Mortgage Rates Today: 30-Year Fixed Refinance Rate Goes Down by 11 Basis Points

Finding the best mortgage rates is crucial whether you're buying your first home or looking to refinance. According to  Zillow, as of today, August 23, 2025, the national average 30-year fixed refinance rate has decreased to 6.80%, a drop of 11 basis points from the previous week, which is definitely a welcome sign for homeowners. This might be a good opportunity if you've been waiting to refinance your mortgage.

Mortgage Rates Today: 30-Year Fixed Refinance Rate Goes Down by 11 Basis Points

Is Refinancing Right for You? Navigating Today's Mortgage Market

Deciding whether to refinance is a big decision. As someone who has seen the market shift and change, I've always advised people to consider their personal financial situation first. Are you looking to lower your monthly payment? Shorten your loan term? Or maybe tap into your home equity? Knowing your goals is the first step. With the 30-year fixed refinance rate at 6.80%, it might be worth exploring your options, especially if your current rate is significantly higher.

Breaking Down the Current Rates

Here's a quick snapshot of where refinance rates stand right now:

• 30-Year Fixed Refinance Rate: 6.80% (Down 3 basis points from 6.83% today and down 11 basis points from last week)
• 15-Year Fixed Refinance Rate: 5.65% (Down 3 basis points from 5.68%)
• 5-Year ARM Refinance Rate: 7.53% (Up 8 basis points from 7.45%)

These numbers give you a starting point, but remember that actual rates can vary based on your credit score, loan-to-value ratio, and other individual factors. Getting personalized quotes from multiple lenders is always a smart move.

The Fed’s Role and What It Means for You

The Federal Reserve and its monetary policy decisions wield enormous influence over mortgage rates. Let's understand the significance of the Federal Reserve’s role in mortgage rates through its monetary policy decisions.

A Quick Recap of the Recent Past

• Pandemic Era (2021-2023): The Fed kept rates low through bond purchases.
• Rate Hikes (March 2022 – July 2023): They aggressively raised the federal funds rate to combat inflation, sending mortgage rates soaring.
• The Pause and the Pivot (Late 2024): The Fed held rates steady for over a year and then made three small cuts.

What's Happening in 2025?

The Fed has held steady for five consecutive meetings in 2025 (through July 30), despite economic headwinds.

• Mixed Signals: While core inflation remains a bit high, economic growth is slowing.
• Divisions Within: There's disagreement within the Fed about when to start cutting rates.

Why Might a September Cut Be Coming?

• Cooling Inflation: The CPI is showing signs of moderation.
• Weakening Job Market: Unemployment has risen slightly, suggesting the economy needs a boost.
• Economic Slowdown: Forecasts are pointing to a potential slowdown, which would justify a rate cut.

All eyes are now on Fed Chair Jerome Powell's speech at the Jackson Hole Economic Symposium on August 22 for any final hints on the Fed's September decision.

Impact on Borrowers

The anticipated September decision by the Fed has a significant impact on how borrowers navigate and prepare to save money.

• If you're buying a home right now with mortgage rates near 6.8%, know that relief might be on the horizon.
• If you have a mortgage above 7%, closely monitor the September meeting for potential refinancing opportunities.

Key Dates to Watch

• September 16-17 Meeting: Watch for the Fed’s decision and updated economic projections.
• December Meeting: Another potential window for a rate cut.

What Type of Home Loan Should You Choose?

Loan Type	Interest Rate	Pros	Cons
30-year fixed	High	Stable Payments	Pay more interest
15-year fixed	Moderate	Pay less intrest	Higher monthly payments
5-year ARM	Low	Can fluctuate dramatically	Unpredictable interest payments

My Experience and Taking it to Heart

I've been through these shifts before, and I know it can feel overwhelming. In my experience, the best thing you can do is educate yourself, talk to a trusted financial advisor, and don't rush into any decisions. Mortgage rates are just one piece of the puzzle. Consider your overall financial health, your long-term goals, and your comfort level with risk.

Looking Ahead: Even the Fed projects gradual easing of federal funds rates, with the intention of settling somewhere in the territory between 2.25%-2.5% by the year 2027.