M
ortgage rates have edged up on Labor Day, September 1, 2025, with the national average for a 30-year fixed mortgage climbing to 6.62%, according to Zillow. This increase of 4 basis points from Friday's rate might seem counterintuitive given recent talk about potential rate cuts.

    While daily fluctuations are normal, it's essential to consider the broader economic context. The current rise in rates is likely a reflection of slight changes in the bond market. Future rate movements will depend significantly on the Federal Reserve's monetary policy decisions.

    Here's a breakdown of today's conforming loan rates:

    * 30-Year Fixed Rate: 6.62% (up 0.04%)

    * 20-Year Fixed Rate: 6.67% (up 0.23%)

    * 15-Year Fixed Rate: 5.64% (down 0.01%)

    * 10-Year Fixed Rate: 5.79% (no change)

    * 7-year ARM: 7.04% (no change)

    * 5-year ARM: 6.80% (down 0.08%)

    Government-backed loans also saw changes:

    * 30-Year Fixed Rate FHA: 6.88% (up 0.86%)

    * 30-Year Fixed Rate VA: 6.14% (up 0.07%)

    * 15-Year Fixed Rate FHA: 5.38% (down 0.13%)

    * 15-Year Fixed Rate VA: 5.63% (down 0.07%)

    The Federal Reserve plays a significant role in setting mortgage rates, and their decisions will impact future rate changes. Despite recent pauses, the market is anticipating a rate cut soon, possibly at the Fed's meeting on September 16-17.

    Cooling inflation, weakening job markets, and economic slowdowns are contributing to this optimism. The bond market is reacting to these expectations, with yields influencing mortgage rates.

    For buyers, don't panic – the overall trend suggests lower rates later in the year. For refinancers, keep an eye on the Fed's September meeting; a rate cut could be a good time to refinance if your current rate is above 7%.

    Key dates to watch include:

    * September 16-17: The next Fed meeting

    * December Meeting: Another potential opportunity for the Fed to cut rates again

    * Long-term: The Fed projects rates will gradually decline over the next few years, reaching around 2.25%-2.5% by 2027.

    While today's rate increase might seem discouraging, remember that relief is on the way. Stay informed, talk to a mortgage professional, and don't make any rash decisions based on one day's news.