Mortgage Blog

Homebuyers: Is Now the Time to Lock in a 6.8% Mortgage Rate?

June 8, 2025 | Posted by: Joe Cortez

If you're thinking about buying a home in 2025, you've probably noticed something interesting-mortgage rates have dipped slightly, with 30-year fixed rates now hovering around 6.8%. After years of market ups and downs, this small change has many buyers asking:
"Is now the right time to lock in a rate?"

Let's break down what's happening-and what it might mean for your next move.

Why Are Mortgage Rates Slipping?

Mortgage rates in the U.S. often follow the trend of 10-year Treasury yields, and those yields have dipped recently due to:

• Market reactions to global trade tensions and tariffs
• Expectations that the Federal Reserve may cut rates later in 2025
• Softer economic data suggesting a slowdown in inflation

As a result, lenders have nudged mortgage rates down slightly, giving buyers a bit of breathing room.

Should You Lock In Now?

There's no one-size-fits-all answer, but here are a few key things to consider:

You Might Want to Lock In Now If:

• You're actively shopping for a home and ready to buy soon
• You've already made an offer or plan to within the next 30–60 days
• You want to avoid the risk of rates rising again before you close

Even a small increase in rates can mean hundreds of dollars more per month, depending on your loan amount.

You Might Want to Wait If:

• You're still months away from buying
• You're waiting for home prices to cool in your local market
• You expect the Fed to cut rates further later this year

???? Tip: Many lenders offer a "float-down" option, lock in your rate now, but if rates drop before closing, you can still benefit. Be sure to ask about this feature.

What About Home Prices?

While mortgage rates are easing a bit, home prices are still rising in many parts of the U.S.-though not as rapidly as in past years. A recent forecast suggests prices could rise by 3.5% this year, and that new home construction is being slowed down by supply chain issues and rising material costs due to tariffs.

Fewer homes being built means inventory remains tight, which supports higher prices. So if you're thinking about waiting for prices to drop significantly, that might not happen soon.

What Should Buyers Do Right Now?

Here's a simple action plan if you're thinking about buying:

• Get pre-approved so you know how much you can afford and can lock in a rate when the time is right.
• Watch the market, but don't try to time it perfectly, it's almost impossible.
• Talk to a mortgage expert who can help you compare loan types and term lengths based on your situation.

Final Thoughts

While a 6.8% mortgage rate might not sound like a "deal" compared to rates a few years ago, it's a noticeable improvement over the 7%+ rates we've seen recently. If you're serious about buying a home in the near future, this dip could be a great chance to secure a more affordable loan.

Need help understanding your options? Whether you're buying your first home or upgrading to your next one, a licensed mortgage professional can walk you through the numbers, and help you decide if now is the right time to make your move.

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