As of Friday, mortgage rates remain steady, with 30-year fixed loans averaging 6.625% and 15-year fixed loans at 5.75%, according to Zillow Home Loans.
With affordability concerns rising and homebuilder sentiment still low, today’s mortgage rates reflect ongoing pressure from elevated interest rates and economic uncertainty. Despite marginal rate fluctuations, consumers continue to face challenges in securing affordable financing.
Current mortgage rates by loan type
Zillow Home Loans reports the following national averages:
- 30-Year Fixed
- Rate: 6.625%
- APR: 6.790%
- Points: 1.681 ($4,622.75)
- 15-Year Fixed
- Rate: 5.750%
- APR: 6.029%
- Points: 1.775 ($4,881.25)
- 30-Year FHA
- Rate: 6.375%
- APR: 7.066%
- Points: 1.624 ($4,466.00)
- 30-Year VA
- Rate: 6.500%
- APR: 6.802%
- Points: 1.834 ($5,043.50)
- 7-Year ARM
- Rate: 7.375% (adjustable)
Market outlook: Builders slash prices to attract buyers
Despite rate stability, the housing sector shows continued signs of weakness. A recent NAHB report reveals:
- 38% of builders cut home prices in July — the highest rate since tracking began in 2022
- 62% offered incentives like rate buydowns and closing-cost assistance
- Builder confidence rose slightly to 33 but remains well below normal levels
Incentives now include deep price cuts, interest-rate buydowns, and closing-cost assistance — often used in tandem to motivate reluctant buyers.
Why mortgage rates are staying high
Several key factors continue to influence mortgage pricing:
- Federal Reserve policy: Inflation remains above target, stalling rate cuts
- 10-Year Treasury yield: Around 4.44%, this benchmark keeps rates elevated
- Tight credit conditions: Lenders remain cautious with stricter requirements
Tips to secure a lower mortgage rate
Zillow suggests borrowers can lower their rate by:
- Improving their credit score (740+ yields better offers)
- Making a larger down payment to reduce lender risk
- Lowering their debt-to-income ratio
- Using tools like Zillow’s BuyAbility℠ to get custom quotes
Should you buy or refinance now?
With rates stuck near recent highs, the best move depends on your situation:
- Buyers may benefit from builder incentives and softening prices
- Homeowners should only refinance if their current rate is significantly higher
- Waiting may or may not pay off depending on future Fed decisions
Key takeaways
- 30-year fixed mortgage rates are steady at 6.625%
- Builders are aggressively offering discounts and incentives
- High rates and economic uncertainty continue to weigh on housing
- Borrowers can still find savings through smart financial prep