Mortgage rates were little changed on Monday, June 29, as borrowing costs remained near their lowest levels of the year. According to the Mortgage Research Center, the average interest rate on a 30-year fixed mortgage fell to 6.44%, down from 6.48% a week ago.
The decline offers modest relief for prospective homebuyers, although financing costs remain well above the record lows seen during the pandemic. Rates have largely stabilized this year as the Federal Reserve continues to pause changes to its benchmark interest rate while monitoring inflation and broader economic conditions.
30-year Mortgage Rate Edges Lower
The 30-year fixed mortgage, the most widely used home loan in the United States, now carries an average interest rate of 6.44%.
At that rate, a borrower financing a $100,000 mortgage would pay approximately $628 per month in principal and interest, excluding taxes, insurance, and other fees. Over the life of the loan, total interest payments would amount to roughly $126,977.
Although the weekly decline was modest at 0.04 percentage points, it continues the relatively stable trend that has characterized much of 2026.
15-Year Mortgage Offers Lower Borrowing Costs
Borrowers looking to pay off their homes faster continue to benefit from lower rates on shorter-term loans.
The average 15-year fixed mortgage declined to 5.65%, also down 0.04 percentage points from the previous week.
At today's average rate, monthly principal and interest payments on a $100,000 loan would total about $825. Total interest paid over the full 15-year term would be approximately $49,079, significantly lower than the lifetime interest cost of a comparable 30-year mortgage.
While monthly payments are higher, many homeowners choose 15-year loans to reduce long-term borrowing costs and build home equity more quickly.
Jumbo Mortgage Rates Also Move Lower
Mortgage rates for larger home loans also improved.
The average 30-year fixed jumbo mortgage, which applies to loans exceeding the 2026 conforming loan limit of $832,750 in most areas, declined to 6.59%.
At that rate, borrowers would pay approximately $638 per month in principal and interest for every $100,000 borrowed, with lifetime interest totaling about $130,036 over a 30-year term.
The slight decline may benefit buyers shopping in higher-priced housing markets where jumbo financing is more common.
What Could Happen Next?
Mortgage rates have remained relatively steady throughout 2026 after trending lower during the final months of 2025. Last year, the Federal Reserve reduced the federal funds rate at its September, October, and December meetings before pausing further changes this year.
The central bank has maintained its benchmark rate in a range of 3.50% to 3.75% while policymakers assess incoming inflation and employment data.
Looking ahead, mortgage rates will likely continue to track movements in US Treasury yields, inflation trends, and future Federal Reserve decisions. If inflation continues to ease or economic growth slows, borrowing costs could gradually decline later this year.
Economists now expect mortgage rates to remain in the low-to-mid 6% range, providing stability for buyers even if a significant drop appears unlikely in the near term.
