M
ortgage rates for July 19, 2025, have been released. As of today, the average 30-year fixed mortgage rate has decreased slightly to 6.88%, down 1 basis point from last week's rate. However, this is up from 6.84% the previous week. Refinance rates for 30-year fixed loans have seen a more significant decrease, dropping to 7.01%, down 6 basis points from last week.
Key takeaways include:
* 30-year fixed mortgage rates rose by 4 basis points to 6.88%.
* 15-year fixed mortgage rates decreased marginally to 5.90%.
* 5-year ARM mortgage rates dropped to 7.75% from 7.80%.
* 30-year fixed refinance rates fell 6 basis points, now averaging 7.01%.
The Federal Reserve's current monetary policy aims to reduce rates gradually through 2025-2027. Economic factors such as tariffs, inflation, and labor market softness are influencing rate movements.
Mortgage rates have fluctuated in recent months due to the economy's reaction to Federal Reserve policies and external economic factors. The average 30-year fixed mortgage rate currently stands at 6.88%, marking a slight increase from the prior week's 6.84%.
Other mortgage types also saw subtle changes:
* Loan Type: Rate (%): Weekly Change: APR (%): Weekly APR Change
* 30-Year Fixed: 6.88: ↑ 0.04%: 7.31: ↑ 0.01%
* 20-Year Fixed: 6.53: ↑ 0.05%: 6.99: ↑ 0.08%
* 15-Year Fixed: 5.90: ↑ 0.01%: 6.18: 0.00%
* 10-Year Fixed: 6.03: ↑ 0.25%: 6.12: ↑ 0.14%
* 7-Year ARM: 7.70: ↑ 0.12%: 8.18: ↑ 0.08%
* 5-Year ARM: 7.75: ↓ 0.13%: 8.03: ↓ 0.11%
The marginal increase in the 30-year fixed rate could affect homebuyers' monthly payments slightly, but rates remain below the highest levels seen in recent years.
Refinance rates have actually decreased recently:
* Refinance Loan Type: Rate (%): Weekly Change
* 30-Year Fixed: 7.01: ↓ 0.12%
* 15-Year Fixed: 5.88: ↓ 0.08%
* 5-Year ARM: 7.93: ↓ 0.05%
The Federal Reserve continues to significantly influence mortgage rates through its monetary policy decisions, aiming to reduce rates gradually through 2025-2027.
Economic factors such as tariffs and inflation are influencing rate movements, while the Fed's "dot plot" median forecast predicts the federal funds rate could fall to 3.9% by the end of 2025.
Mortgage rates tend to follow bond market yields, which are sensitive to Fed policy and economic outlooks. Analysts forecast mortgage rates may gradually decline towards 5% by 2028 if the Fed executes its planned cuts.
The current economic environment means mortgage rates will likely stay somewhat elevated in the near term, but the outlook is cautiously optimistic for lower borrowing costs in the coming years.
Example calculations show that a $300,000 loan amount for a 30-year fixed mortgage at today's rate of 6.88% would have a monthly payment of approximately $1,975. A 15-year fixed mortgage at 5.90% would have a monthly payment of approximately $2,475 but with total interest savings over the shorter term.
Data from recent market reports confirm that mortgage rates have largely stabilized after peaking higher earlier in the year. According to Freddie Mac and Zillow, the rates fluctuate slightly week to week but remain generally in the 6.7% – 6.9% range for the 30-year fixed product.
The Federal Reserve communications and economic data reinforce the notion that mortgage rates are tied tightly to monetary policy shifts expected this year and next. Pricing in future rate cuts shapes long-term bond yields and thus mortgage rates.
Homeowners and buyers should acknowledge the current rates as reflective of a complex intersection of Fed policy, economic data, and global events.
