Rates go down: Will they keep falling? - Current mortgage and refinance rates for July 2, 2025
Mortgage interest rates dropped across the board from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all dropped.
Mortgage rates move as the economy and other factors shift, including geopolitical upheaval. In response to the recent conflict between Israel and Iran — and the U.S. involvement — the 10-year Treasury yield dropped, pushing mortgage rates down along with it.
“While inflation has cooled and is closer to the Fed's 2 percent target, overwhelming sentiment is that we are still in calm before the storm and the full impacts of tariffs are still to be felt,” said Dr. Selma Hepp, chief economist for Cotality, in a statement. "Similarly, the uncertain job market is keeping the Fed on the sidelines. In addition to the Fed's two mandates competing against each other, the Fed's job is complicated by remaining in the crosshairs of political pressures while trying to ensure it unequivocally maintains its much-needed independence."
| Loan type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 6.69% | 6.82% | -0.13% |
| 15-year fixed | 5.89% | 6.05% | -0.16% |
| 5/1 ARM | 5.92% | 6.00% | -0.08% |
| 30-year fixed jumbo | 6.73% | 6.83% | -0.10% |
Rates as of July 2, 2025.
The rates listed here are Bankrate's overnight average rates and are based on the assumptions indicated here. Actual rates listed across the site may vary. All rate data is accurate as of Wednesday, July 2nd, 2025 at 6:30 a.m. ET.
Mortgage purchase rates
30-year fixed-rate mortgage retreats
0.13%
Today's average 30-year fixed-mortgage rate is 6.69 percent, a decrease of 13 basis points over the last seven days. Last month on the 2nd, the average rate on a 30-year fixed mortgage was higher, at 6.90 percent.
At the current average rate, you'll pay a combined $644.61 per month in principal and interest for every $100,000 you borrow. That represents a decline of $8.65 over what it would have been last week.
Learn more about 30-year mortgage rates, and compare to a variety of other loan types.
15-year mortgage rate falls
0.16%
The average 15-year fixed-mortgage rate is 5.89 percent, down 16 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $838 per $100,000 borrowed.
5/1 ARM rate moves down
0.08%
The average rate on a 5/1 adjustable rate mortgage is 5.92 percent, ticking down 8 basis points since the same time last week.
Monthly payments on a 5/1 ARM at 5.92 percent would cost about $594 for each $100,000 borrowed over the initial five years.
Current jumbo mortgage rate moves down
0.10%
The average rate for the benchmark jumbo mortgage is 6.73 percent, down 10 basis points since the same time last week. This time a month ago, jumbo mortgages' average rate was greater than 6.73 at 6.86 percent.
At today's average jumbo rate, you'll pay principal and interest of $647.27 for every $100,000 you borrow. That's down $6.65 from what it would have been last week.
Mortgage refinance rates
Current 30 year mortgage refinance rate slides
0.04%
The average 30-year fixed-refinance rate is 6.79 percent, down 4 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 6.91 percent.
At the current average rate, you'll pay $651.26 per month in principal and interest for every $100,000 you borrow. That's a decline of $2.66 from last week.
Will mortgage rates go down in 2025?
It’s hard to say. The Federal Reserve’s projections in June still indicated two rate cuts this year, which could have a ripple effect on mortgage rates.
“My bets are on December,” Hepp said in a panel talk at the National Association of Real Estate Editors conference this week, adding that the Fed could start signaling a cut as early as September, but inflation will keep policymakers holding rates higher for longer.
Learn more: What happens to mortgage rates in a recession?
Should you buy a home in 2025?
Ultimately, it depends on your financial situation, but there have been some positive signs as of late for homebuyers. Consider: There are more homes for sale, especially in the South, including Texas and Florida. That means you could have more choices when shopping for a home.
Consider, too: If you’re financially ready, buying now would allow you to build equity sooner, and potentially avoid facing even more expensive options down the line as home prices keep rising.
While mortgage rates could remain elevated, they’ve also been relatively stable. Many experts predict that 30-year rates will hold steady this year, averaging between 6 and 7 percent. While this is a higher range than in recent years, it’s still in line with historical norms.
Learn more: Housing market predictions for the rest of 2025
When will it make sense to refinance?
Whether you refinance your mortgage hinges on a few things: your rate today, how rates might move in the future and your long-term plans. We recently ran down four scenarios in which refinancing might make sense for you today, even as rates are elevated. If you got your mortgage recently and your credit score has improved, for instance, you might still be able to get a lower rate.
You also don't necessarily need a significantly lower rate to see savings. It's important to understand what rate you qualify for and do the math for your unique situation.
Learn more: Should you wait for rates to drop a full percentage point before refinancing?
More on current mortgage rates
Methodology
The mortgage rates in this story are derived from our national rate and APR averages. Bankrate’s mortgage rates include these national rate and APR averages; Bankrate Monitor (BRM) National Index rate averages; and “top offers”:
- National rate and APR averages: Displayed as daily and weekly averages, these rates and APRs are primarily collected from the 5 largest banks and thrifts across hundreds of markets in the U.S.
- Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.
- “Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.
You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate. Learn more about Bankrate’s how we collect, display and report mortgage rates.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
