Mortgage rates today remain elevated, but signs of a shifting real estate market could offer relief for some buyers. As of August 13, 2025, the average 30-year fixed mortgage rate sits at 6.5%, while 15-year loans dropped to 5.625%. Analysts say falling home prices and growing inventory are tilting the market back in favor of buyers.
Today’s mortgage rate averages
Zillow Home Loans reports the following average rates for key loan types:
- 30-Year Fixed: 6.500% (APR 6.658%)
- 15-Year Fixed: 5.625% (APR 5.916%)
- 20-Year Fixed: 6.125% (APR 6.369%)
- 30-Year FHA: 6.000% (APR 6.682%)
- 30-Year VA: 6.125% (APR 6.426%)
- 7-Year ARM (adjustable): 6.875%
These rates reflect buyers with strong credit profiles. Mortgage points and fees apply. For example, the 30-year fixed option includes 1.619 points, which equals $4,452.25 on a standard loan.
The housing market is cooling—fast
New data from Cotality shows that 56% of homes sold in May closed below asking price, with the median sale falling $45,000 under list. National home sales dropped 15% year-over-year, while inventory levels climbed for the third straight month.
Key trends:
- Listings now spend an average of 58 days on market, up a week from last year.
- Cities like Toledo, OH (+128%) and Savannah, GA (+108%) saw inventory spikes.
- Naples, FL posted a 15% price drop alongside a 58% jump in listings.
- Meanwhile, Miami saw prices rise 7%, even as sales dropped 37%.
With more homes sitting unsold, sellers face mounting pressure—even if many still cling to pandemic-era pricing expectations.
What’s driving mortgage rate pressure?
Several key factors continue to keep rates elevated:
- Sticky inflation: Although inflation has cooled from 2022 highs, it remains above the Fed’s 2% target.
- Fed rate stance: The Federal Reserve hasn’t signaled rate cuts, keeping upward pressure on borrowing costs.
- Lender caution: Higher insurance premiums and credit tightening mean lenders price in more risk, especially on long-term loans.
Still, many lenders offer rate buydowns or closing cost assistance to help buyers compete in today’s environment.
Tips to score a lower mortgage rate
You can lower your mortgage rate by improving your borrower profile. Here’s how:
- Boost your credit score: Aim for 740+ to access the best offers.
- Make a larger down payment: More money upfront lowers lender risk.
- Cut your debt-to-income ratio: Keep DTI under 36% for stronger loan terms.
- Shop multiple lenders: Comparing quotes can save thousands over the life of your loan.
- Consider shorter loan terms: 15- or 20-year loans carry lower rates and save on interest.
Zillow’s BuyAbility tool helps personalize your rate estimate based on credit, income, and location.
Should you lock in your rate now?
If you plan to close within the next 30 to 60 days, experts recommend locking in today’s rate. While future Federal Reserve decisions could shift things lower, the risk of continued inflation and global uncertainty might keep rates stuck where they are—or higher.