Mortgage Rates Today July 28, 2025: Rates Are Slightly Higher, Refinance Costs Surge

As of July 28, 2025, mortgage rates today show a slight upward movement with the average 30-year fixed mortgage rate increasing to 6.90%, up 4 basis points from last week’s 6.86%, according to Zillow. Similarly, refinance rates have seen a notable rise, with the 30-year fixed refinance rate jumping to 7.18%, up 12 basis points from the previous week’s 7.06%. These small increases reflect current economic conditions and hint at a stable but cautious housing finance market in the near term.

Mortgage Rates Today July 28, 2025: Rates Are Slightly Higher, Refinance Costs Climb

Key Takeaways

• 30-year fixed mortgage rates rose to 6.90%, a 4 basis points increase from last week.
• 30-year fixed refinance rates climbed to 7.18%, up 12 basis points, indicating borrowing costs are inching higher.
• Shorter-term mortgage rates also saw minor increases, e.g., 15-year fixed at 5.94% and 5-year ARM at 7.78%.
• Refinances show mixed trends with a slight decrease in 15-year fixed refinance rates to 5.92%.
• Expert forecasts place August 2025 mortgage rates between 6.4% and 6.8%, suggesting stability but no expectation of significant dips yet.
• Economic factors like inflation trends, Federal Reserve policies, and Treasury yields continue to influence these rates.

Mortgage rates represent the interest charged on home loans. They fluctuate daily based on broader economic signals. Today’s rates are slightly higher compared to last week, reflecting ongoing uncertainty in inflation and Federal Reserve actions. The 30-year fixed-rate mortgage is the most popular loan product among homebuyers because it offers predictability with stable monthly payments over three decades.

Detailed Mortgage Rate Overview (July 28, 2025)

Loan Type	Current Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed	6.90%	+0.04%	7.36%	+0.04%
20-Year Fixed	6.51%	+0.13%	6.79%	+0.01%
15-Year Fixed	5.94%	+0.04%	6.25%	+0.04%
10-Year Fixed	5.94%	+0.19%	6.34%	+0.22%
7-Year ARM	7.56%	+0.80%	7.81%	+0.15%
5-Year ARM	7.78%	+0.05%	8.04%	+0.01%

Government-backed loans:

Loan Type	Current Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed FHA	7.75%	+0.35%	8.79%	+0.34%
30-Year Fixed VA	6.42%	+0.10%	6.62%	+0.09%
15-Year Fixed FHA	5.44%	-0.07%	6.45%	-0.06%
15-Year Fixed VA	5.88%	+0.04%	6.21%	+0.02%

What About Refinance Rates Today?

Refinancing allows homeowners to replace their current mortgage with a new one, ideally with a lower interest rate to reduce monthly payments or total interest paid. However, as of July 28, 2025, refinance rates have generally increased.

Refinance Program	Current Rate	Weekly Change
30-Year Fixed Refinance	7.18%	+0.11%
15-Year Fixed Refinance	5.92%	-0.02%
5-Year ARM Refinance	8.06%	+0.01%

The rise in 30-year refinance rates to 7.18% is significant and suggests lenders are adjusting pricing due to broader economic conditions. Meanwhile, the 15-year fixed refinance rate saw a small decrease, offering some relief for those targeting shorter loan terms.

Expert Expectations About Mortgage Rates: What’s Coming?

Looking ahead to August 2025 and beyond, forecasts from major housing and mortgage lending experts suggest rates will mostly stabilize with no dramatic falls expected soon:

Source	Q3 2025 (August) Forecast	Year-End 2025 Forecast	2026 Forecast
National Association of Realtors (NAR)	~6.4%	6.4%	6.1%
Realtor.com	6.5%-6.7%	6.4%	—
Fannie Mae	6.6%	6.5%	6.1%
Mortgage Bankers Association (MBA)	6.8%	6.7%	6.3%
Freddie Mac	~6.5%-6.7%	~6.5%	—
Morgan Stanley	6.5%-6.8%	—	Lower if yields drop

What does this mean practically? Most experts agree mortgage rates will hover in the 6.4% to 6.8% range in the near term, which aligns closely with today’s mortgage rates hovering around 6.9%. Some small improvements might occur if inflation eases, and if Treasury yields come down as well, but solid drops seem reserved for next year.

What Drives Mortgage and Refinance Rates Today?

Understanding mortgage rates requires understanding the bigger economic picture. Here are the core factors impacting rates as of late July 2025:

• Federal Reserve Actions: The Fed's decisions on the federal funds rate directly influence mortgage rates. Currently, the Fed has paused rate hikes, waiting to see inflation trends. If inflation cools faster, the Fed might cut rates, lowering mortgage costs.
• Inflation: Persistent inflation keeps pressure on interest rates. The Fed's goal remains to push inflation back to a 2% target. If inflation remains “sticky,” mortgage rates likely remain high or rise.
• Treasury Yields: Mortgage rates track the 10-year Treasury note closely. If Treasury yields rise, mortgage rates increase, and vice versa.
• Economic Growth: Stronger economic growth can push rates higher because it raises inflation risks and demand for credit.
• Housing Market Conditions: Limited housing inventory and strong buyer demand can keep prices and borrowing costs elevated.

Contextualizing Today’s Rates With a Simple Example

Let's say you're buying a home priced at $400,000 and financing 80% with a mortgage.

If your 30-year fixed mortgage rate is 6.90% (today's rate):

• Loan amount: $320,000
• Monthly principal & interest payment ≈ $2,127

If rates were slightly lower at 6.40%,

• Monthly payment would be closer to $2,000, saving roughly $127 per month or about $1,524 annually.

Though these differences might seem small percentage-wise, they add up and can influence buyers' decisions significantly.

Why Are Refis Rates Higher Than Purchase Rates?

Refinance rates tend to be slightly higher than purchase mortgage rates right now because:

• Lenders price refinance loans to account for longer-term interest risk and borrower credit profiles.
• Market conditions and Treasury yields have pushed rates upward overall.
• Borrower demand for refinancing has moderated somewhat, tightening competition among lenders.

Recent Changes Compared to Previous Weeks

• The 30-year fixed mortgage rate has risen modestly from 6.86% last week to 6.90% today.
• The 30-year fixed refinance rate increased more steeply from 7.06% to 7.18%.
• Shorter-term rate changes are mostly incremental, except the 7-year ARM mortgage which spiked 0.80%, a noteworthy one-week jump.

These weekly shifts may seem minor but indicate how sensitive rates are to economic news and market expectations.

Summarizing the Economic Drivers Behind Current Rate Trends

Today's mortgage and refinance rates reflect broader economic tensions between the Federal Reserve's fight against inflation and the hopes for economic growth stability. Inflation slowdown could trigger rate cuts down the line, but for now, the Fed is holding stance.

• Inflation data in mid-2025 continues to show resilience.
• Treasury yields remain elevated but have occasional dips.
• Housing market dynamics, including buyer demand and supply shortages, keep mortgage rates from dropping drastically.

This blend of factors means rate increases or decreases will likely be moderate and gradual.