Mortgage Rates Today, Tuesday, June 23: A Little Lower

Mortgage rates edged lower Tuesday and Wednesday, though the declines were too small to shift the calculus for most borrowers, according to rate data from Zillow.

The average interest rate on a 30-year, fixed-rate mortgage stood at 6.38% APR on Tuesday, down a single basis point from both the prior day and the prior week ^[1]. A basis point is one one-hundredth of a percentage point ^[1]. On Wednesday, the average rate dropped further to 6.19% APR, which was 19 basis points lower than Tuesday and 14 basis points lower than a week earlier ^[2].

Rates are being pulled in opposite directions by two forces. Easing tensions with Iran have pushed oil prices lower, which helps bring mortgage rates down ^[1]. At the same time, the Federal Reserve's updated economic projections point to a possible rate hike later this year, putting upward pressure on rates ^[1][2].

The Federal Reserve did not change the federal funds rate during its recent meeting, an outcome that was widely expected ^[1][2]. The meeting was the first chaired by Kevin Warsh, and markets are still processing the changes he introduced ^[1]. The Fed's official statement was notably shorter than usual and dropped the forward guidance that had been a regular feature ^[1]. Warsh also declined to participate in the dot plot, the Summary of Economic Projections chart that shows individual policymakers' rate expectations ^[1].

For homeowners weighing a refinance, NerdWallet advises that it may make sense if today's rates are at least 0.5 to 0.75 of a percentage point lower than a borrower's current rate ^[1][2]. With rates at their current levels, a refinance could be worth considering for those whose existing mortgage rate is around 6.88% or higher ^[1].