US Mortgage Rates Stable June 2025 Amid Mixed Trends

Mortgage rates in the United States as of late June 2025 show relative stability with the average 30-year fixed mortgage rate around 6.83% to 6.90%, and the 15-year fixed rate near 5.93% to 6.04%. Refinancing rates have slightly decreased, offering potential savings for homeowners, while adjustable-rate mortgages (ARMs), particularly 5-year ARMs, present lower initial rates averaging around 7.03% to 7.59%, appealing to buyers planning short-term homeownership or investors. The 5-year ARM features a fixed rate for the first five years followed by annual adjustments, balancing initial affordability with potential future fluctuations. Market conditions, including a modest decline in 10-year Treasury yields and stock market influences, are contributing to these mortgage rate trends. In contrast, the UK is experiencing a significant reduction in interest-only mortgage stock, with a 17% decrease in 2024 and ongoing declines in higher loan-to-value loans and those maturing soon, reflecting a less risky mortgage environment there. Overall, current mortgage market dynamics offer varying options for homebuyers and refinancers depending on their financial goals and plans.