Mortgage Rates Today: 30-Year Fixed Refinance Rate Goes Down by 13 Basis Points

If you're thinking about refinancing your home, you're probably glued to mortgage rate updates. The good news is that as of Wednesday, August 27, 2025, the national average for a 30-year fixed refinance rate has decreased to 6.75%, a drop of 13 basis points from the previous week. Let’s break down what this means for you and how the current economic climate is influencing these fluctuations.

Mortgage Rates Today: 30-Year Fixed Refinance Rate Goes Down by 13 Basis Points

What's Happening with Refinance Rates Right Now?

According to Zillow data, here’s the snapshot as of today:

• 30-Year Fixed Refinance Rate: 6.75% (Down 13 basis points from last week)
• 15-Year Fixed Refinance Rate: 5.70% (Up 3 basis points)
• 5-Year ARM Refinance Rate: 7.27% (Down 14 basis points)

It’s interesting to see the 30-year rate moving downward, while the 15-year rate nudges slightly upward. This shows there are complexities in the market that go deeper than just an overall trend. If you're wondering whether it's a good time to refinance, there's a lot to consider.

Is It Worth Refinancing Today?

Frankly, that's the million-dollar question! Whether refinancing makes sense for you depends on your current mortgage rate, your financial goals, and what the future holds.

• If you have a rate significantly higher than 6.75%: Refinancing could save you a considerable amount of money over the life of the loan.
• If you're looking to shorten your loan term: Even with a slightly higher interest rate (as we see with the 15-year), the faster equity build-up could be worth it.
• If you need to tap into your home equity: A cash-out refinance could provide the funds you need, but carefully weigh the costs and risks.

What Are the Experts Saying About Where Rates Are Headed?

Okay, so rates dipped a little. Is this the start of a big fall, or just a blip? Let’s peek at what forecasters are predicting. I've been following these trends for years, and I've learned to take forecasts with a grain of salt. But they can give us a general idea.

• National Association of REALTORS®: Expects mortgage rates to average 6.4% in the second half of 2025, and then drop further to 6.1% in 2026. Their chief economist even called mortgage rates a “magic bullet” for the market, emphasizing their impact on affordability.
• Realtor.com: Predicts mortgage rates will ease slowly, averaging around 6.4% by the end of the year.
• Fannie Mae: Slightly more conservative, forecasting rates to end 2025 at 6.5% and 2026 at 6.1%. They also adjusted their mortgage origination forecasts slightly downward to $1.85 trillion in 2025 and $2.26 trillion in 2026.
• Mortgage Bankers Association (MBA): Believes rates will remain mostly unchanged near 6.8% through September 2025, before settling in the mid-6% range (6.4%-6.6%) later in the year. They expect this to hold steady into 2026.

Factors Influencing Mortgage Rates: What's Under the Hood?

Several moving parts influence mortgage rates. It's not just about one number going up or down.

Here's what's important:

• Inflation: High inflation generally leads to higher mortgage rates.
• Economic Growth: A strong economy can put upward pressure on rates.
• Federal Reserve Policy: The Fed's actions have a HUGE impact.
• Global Events: Unexpected events can send ripples through financial markets, affecting rates both positively and negatively.

The Federal Reserve's Next Move: Will They Cut Rates in September?

This is the question on everyone's mind, and for good reason. The Federal Reserve's monetary policy decisions are the main drivers of mortgage rates.

Here's the scoop in mid-2025:

• From Rate Hikes to a Pause: After aggressively raising rates in 2022-2023 to fight inflation, the Fed has been holding steady in 2025.
• Pressure to Cut: Some members of the Fed are now pushing for rate cuts to address a slowing economy.
• Economic Crosscurrents: Inflation is proving stubborn, but economic growth is slowing down. This puts the Fed in a tough spot.
• Market Expectation: There's a strong expectation (85-95% chance) for a rate cut at the September 16-17 meeting. This is based on moderating inflation and a weakening labor market.

All eyes are on Fed Chair Jerome Powell's speech at the Jackson Hole Economic Symposium on August 22. This could provide clues about the Fed's September decision, which might start a sustained downward trend in borrowing costs.

What This Means for Those Looking to Refinance: Scenarios to Consider

So, how should you play this? Let's look at a few possible situations.

• Current Buyers: If you're in the market to buy, be patient. A rate cut in September could provide some relief, making homes slightly more affordable.
• Refinancers with Rates Above 7%: Monitor the September Fed meeting closely. If rates drop, it could be a great time to refinance.
• Investors: Bond markets are likely to respond to any Fed action. Keep an eye on the 10-year Treasury yield.

Key Dates to Watch:

Date	Event	Potential Impact
August 22, 2025	Fed Chair Powell's Speech at Jackson Hole Economic Symposium	Hints about September rate decision
September 16-17, 2025	Federal Reserve Meeting	Potential interest rate cut, updated economic projections
December 2025	Federal Reserve Meeting	Possible second interest rate cut of 2025 to complete the cycle.

My Take:

While the recent dip in the 30-year fixed refinance rate is encouraging, it's crucial to stay informed and not jump to conclusions. The market is still volatile, and the Fed's next move will be a key factor.

Remember, your financial situation is unique. Consult with a financial advisor or mortgage professional to determine the best course of action for you. Don't just chase the lowest rate; consider the long-term implications and costs.