Today's Mortgage Rates - 06/13/2025

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Little Change For Mortgage Rates

Mortgage rates moved little this again this week as economic conditions don't support significant moves either up or down at the moment.

As reported by Freddie Mac today, the average offered interest rate for a conforming 30-year fixed-rate mortgage (FRM) declined by just one basis point (0.01%) to 6.84%. This rate has barely budged over the last two months, and nearly identical to where it was one year ago.

Average offered rates for 15-year fixed-rate mortgages fell by twice as much as its longer-term sibling, with a two basis point (0.02%) decline leaving its rate at 5.97% Compared to last year at this time, 15-year FRM rates are about 20 basis points cheaper.

At present, a 5/1 ARM might offer a homebuyer a lower-cost alternative to a long-term fixed-rate mortgage, but the difference in rate between 30-year FRMs and 5-year hybrid ARMs shrank this week. The Mortgage Bankers Association said that the initial fixed interest rate on a hybrid 5-year ARM took back last week's eight basis point decline with an eight basis point increase (0.08%), returning to 6.22%, leaving the gap in rate compared to a 30-year FRM at sixty-two basis points (0.62%). To learn more about ARMs, you should read HSH's Comprehensive Guide to Adjustable Rate Mortgages.

Financial markets are waiting to start to see the impact of the imposition of new tariffs on inflation, but so far, these seem still to be in the future. The latest reports covering Consumer and Producer Price indexes for May found very little change, let alone anything alarming or concerning. Overall CPI rose by 0.1% and annual CPI is now 2.4%; core CPI rose by just 0.1% and held steady at an annual 2.8% for a third consecutive month. No improvement, but no worsening, either.

Producer prices were also pretty tame, with overall PPI edging 0.1% higher to a 2.6% annual pace, with core goods inflation coming in at 0.2%, the lowest figure since the start of the year and holding a steady 2.4% annual rate since March. It is widely expected that the increased costs tariffs will bring should start to show soon, but how large their impact will be and how long they will foster new price pressures is unclear.

The softer labor markets of late suggest that somewhat lower mortgage rates may start to show. If nothing else, the not-yet inflation situation amid slackening labor conditions will give the Fed much to think about at their meeting next week. While the short-term rates the Fed controls aren't likely to be trimmed, there does appear to be a good chance of slightly lower mortgage rates in the market in the coming 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.

Week 30-year-Fixed 15-year-Fixed
06/12 6.840% 5.970%
06/05 6.850% 5.990%
05/29 6.890% 6.030%
05/22 6.860% 6.010%
05/15 6.810% 5.920%
05/08 6.760% 5.890%
05/01 6.760% 5.920%
04/24 6.810% 5.940%
04/17 6.830% 6.030%
04/10 6.620% 5.820%
04/03 6.640% 5.820%
03/27 6.650% 5.890%

Mortgage Choices at a Glance

Loan type/terms Fixed 30 years Fixed 15 years/
20 Years
Hybrid ARM Traditional ARM Balloon Mortgage
Rate changes
  • Never; Fully fixed for entire term
  • Never; Fully fixed for entire term
  • Usually after fixed period of 3, 5, 7 or 10 years
  • After that, annual change typical
  • Fully variable
  • Typically changing at one-year intervals
  • Some have shorter change intervals
  • Never; Fully fixed for entire term
Benefits
  • Low, stable payment
  • Usually easiest qualification
  • Stable payments
  • Builds equity faster
  • Lower total interest costs than 30-year term
  • Lower rates than fully fixed-rate mortgage
  • Can sometimes borrow larger loan amount for same income
  • Can have lowest interest rates
  • Qualification may not depend upon today's interest rate
  • Often has lower interest rate/monthly payment over balloon period than fixed rate
  • Similar to hybrid ARM
Drawbacks/Risks
  • Can have highest total interest cost over time
  • User may "buy" more rate stability than actually needed, increasing cost
  • Requires higher income to qualify
  • Less affordable monthly payment
  • Funds commited to payment cannot be used elsewhere
  • Stable payment for a number of years, then unpredictable
  • Rates can jump by as much as 6 percentage points at first adjustment
  • Payments fluctuate at each rate change
  • Unpredictable, rates can change as much as 2 percentage points at each adjustment
  • Loan fully due and payable when balloon period ends
  • Must be paid off or refinanced in unknown market conditions
Alternative strategy
  • Consider Hybrid ARM with appropriate fixed period
  • Consider 30-year term and prepaying loan to preserve cash-flow flexibility
  • Consider Fixed rate mortgage or longest possible fixed period, if loan hold period not known
  • Consider Hybrid ARM to ameliorate rate and payment risks for a given period
  • Consider Hybrid ARM to ensure continued loan availability
These may be useful for...
  • Purchasing a home
  • First-time homebuyers
  • Refinancing to improve cash flow/lower payment
  • Refinancing to lower total interest cost
  • Retiring mortgage more quickly
  • Building or rebuilding equity more quickly
  • Purchasing or refinancing when time horizon is seven years or shorter, and where borrower can handle increase in monthly payments
  • Purchasing or refinancing when interest rates are near top of cycle, and are likely to fall, or sale or refinance is anticipated within three years
  • Purchasing or refinancing when time horizon is three years or longer and home will be sold prior to end of balloon period
Consider if
  • Buying or refinancing a home and planning on owning for longer than 10 years
  • Buying second home
  • Refinancing to build equity
  • Paying off mortgage before life event (retirement, etc)
  • Buying a home and expect to move before fixed period ends, or know income will rise to offset payment risk, even in worst-case scenario
  • Buying or refinancing when income can handle frequent payment changes and worst-case scenario for rates over a four-year period
  • Buying a home and expect to move before balloon period ends, or have resources to pay off mortgage if refinance not available
When shopping, ask about
  • "Full cost" vs. "No cost" refinances, prepaying loan to shorten term if desired
  • If 20-year term makes payment too high, whether 25-year term is available
  • Interest rate caps, for first and subsequent adjustments, worst-case scenario
  • A history of the Index the loan is keyed off, margin and caps
  • Whether or not there is any built-in refinancing option when the balloon period ends
Useful tools & resources

Latest Mortgage Rate Analysis

HSH's longer-range outlook for mortgage rates, where we review our last forecast,discuss current market influences and provide our expectations for mortgage rates over the next nine weeks.

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