A drop in rates coupled with continued inventory increases and slowing price growth has been welcome news to homebuyers this week, but continuing volatility around trade and economic policies are keeping rates elevated.
According to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday, the 30-year fixed-rate mortgage (FRM) averaged 6.85%, a decrease of 4 basis points from last week’s average of 6.89%.
“The average mortgage rate decreased this week, which is welcome news to potential homebuyers who also are seeing inventory improve and house price growth slow,” said Sam Khater, Freddie Mac’s chief economist.
Realtor.com Economist, Jiayi Xu commented, “When the Federal Reserve began its first rate cut in September 2024, people expected a corresponding drop in mortgage rates. However, the ongoing uncertainty around government trade, economic and fiscal policy have kept rates elevated.”
She said a rate cut at the June FOMC meeting is not expected, but Fed Chair Powell gave no indication either way during his most-recent public comments at the Federal Reserve Board’s International Finance Division 75th Anniversary Conference in Washington, D.C. on June 2.
“Inflation is gradually moving toward the Fed’s 2% target, and the labor market remains healthy,” Xu said. “But the real focus may fall on the release of updated economic projections and Chair Powell’s post-meeting remarks, which could shed light on how the Fed is weighing growing uncertainties—especially with the tariff pause nearing its end. These insights may offer a clearer sense of the Fed’s policy trajectory beyond the June decision.”
This week’s numbers:
- The 30-year FRM averaged 6.85% as of June 5, 2025, down from last week when it averaged 6.89%. A year ago at this time, the 30-year FRM averaged 6.99%.
- The 15-year FRM averaged 5.99%, down from last week when it averaged 6.03%. A year ago at this time, the 15-year FRM averaged 6.29%.
To read the full report, click here.
