Mortgage rates see slight rise in US: 30-year fixed now at 6.59%

Stable mortgage rates offer some relief to borrowers amid a volatile housing market.

Mortgage rates hiked a little on July 5, but weren't too high. Today, the average 30-year fixed mortgage rate increased by one basis point to 6.59%, as per Yahoo Finance.

Mortgage rates saw a slight increase today, with the 30-year fixed rate at 6.59% and the 15-year fixed at 5.81%. (Representative Image: Pexels)

Steady rates were a good sign for people wanting to lock in a mortgage. Sure, borrowers preferred lower rates, but having stable ones was better than dealing with big changes. The housing market already saw a lot of ups and downs in 2025.

Today’s average mortgage rates

The following were the average mortgage rates recorded today, according to Zillow.

• 30-year fixed: 6.59%

• 20-year fixed: 6.24%

• 15-year fixed: 5.81%

• 5/1 ARM: 7.36%

• 7/1 ARM: 7.38%

• 30-year VA: 6.14%

• 15-year VA: 5.60%

• 5/1 VA: 6.29%

Relation between mortgage rates and US Treasury bonds

Most of the time, mortgage rates function closely with the yields on US Treasury bonds. When bond yields fall, mortgage rates tend to fall as well. There can also be instances where the Fed plays a role in this. If inflation picks up or the economy shows signs of slowing down, the Fed often lowers rates, too. For example, we saw this during the COVID-19 pandemic when rates hit historic lows.

Now, experts are not anticipating this to happen again anytime soon, but we could see some drops in mortgage rates if inflation slows further or the economy slows substantially more.

Even if mortgage rates drop again this summer, many home buyers are not going to experience much relief right away.

Is there a correlation between mortgage rates and Fed rates?

Mortgage rates almost always lag significantly and have no direct correlation to the Fed rate. Also, home values/prices are still fairly elevated, meaning the overall cost to buy remains high, although new listings are increasing on average each day.

Some people want to wait to buy real estate due to uncertainty in their job situations or concerns about the economy. Others are trying to alleviate their borrowing costs by improving their credit ratings, saving for a larger down payment, or buying "mortgage points."

Some people are holding off on buying because they are unsure about their jobs or worried about the economy. Others are looking to cut borrowing costs by boosting their credit, saving up for a bigger down payment, or buying mortgage points.