Mortgage Rates Today: July 3, 2025
The current mortgage rate on a 30-year fixed mortgage fell by 0.65% in the last week to 6.61%, according to the Mortgage Research Center.
Meanwhile, the APR on a 15-year fixed mortgage dropped 0.08 percentage point during the same period to 5.57%.
For existing homeowners, compare your current mortgage rates with today's refinance rates .
Borrowers paid an average rate of 6.61% on a 30-year mortgage. This was down from the previous week's rate of 6.65%.
Currently, the average APR on a 30-year fixed-rate mortgage is 6.64%. This is lower than last week when the APR was 6.68%. The APR contains both mortgage interest and the lender fees to help give a more complete picture of loan costs.
To get an idea of how much you'll pay: a $100,000 mortgage with a 30-year fixed-rate loan at the current average interest rate of 6.61% will cost you about $639 including principal and interest (taxes and fees not included) each month, the Forbes Advisor mortgage calculator shows. That's around $130,845 in total interest over the life of the loan.
Today's 15-year mortgage (fixed-rate) is 5.57%, down 1.40% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.65%.
The APR on a 15-year fixed is 5.62%. It was 5.7% a week earlier.
A 15-year, fixed-rate mortgage with today's interest rate of 5.57% will cost $821 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $48,224 in total interest.
The average interest rate on the 30-year fixed-rate jumbo mortgage (mortgages above 2025's conforming loan limit of $806,500 in most areas) dropped to 6.94%. Last week, the average rate was 6.95%.
Borrowers with a 30-year fixed-rate jumbo mortgage with today's interest rate of 6.94% will pay $661 per month in principal and interest per $100,000. That means you'd pay approximately $138,518 in total interest over the life of the loan.
Mortgage rates initially trended downward post-spring 2024. However, they surged again in October 2024—despite cuts by the Federal Reserve to the federal funds rate (its benchmark interest rate) in September, November and December 2024.
Rates began to drop again in mid-January 2025, but experts don't forecast them falling by a significant amount in the near future.
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.
To get an estimate of your mortgage costs, using a mortgage calculator can help.
Simply input the following information: Home price
Down payment amount
Interest rate
Loan term
Taxes, insurance and any HOA fees
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: FHA loans. Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with FHA loans.
Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with VA loans. Servicemembers, veterans and qualifying spouses don't need to make a down payment when the sales price is less than the home's appraisal value. VA loan credit requirements vary by lender.
Servicemembers, veterans and qualifying spouses don't need to make a down payment when the sales price is less than the home's appraisal value. credit requirements vary by lender. USDA loans. Applicants in eligible rural areas can buy or build a home with no money down using a USDA loan . Moderate-income borrowers can qualify for a 30-year fixed-rate term through the Guaranteed Loan Program. Further, buyers with a very low or low income can receive a 33-year term and payment assistance is available through the agency's Direct Loans program. Credit requirements differ by lender. Frequently Asked Questions (FAQs)
Comparing lenders and loan programs is an excellent start. Borrowers should also strive for a good or excellent credit score between 670 and 850 and a debt-to-income ratio of 43% or less.
Further, making a minimum down payment of 20% on conventional mortgages can help you automatically waive private mortgage insurance premiums, which increases your borrowing costs. Buying discount points or lender credits can also reduce your interest rate.
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.
A mortgage interest rate reflects what a lender is charging you on top of your loan amount in return for allowing you to borrow money.
Annual percentage rate (APR) , on the other hand, is a calculation that includes both a loan's interest rate and finance charges, expressed as an annual cost over the life of the loan. In other words, it's the total cost of credit. APR accounts for interest, fees and time.
Since APRs include both the interest rate and certain fees associated with a home loan, the APR can help you understand the total cost of a mortgage if you keep it for the entire term. The APR will usually be higher than the interest rate, but there are exceptions.
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