The average interest rate on a 30-year fixed mortgage fell to 6.43%, making it the lowest level seen in about a month. Homebuyers looking at a 15-year mortgage also got some relief.
The average rate on a 15-year fixed mortgage fell to 5.62% on June 17, as per Mortgage Research Center. Jumbo mortgage rates moved lower as well. The average rate on a 30-year fixed jumbo mortgage dropped to 6.58%.
Weekly rate drop continues
The decline continued a broader trend from last week. The average 30-year fixed mortgage rate stood at 6.57% last week, compared with 6.43% on June 17, extending the decline seen over the past week, as per Forbes report. Monthly payments on a typical 30-year mortgage remain expensive despite the rate drop.
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15-year mortgage savings explained
Fifteen-year mortgage rates also improved compared with last week. The average rate fell from 5.75% last week to 5.62% today, a drop of 0.13 percentage points. Borrowers choosing a 15-year mortgage would face higher monthly payments but lower overall interest costs.
Jumbo mortgage rate update
Jumbo mortgage borrowers also saw a noticeable decline in rates. The average jumbo mortgage rate fell 0.22 percentage points from last week to reach 6.58%.
Fed rate decisions matter
A key reason for that decline was action by the Federal Reserve. The Fed cut its benchmark federal funds rate during its September, October and December 2025 meetings. Those cuts lowered the Fed’s target rate range. By the end of 2025, the Federal Reserve had lowered its key interest rate to a range of 3.50% to 3.75%.
According to Forbes, the Federal Open Market Committee (FOMC) has kept rates unchanged while it watches inflation, jobs data and other economic reports. If the Fed cuts rates again, mortgage rates may move lower. If the Fed keeps rates the same or raises them, mortgage rates could stay where they are or increase.
Will mortgage rates fall more?
Experts say predicting mortgage rates remains difficult. One of the biggest influences is the bond market. Mortgage rates generally follow the direction of U.S. Treasury bond yields. When bond yields fall, mortgage rates often fall too.
Inflation is another major factor. If inflation cools, borrowing costs may decline and mortgage rates could move lower. Forbes said a significant decline appears unlikely in the near term. However, rates could still edge lower later this year. If inflation continues to ease or the economy weakens, mortgage rates may gradually move down.
