Mortgage Rates Today July 23, 2025: Rates Go Down Overall Benefiting Homebuyers

Mortgage rates today, July 23, 2025, for a 30-year fixed mortgage have slightly decreased to an average of 6.82%, down from 6.83% the previous day and 6.88% a week ago, according to Zillow. This signals a small but steady dip in mortgage rates amid ongoing economic shifts. Similarly, refinance rates for a 30-year fixed loan also decreased to 7.05%.

The 15-year fixed mortgage rate is at 5.87%, with a slight decrease as well. Essentially, while rates remain historically elevated compared to a few years ago, they are showing small declines this week, offering a glimmer of potential relief for homebuyers and those looking to refinance their mortgages.

Mortgage Rates Today July 23, 2025: Rates Go Down Overall Benefiting Homebuyers

Key Takeaways

• 30-year fixed mortgage rate dropped slightly to 6.82% on July 23, 2025.
• 30-year fixed refinance rate also decreased to 7.05% this week.
• 15-year fixed mortgage and refinance rates have edged down, currently 5.87% and 5.88% respectively.
• Conforming loan rates are marginally lower this week, while some government-insured loan rates have mixed small increases and decreases.
• Mortgage rate forecasts by major organizations indicate rates may remain elevated or slightly decrease by the end of 2025 and into 2026.
• Fed policy, inflation, and economic growth projections strongly influence these mortgage rate trends.

Current Mortgage Rates on July 23, 2025

According to Zillow's latest data, here is a summary of the national average mortgage rates for different loan programs:

Loan Type	Rate (%)	Week Change (%)	APR (%)	APR Change (%)
30-Year Fixed	6.82	-0.01	7.33	-0.02
20-Year Fixed	6.29	-0.43	6.75	-0.28
15-Year Fixed	5.87	-0.01	6.21	-0.01
10-Year Fixed	6.03	0.00	6.12	0.00
7-Year ARM	7.63	+0.05	7.86	-0.10
5-Year ARM	7.72	-0.11	8.08	-0.04

Government-Backed Loans:

Loan Type	Rate (%)	Week Change (%)	APR (%)	APR Change (%)
FHA 30-Year Fixed	7.75	+0.48	8.79	+0.48
VA 30-Year Fixed	6.15	-0.21	6.32	-0.25
FHA 15-Year Fixed	5.98	+0.52	6.95	+0.48
VA 15-Year Fixed	5.78	-0.11	6.23	-0.01

Rates are subject to daily changes and can vary by lender and location.

Conforming vs. Government-Backed Mortgage Rates

Many borrowers encounter two major categories when shopping for a mortgage: Conforming loans and Government-backed loans.

• Conforming Loans are typical mortgages that meet the criteria set by government-sponsored enterprises like Fannie Mae and Freddie Mac. These usually have stricter credit score and income requirements but tend to offer competitive interest rates for qualified borrowers.
• Government-backed Loans such as FHA, VA, and USDA loans provide insurance or guarantees to lenders, making them more accessible to borrowers with lower credit scores or smaller down payments. These loans often have slightly higher interest rates, as seen in the current FHA 30-year fixed rate at 7.75%, compared to 6.82% for conforming loans.

The differences in risk to lenders and borrower profiles explain the variation in rates — government loans protect lenders from default risk at the cost of slightly higher rates for borrowers.

Current Refinance Rates – July 23, 2025

Refinance rates have also followed a slight downward adjustment this week. The national average rates for refinance loans are:

Loan Program	Rate (%)	Weekly Change (%)	APR (%)	APR Change (%)
30-Year Fixed Refi	7.05	-0.01	7.34	-0.02
15-Year Fixed Refi	5.88	-0.05	6.22	-0.02
5-Year ARM Refi	7.94	+0.02	8.17	+0.01

Refinancing remains a popular option for homeowners to lower monthly payments or take cash out of equity, though higher rates than the standard purchase mortgage suggest cautious appraisal of benefits.

What’s Behind Today’s Mortgage and Refinance Rates?

Mortgage rates are influenced by several factors:

• Federal Reserve Monetary Policy: The Fed influences short-term interest rates but indirectly affects mortgage rates through bond markets and inflation expectations.
• Inflation and Economic Growth: Higher inflation tends to push mortgage rates up, while economic slowdowns can reduce pressure on borrowing costs.
• Housing Market Dynamics: Demand, inventory levels, and home prices impact lenders’ appetite and risk assessments.

The Federal Reserve cut rates by 1% last fall but has held steady in mid-2025, with expectations for gradual rate cuts later this year or in 2026. The Fed’s “dot plot” median forecast shows the federal funds rate dropping to around 3.9% by the end of 2025, which may later reduce mortgage rates. However, inflation from tariffs and other economic variables inject uncertainties in timing.

Mortgage Rate Forecasts and Economic Outlook

Let's analyze what major institutions say about the future of mortgage rates and housing affordability.

• Fannie Mae: Projects mortgage rates ending 2025 around 6.5%, dropping to 6.1% in 2026. They predict moderate GDP growth (1.4% in 2025, 2.2% in 2026) supporting a balanced economic climate and more stable rates.
• Mortgage Bankers Association (MBA): Projects 30-year fixed mortgage rates mostly unchanged near 6.8% through September 2025, then slight decline to mid-6% by year's end and steady 6.3% into 2026. Inflation risks continue to influence their outlook.
• Morgan Stanley: Suggests potential for mortgage rate declines correlating with Treasury yields lowering if GDP slows in 2026. They provide an illustrative example: on a $1 million house, monthly payment at 7% interest is about $5,322; if rates fall to 6.25%, the payment drops to $4,925—a savings of nearly $400 monthly.
• Freddie Mac: Notes that rates remaining higher than expected may prompt buyers and sellers to act sooner rather than wait for lower rates, increasing market activity but with sales volume below long-term averages.

The forecasts indicate a landscape where rates may hover high in the near term but could ease moderately by 2026, supporting housing affordability improvements.

Mortgage vs. Refinance Rate Example Calculations

To illustrate the impact of today's rates on a typical loan scenario, consider this:

• Purchase Mortgage Example:

Loan Amount	$350,000
Mortgage Rate	6.82%
Loan Term	30 years
Monthly Principal & Interest Payment (approx.)	$2,268

• Refinance Example:

If refinancing $350,000 at 7.05% (30-year fixed):

Loan Amount	$350,000
Refinance Rate	7.05%
Loan Term	30 years
Monthly Payment (approx.)	$2,363

Difference monthly = $2,363 – $2,268 = $95 more per month if refinancing at current rates compared to a new purchase mortgage rate, showing refinancing might not make sense unless there are other benefits like cash-out or shorter terms.

Impact of Federal Reserve's Policies on Mortgage Rates

The Fed's recent rate cuts in late 2024 brought the federal funds rate down to 4.25%-4.5%, stabilizing since then. In 2025, the Fed signaled potential additional rate cuts, but policymakers remain divided on timing—with some expecting cuts as early as July 2025, and others preferring September or later.

Factors influencing these decisions:

• Inflation pressures from tariffs and global issues.
• Economic growth slowing (GDP forecasted at 1.4% for 2025).
• Rising unemployment slightly above historical lows at 4.5%.
• Political pressures balanced by Fed’s data-focused approach.

As mortgage rates are closely tied to Treasury yields and overall monetary policy, Fed actions remain a key driver in whether mortgage rates fall or stay elevated in coming months. The Fed’s July 30, 2025 meeting is expected to hold rates steady but could signal adjustments depending on inflation and employment data.

Mortgage and Refinance Rates Summary Table

Rate Type	Current Rate (%)	Weekly Change (%)	Notes
30-Year Fixed Purchase	6.82	-0.01	Slight decrease, still above pre-pandemic averages
15-Year Fixed Purchase	5.87	-0.01	Minor decrease, more affordable option
30-Year Fixed Refinance	7.05	-0.01	Still higher than purchase rates
15-Year Fixed Refinance	5.88	-0.05	Small decrease, competitive for shorter terms
5-Year ARM Purchase	7.72	-0.11	Adjustable rates declining slightly

Every housing market cycle varies, but July 2025 shows a slight cooling in mortgage and refinancing rates compared to recent weeks. Borrowers should keep an eye on Fed announcements and economic indicators to time decisions. With mortgage and refinance rates hovering near 7% for 30-year loans, affordability remains a crucial issue for many Americans trying to enter or move within the housing market.