The average for 30-year refinance mortgages has decreased to 7.09%, down from a peak of 7.32% in May 2025.

During the COVID-19 pandemic, the Fed's bond-buying policies kept mortgage rates low until tapering began in November 2021, followed by aggressive hikes to combat inflation.

The Fed began cutting rates in September 2024 but has maintained a steady rate since then, potentially delaying further cuts into 2025.

As of June 12, 2025, the national average for various mortgage types includes a 30-Year Fixed at 6.91%, FHA 30-Year Fixed at 7.03%, 15-Year Fixed at 5.98%, Jumbo 30-Year Fixed at 6.90%, and a 5/6 ARM at 7.15%.

Conversely, as of June 12, 2025, states with the lowest 30-year refinance rates include New York, California, and Connecticut, with averages between 6.90% and 7.04%.

Changes in mortgage rates are influenced by a combination of macroeconomic factors, including bond market trends and Federal Reserve policies.

It is advisable for borrowers to shop around and compare mortgage rates regularly, as they can differ significantly between lenders.

Currently, the average for 30-year new purchase mortgages is 6.91%, reflecting a decrease from a mid-May high of 7.15%.

The Federal Reserve's monetary policy, particularly its bond purchase tapering and interest rate adjustments, has significantly influenced mortgage rates, especially during the aggressive rate hikes of 2022 and 2023.

Mortgage rates can vary by state due to factors such as local lender practices, credit scores, average loan sizes, and state regulations.

States with the highest 30-year mortgage rates include Alaska, West Virginia, and Mississippi, where rates range from 6.99% to 7.08%.

Current mortgage rate averages assume an 80% loan-to-value ratio and a credit score range of 680-739, which may differ from advertised teaser rates.