, fuelled by declining inflation data, has created downward pressure on mortgage rates. Investors are betting that the Federal Reserve may soon pivot away from rate hikes.
- 💳 Borrower Credit Factors:
- Remember: your rate also depends on your credit score, debt-to-income ratio, and how much money you put down. Even in a falling rate environment, strong borrower credentials get the best deals.
📋 Current Mortgage Rates (as of June 5, 2025)
| Mortgage Type | Rate | 1W Change | APR | 1W Change |
|---|---|---|---|---|
| 30-Year Fixed | 6.88% | ⬇ 0.13% | 7.28% | ⬇ 0.19% |
| 15-Year Fixed | 5.89% | ⬇ 0.18% | 6.15% | ⬇ 0.22% |
| 20-Year Fixed | 6.83% | ⬇ 0.14% | 7.35% | ⬇ 0.04% |
| 5-Year ARM | 7.51% | ⬇ 0.03% | 7.87% | ⬇ 0.09% |
| 7-Year ARM | 7.56% | ⬆ 0.01% | 8.07% | ⬆ 0.15% |
📊 Data source: Zillow
🔁 Current Refinance Rates
| Refinance Program | Rate | 1W Change | APR | 1W Change |
| 30-Year Fixed | 7.04% | ⬇ 0.12% | 7.28% | ⬇ 0.19% |
| 15-Year Fixed | 5.95% | ⬇ 0.07% | 6.15% | ⬇ 0.22% |
| 5-Year ARM | 8.04% | ⬆ 0.01% | 8.40% | ➖ 0.00% |
📊 Data source: Zillow
🌍 US Mortgage Rates for Foreigners (June 2025)
International buyers and non-resident investors continue to access competitive U.S. mortgage options, particularly through DSCR (Debt Service Coverage Ratio) loans. Here’s a snapshot of typical foreign national mortgage loan terms:
| Mortgage Type | Rate Range | ARM/Fixed | Loan to Value | Min Loan Size |
| 30-Year DSCR Loan | 6.75% to 8% | 30-Year Fixed | up to 75% | $75,000 |
| 15-Year DSCR Loan | 6.75% to 7.75% | 30-Year Fixed | up to 75% | $75,000 |
DSCR loans are especially attractive for investors who want to qualify based on rental income rather than personal income verification. They are ideal for those seeking to expand their U.S. property portfolio without the complexity of U.S. tax documentation or credit history.
📈 What It Means for Buyers and Refinancers
Today’s rate drop signals a potential turning point in what’s been a turbulent mortgage rate environment. For homebuyers, this could mean more affordable monthly payments and renewed urgency to act before rates rise again. For current homeowners, refinancing may now present a realistic opportunity to lower long-term interest costs.
📝 Final Thought: Don’t assume rates will keep falling. The mortgage market can change rapidly based on economic data and Federal Reserve moves. If you’ve been waiting for a better time to buy or refinance, today might be that moment.
FREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate
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