Rates decline: Is now the best time to buy? | Today's mortgage and refinance rates for June 4, 2025

Mortgage interest rates dropped across the board compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all declined.

The story hasn’t changed much for homebuyers, with the median national existing-home price at $414,000 in April, a new record for that month, according to the National Association of Realtors (NAR). At the same time, 30-year mortgage rates remain around 7 percent.

"Pent-up housing demand continues to grow, though not realized,” says Lawrence Yun, chief economist at NAR. “Any meaningful decline in mortgage rates will help release this demand."

Rates as of June 4, 2025.

The rates listed here are averages based on the assumptions here. Actual rates listed within the site may vary. All rate data is accurate as of Wednesday, June 4th, 2025 at 6:30 a.m. ET.

Today's average 30-year fixed-mortgage rate is 6.91 percent, down 8 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 6.85 percent.

At the current average rate, you'll pay principal and interest of $659.27 for every $100,000 you borrow. That represents a decline of $5.36 over what it would have been last week.

While the 30-year rate is the most popular mortgage term, the 30-year mortgage also has some downsides:

• More total interest paid. A 30-year term means you'll pay more overall in interest compared with what you'd pay with a shorter-term loan.
• Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
• Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster retirement of the loan amount.
• Buying a more expensive house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.

Learn more: What is a fixed-rate mortgage and how does it work?

The average rate for a 15-year fixed mortgage is 6.10 percent, down 11 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $849 per $100,000 borrowed.

The average rate on a 5/1 ARM is 6.05 percent, falling 6 basis points from a week ago.

Monthly payments on a 5/1 ARM at 6.05 percent would cost about $603 for each $100,000 borrowed over the initial five years.

The average jumbo mortgage rate is 6.87 percent, a decrease of 10 basis points from a week ago. This time a month ago, the average rate on a jumbo mortgage was below that at 6.83 percent.

At the current average rate, you'll pay $656.59 per month in principal and interest for every $100,000 you borrow. That represents a decline of $6.70 over what it would have been last week.

The average 30-year fixed-refinance rate is 6.87 percent, down 9 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.94 percent.

At the current average rate, you'll pay $656.59 per month in principal and interest for every $100,000 you borrow. That's a decline of $6.03 from last week.

It’s hard to say. Recently released minutes from the Federal Reserve’s May meeting underscored concerns about the economic effects of tariffs, particularly stagflation and unemployment. Historically, in a down or uncertain economy, mortgage rates tend to decrease.

Learn more: What happens to mortgage rates in a recession?

Then there’s the tax bill, which could exacerbate the debt and deficit issue, says Mark Hamrick, senior economic analyst for Bankrate.

“That has potential implications for mortgage rates in the intermediate and long terms,” Hamrick says.

If you're financially ready to buy a home, try not to let recession fears change those plans, experts recently shared with Bankrate. It’s best to base your homebuying decisions on your individual needs and what you can afford, less so the broader economic picture.

“The longer you wait, the more you’ll wind up paying for the home,” says Rick Sharga, president and CEO of CJ Patrick Company.

The exception might be homebuyers who work in a field directly affected by tariffs, like shipping and warehousing, Sharga says.

Learn more: Why recession fears shouldn’t derail your homebuying plans

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.

“These directional signals can help make sure you’re ready to move instantly if rates do go down — and potentially save yourself thousands of dollars over the life of your loan,” Sharga writes.

• Expert poll: Mortgage rate trend predictions this week
• Latest mortgage news this week
• Compare today's mortgage rates

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.

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