Mortgage Rates Today: August 5, 2025 – Rates Slide

The current average mortgage rate on a 30-year fixed mortgage is 6.51%, compared to 6.72% a week earlier, according to the Mortgage Research Center.

For borrowers who want a shorter mortgage, the average rate on a 15-year fixed mortgage is 5.48%, down 3.74% from the previous week.

If you want to lock in a lower rate by refinancing, compare your existing mortgage rate to today’s refinance rates.

30-Year Mortgage Rates Drop 3.14%

Today’s 30-year mortgage—the most popular mortgage product—is 6.51%, down 3.14% from a week earlier.

The interest rate is just one fee included in your mortgage. You’ll also pay lender fees, which differ from lender to lender. Both interest rate and lender fees are captured in the APR. This week the APR on a 30-year fixed-rate mortgage is 6.54%. Last week, the APR was 6.75%.

Let’s say your home loan is $100,000 and you have a 30-year, fixed-rate mortgage with the current rate of 6.51%, your monthly payment will be about $633, including principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. That’s around $128,540 in total interest over the life of the loan.

15-Year Mortgage Rates Drop 3.74%

The average interest rate on a 15-year mortgage (fixed-rate) declined to 5.48%. This same time last week, the 15-year fixed-rate mortgage was at 5.69%.

The APR on a 15-year fixed is 5.52%. It was 5.74% this time last week.

With an interest rate of 5.48%, you would pay $816 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $47,304 in total interest.

Jumbo Mortgage Rates Drop 1.31%

The current average interest rate on a 30-year, fixed-rate jumbo mortgage (a mortgage above 2025’s conforming loan limit of $806,500 in most areas) is 6.84%—1.31% lower than last week.

A 30-year jumbo mortgage at today’s fixed interest rate of 6.84% will cost you $654 per month in principal and interest per $100,000. That adds up to roughly $136,013 in total interest over the life of the loan.

Trends in Mortgage Rates for 2025

Mortgage rates initially trended downward post-spring 2024. However, they surged again in October 2024—despite cuts by the Federal Reserve to the federal funds rate (its benchmark interest rate) in September, November and December 2024.

Rates began to drop again in mid-January 2025, but experts don’t forecast them falling by a significant amount in the near future.

When Will Mortgage Rates Go Down?

Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop.

Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit.

The Federal Reserve’s decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows.

A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens.

How To Calculate Mortgage Payments

Get to know your budget before you look for a house. This will give you an idea of the type of house you can afford. A good place to start is by using a mortgage calculator to get a rough estimate.

Simply input the following information:

• Home price
• Down payment amount
• Interest rate
• Loan term
• Taxes, insurance and any HOA fees

How Are Mortgage Rates Determined?

Multiple factors affect the interest rate for a mortgage, including the economy’s overall health, benchmark interest rates and borrower-specific factors.

The Federal Reserve’s rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn’t directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation.

Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment.

Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term.

What Is the Best Type of Mortgage Loan?

As you compare lenders, consider getting rate quotes for several loan programs. In addition to comparing rates and fees, these programs can have flexible down payment and credit requirements that make qualifying easier.

Conventional mortgages are likely to offer competitive rates when you have a credit score between 670 and 850, although it’s possible to qualify with a minimum score of 620. This home loan type also doesn’t require annual fees when you have at least 20% equity and waive PMI.

Several government-backed programs are better when you want to make little or no down payment:

• FHA loans. Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with FHA loans.
• VA loans. Servicemembers, veterans and qualifying spouses don’t need to make a down payment when the sales price is less than the home’s appraisal value. VA loan credit requirements vary by lender.
• USDA loans. Applicants in eligible rural areas can buy or build a home with no money down using a USDA loan. Moderate-income borrowers can qualify for a 30-year fixed-rate term through the Guaranteed Loan Program. Further, buyers with a very low or low income can receive a 33-year term and payment assistance is available through the agency’s Direct Loans program. Credit requirements differ by lender.

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