Today's Mortgage Rates - 06/19/2025

Mortgage Rates Ease As Fed Holds

While stable mortgage rates are generally a good thing, that they are holding at elevated level is rather less good.

Freddie Mac reported today that the average offered interest rate for a conforming 30-year fixed-rate mortgage (FRM) declined by just three basis points (0.03%) to 6.81%. returning to where it was in mid-May, and before that, late April, and just a few basis points below where it was a year ago.

Average offered rates for 15-year fixed-rate mortgages fell by the barest possible amount, easing by just one basis point (0.01%) to drift to 5.96%. Over the last 10 weeks, this rate has wandered in just a nine basis point range.

At present, a 5/1 ARM might offer a homebuyer a lower-cost alternative to a long-term fixed-rate mortgage, and the difference in rate between 30-year FRMs and 5-year hybrid ARMs improved a little this week. The Mortgage Bankers Association said that the initial fixed interest rate on a hybrid 5-year ARM managed a 12 basis point decline, retreating to 6.10%. This improved the gap in rate compared to a 30-year FRM to seventy-one basis points (0.71%), offering homebuyers a chance at some interest savings over the next five years. To learn more about ARMs, you should read HSH's Comprehensive Guide to Adjustable Rate Mortgages.

Still waiting for more clarity as to the effects of changes to trade and other policies, the Federal Reserve held rates steady again at their meeting this week. While uncertainty over the impact of tariffs remains high, it has diminished somewhat as negotiations with major trading partners are ongoing.

The Fed still expects to cut rates one or perhaps two times before the end of the year, but is also forecasting slower economic growth and a modest increase in unemployment. Of course, the the Fed doesn't control mortgage rates; rather, it is worries about potential inflation, U.S. budget deficits and record debt issuance that are serving to keep them are elevated levels, factors beyond the Fed's control.

Next week, we'll learn more about how much elevated home financing rates have affected the spring housing market when information on sales of both new and existing homes for May are released. While there's plenty of upheaval and uncertainty here and around the world, it seems fairly certain that mortgage rates will move little again in the coming few days.

Each week in HSH's MarketTrends newsletter, we track and discuss economic conditions that affect mortgage rates and their impact on housing markets and consumers. Read the most recent edition of MarketTrends or subscribe for email delivery.