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s of August 16, 2025, mortgage rates have stabilized, with the national average 30-year fixed mortgage rate holding at 6.66%, a slight decrease from last week's 6.68%. This modest dip in borrowing costs is encouraging but should be viewed within the context of persistent high rates in 2025. Other mortgage products, such as 15-year fixed and adjustable-rate mortgages (ARMs), have shown mixed movement, with 15-year fixed rates rising to 5.84% and 5-year ARMs increasing to 7.37%.

    Refinancing costs have also shifted slightly, with the 30-year fixed refinance rate lowering to 6.89%, a decrease of 6 basis points from last week's 6.95%. The Federal Reserve's decisions will play a crucial role in determining future mortgage rates, with economists predicting a high probability of interest rate cuts in September.

    Forecasters expect mortgage rates to remain above 6% through the next few quarters, with declines possibly not materializing until mid-2026. Government-backed loan rates have shown small fluctuations but remain relatively competitive, especially FHA and VA loans. Market forecasts vary, but most project a slow easing of mortgage rates towards approximately 6.4% by year-end 2025.

    Key Takeaways:

    * 30-year fixed mortgage rates have stabilized at 6.66%, down marginally from last week's 6.68%.

    * 15-year fixed mortgage rates rose to 5.84%, an uptick of 6 basis points.

    * 5-year ARM mortgage rates increased to 7.37%, up 11 basis points.

    * Refinance rates show a slight decrease, with the 30-year fixed refinance rate down 6 basis points to 6.89%.

    * The Federal Reserve's decisions will be crucial in determining future mortgage rates.

    The current state of mortgage rates is influenced by the Federal Reserve's monetary policy moves, which have raised and then lowered interest rates in response to inflation and economic growth. Despite these changes, mortgage rates remain high, with forecasters expecting them to stay above 6% through the next few quarters.