Interest rates on mortgages drop to the lowest point in nearly a year
In the latest survey, the average total for 30-year fixed mortgages stood at 0.33 discount and origination points [1]. Origination points are fees lenders charge to create, review, and process your loan, while discount points are a way to lower your mortgage rate [2]. As of Wednesday afternoon, 10-year Treasury yields had fallen below 4.3%, indicating a potential impact on mortgage rates [1].
The mortgage rates have been moving in a narrow range for the past nine months, with the current 30-year fixed mortgage rate sitting at 6.63% [1]. This rate is the lowest since mid-October 2024, providing some relief for homebuyers who have been waiting for rates and prices to come down before entering the market [3]. The current 15-year fixed mortgage rate is 5.79%, and the current 30-year jumbo mortgage rate is 6.66% [1].
The predicted trend for mortgage rates in the upcoming week is generally stable, with most housing economists expecting rates to remain around the 6.5% range for the rest of 2025 [1][2]. This stability is in part due to the Federal Reserve's decision to keep borrowing rates steady in its upcoming policy meetings [2].
The U.S. economy grew by 3% in the second quarter of 2025, and the national median family income for 2025 is $104,200, according to the U.S. Department of Housing and Urban Development [1]. Based on a 20 percent down payment and a 6.63 percent mortgage rate, the monthly payment for a typical family would be $2,231, amounting to 26 percent of their monthly income [1].
The National Average survey of large lenders, conducted weekly by our website.com, obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets, providing an accurate national comparison [1]. According to the survey, the median price of an existing home sold in June 2025 was $435,300, according to the National Association of Realtors [1].
While some homeowners may be considering refinancing their mortgages due to the slight decline in rates, most homeowners with lower locked-in rates tend to avoid refinancing [1]. Slight fluctuations in bond yields, particularly the 10-year Treasury yields, will influence mortgage rates, but economists do not foresee sharp changes unless economic conditions worsen considerably [2].
In conclusion, mortgage rates are expected to remain relatively flat near 6.5% through the upcoming week, with no significant decrease unless triggered by dramatic economic events like a recession [1][2]. Homebuyers and homeowners should keep a close eye on economic indicators and consult with financial advisors to make informed decisions about their mortgage options.
[1] Our website.com, "Mortgage Rates Today," [website URL]
[2] National Association of Realtors, "Existing-Home Sales Rise in June," [website URL]
The current 30-year fixed mortgage rate of 6.63% could impact personal-finance decisions for potential homebuyers, given that the monthly payment would amount to approximately 26% of the national median family income. With mortgage rates predicted to remain around 6.5%, it's crucial for homebuyers to monitor economic indicators and seek advice from finance professionals when considering their mortgage options.
