Mortgage refinance rates edged down again today, giving some relief to homeowners looking to lock in better terms. According to data, 30-year refinance rates fell to 6.6%, continuing a downward trend for August.
Here’s a breakdown of today’s average rates by loan type:
Loan Type | Avg. Rate | Avg. APR | Weekly Change |
---|---|---|---|
30-Year Fixed | 6.6% | 6.63% | ▼ 2.58% |
20-Year Fixed | 6.35% | 6.39% | ▼ 3.89% |
15-Year Fixed | 5.52% | 5.57% | ▼ 2.83% |
30-Year Jumbo | 6.91% | N/A | ▼ 0.92% |
15-Year Jumbo | 5.86% | N/A | ▼ 4.16% |
Source: Forbes Advisor, Fortune, Zillow, as of August 6, 2025
What’s behind today’s drop in mortgage rates?
While mortgage interest rates have hovered near 7% for much of 2025, recent trends show a slight downward movement. According to Fortune, the national average dipped as inflation pressure eased and expectations of future Fed rate cuts grew.
Redfin reported that 82.8% of homeowners with a mortgage are locked into rates under 6%, limiting refinancing activity—but today’s lower rates may entice more borrowers to act.
What does this mean for borrowers?
At a 6.6% rate, a 30-year refi on a $100,000 loan results in $639/month in principal and interest, with $130,560 in total interest over the life of the loan (excluding taxes and fees).
For a 15-year refi at 5.52%, you’d pay $818/month and $47,735 in interest.
Homeowners with higher current rates—or those needing access to home equity—may find today’s rates appealing for:
- Rate-and-term refinancing
- Cash-out refinance
- Switching from FHA to conventional
- Changing loan length (e.g., 30-year to 15-year)
Is now the right time to refinance?
Experts suggest refinancing makes sense when:
- Your new rate is at least 1% lower than your current rate
- You plan to stay in your home long enough to recoup closing costs
- You want to access equity or eliminate PMI
A key factor to consider is the break-even point, or how long it takes to save more than you spend on refinancing. Use an online mortgage refinance calculator to help decide.
Tips to get the best mortgage refinance rate
Lenders weigh multiple factors when offering rates. To qualify for the lowest options:
- Keep a high credit score (typically 740+)
- Reduce your debt-to-income ratio
- Consider a shorter loan term
- Shop and compare multiple lenders
- Monitor daily rate updates
You don’t have to stay with your current lender. Shopping around could save you thousands over the life of your loan.