Mortgage Rates Today: September 8, 2025 – Rates Fall

The current mortgage rate on a 30-year fixed mortgage fell by 2.10% in the last week to 6.3%, according to the Mortgage Research Center.

Meanwhile, the APR on a 15-year fixed mortgage dropped 0.17 percentage point during the same period to 5.22%.

For existing homeowners, compare your current mortgage rates with today’s refinance rates.

30-Year Mortgage Rates Drop 2.10%

Borrowers paid an average rate of 6.3% on a 30-year mortgage. This was down from the previous week’s rate of 6.43%.

Currently, the average APR on a 30-year fixed-rate mortgage is 6.33%. This is lower than last week when the APR was 6.46%. The APR contains both mortgage interest and the lender fees to help give a more complete picture of loan costs.

To get an idea of how much you’ll pay: a $100,000 mortgage with a 30-year fixed-rate loan at the current average interest rate of 6.3% will cost you about $619 including principal and interest (taxes and fees not included) each month, the Forbes Advisor mortgage calculator shows. That’s around $123,441 in total interest over the life of the loan.

15-Year Mortgage Rates Drop 3.12%

Today, the 15-year mortgage rate declined to 5.22%, lower than it was at this time yesterday. Last week, it was 5.39%.

The APR on a 15-year fixed is 5.27%. It was 5.44% this time last week.

A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 5.22% will cost $803 per month in principal and interest. Over the life of the loan, you would pay $44,916 in total interest.

Jumbo Mortgage Rates Drop 0.83%

Today’s 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) fell 0.83% from last week to 6.57%.

Borrowers with a 30-year, fixed-rate jumbo mortgage with today’s interest rate of 6.57% will pay approximately $637 per month in principal and interest per $100,000 borrowed. That would be $129,751.

Mortgage Rate Trends in 2025

After reaching 7.04% in January, the average interest rate for a 30-year fixed mortgage has steadily remained in the mid-to-high 6% range. The 15-year fixed mortgage rate has hovered between the low-6% and high-5% range since its January peak of 6.27%.

While rates dropped in mid-January 2025, experts aren’t forecasting a significant decrease in the near future.

When Can I Expect Mortgage Rates To Drop?

Various economic factors influence mortgage rates, making it challenging to forecast when rates will drop.

The Federal Reserve’s decisions significantly impact mortgage rates. In response to inflation or an economic downturn, the Fed may lower its federal funds rate, prompting lenders to reduce mortgage rates.

Mortgage rates also track U.S. Treasury bond yields. If bond yields drop, mortgage rates typically follow suit.

Finally, global events that cause financial disruptions can affect mortgage rates. For example, the Covid-19 pandemic led to record-low interest rates when the Fed cut rates.

While a significant decrease in mortgage rates is unlikely in the near future, they may start to decline if inflation eases or the economy weakens.

How Much House Can I Afford?

The first step on your homebuying journey should be to calculate affordability. You’ll want to find out how much you can afford based on things like income, debt and savings.

Here are a few important factors that go into home affordability:

• Income
• Debt
• Debt-to-income ratio (DTI)
• Down payment
• Credit score

How Are Mortgage Rates Determined?

Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s APR.

Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.

Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.

The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases.

What Type of Mortgage Is Best for You?

Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%.

For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy.

For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan.

Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn’t require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan.

If you come from a qualifying military background, VA loans can be your best option. First, you don’t need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don’t pay an annual fee as the FHA and USDA loan programs require.

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