Mortgage Rates Today: August 21, 2025 – 30-Year and 15-Year Rates Rise

The current average mortgage rate on a 30-year fixed mortgage is 6.57%, according to the Mortgage Research Center. The average rate on a 15-year mortgage is 5.53%, while the average rate on a 30-year jumbo mortgage is 6.70%.

30-Year Mortgage Rates Climb 1.74%

Borrowers will pay more in interest this week as the average rate on a 30-year mortgage is 6.57% compared to a rate of 6.46% a week ago.

The APR, which includes the interest and all of the lender fees, on a 30-year, fixed-rate mortgage is 6.6%. The APR was 6.49% last week.

To borrow a $100,000 in a 30-year, fixed-rate mortgage with the current rate of 6.57%, you will pay about $636 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay around $129,870 in total interest over the life of the loan.

15-Year Mortgage Rates Climb 1.88%

Today, the 15-year mortgage rate increased to 5.53%, higher than it was yesterday. Last week, it was 5.43%.

On a 15-year fixed, the APR is 5.58%. Last week it was 5.48%.

With an interest rate of 5.53%, you would pay $819 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $47,859 in total interest.

Jumbo Mortgage Rates Climb 0.37%

On a 30-year jumbo mortgage (a mortgage above 2025’s conforming loan limit of $806,500 in most areas), the average interest rate jumped up to 6.7%, higher than it was at this time last week. The average rate was 6.67% at this time last week.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 6.7% will pay $645 per month in principal and interest per $100,000. That means you’d pay roughly $132,682 in total interest over the life of the loan.

Trends in Mortgage Rates for 2025

After reaching highs in 2024, the average 30-year fixed mortgage rate has remained in the mid-to-high 6% range since late January 2025. The 15-year fixed mortgage rate has hovered between the low-6% and high-5% range.

While interest rates have fallen somewhat since mid-January 2025, experts don’t expect them to drop significantly anytime soon.

When Will Mortgage Rates Go Down?

Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop.

Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit.

The Federal Reserve’s decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows.

A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens.

How Much House Can I Afford?

Buying a house is a huge purchase and can put a big dent in your savings. Before you start looking, it’s important to calculate how much house you can afford and you’re willing to spend.

Not only do you want to consider your income and debt, but you also want to factor in emergency savings and any long-term financial goals such as retirement or college.

These are some basic financial factors that go into home affordability:

• Income
• Debt
• Debt-to-income ratio (DTI)
• Down payment
• Credit score

How Are Mortgage Rates Determined?

Multiple factors affect the interest rate for a mortgage, including the economy’s overall health, benchmark interest rates and borrower-specific factors.

The Federal Reserve’s rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn’t directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation.

Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment.

Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term.

What Type of Mortgage Is Best for You?

Many home buyers are eligible for several mortgage loan types. Each program can have its own advantages:

• Conventional mortgage. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums.
• FHA loan. An FHA home loan is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579.
• VA loan. Borrowers with a qualifying military background may prefer a VA loan for its flexibility. A down payment may not be required. While you pay a one-time funding fee, there are no ongoing mortgage insurance premiums or service fees.
• USDA loan. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower.
• Jumbo loan. Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency’s conforming loan limits. The limit in most municipalities is $806,500 in 2025.

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