Today’s Mortgage Rates August 2, 2025: 30-Year FRM Plunges by 17 Basis Points

On August 2, 2025, the national average 30-year fixed mortgage rate fell slightly to 6.69%, down from 6.72% the previous day and significantly lower by 17 basis points from last week’s 6.86% average, according to Zillow’s latest data. This slight dip in mortgage rates can provide some relief for homebuyers and those looking to refinance, although overall rates remain historically elevated compared to pre-pandemic years. Both mortgage and refinance rates have shown small declines, with some variation depending on loan type and term length.

Today's Mortgage Rates August 2, 2025: 30-Year FRM Plunges by 17 Basis Points

Key Takeaways

• 30-year fixed mortgage rate dropped to 6.69% on August 2, 2025, down 17 basis points from last week.
• 15-year fixed mortgage rate also declined to 5.74%, a four basis-point decrease.
• The 5-year ARM mortgage rate fell significantly by 15 basis points to 7.15%.
• Refinancing rates for a 30-year fixed dropped to 6.94%, down 12 basis points from last week.
• Rates remain influenced heavily by decisions and outlooks of the Federal Reserve's monetary policy.
• Despite recent cuts in late 2024, the Fed's hold on rates in 2025 and economic uncertainty shape mortgage rate movement.
• The Federal Reserve's upcoming meetings in September and December 2025 are key for potential further rate cuts.

Current Mortgage Rates Overview – August 2, 2025

Understanding mortgage rates means looking closely at variations in fixed versus adjustable-rate loans and how they compare to refinancing options. Below is a detailed table summarizing the current rates for popular loan types and terms on this date:

Loan Type	Rate (%)	Weekly Change	APR (%)	APR Weekly Change
30-Year Fixed	6.69	↓ 0.17%	7.12	↓ 0.20%
20-Year Fixed	6.34	↓ 0.04%	6.84	↑ 0.06%
15-Year Fixed	5.74	↓ 0.16%	6.02	↓ 0.18%
10-Year Fixed	5.94	↑ 0.19%	6.34	↑ 0.22%
7-Year ARM	6.88	↑ 0.11%	7.66	↑ 0.01%
5-Year ARM	7.15	↓ 0.58%	7.72	↓ 0.31%

For government-backed loans:

Loan Type	Rate (%)	Weekly Change	APR (%)	APR Weekly Change
30-Year Fixed FHA	7.25	↓ 0.15%	8.27	↓ 0.17%
30-Year Fixed VA	6.19	↓ 0.12%	6.41	↓ 0.11%
15-Year Fixed FHA	5.75	↑ 0.24%	6.72	↑ 0.20%
15-Year Fixed VA	5.80	↓ 0.04%	6.17	↓ 0.03%

Refinance Rates – A Slight Downturn

Alongside purchase mortgage rates, refinancing options have also seen modest shifts:

Refinance Type	Rate (%)	Weekly Change
30-Year Fixed Refinance	6.94	↓ 0.02%
15-Year Fixed Refinance	5.79	↑ 0.02%
5-Year ARM Refinance	7.58	↓ 0.16%

Refinancing rates mirror purchase rates’ general trend of slight decreases, particularly in the 30-year fixed and 5-year ARM categories. The 15-year fixed refinance rates showed a marginal increase by 2 basis points.

What Influences Mortgage Rates Now? The Federal Reserve’s Impact

Mortgage rates are not set by lenders arbitrarily; rather, they track broader economic factors. The Federal Reserve’s monetary policy continues to be the main force shaping mortgage rates in 2024 and 2025.

• Throughout 2021 and early 2022, the Fed maintained low rates with aggressive bond purchases to support pandemic recovery.
• From March 2022 to July 2023, the Fed hiked federal funds rates by 5.25 percentage points, leading mortgage rates to soar to 20-year highs.
• Late 2024 marked a pivot, where the Fed cut rates three times, slightly easing pressure on mortgage rates.
• In 2025, the Fed has held rates stable for five meetings through July despite economic headwinds such as a slowing GDP (1.2% annualized growth in H1 2025), creeping inflation (core PCE about 2.7%), and slightly rising unemployment at 4.5%.

These mixed economic signals have kept mortgage rates elevated but with potential for modest relief if the Fed follows through on anticipated rate cuts later in 2025.

Projected Fed Moves and Mortgage Rate Expectations

Key dates for Fed decisions include:

• September 16-17, 2025: Important meeting with new economic projections. Market odds for a rate cut hover around 47%.
• December 2025: Potential last chance for a rate cut in 2025 if no action is taken in September.

If the Fed cuts rates as forecasted in their June dot plot, mortgage rates could edge down toward the 6% range by the end of 2025. However, this depends on inflation trends, economic growth, and external factors like tariffs and geopolitical events.

Example Calculation: Impact of Rate Drop on Monthly Payment

To visualize the significance of these rate changes, let's consider a $300,000 home loan:

Term	Rate 8/02/2025	Monthly Principal & Interest	Rate 1 Week Earlier	Monthly Principal & Interest	Monthly Change
30-Year Fixed	6.69%	$1,939	6.86%	$2,002	-$63
15-Year Fixed	5.74%	$2,458	5.78%	$2,474	-$16

Calculations based on standard amortization.

This shows that a decrease of 17 basis points in the 30-year fixed rate translates to approximately $63 less per month on a $300,000 loan. Even small differences in rates can affect affordability over the long term, especially for large loan balances.

How Current Mortgage Rates Compare Historically

The recent slight drop to 6.69% for 30-year fixed mortgages marks some easing from the mid-2025 peak near 6.86%, but rates are still well above 3%-4% seen in the years before the pandemic. For perspective:

• 1990s and early 2000s: Rates often hovered around 7-8%.
• 2008 financial crisis aftermath: Rates fell precipitously, reaching new lows.
• 2020-2021 pandemic lows: Rates dropped dramatically to historic lows near 3%.
• 2022-2023: Rapid increases pushed rates above 6.5%-7%.

Today’s mortgage environment is a balancing act between inflation control and economic growth stabilization, with rates reflecting a cautious optimism following Fed cuts but tempered by uncertainty.

Understanding Adjustable-Rate Mortgages (ARMs) and Their Current Trends

Among variable rate loans, the 5-year ARM rate saw a significant weekly decline of 0.58% to 7.15%, which is notable given ARM’s adjustment periods and sensitivity to interest rate forecasts.

ARMs can advantage homebuyers wanting initially lower rates versus fixed-rate mortgages but come with the risk of rate increases after the fixed period. Given today’s Fed hold and possible cuts, ARMs become attractive, especially for buyers planning to refinance or sell before the adjustment period.

Broader Economic Context Behind Today’s Rates

Mortgage trends over the past months reflect how competing economic pressures influence decisions:

• Core inflation remains just above the Fed’s target, maintaining the pressure on interest rates.
• GDP growth slowing to 1.2% indicates a cooling economy but not recession-level contraction.
• Unemployment rising modestly to 4.5% suggests the labor market softening but still healthy.
• New tariffs and geopolitical uncertainties complicate the outlook.

These factors create an environment of cautious optimism, encouraging lenders and borrowers to act carefully while anticipating future rate shifts.

Personal Thoughts on Mortgage Rate Movements in 2025

From my experience observing mortgage cycles, small dips such as the 17 basis point decline in 30-year fixed rates are encouraging but should be interpreted with caution. Rates have stabilized but remain high relative to recent years, limiting affordability for many.

For potential buyers and refinancers, these slight improvements signal that the market is sensitive to Fed policy but still grappling with inflation and economic growth uncertainties. The next few critical Fed meetings could set the tone for whether rates will ease meaningfully or remain elevated into 2026.