As of June 12, 2025, the average rate for a 30-year fixed-rate mortgage (FRM) has slightly decreased to 6.84%, down from 6.85% the previous week.

In addition to the 30-year FRM, the 15-year and 20-year refinance rates have also seen declines, dropping by 3 and 7 basis points respectively, while jumbo 30-year refinance rates increased by an average of 10 basis points.

The 15-year fixed rates are now averaging 5.98%, a notable drop from mid-April's peak of 6.31%.

Despite ongoing high mortgage rates, applications have surged by 20% compared to a year earlier, indicating a renewed interest in the housing market.

The U.S. housing market continues to face challenges due to high mortgage rates, which have contributed to a slump that began in 2022 when rates rose from their pandemic lows.

Sam Khater, Chief Economist at Freddie Mac, highlighted that mortgage rates have remained stable within a narrow range for several months.

Economists anticipate that mortgage rates will stabilize between 6% and 7% for the remainder of 2025.

The Federal Reserve has recently held rates steady, with expectations of limited future rate cuts throughout the year.

This recent drop in mortgage rates marks a notable improvement from the peak of 7.32% seen in May 2025, which was the highest in 10 months.

Last year, the sales of previously occupied homes fell to their lowest level in nearly 30 years, with April 2025 sales being the slowest for that month since 2009.

Pending home sales have also declined, dropping 6.3% in April from March and 2.5% from the same month last year, suggesting a continued slowdown in sales.

Mortgage rates are influenced by various factors, including Federal Reserve policies, bond market trends, and competition among lenders.