Mortgage Rates Today: June 12, 2025

Forbes

2 days ago

Today's average mortgage rate on a 30-year fixed-rate mortgage is 6.81%, down 0.01% from the previous week, according to the Mortgage Research Center.
Borrowers may be able to save on interest costs by going with a 15-year fixed mortgage, which will often have a lower rate than a 30-year, fixed-rate home loan. The average APR on a 15-year fixed mortgage is 5.86%. But keep in mind that you'll have higher monthly payments since you're paying off your loan in half the time (15 years versus 30 years).
If you want to refinance your existing mortgage, check out the average refinance rate.
Today's average rate on a 30-year mortgage (fixed-rate) fell to 6.81% from 6.86% yesterday. One week ago, the 30-year fixed was 6.81%.
The APR on a 30-year fixed fell to 6.84%. This time last week, it was 6.84%. APR is the all-in cost of your loan.
At an interest rate of 6.81%, a 30-year fixed mortgage would cost $652 per month in principal and interest (taxes and fees not included) per $100,000 borrowed, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be around $135,581 per $100,000 borrowed.
Today's 15-year mortgage (fixed-rate) is 5.81%, up 0.78% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.77%.
The APR on a 15-year fixed is 5.86%. It was 5.82% a week earlier.
A 15-year, fixed-rate mortgage with today's interest rate of 5.81% will cost $834 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $50,565 in total interest.
The current average interest rate on a 30-year fixed-rate jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas) is 7.14%. Last week, the average rate was 7.21%.
If you lock in the latest rate on a 30-year, fixed-rate jumbo mortgage, you will pay $675 per month in principal and interest per $100,000 borrowed, which amounts to $143,365 in total interest over the life of the loan.
Although mortgage rates mainly fell after reaching a high in spring 2024, they surged again in October 2024. This is despite the Federal Reserve's cuts to the federal funds rate (its benchmark interest rate) in September, November and December 2024.
While rates have fallen somewhat since mid-January 2025, experts don't expect them to drop significantly anytime soon.
Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop.
Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit.
The Federal Reserve's decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows.
A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens.
One of the first steps in buying a house is budgeting. To get a general idea of how much owning a home will cost, start by using a mortgage calculator to crunch the numbers.
Just input the following data to get an idea of how much a house will cost:
Multiple factors affect the interest rate for a mortgage, including the economy's overall health, benchmark interest rates and borrower-specific factors.
The Federal Reserve's rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn't directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation.
Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment.
Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term.
As you compare lenders, consider getting rate quotes for several loan programs. In addition to comparing rates and fees, these programs can have flexible down payment and credit requirements that make qualifying easier.
Conventional mortgages are likely to offer competitive rates when you have a credit score between 670 and 850, although it's possible to qualify with a minimum score of 620. This home loan type also doesn't require annual fees when you have at least 20% equity and waive PMI.
Several government-backed programs are better when you want to make little or no down payment:
Faster, easier mortgage lending
A competitive mortgage rate currently ranges from 6% to 8% for a 30-year fixed loan. Several factors impact mortgage rates, including the repayment term, loan type and borrower's credit score.
Lenders adjust mortgage rates daily based on economic conditions, inflation, bond market movements and Federal Reserve actions.
If you're shopping around for a mortgage, remember that you might be able to lock in a rate for 30 up to 120 days, depending on the lender. Note that some lenders charge a fee to lock your rate while others offer the service for free.
National average interest rates depend on economic and market conditions, including the bond market, inflation, the economy and Federal Reserve decisions.
Lenders set rates based on the loan type and term. In general, shorter terms tend to come with lower rates. Additionally, making a larger down payment signals less risk to the lender, which could get you a better rate.
Other factors that can impact your rate include your credit score, debt-to-income (DTI) ratio, income and property location.