T
oday, mortgage rates have shown a mixed trend with purchase rates rising slightly while refinance rates remain mostly stable. The average 30-year fixed mortgage rate increased to 6.74%, up 3 basis points from the previous day and 6 basis points from last week, indicating a slow upward movement. In contrast, the 30-year fixed refinance rate held steady at 6.99%, reflecting stability in refinancing costs.

    Key Takeaways

    The national average 30-year fixed mortgage rate rose to 6.74%, up 0.06% from last week.

    15-year fixed mortgage rates declined slightly to 5.77%.

    5-year ARM mortgage rates increased to 7.40%.

    The 30-year fixed refinance rate remained stable at 6.99%, up 0.04% over the past week.

    Mortgage rates are expected to remain above 6% for the foreseeable future, with potential easing later in 2025 or early 2026. The Federal Reserve's rate decisions and economic data are critical factors in future mortgage rate movements.

    Current Mortgage Rates Overview

    Here's a breakdown of current mortgage rates from Zillow's latest data:

    * 30-Year Fixed: 6.74% (+0.06%)

    * 20-Year Fixed: 6.44% (-0.03%)

    * 15-Year Fixed: 5.77% (+0.02%)

    * 10-Year Fixed: 5.48% (no change)

    * 7-Year ARM: 7.08% (no change)

    * 5-Year ARM: 7.40% (+0.18%)

    For government-backed loans:

    * 30-Year Fixed FHA: 6.36% (-0.01%)

    * 30-Year Fixed VA: 6.20% (+0.05%)

    * 15-Year Fixed FHA: 5.57% (+0.06%)

    * 15-Year Fixed VA: 5.80% (+0.04%)

    What Do These Numbers Mean for Homebuyers?

    The slight rise in mortgage rates may not seem significant, but it can add up over time. For example, a $300,000 loan at 6.74% would have a monthly principal and interest payment of approximately $1,943.

    Refinance Rates Today – Mostly Stable

    The 30-year fixed refinance rate held steady at 6.99%, up just 4 basis points from last week.

    Understanding the Federal Reserve's Impact on Mortgage Rates

    The Fed's monetary policy plays a significant role in mortgage rates. Inflation remains above target, and economic growth is slowing. The CME FedWatch tool shows an 89% chance of a rate cut at the September Fed meeting.

    Market experts expect mortgage rates to stay above 6% through 2025, potentially declining closer to 6% in late 2025 or early 2026 if rate cuts happen. However, inflation risks and economic uncertainties mean that rates could remain elevated for some time.

    Mortgage Rate Forecast for the Rest of 2025 and Beyond

    Several organizations have offered their forecasts:

    * National Association of REALTORS: Average 6.4% in H2 2025, dipping to 6.1% in 2026

    * Realtor.com: Rates easing slowly to about 6.4% by year-end 2025

    * Fannie Mae: End of 2025 at 6.5%, dipping to 6.1% in 2026

    These forecasts highlight gradual relief for borrowers but confirm that mortgage rates will remain historically high compared to the low-rate environment of recent years.

    Mortgage Rate Types Explained: Fixed vs Adjustable

    Understanding mortgage rate types helps buyers and refinancers make better choices:

    * Fixed-rate mortgages (30, 20, 15 years) offer predictable payments over the loan term.

    * Adjustable-rate mortgages (ARMs) start with a lower rate that can increase over time.

    What Borrowers Should Watch Moving Forward

    The mortgage market is finely tuned to economic developments, especially around inflation, employment data, and Federal Reserve policy decisions. As of August 2025:

    * The upcoming Fed meeting in mid-September is critical; markets are pricing in potential rate cuts.

    * Economic uncertainty and inflation persistence may keep mortgage rates elevated.

    * Buyers should expect mortgage rates above 6% for the foreseeable future but watch for potential drops late 2025 or early 2026.