Pros to Know

With strikes on both sides seeming to shatter the U.S.-Iran ceasefire, mortgage rates have been moving higher. Rates had started the week looking a little softer, but that took a turn as tensions flared overseas. The deterioration of the U.S.-Iran ceasefire promptly sent oil prices and 10-year Treasury yields higher, and mortgage rates were right there with them.

Mortgage rates fell a little this week, as mixed economic data makes the Federal Reserve’s decision-making a little trickier. The average 30-year mortgage rate fell five basis points to 6.28% APR. A basis point is one one-hundredth of a percentage point, and we calculate our weekly average using daily APRs provided by Zillow over the past five business days.

July's mortgage rates are likely to end up roughly where they ended in June. While we could get a temporary dip, rates would be unlikely to stay low. This would be a big enough window for a well-prepared refinancer, but it wouldn't be large or long enough to make a difference to a potential home buyer. That's because most of the signals currently indicate that we shouldn't expect a low rate environment.

Mortgage rates barely nudged upward this week, but today's inflation report suggests borrowers shouldn't expect rates to fall much anytime soon. With inflation accelerating at its highest level since April 2023, this data reinforces expectations that borrowing costs will remain elevated. The average rate on a 30-year fixed-rate mortgage rose two basis points to 6.33% APR in the week ending June 25, according to rates provided to NerdWallet by Zillow.

Mortgage rates moved lower this week, but it wasn't about today's decision from the Federal Reserve to keep the federal funds rate steady. The drop was driven by markets' reaction to the U.S. and Iran's deal to reopen the Strait of Hormuz and potential further agreement to end the war. But that doesn't mean this week's Federal Reserve meeting won't impact mortgage rates. In this case, it's less about the specific decision and more about the direction the Fed may be headed under new leadership.

Mortgage rates are up, as new data shows annual inflation has reached its highest level since 2023. The average rate on a 30-year fixed-rate mortgage rose six basis points to 6.43% APR in the week ending June 11, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of a percentage point.) We calculate our weekly average using daily APRs recorded over the past five business days.

As soon as I saw it, I knew it was a gardener’s house. Full sun. Full composter. Native perennials. While the raised beds had seen better days, the soil within them was soft and lovingly tended. It was exactly the kind of place my husband and I had been waiting to find. Judging by the buyers lining up early for the next showing, we weren’t the only ones. How could we make our offer stand out? I write about homebuying for a living, so I knew exactly what conventional wisdom called for.

Mortgage rates eased up a bit this week, as markets are no longer panicking at each new development — or social media post — related to the Iran war. The conflict is still exerting a huge influence on rates, though lately the daily ups and downs have mostly canceled each other out. The average rate on a 30-year fixed-rate mortgage fell eight basis points to 6.37% APR in the week ending June 5, according to rates provided to NerdWallet by Zillow.

If you have high-interest debt, you could consider paying it off with your home’s equity. One way to do this is with a home equity line of credit, or HELOC. Since HELOCs are secured by your home, you can usually get lower interest rates than with credit cards or personal loans. This can make debt consolidation appealing for borrowers struggling to make progress on high-interest debt. However, HELOCs come with a tradeoff: lower interest rates in exchange for higher risk.

Mortgage rates are likely to move up in June, though the increase might not be as severe as what customers are seeing at the gas station. Mortgage rates have risen since the U.S. war with Iran began, as gas prices (and subsequently, inflation) jumped. Despite persistent promises from President Trump of a quick end to the conflict, no peace agreement has been reached yet. So long as the war continues with no clear end in sight, mortgage rates will probably remain elevated.