M
ortgage rates on July 26, 2025, show minor fluctuations with the 30-year fixed mortgage rate holding steady at 6.88%. The 15-year fixed mortgage rate decreased slightly to 5.91%, while the 5-year ARM increased marginally to 7.76%. Refinance rates have mostly moved down, with the 30-year fixed refinance rate dropping to 7.01%.
Key Takeaways:
* 30-year fixed mortgage rate remains steady at 6.88%.
* 15-year fixed mortgage rate decreased slightly to 5.91%.
* 5-year ARM mortgage rate increased slightly to 7.76%.
* Experts forecast mortgage rates to average around 6.4% in late 2025 and potentially drop further in 2026.
* Federal Reserve monetary policy is a key driver influencing mortgage rate trends.
The market shows signs of moderation in home price appreciation and possible growth in home sales as affordability impacts shift. Current Mortgage Rates Overview:
As of July 26, 2025, here are the primary mortgage rates across various loan programs sourced directly from Zillow data:
* Loan Type: Rate; Weekly Change; APR; Weekly APR Change
* 30-Year Fixed: 6.88%; 0.00%; 7.35%; +0.01%
* 20-Year Fixed: 6.47%; -0.25%; 6.98%; -0.05%
* 15-Year Fixed: 5.91%; -0.01%; 6.23%; 0.00%
* 10-Year Fixed: 5.94%; -0.09%; 6.34%; +0.21%
Government-backed loan programs:
* Loan Type: Rate; Weekly Change; APR; Weekly APR Change
* 30-Year FHA Fixed: 7.17%; -0.09%; 8.20%; -0.10%
* 30-Year VA Fixed: 6.40%; +0.04%; 6.62%; +0.05%
Current Refinance Rates:
Refinancing rates, which are crucial for homeowners considering adjusting their current mortgages, show the following trends on July 26, 2025:
* Loan Type: Rate; Weekly Change
* 30-Year Fixed Refinance: 7.01%; -0.09%
* 15-Year Fixed Refinance: 5.92%; +0.06%
Experts forecast mortgage rates to average around 6.4% in late 2025 and potentially drop further in 2026, driven by the Federal Reserve's monetary policy and inflation outlook. Several expert organizations and economists provide forecasts for the remainder of 2025 and looking into 2026:
* National Association of Realtors (NAR) predicts mortgage rates averaging 6.4% in late 2025.
* Freddie Mac anticipates rates staying higher for longer during 2025 but sees potential for modest rate decreases later.
* Mortgage Bankers Association (MBA) expects 30-year rates to hover near 6.8% through September 2025 and gradually decline to the mid-6% range by the end of 2026.
Example: How These Rates Affect Monthly Payments
For a $400,000 home loan with a 20% down payment ($80,000), here’s how monthly principal and interest payments differ with today's mortgage rate compared to a forecasted lower rate:
* At current 6.88% for 30-year fixed: Monthly payment ≈ $2,540
* At forecasted 6.4% rate: Monthly payment ≈ $2,408
This difference of about $132 monthly can add up over time, demonstrating why even slight rate movements are important to borrowers.
Broader Housing Market Context:
Moderate mortgage rates have contributed to predictions of increased home sales and slower but positive home price appreciation. Experts like Lawrence Yun (NAR Chief Economist) emphasize that mortgage rates remain one of the most critical factors shaping housing market demand and supply dynamics.
Final Thoughts: Navigating Today’s Mortgage Environment
As of July 26, 2025, mortgage and refinance rates reflect a period of relative stability but remain elevated compared to previous decades. Borrowers face a landscape where careful loan type and timing decisions can save significant money. The Federal Reserve's policy moves, inflation outlook, and economic growth will heavily influence whether these rates inch higher, stabilize, or fall over the remainder of 2025 and into 2026.
Considering all this, one sees a housing market cautiously gearing for growth but mindful of cost pressures, with mortgage rates acting as a linchpin.
