Today's Mortgage Rates - 06/05/2025

Mortgage Rates Dip to Start June

Mortgage rates continue to wander around in a narrow range, with 30-year fixed-rate mortgages falling slightly again this week.

Freddie Mac reported today that the average offered interest rate for a conforming 30-year fixed-rate mortgage (FRM) decreased by four basis points (0.04%) to 6.85%. Closing in on the halfway mark of 2025, this rate has been no higher than January's 7.04% and no lower than April's 6.62%

Meanwhile, average offered rates for 15-year fixed-rate mortgages fell, decreasing by four basis points (0.04%). This put the average rate for the most common shorter-term mortgage at 5.99% for the week. So far in 2025, the range here has been between 6.27% and 5.79%

At present, a 5/1 ARM might offer a homebuyer a lower-cost alternative to a long-term fixed-rate mortgage, although the difference in rate between 30-year FRMs and 5-year hybrid ARMs widened again this week. The Mortgage Bankers Association said that the initial fixed interest rate on a hybrid 5-year ARM fell by eight basis points (0.08%) to 6.14%, leaving the gap in rate compared to a 30-year FRM at seventy-one basis points (0.71%). To learn more about ARMs, you should read HSH's Comprehensive Guide to Adjustable Rate Mortgages.

Mortgage and other interest rates continue to wander around mostly directionless as investors wait to see the effects of tariff and trade changes on economic growth and inflation. So far, there has been little to be seen in the so-called "hard" economic data, but the waxing and waning method of imposition of new levies on trading partners makes it unlikely that there will be bright, clear signals of any changes.

Fed members are no doubt considering all this right now, and will continue to in the next dozen days leading up to the June FOMC meeting. At that time, they will be submitting new projections for economic growth, inflation, unemployment and their expectations for interest rates for the remainder of this year and beyond.

Until at least somewhat greater clarity of the impact of upheavals in trade policy are seen, it's not likely that interest rates in general and mortgage rates in specific will be moving very much. Without flagging growth and falling inflation it will be difficult for them to decline much, if at all, and fair growth and stable inflation is all it will take to keep them hanging around present levels. As such, we expect to see roughly the status quo for mortgage rates 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.