M
ortgage rates on July 27, 2025, have stabilized with the national average 30-year fixed mortgage rate holding at 6.88%. Refinance rates have seen a slight increase, with the 30-year fixed refinance rate rising to 7.10%. This balance between inflation pressures and the Federal Reserve's cautious approach to interest rate cuts is influencing borrowing costs for homebuyers and those looking to refinance.
Key Takeaways:
* The 30-year fixed mortgage rate remains at 6.88% as of July 27, 2025.
* The 15-year fixed mortgage rate has increased by 1 basis point to 5.93%.
* Refinance 30-year fixed rates have risen to 7.10%.
The Federal Reserve's monetary policy continues to impact mortgage trends and future expectations. Mortgage Bankers Association and Fannie Mae forecasts suggest rates may ease mildly but remain elevated through 2025.
Today's mortgage rates are a reflection of broader economic conditions and monetary policies. The stability in the 30-year fixed mortgage rate provides a predictable borrowing environment for buyers locking in long-term loans. However, refinance costs have seen a subtle increase, with the 30-year fixed refinance rate rising to 7.10%.
Here is a detailed table with current mortgage rates by loan type (all figures as of July 27, 2025):
Loan Type
Interest Rate (%)
1-Week Change
APR (%)
1-Week APR Change
30-Year Fixed
6.88
0.00
7.36
+0.02
20-Year Fixed
6.41
-0.31
6.75
-0.28
15-Year Fixed
5.93
+0.01
6.25
+0.03
10-Year Fixed
5.94
-0.09
6.34
+0.21
7-Year ARM
7.00
-0.57
7.78
-0.18
5-Year ARM
7.77
-0.06
8.06
-0.06
Refinance rates have seen a small upward trend:
Loan Type
Interest Rate (%)
1-Week Change
30-Year Fixed Refinance
7.10
+0.03
15-Year Fixed Refinance
5.94
+0.02
5-Year ARM Refinance
8.05
0.00
The Federal Reserve's monetary policy remains the cornerstone shaping mortgage rate trends. After a period of aggressive rate hikes, the Fed began cutting rates in late 2024. The current 30-year mortgage averages around 6.88% compared with 6.7% in 2024.
Example Calculation: What a 30-Year Fixed Mortgage Rate Means for Borrowers
Suppose a borrower takes a $300,000 mortgage at the current 30-year fixed rate of 6.88%. The monthly principal & interest payment would be approximately $1,976.46.
Mortgage market trends and forecasts suggest home sales will reach about 4 million in 2025, slightly below 2024 figures. Home price growth is expected to continue rising but at a slower pace (~2.5% annually). Forecasted mortgage rates are expected to end 2025 near 6.5%, dropping moderately to about 6.1% in 2026.
Overall, the market anticipates a slow easing of rates but not a rapid decline, influenced by inflation risks and the Fed's cautious approach.
