Mortgage rates remain elevated today, with Zillow listing the 30-year fixed rate at 6.625% and the 15-year fixed at 5.75%. With affordability challenges still impacting buyers nationwide, today’s rates reflect both inflation pressures and the Fed’s cautious monetary stance.
Current mortgage rates (July 29, 2025)
Rates below are provided by Zillow Home Loans and last updated on July 28:
- 30-year fixed:
- Rate: 6.625%
- APR: 6.799%
- Points: 1.775 ($4,881.25)
- 15-year fixed:
- Rate: 5.750%
- APR: 6.037%
- Points: 1.827 ($5,024.25)
- 30-year FHA:
- Rate: 6.125%
- APR: 6.846%
- Points: 1.988 ($5,467.00)
- 30-year VA:
- Rate: 6.500%
- APR: 6.805%
- Points: 1.859 ($5,112.25)
- 20-year fixed:
- Rate: 6.625%
- APR: 6.836%
- Points: 1.638 ($4,504.50)
- 7-year ARM (adjustable):
- Rate: 7.375% (approximate average)
Why rates are still high
Despite a cooling housing market, mortgage rates remain stubbornly high due to the Federal Reserve’s ongoing battle with inflation. According to recent commentary from the National Association of Realtors, elevated rates are pushing many potential buyers out of the market while keeping homeowners with low-rate loans “locked in.”
High prices and high rates continue to disproportionately affect first-time and middle-income buyers. While luxury buyers—many paying in cash—have remained active, affordability remains a serious challenge for most.
Housing market snapshot
- Median existing home price (June): $435,300
- Home sales (June): Down 2.7% month-over-month
- New-home price (June): $401,800
- Inventory: Still below pre-pandemic levels
The biggest segment of growth? Million-dollar homes, which saw a 14% increase in sales compared to last year.
How to get a lower mortgage rate
Zillow highlights several factors that can help borrowers secure a better rate:
- Boost your credit score: Higher scores signal lower risk to lenders.
- Increase your down payment: More money upfront can lead to better terms.
- Lower your debt-to-income ratio: Less debt improves your loan profile.
Should you buy or refinance now?
It depends on your situation. If you’re a first-time buyer, today’s market still poses steep financial hurdles. But those with strong credit, large down payments, or housing equity might find opportunities—especially with new homes sometimes priced below existing ones.
Refinancing may not make sense unless your current rate is significantly higher than today’s offerings. However, a rate lock could help you hedge against further increases.
- BuyAbility Tool: Zillow’s calculator estimates your rate using income, credit score, and location.
- Verified Pre-Approval: Strengthens your loan application with verified data.
- Loan Officer Support: Personalized advice to compare mortgage types.
Key takeaways
- 30-year fixed mortgage rates remain at 6.625% as of July 29, 2025.
- Affordability remains a major concern due to high rates and home prices.
- Luxury buyers are driving most sales, while many first-time buyers remain priced out.
- New homes may offer savings over existing properties in some markets.