If you’re thinking about buying or refinancing a home, here’s the latest on mortgage rates to help you make a more informed decision.
As of Monday, June 16, the average 30-year fixed-rate mortgage stands at 6.93%. For other fixed-rate loans, the 20-year sits at 6.70%, 15-year at 5.98%, and 10-year at 6.00%. FHA buyers are seeing around 7.42% on a 30-year loan, while jumbo loans come in slightly lower at 6.95%.
These rates come from a mix of about 40 top lenders and are based on borrowers with strong credit (680–739) and a 20% down payment—making them more realistic than the teaser rates often advertised online.
Today’s Average Rates – Purchase vs. Refinance
| Loan Type | Purchase | Refinance |
|---|---|---|
| 30-Year Fixed | 6.93% | 7.13% |
| FHA 30-Year Fixed | 7.42% | 7.54% |
| VA 30-Year Fixed | 6.67% | 6.65% |
| 20-Year Fixed | 6.70% | 7.04% |
| 15-Year Fixed | 5.98% | 5.98% |
| FHA 15-Year Fixed | 6.78% | 6.74% |
| 10-Year Fixed | 6.00% | 6.18% |
| 7/6 ARM | 7.29% | 7.22% |
| 5/6 ARM | 7.13% | 7.13% |
| Jumbo 30-Year Fixed | 6.95% | 7.09% |
| Jumbo 15-Year Fixed | 6.70% | 6.75% |
| Jumbo 7/6 ARM | 7.40% | 7.39% |
| Jumbo 5/6 ARM | 7.35% | 7.35% |
Understanding 30-Year Mortgages
Still the go-to option for many buyers, the 30-year fixed loan offers steady monthly payments and lower installments compared to shorter terms. While you’ll pay more interest over the long haul, it’s ideal if you’re on a tight monthly budget.
Shorter Terms: 20-, 15-, and 10-Year Loans
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20-Year: Higher payments, but you’ll pay it off faster and save on interest.
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15-Year: Even quicker payoff with even less interest, but monthly payments jump.
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10-Year: Best for those who can afford higher payments and want to build equity fast.
| Term | Rate | Monthly on $500K |
|---|---|---|
| 30-Year | 7.00% | $3,327 |
| 20-Year | 6.75% | $3,802 |
| 15-Year | 6.00% | $4,219 |
| 10-Year | 6.00% | $5,551 |
Rate Trends: Will They Drop Further?
Mortgage rates follow a mix of economic signals—Fed policy, inflation, and bond yields. Though not tied directly to the Federal Reserve’s actions, rates often respond to broader economic sentiment.
After several rate hikes in 2022 and 2023, the Fed began cutting rates in late 2024. More cuts are expected in 2025, but it’s uncertain how quickly mortgage rates will follow.
Tips for Getting a Great Rate
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Compare APRs, not just interest rates.
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Improve your credit score before applying.
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Check your debt-to-income ratio (aim for 43% or lower).
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Make a bigger down payment if possible.
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Negotiate lenders may be flexible.
What Is a Mortgage, Anyway?
A mortgage is a loan used to buy a home. You pay it back over time, plus interest. The home itself serves as collateral. If you stop paying, the lender can take it back through foreclosure.
Mortgage Types in a Nutshell
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Fixed-Rate Loans: Interest and payments stay the same.
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ARMs: Start low, then adjust.
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Conforming Loans: Meet Fannie/Freddie limits and rules.
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Jumbo Loans: For higher-priced homes.
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FHA Loans: Low down payment, good for lower credit.
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VA Loans: For veterans and active service members.
APR vs. Interest Rate
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Interest Rate: What the lender charges.
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APR: Includes rate plus fees gives a full picture of your loan’s true cost.
Example:
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Loan: $500,000
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Interest Rate: 7.00%
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Fees: $10,000
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APR: 7.227%
Final Thoughts
Mortgage rates remain historically high, but with careful planning, you can still lock in a deal that works for your situation. Shop around, know your numbers, and think ahead especially if you’re buying or refinancing in today’s market.