30-Year Fixed Mortgage Rate (FRM) Drops Today by 15 Basis Points – August 6, 2025

If you're looking to buy a home or refinance your mortgage, you're probably glued to mortgage rates. The good news is, the national average for the 30-year fixed mortgage rate has seen a slight dip. As of August 6, 2025, it's sitting at 6.67%, a welcome 15 basis point decrease from the previous week. This could be a glimmer of hope for many looking to enter the housing market.

30-Year Fixed Mortgage Rate (FRM) Drops Today by 15 Basis Points to 6.67%

What's Causing This Shift?

While a 15 basis point drop might feel small, it can make a difference in your monthly payments and overall interest paid over the life of the loan. It's crucial to understand what factors are driving this change. The biggest influence is the Federal Reserve and its monetary policy.

Here's a quick recap of what the Fed's been doing and how it impacts mortgage rates:

• Pandemic Era: The Fed kept rates artificially low to stimulate the economy, leading to historically low mortgage rates.
• Inflation Surge: When inflation spiked, the Fed aggressively raised interest rates, causing mortgage rates to climb to highs not seen in decades.
• Recent Actions: As of recent times, the Fed is holding rates steady, though cuts are being looked at to address slow growth.

The Fed's every move sends ripples through the economy, directly impacting mortgage rates. As a homeowner, it's crucial to monitor economic trends.

Breaking Down the Numbers: A Closer Look at Mortgage Rates

Let's get into the nitty-gritty with some data. Here's a snapshot of current mortgage rates  from Zillow across different loan types as of August 6, 2025:

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	6.67%	down 0.15%	7.12%	down 0.16%
20-Year Fixed Rate	6.41%	down 0.05%	6.80%	down 0.13%
15-Year Fixed Rate	5.70%	down 0.17%	5.99%	down 0.19%
10-Year Fixed Rate	5.48%	down 0.26%	5.84%	down 0.28%
7-year ARM	7.08%	down 0.14%	7.59%	down 0.29%
5-year ARM	7.08%	down 0.47%	7.70%	down 0.21%
3-year ARM	—	0.00%	—	0.00%

A few things to note:

• The 30-year fixed rate remains the most popular choice, offering stability and predictability. Its drop to 6.67% is a positive sign.
• 15-year fixed rates are significantly lower, but come with higher monthly payments. This is a great option if you can afford it and want to build equity faster.
• Adjustable-rate mortgages (ARMs), like the 5-year and 7-year ARMs, offer lower initial rates but carry the risk of future rate increases.

Why Choose a 30-Year Fixed-Rate Mortgage?

The 30-year fixed-rate mortgage still stands as the bedrock of home financing for many Americans. Here's why:

• Predictability: Your interest rate and monthly payment stay the same for the entire 30-year term, making budgeting much easier.
• Affordability: Lower monthly payments compared to shorter-term loans, allowing you to qualify for a more expensive home.
• Popular Choice: The 30-year fixed rate is the most popular option, so when talking about mortgage rates, that is what people generally consider first.

30-Year Fixed vs. 15-Year Fixed vs. ARMs: Which is Right for You?

Choosing a mortgage is a deeply personal decision. Here's a quick comparison:

• 30-Year Fixed: Ideal for those seeking affordability and payment stability, even if it means paying more interest over the long run. At 6.67%, this provides certainty.
• 15-Year Fixed: Best for those who can afford higher payments and want to build equity quickly and save on interest.
• ARMs: Suitable for those who anticipate their income will increase or plan to move before the fixed-rate period ends. However, they come with the risk of higher payments if rates rise.

Expert Insights and Future Predictions

Industry experts are closely watching the Fed and economic data to predict where mortgage rates are headed. Fannie Mae expects mortgage rates to end 2025 at 6.5% and 2026 at 6.1%, while the Mortgage Bankers Association projects rates to remain near 6.8% through September 2025 and settle in the mid-6% range at the end of the year. I think that rates will continue to stay between 6 -7 percent until the foreseeable future as inflation is still higher than the Fed wants it to be and the Fed will not lower rates until this issue is dealt with.

What This Means for You: Should You Buy or Refinance?

Here's a quick guide to help you make a decision:

• Current Buyers: If you are looking to buy a home, this dip could be a great way to start!
• Refinancers: If you have a rate above 7%, keep an eye on the news and consult a financial advisor.

Final Thoughts: While a drop of 15 basis points in the 30-year fixed mortgage rate is encouraging, it's essential to remember that the housing market is constantly evolving. Make sure to stay updated about mortgage rates trends, and consider contacting a mortgage expert.