Mortgage Rates Today July 27, 2025: 30-Year and 15-Year FRMs Maintain Stability

Mortgage rates today, July 27, 2025, remain mostly stable with the national average 30-year fixed mortgage rate holding steady at 6.88%. Meanwhile, refinance rates have seen a slight increase, with the 30-year fixed refinance rate edging up to 7.10%. These rates suggest a balance between inflation pressures and Federal Reserve's cautious approach to interest rate cuts, influencing borrowing costs for homebuyers and those looking to refinance.

Mortgage Rates Today – July 27, 2025: Rates Stable with Slight Shifts in Refinance

Key Takeaways

• 30-year fixed mortgage rate holds steady at 6.88% as of July 27, 2025.
• 15-year fixed mortgage rate slightly increased to 5.93%, a 1 basis point rise.
• 5-year ARM mortgage rate also increased modestly to 7.77%.
• Refinance 30-year fixed rate increased slightly to 7.10%.
• Federal Reserve's rate policy continues to impact mortgage trends and future expectations.
• Mortgage Bankers Association and Fannie Mae forecasts suggest rates may ease mildly but remain elevated through 2025.
• Borrowing costs remain significant compared to earlier years but stable compared to recent months.

Understanding Mortgage Rates Today – July 27, 2025

Today's mortgage rates are a reflection of broader economic conditions and monetary policies. The 30-year fixed mortgage rate, which is the most common type of mortgage loan for home purchases, remains unchanged at 6.88%. This stability provides a predictable borrowing environment for buyers locking in long-term loans.

The 15-year fixed mortgage rate is slightly higher at 5.93%, which still appeals to borrowers wanting a shorter loan term and lower total interest costs, despite the slight uptick. Adjustable-rate mortgages (ARMs), such as the 5-year ARM, have seen a small increase to 7.77%, reflecting uncertainty and market adjustments.

Refinancing costs have seen a subtle increase, with the 30-year fixed refinance rate rising to 7.10%. This uptick may discourage some homeowners from refinancing, given the higher monthly payments compared to past years.

Detailed Mortgage and Refinance Rate Data

Here is a detailed table provided by Zillow with the current mortgage rates by loan type (all figures as of July 27, 2025):

Loan Type	Interest Rate (%)	1-Week Change	APR (%)	1-Week APR Change
30-Year Fixed	6.88	0.00	7.36	+0.02
20-Year Fixed	6.41	-0.31	6.75	-0.28
15-Year Fixed	5.93	+0.01	6.25	+0.03
10-Year Fixed	5.94	-0.09	6.34	+0.21
7-Year ARM	7.00	-0.57	7.78	-0.18
5-Year ARM	7.77	-0.06	8.06	-0.06

Government Loan Rates:

Loan Type	Interest Rate (%)	1-Week Change	APR (%)	1-Week APR Change
30-Year FHA Fixed	7.75	+0.48	8.79	+0.48
30-Year VA Fixed	6.27	-0.09	6.49	-0.09
15-Year FHA Fixed	5.91	+0.44	6.87	+0.40
15-Year VA Fixed	5.84	-0.05	6.21	-0.03

Current Refinance Rates as of July 27, 2025

Refinancing helps homeowners reduce their monthly payments or shorten their loan period, but current rates show a small upward trend:

Loan Type	Interest Rate (%)	1-Week Change
30-Year Fixed Refinance	7.10	+0.03
15-Year Fixed Refinance	5.94	+0.02
5-Year ARM Refinance	8.05	0.00

The refinance rates are reflective of slightly higher borrowing costs relative to purchase mortgage rates. The rise in refinance rates, though small, can impact decisions on when to refinance.

How Federal Reserve Policy Influences Mortgage Rates

The Federal Reserve's monetary policy remains the cornerstone shaping mortgage rate trends. After a period of aggressive rate hikes designed to curb inflation, the Fed began cutting rates in late 2024. Specifically:

• Fed Rate Cuts in Late 2024: Three cuts totaling 1 percentage point brought the federal funds rate to a 4.25%–4.5% range.
• 2025 Rate Outlook: The Fed signals further cuts but with divided opinion on timing—July, September, or later.
• Inflation and Tariffs: Inflation pressures from tariffs remain, but they are seen as temporary shocks.
• Economic Growth and Employment: Moderate GDP growth and rising unemployment create a case for cuts, but timing remains uncertain.

Mortgage rates tend to lag Fed policy moves, influenced by long-term bond yields and market expectations. Current 30-year mortgage averages around 6.88% compared with 6.7% in 2024. Projections by experts expect that if Fed rate cuts materialize as planned, mortgage rates could gradually fall closer to 5% by 2028.

Example Calculation: What a 30-Year Fixed Mortgage Rate Means for Borrowers

Suppose a borrower takes a $300,000 mortgage at the current 30-year fixed rate of 6.88%.

• Monthly Principal & Interest payment =

Using formula for monthly payment on fixed rate mortgage:

$$ M = P \times \frac{r(1+r)^n}{(1+r)^n -1} $$

Where:

• $$P = 300,000$$ (loan amount)
• $$r = \frac{6.88\%}{12} = 0.005733$$
• $$n = 360$$ (30 years × 12 months)

Calculating:

$$ M = 300,000 \times \frac{0.005733 \times (1+0.005733)^{360}}{(1+0.005733)^{360} -1} \approx 1,976.46 $$

This means the monthly payment for principal and interest alone is about $1,976.46—an important consideration for homebuyers planning their budgets (excluding taxes, insurance, and other fees).

Mortgage Market Trends and Forecasts

• Home Sales: Projected to reach about 4 million in 2025, slightly below 2024 figures.
• Home Price Growth: Expected to continue rising but at a slower pace (~2.5% annually).
• Forecasted Mortgage Rates: ESR Group and Fannie Mae expect mortgage rates to end 2025 near 6.5%, dropping moderately to about 6.1% in 2026.
• Mortgage Bankers Association: Forecasts 30-year mortgage rates to hover near 6.8% through September 2025, and remain in the mid-6% range through 2026.

Overall, the market anticipates a slow easing of rates but not a rapid decline, influenced by inflation risks and the Fed's cautious approach.

Personal Insight and Experience

From an analytical viewpoint, the current mortgage environment presents a challenge and opportunity. While rates near 7% are high relative to the historically low-interest environment of the past decade, they are holding steady, offering predictability amid economic uncertainty. If you are considering buying a home or refinancing, locking a rate now may protect you from potential future increases.

The slight rise in refinance rates suggests lenders are cautious or anticipating higher loan servicing costs. This, coupled with economic indicators of slower growth and moderate inflation, means borrowers should watch the Fed's upcoming moves closely.

Summary Table of Key Mortgage and Refinance Rates

Rate Type	Rate (%)	1-Week Change (%)
30-Year Fixed Mortgage	6.88	0.00
15-Year Fixed Mortgage	5.93	+0.01
5-Year ARM Mortgage	7.77	+0.02
30-Year Fixed Refinance	7.10	+0.03
15-Year Fixed Refinance	5.94	+0.02
5-Year ARM Refinance	8.05	0.00