Mortgage Rates Rise June 2025 Amid Fed Pause, Inflation Concerns

Mortgage rates in 2025 remain elevated, mostly fluctuating in the high 6% to low 7% range, due to persistent inflation and economic uncertainties. The Federal Reserve has paused interest rate cuts multiple times this year, with many experts expecting rates to stay stable unless there is a significant shift in inflation or economic conditions. Rising oil prices linked to geopolitical tensions in the Middle East add further inflationary pressure, potentially stalling any relief in mortgage rates and complicating the Fed's policy decisions. Despite some optimism for modest declines, industry professionals generally agree that mortgage rates will not see dramatic changes this summer without clear economic improvements. President Trump has advocated for more aggressive rate cuts, but the Fed remains cautious, balancing inflation control against economic growth risks. Homebuyers and refinancers face a challenging environment where timing and flexibility will be crucial, especially as adjustable-rate mortgage costs may vary with future rate moves.