Interest rates on mortgages decrease for the first time in weeks, remaining close to 7%.
Angie Newman, portfolio manager at UBS Global Wealth Management, advises clients and investors on navigating market reactions during trade tensions.
Home buyers might see relief as mortgage rates dropped for the first time in weeks, though they are still hovering around 7%. Mortgage buyer Freddie Mac announced Thursday that the average rate on the 30-year fixed mortgage fell to 6.85% from last week's reading of 6.89%.
Compared to a year ago, the average rate on a 30-year loan was 6.99%.
Sam Khater, Freddie Mac's chief economist, acknowledged the decrease saying, "The decrease in mortgage rates this week is good news for potential homebuyers who are also seeing inventory improve and house price growth slow."
In late June 2025, rates show a subtle decline, revealing a narrow band between 6.85% and 6.93%[1][2]. This downward trend contrasts earlier week's surges close to 7%, but current volatility is still in play[1][2][4].
The drop in rates represents a gradual easing, with a reduction of about 6 basis points from the previous week’s average of 6.99%[2]. Remarkably, the current rates are elevated when compared to pre-pandemic and pre-2022 levels, a consequence of prolonged high inflation and Federal Reserve policy over the past 18 months[2][4].
Here's the scoop:- Current trend: Slightly decreasing, now between 6.85% and 6.93% (June 11–13, 2025)[1][2].- Compared to previous weeks: Rates have moderately decreased about 6 basis points from the recent average[2].- Compared to a year ago: Rates remain elevated and consistently above 6.5%, reflecting ongoing economic pressures and inflation; while rates fluctuated, they are not significantly higher year-over-year, but well above historic lows.(Note: Specific year-ago figures for mid-June 2024 are not provided in the current sources, but the broader context corresponds to rates staying elevated since spring 2022.)
As always, it's crucial to adopt a cautious approach rather than making impulsive decisions in the face of market turbulence.
- The slight decrease in mortgage rates offers potential relief for home buyers, with the average rate on the 30-year fixed mortgage currently at 6.85%, down from 6.99% a year ago.
- Despite the recent downtrend, mortgage rates remain elevated, influenced by high inflation and Fed policy over the past 18 months, surpassing pre-pandemic and pre-2022 levels.
- Investors interested in real estate might find opportunities in this fluctuating market, considering the slowdown in house price growth and improving inventory.
- With the economy showing signs of pressure due to prolonged inflation, personal-finance management becomes even more crucial when making decisions about loans or investing in real estate.
- It's advisable for all parties involved, whether clients, investors, or home buyers, to exercise patience and cautiousness when navigating market reactions during trade tensions and periods of tariff turmoil.
