Mortgage rates remain elevated to start the week. These high borrowing costs continue to slow the U.S. housing market. Now, the Federal Reserve is showing official concern. This signals a potential shift in policy that could lower rates in the future.
Today’s Mortgage Rates: August 25, 2025
Current mortgage rates are holding at high levels. This keeps affordability a major challenge for many homebuyers. Here is a snapshot of average national rates today:
- 30-Year Fixed-Rate: 6.375%
- 15-Year Fixed-Rate: 5.500%
- 20-Year Fixed-Rate: 6.125%
- 30-Year VA Loan: 6.125%
The Federal Reserve Signals a Change
For the first time, the Federal Reserve has voiced specific worries about housing. Minutes from its last meeting reveal a change in tone. Policymakers noted a slowdown in residential investment. They also pointed to weakening demand and falling home prices. The Fed now views the housing slump as a potential risk to the U.S. economy.
Evidence of a Cooling Market
Recent data supports the Fed’s concerns. Sales of existing homes have been mostly flat this year. The number of homes for sale has climbed, but demand is weak. Construction of new homes also remains slow. Building permits fell in July to their lowest level since 2019. This suggests fewer new homes will be built in the coming months.
What This Means for Future Rates
The Fed’s new focus on housing is significant. It could directly influence future interest rate decisions. Fed Chairman Jerome Powell recently opened the door to a rate cut in September. A cut from the Fed would likely push mortgage rates down. Homebuyers should watch the Fed’s next meeting closely. It may bring welcome news for the housing market.