Mortgage rates are showing signs of easing heading into fall, giving homebuyers a sliver of relief after a rocky summer. As of September 8, 2025, the average 30-year fixed mortgage rate is 6.125%, while 15-year rates have dipped to 5.25%, according to Zillow Home Loans.
Current mortgage rates by loan type
Here’s where rates stand as of the latest update:
- 30-Year Fixed:
- Rate: 6.125%
- APR: 6.264%
- Points: 1.464
- 15-Year Fixed:
- Rate: 5.250%
- APR: 5.508%
- Points: 1.670
- 20-Year Fixed:
- Rate: 5.875%
- APR: 6.077%
- Points: 1.612
- 30-Year FHA:
- Rate: 5.625%
- APR: 6.328%
- Points: 1.963
- 30-Year VA:
- Rate: 6.000%
- APR: 6.272%
- Points: 1.612
- 7-Year ARM:
- Rate: 5.875% (estimate)
These rates are for borrowers with strong credit and can vary based on credit profile, loan amount, and location.
What’s driving the change in rates?
Several economic forces are in motion:
- Anticipated Fed rate cut: The Federal Reserve is expected to lower rates on September 17, and markets have already priced in that decision.
- Cooling summer market: After a sluggish summer marked by slow sales and high inventory, buyers may now gain more leverage.
- Lower demand: A record number of purchase agreements were canceled this year due to affordability concerns. That pressure is translating into slightly lower rates.
Chen Zhao, head of economics research at Redfin, said the impact of the expected Fed cut may already be “baked in,” so don’t expect a major rate drop unless additional cuts are signaled.
Tips to get a lower mortgage rate
Not all rates are created equal. To get the best possible mortgage rate, focus on:
- Improving your credit score: A score above 740 unlocks the lowest rates
- Making a larger down payment: 20% or more can reduce your rate and eliminate PMI
- Keeping your debt-to-income (DTI) ratio low: Lenders favor borrowers with DTI under 36%
- Shopping multiple lenders: Don’t settle for the first quote — compare at least 3 offers
- Using mortgage points strategically: Buying down your rate may make sense if you plan to stay long term
Should you lock your rate now?
If you’re actively house-hunting or nearing closing, yes — locking your rate can protect you from unexpected increases. With another Fed decision on the horizon and rates already reacting in advance, waiting may not yield big savings.
However, if you’re still in the planning phase and see room to boost your credit or lower your DTI, it might be worth holding off a few weeks.
Market outlook heading into fall
The housing market is heading into its usual fall cooldown, but this year’s dynamics are different:
- Low inventory persists, despite a slight increase in new listings
- Sellers are holding off rather than lowering prices
- The “best time” to buy — typically early to mid-October — may be dominated by stale listings
- Buyers are gaining leverage as homes sit on the market longer
If you’re planning to buy, now’s the time to get pre-approved and monitor local listing trends closely.