Mortgage Rates Today: June 27, 2025

Forbes

4 hours ago

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Today, the mortgage interest rate on a 30-year fixed mortgage is 6.59%, according to the Mortgage Research Center. On a 15-year fixed mortgage, the average rate is 5.60%, and the average rate on a 30-year jumbo mortgage is 6.92%.
Today's 30-year mortgage—the most popular mortgage product—is 6.59%, down 2.51% from a week earlier.
The interest rate is just one fee included in your mortgage. You'll also pay lender fees, which differ from lender to lender. Both interest rate and lender fees are captured in the APR . This week the APR on a 30-year fixed-rate mortgage is 6.62%. Last week, the APR was 6.79%.
Let's say your home loan is $100,000 and you have a 30-year, fixed-rate mortgage with the current rate of 6.59%, your monthly payment will be about $638, including principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. That's around $130,393 in total interest over the life of the loan.
Today's 15-year mortgage (fixed-rate) is 5.6%, down 2.78% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.76%.
The APR on a 15-year fixed is 5.64%. It was 5.81% a week earlier.
A 15-year, fixed-rate mortgage with today's interest rate of 5.6% will cost $822 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $48,454 in total interest.
Today's 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) fell 1.84% from last week to 6.92%.
Borrowers with a 30-year, fixed-rate jumbo mortgage with today's interest rate of 6.92% will pay approximately $660 per month in principal and interest per $100,000 borrowed. That would be $138,060.
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.
Various economic factors influence mortgage rates, making it challenging to forecast when rates will drop .
The Federal Reserve's decisions significantly impact mortgage rates. In response to inflation or an economic downturn, the Fed may lower its federal funds rate, prompting lenders to reduce mortgage rates.
Mortgage rates also track U.S. Treasury bond yields. If bond yields drop, mortgage rates typically follow suit.
Finally, global events that cause financial disruptions can affect mortgage rates. For example, the Covid-19 pandemic led to record-low interest rates when the Fed cut rates.
While a significant decrease in mortgage rates is unlikely in the near future, they may start to decline if inflation eases or the economy weakens.
Before you look for a house, you should get to know your budget. This will give you an idea of the type of house you can afford. Start by using a mortgage calculator to get a rough estimate.
Simply input the following information: Home price
Down payment amount
Interest rate
Loan term
Taxes, insurance and any HOA fees
Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don't charge mortgage insurance premiums or similar ongoing charges that increase the loan's APR .
Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.
Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.
The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases.
Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%.
For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy.
For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan.
Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn't require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan.
If you come from a qualifying military background, VA loans can be your best option. First, you don't need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don't pay an annual fee as the FHA and USDA loan programs require. Frequently Asked Questions (FAQs)
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.