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Mortgage rate news this week - July 3, 2025

Mortgage rates dip as economic uncertainty continues

Mortgage rates declined this week, with 30-year fixed-rate loans averaging 6.72 percent, according to Bankrate’s latest lender survey. While mortgage rates have held below the 7 percent threshold for much of the year, they’ve remained high enough to deflate the spring homebuying season.

Last month, the Federal Reserve decided to hold the federal funds rate steady given the economic uncertainty around President Donald Trump's tariff policies. Despite the Fed's decisions, mortgage rates generally move with 10-year Treasury yields, which briefly plunged below 4 percent this spring. However, this week, 10-year Treasury rates were about 4.3 percent. 

In other economic news, the U.S. bombing of Iran caused a brief blip in financial markets, but calm soon returned — as did stock market records.

Learn more: Weekly mortgage rate trend predictions

The rates you see advertised here might not exactly match the rate you're offered due to factors like your credit score, down payment and more. Still, getting the best rate can make a big difference in your monthly budget, and potentially thousands saved in interest over the life of the loan. It’s been proven: Shopping with multiple lenders can save you up to $1,200 a year. 

Factors that determine your mortgage rate

Your mortgage rate depends on a number of factors, including your individual credit profile and what’s happening in the broader economy. These variables include:

• Your credit and finances: The better your credit score and higher your income compared to your debt, the better interest rate you’ll get. 
• Loan size and type: The size of your loan, down payment and the type of loan all affect your mortgage rate.
• Location of the property: Rates vary based on where the property is located.
• Whether you’re a first-time homebuyer: Many first-time homebuyer loan programs include a lower-rate mortgage.
• Economic factors: Broadly, mortgage rates are impacted by forces like the Federal Reserve, inflation and investor appetite.
• The lender you work with: Lenders set rates based on many factors, including their own supply and demand.
• Mortgage points: Also known as discount points, these additional fees reduce your interest rate. Decide whether they're worth it with our guide to mortgage points.

How does the Federal Reserve affect mortgage rates?

Like any other financial product, the cost of a mortgage fluctuates with the happenings of the economy, including Federal Reserve decisions. The central bank doesn’t set specific mortgage rates, but its policies set the tone for what banks and other lenders charge for loans.

How to refinance your current mortgage

Before you start applying for a mortgage, here are some mortgage resources to prepare you for the process: 

Meet our Bankrate experts

Written by: Jeff Ostrowski, Writer and Housing Market Analyst

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Suzanne De Vita, Managing Editor, Home Lending

I’ve covered the housing market, mortgages and real estate for the past 13 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.

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Reviewed by: Greg McBride, CFA, Chief Financial Analyst, Bankrate

Greg McBride is a CFA charterholder with more than a quarter-century of experience in personal finance, including consumer lending prior to coming to Bankrate. Through Bankrate.com's Money Makeover series, he helped consumers plan for retirement, manage debt and develop appropriate investment allocations. He is an accomplished public speaker, has served as a Wall Street Journal Expert Panelist and served on boards in the credit counseling industry for more than a decade and the funding board of the Rose Foundation’s Consumer Financial Education Fund.

Read more from Greg McBride