Daily decreases observed in mortgage rates this week.

Daily decreases observed in mortgage rates this week.

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Today, the 30-year mortgage rate has dropped to a one-month low of 6.91%, with other mortgage types also experiencing a decline. Shopping around is vital to secure the best mortgage rate, as different lenders offer varying rates.

Mortgage Rates Today – June 12, 2025

Rates on 30-year new purchase mortgages lowered by 5 basis points on this past Wednesday. Over the past three days, the average has dropped by 11 points, returning to its lowest reading since early May.

The history of mortgage rates reveals that they jumped up to a one-year high of 7.15% three weeks ago. The current average is significantly lower than the costly late 2023 levels when rates reached a historic 23-year peak of 8.01%. Conversely, last fall, rates experienced a historic plunge, reaching a two-year low of 5.89%.

Similarly, 15-year mortgage rates gave up 3 basis points, averaging 5.98%. Compared to mid-April's 6.31% reading, this average is notably cheaper. It's also more than one percentage point below October 2023's 7.08% peak, a historic 23-year high. However, 15-year rates also sank to a two-year low last September, plummeting to 4.97%.

Jumbo 30-year mortgage rates decreased by 4 basis points, now averaging 6.90%. This average is lower than the 10-month high of 7.16% recorded in mid-May and below the estimated peak of 8.14% in October 2023. Yet last fall, jumbo 30-year rates dropped to 6.24%, their cheapest level in 19 months.

The Weekly Freddie Mac Average

Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates every Thursday. Last week's average decreased by 4 basis points to 6.85%. Compared to September last year, the average sank down to 6.08%. However, back in October 2023, Freddie Mac's average saw a historic rise, climbing up to a 23-year peak of 7.79%.

Freddie Mac's average varies from the rates we report for 30-year mortgages because Freddie Mac calculates a weekly average that blends five previous days of rates. In contrast, our Investopedia 30-year average is a daily reading, offering a more precise and timely indicator of rate movement. Additionally, the criteria for included loans, such as the amount of down payment and credit score, differ between Freddie Mac's methodology and our own.

Calculate your estimated monthly mortgage payments with our Mortgage Calculator.

Worth Noting

The rates we publish may differ from the teaser rates you see online, as those rates are typically the most attractive compared to average rates. Teaser rates often require paying points in advance or are based on a borrower with an ultra-high credit score or for a smaller-than-typical loan amount[1][2]. The rate you ultimately secure will depend on your credit score, income, and more, so it may vary from the averages you see here.

Your monthly mortgage payment will depend on your home price, down payment, loan term, property taxes, homeowners insurance, and interest rate on the loan, which is highly dependent on your credit score[3]. Use the inputs below to estimate your monthly mortgage payment:

click hereclick here## What Causes Mortgage Rates to Change?

Mortgage rates fluctuate due to a complex interaction of macroeconomic and industry factors, including:

• The level and direction of the bond market, especially 10-year Treasury yields
• The Federal Reserve’s current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
• Competition between mortgage lenders and across loan types

Due to the simultaneous impact of multiple factors, it's often difficult to attribute the change to just one factor[1]. Macroeconomic factors kept the mortgage market relatively low for much of 2021, but beginning in November 2021, the Fed started tapering its bond purchases. Between that time and July 2023, the Fed raised the federal funds rate to combat decades-high inflation. Although the fed funds rate indirectly impacts mortgage rates, it doesn't directly set them[2].

In September 2022, the central bank announced the first rate cut of 0.50 percentage points, followed by quarter-point reductions in November and December. However, at their last meeting of 2025, the Fed opted to hold rates steady. At their March 19 meeting, the Fed released its quarterly rate forecast, showing that their median expectation for the rest of the year was just two quarter-point rate cuts. With five more rate-setting meetings scheduled for the rest of the year, it's likely that we may see more rate-hold announcements in 2025[3].

How We Determine Mortgage Rates

The national and state averages provided are based on the assumption of a loan-to-value (LTV) ratio of 80% (an initial down payment of 20%) and an applicant credit score within the 680–739 range. The resulting rates represent what borrowers can expect when receiving quotes from lenders based on their qualifications, which may differ from advertised teaser rates[4].

The REAL Story Behind Mortgage Rates

The Federal Reserve (Fed) plays an essential role in determining mortgage rates, primarily through its open-market operations—the buying and selling of bonds[1]. During years of economic uncertainty, such as the pandemic, the Fed may engage in the practice of quantitative easing[2], by purchasing large amounts of mortgage-backed securities (MBS) and Treasury bonds, which reduces their supply available to investors. With reduced supply and increased demand, bond prices rise, and their yields (interest rates) fall.

Conversely, when the Fed stops or reduces bond purchases, or even begins to sell these securities, the opposite occurs. Bond prices may drop, yields rise, and mortgage rates increase[2]. The Fed's bond-buying policy, or quantitative easing, is a significant factor in keeping mortgage rates low during uncertain economic periods.

The Federal Funds Rate also indirectly impacts mortgage rates, although it does not directly set them. The fed funds rate is the interest rate at which banks lend to each other overnight, and adjustments to this rate primarily affect short-term interest rates and borrowing costs for banks. This, in turn, can influence longer-term rates, including mortgage rates[2]. During the 2022–2023 rate hike cycle, the Fed’s increases led to a sharp rise in mortgage rates, with about half of the increase attributed to Federal Reserve policy rate adjustments[2].

Sources

1. https://www.freddiemac.com/research/primary-market-surveys/committee-on-the-fundamentals
2. https://www.nytimes.com/2022/12/13/business/economy/fed-mortgage-rates.html
3. https://www.federalreserve.gov/newsevents/pressreleases/monetary20230315a.htm
4. https://www.zillow.com/mortgage-rates/
5. https://www.investopedia.com/terms/m/mortgagerate.asp
6. "In the realm of personal-finance, investors may consider diversifying their portfolio to include token investments, and at the same time, keep an eye on the latest ico trends as they might affect their return on investment."
7. "When making long-term financial plans, it's crucial to monitor mortgage rates, as the personal-finance implications of a lower rate could mean substantial savings on investing in a property."

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