Small Drop, Big Impact: June 2025 Mortgage Rates Shift in St. Louis

Written by David Dodge  

St. Louis neighbors! If you’ve got your eye on a new home or thinking about selling, you’ll want to hear this. Mortgage rates in our city have taken a slight dip this June, and even a small break can feel like a win when you’re navigating the housing market. According to the latest scoop from Dennis Norman, the 30-year fixed-rate mortgage is now at 6.89%, down just 0.04%. The 15-year fixed-rate mortgage is sitting at 6.20%, a tiny drop of 0.01%. These changes might seem small, but they could open some doors for buyers and sellers in the St. Louis area. Let’s break it down and see what this means for you.

What’s Up with These Mortgage Rate Changes?

Mortgage rates might not be the most exciting thing to chat about over coffee, but they’re a big deal when you’re buying or selling a home. A little drop like 0.04% on the 30-year fixed can add up. Say you’re eyeing a $350,000 home in Clayton—that small change could save you a couple hundred bucks a year on your mortgage. Not enough to buy a new car, but maybe enough for a few extra dinners at The Hill! The 15-year fixed at 6.20% is also a great option if you’re looking to pay off your home quicker and save on interest over time.

Dennis Norman notes that these rates, still hanging out above 6.5%, are a bit of a relief for folks feeling the pinch of high borrowing costs. If you’re a buyer, this could mean you can stretch your budget a little further for that charming home in Shaw. Sellers, on the other hand, might see more folks ready to make offers now that rates are a tad friendlier.

Current Mortgage Rates

Rates are national averages as of June 12, 2025. Actual rates vary by loan, credit, property, and market. Contact a licensed pro for a custom quote.  

How This Impacts the St. Louis Housing Scene

The St. Louis real estate market has been steady but cautious in 2025, with home prices inching up even as sales slow a bit. This small rate dip could give things a nudge. Here’s the lowdown:

• For Buyers: A lower rate means your monthly payments are a bit easier to handle, which is awesome if you’re a first-time buyer or working with a smaller budget. The 6.89% 30-year rate isn’t as low as we saw a few years ago, but it’s a start toward making homes in Maplewood or University City more affordable.
• For Sellers: If you’re putting your house on the market in places like Lafayette Square or St. Louis County, this could bring out more buyers who’ve been waiting for a break. More interest means faster sales or even a bidding war if you’re lucky!
• For Investors: Thinking about a rental property in Dutchtown? Lower rates could improve your cash flow, making that investment look even better.

A Peek at the Past: Mortgage Rate Trends

To really get what’s going on, it helps to look at how rates have been moving. The team at St. Louis Real Estate News has some cool charts that track this stuff. In April 2025, the 30-year fixed was at 6.95%, and in May, it hit 6.81% before landing at 6.89% now. It’s been a bit up and down, but things seem to be settling. Dennis Norman says keeping an eye on these trends can help you figure out the best time to buy or sell, whether you’re locking in a rate or putting your home on the market.

Want to dive deeper? Check out the charts over at St. Louis Real Estate News. They’re super helpful for seeing the big picture and planning your next move.

Tips to Play the Market Smart

Whether you’re ready to buy, sell, or just curious, here’s some friendly advice to make the most of these rates:

1. Compare Lenders: Rates can vary, so don’t just go with the first offer. Shop around like you’re hunting for the best deal at Soulard Market—it could save you big over time.
2. Look at the 15-Year Option: If you can handle higher monthly payments, the 6.20% 15-year rate is a great way to save on interest and own your home sooner.
3. Lock Your Rate: Rates can change fast, so if you find one you like, talk to your lender about locking it in to avoid any surprises.
4. Get a Local Expert: A St. Louis realtor or mortgage broker knows the market like the back of their hand. Groups like MORE, REALTORS® can give you the inside track on neighborhoods and financing.
5. Stay in the Know: Keep tabs on economic news like inflation or what the Federal Reserve is doing. It can give you a heads-up on where rates might go next.

What’s Next for St. Louis Rates?

Predicting mortgage rates is like trying to guess if it’ll rain this afternoon in St. Louis—tough! Some folks think rates will stay in the 6.5% to 7% range for 2025, but if inflation cools off, we might see more dips. For now, Dennis Norman says the 6.89% 30-year and 6.20% 15-year rates are a solid chance to jump in, whether you’re buying a starter home in O’Fallon or selling a place in Kirkwood.

Let’s Sum It Up: Time to Make a Move?

This small drop in St. Louis mortgage rates—6.89% for 30 years and 6.20% for 15 years—is a nice little boost for anyone in the housing market. It’s not a game-changer, but it could make buying more affordable or bring more buyers to your doorstep if you’re selling. Stay sharp by checking out St. Louis Real Estate News for their awesome charts and teaming up with local pros to guide you.

Whether you’re dreaming of a loft in Downtown St. Louis or ready to sell your home in Webster Groves, now’s a great time to start planning. Keep an eye on those rates, shop smart, and get ready to make your move!

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