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Published: Jul 02, 2020 5 min read

Mortgage rates hit a new all-time low on Thursday after two weeks of declining purchase and refinance loan applications. Positive news on the unemployment front, however, could affect rates over the next few weeks.

“Today’s Freddie Mac report shows mortgage rates declined 6 basis points, to a new record low of 3.07%, as investors reacted to the surge in COVID cases and the Federal Reserve’s concerned outlook for economic recovery, despite several positive indicators this week," said Realtor.com Senior Economist George Ratiu. "However, even with rates moving toward a potential sub-3.0 percent territory, lenders maintained tight underwriting standards which led to a decline in mortgage applications for the second consecutive week."

Sam Khater, Freddie Mac's chief economist, also noted that there has been a pullback in the purchase market over the last few weeks and that economic data had been pointing to an overall slowdown.

Nevertheless, hopes of a strong economic rebound got a boost on Thursday as the U.S. economy added 4.8 million jobs and the unemployment rate dropped to 11.1% from 13.3% in May. The monthly job gains largest in U.S. history, but the number of people out of work remains extremely elevated.

"The job market recovered at a much faster than anticipated pace in June, with strong job growth and a surprisingly large drop in the unemployment rate," said Mike Fratantoni, chief economist for the Mortgage Bankers Association, in a statement Thursday reacting to the June jobs report. "This report is nothing but positive for the housing and mortgage markets. The stronger job market will support new home purchases, as well as helping homeowners make their mortgage payments."

Average Mortgage Rates Today

For the week ending July 2, the average interest rate for a 30-year fixed-rate mortgage set a new record low of 3.07% with 0.8 points paid, according to Freddie Mac. That's 0.06 percentage points below the previous low of 3.13%.

The average rate for a 15-year fixed-rate mortgage was 2.56% with 0.8 points paid, down 0.03 percentage points from the previous week, while the average rate on a 5-year adjustable-rate mortgage decreased to 3.00% with 0.3 points paid.

Average Refinance Rates Today

A year ago the average mortgage rate was 3.75%. A homeowner with a $250,000 mortgage balance paying 3.75% on a 30-year loan could cut their monthly payment from $1,158 to $1,063 by financing at today’s lower rates. (It is important to consider closing fees and that refinancing could 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 location, 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.)


Quicken, a non-bank lender based in Detroit, is the nation’s largest mortgage lender by dollar origination volume.

Mortgage rates advertised for July 2:

30-year fixed: 3.383%

15-year-fixed: 2.961%

(Quicken doesn’t advertise a five-year adjustable rate. Rates are APRs.)

Wells Fargo

Based in San Francisco, Wells Fargo has more than 7,000 locations.

Mortgage rates advertised for July 2:

30-year fixed: 3.113%

15-year-fixed: 2.704%

5-year ARM: 2.785%

(Rates are APRs.)

JP Morgan Chase

Based in New York, JP Morgan Chase has nearly 5,000 U.S. branches.

Mortgage rates advertised for July 2:

30-year fixed: 2.963%

15-year-fixed: 2.600%

5-year ARM: 2.776%

(Rates based on New York City zip code 10006. Rates are APRs.)

Bottom Line:

If you have decent credit, you may be in a position to take advantage of mortgage rates near all time lows

View Money’s Best Mortgage Lenders of 2020

Compare Money's Best Mortgage Refinance Companies of 2020

Related: Why Right Now Is the Best Time to Refinance Your Mortgage, According to David Bach

How Low Will They Go? 6 Mortgage Experts Predict the Future of Rates

Rates are subject to change. All information provided here is accurate as of the publish date.