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Mortgages

Mortgage Rates

Here Are Today's Best Mortgage & Refinance Rates for June 25, 2020

Interest rates remain historically low as demand for home purchases and refinances continues to eclipse 2019 levels.

"After the Great recession, it took more than ten years for purchase demand to rebound to pre-recession levels, but in this crisis, it took less than ten weeks," observed Freddie Mac's chief economist Sam Khater.

Overall mortgage loan applications fell nearly 9% for the week ending June 19, according to data out Wednesday from the Mortgage Bankers Association. Refinance applications experienced the largest decrease, dropping 12% percent week over week. Despite this drop, refinances are still up 76% compared to a year ago.

"Even with high unemployment and economic uncertainty, the purchase market is strong. Activity has climbed above year-ago levels for five straight weeks and was 18% higher than a year ago last week," said Joel Kan, head of economic and industry forecasting for the MBA.

Kan noted that the increased demand for homes is in conflict with the tight supply of new and existing homes available, which may put a damper on future sales. "Additional housing inventory is needed to give buyers more options and to keep home prices from rising too fast," he added.

Lawrence Yun, chief economist for the National Association of Realtors, pointed out the need for more inventory in a post on the NAR website. "New home construction needs to robustly ramp up in order to meet rising housing demand," wrote Yun.

Average Mortgage Rates Today

The average interest rate for a 30-year fixed-rate mortgage remained at an all-time low of 3.13% with 0.8 points paid for the week ending June 25, according to Freddie Mac. That's 0.02 percentage points below the previous low of 3.15% set in May.

According to Freddie Mac, the average rate for a 15-year fixed-rate mortgage was 2.59% with 0.8 points paid, up 0.01 percentage points from last week, while the average rate on a 5-year adjustable-rate mortgage decreased slightly to 3.08% with 0.5 points paid.

Average Refinance Rates Today

A year ago the average rate was 3.73%. A homeowner with a $250,000 mortgage balance paying 3.73% on a 30-year loan could cut their monthly payment from $1,155 to $1,071 by financing at today’s lower rates. (It is important to note that refinancing involves closing fees and will reset the clock on your mortgage, meaning you will have to make payments longer.)

Today’s Mortgage Rates

Of course, mortgage rates vary widely by location and personal factors like the type of property you plan to buy, the size of your down payment, and your credit score. Here are today’s advertised mortgage rates at some of the mortgage industry’s largest lenders. (The rates you see may be different.)