Mortgage Rates Today July 30, 2025: Rates Hold Steady Ahead of Crucial Fed Meeting

As of today, July 30, 2025, mortgage rates remain largely stable, with the national average for a 30-year fixed mortgage holding at 6.84%, a slight decrease of 2 basis points from 6.86% last week, according to Zillow. Refinance rates for 30-year fixed loans are just a smidge higher than last week at 7.09%. Meanwhile, 15-year mortgage rates inched up slightly for purchases but went down a bit for refinancing.

This overall steadiness occurs amid Federal Reserve signals to keep interest rates steady this summer, although small shifts in adjustable-rate mortgages (ARMs) and government loans have been noted. Homebuyers and homeowners seeking refinancing will find today's mortgage rates to be reflective of a stable but cautious housing finance environment influenced by evolving economic conditions and Fed monetary policy.

Mortgage Rates Today July 30, 2025: Rates Hold Steady Ahead of Crucial Fed Meeting

Key Takeaways

• 30-year fixed mortgage rate: Stable at 6.84%, down slightly by 0.02% from last week.
• 15-year fixed mortgage rate: Up marginally to 5.90% for purchases; refinance 15-year fixed slightly down to 5.92%.
• 5-year ARM rates: Purchase ARM rates fell to 7.58%, while refinance ARM rates dropped to 7.91%.
• FHA 30-year fixed rates sharply decreased to 6.00%, down by 1.40% from the previous week.
• Federal Reserve signals steady rates for now, with no immediate cuts expected in today's meeting.
• Market sentiment indicates a cautious outlook with inflation and employment data influencing mortgage rate trends.
• Home sales and price growth are expected to slow modestly in 2025–2026 but remain positive overall.
• Refinancing demand remains robust with refinance rates close to purchase rates.

Current Mortgage Rates Overview (July 30, 2025)

Mortgage Type	Rate (%)	Weekly Change	APR (%)	Weekly Change
Conventional Loans
30-Year Fixed	6.84	Down 0.01%	7.31	Down 0.01%
20-Year Fixed	6.61	Up 0.23%	7.12	Up 0.34%
15-Year Fixed	5.90	No change	6.20	No change
10-Year Fixed	5.94	Up 0.19%	6.34	Up 0.22%
7-Year ARM	7.56	Up 0.80%	7.81	Up 0.15%
5-Year ARM	7.58	Down 0.15%	7.92	Down 0.10%

 

Mortgage Type	Rate (%)	Weekly Change	APR (%)	Weekly Change
Government Loans
30-Year Fixed FHA	6.00	Down 1.40%	7.01	Down 1.43%
30-Year Fixed VA	6.30	Down 0.02%	6.45	Down 0.08%
15-Year Fixed FHA	5.63	Up 0.12%	6.59	Up 0.08%
15-Year Fixed VA	5.92	Up 0.07%	6.18	Down 0.02%

Source: Zillow

Current Refinance Rates Overview (July 30, 2025)

Refinance Type	Rate (%)	Weekly Change
30-Year Fixed Refi	7.09	Down 0.01%
15-Year Fixed Refi	5.92	Down 0.01%
5-Year ARM Refi	7.91	Down 0.04%

Refinance rates remain close to purchase rates, with minor declines providing some relief for homeowners looking to refinance.

What’s Driving Today’s Mortgage Rates?

Mortgage rates today, including for home purchases and refinancing, are importantly influenced by broader economic indicators and Federal Reserve policies. After late 2024 rate cuts by the Fed, the federal funds rate currently holds steady around 4.25%-4.5%, with further rate cuts expected but not guaranteed this year. The Fed’s indication to hold rates steady at their July 2025 meeting reflects caution amid weak labor market signals and moderate inflation pressures.

President Trump's earlier calls for rate cuts to ease government debt costs remain a contentious topic within Fed circles. The Fed prefers a data-driven approach, wary of inflation risks partially linked to tariffs. These economic considerations cause mortgage rates to hover in the mid to high sixes for fixed loans, with some volatility in adjustable-rate options.

Additionally, the housing market itself plays a role: home sales forecasts predict a slight slowdown to about 4 million homes sold in 2025, slightly below 2024’s figures, with home price growth slowing to 2.5%. The cooling demand reduces upward mortgage rate pressure but aligns with the Fed’s gradual easing cycle.

Federal Reserve’s Impact on Mortgage Rates

The Federal Reserve's monetary decisions echo directly in the mortgage rate environment. Since the pandemic, the Fed has shifted from near-zero rates to multiple hikes, followed by cautious cuts last year, seeking balance between inflation control and growth support.

• Late 2024: Three rate cuts lowered the fund rate by 1 percentage point to the current level.
• 2025 Forecast: The Fed signals two more rate reductions expected but remains split on when.
• Economic factors: Inflation, tariff-related price pressures, and slowing economic growth all impact Fed decisions.
• Mortgage rate projections: Analysts expect current mid to high 6% mortgage rates to gradually decline to near 5% by 2028 if inflation eases.

Bond markets currently assign a low probability (~5%) of a July 2025 rate cut, leaning more toward cuts later in the year.

Comparing Fixed-Rate Mortgages to Adjustable-Rate Mortgages (ARMs)

Today’s data show that fixed-rate loans remain the dominant choice for borrowers seeking predictable payments, with 30-year fixed loans stable at 6.84%. However, some borrowers might consider ARMs given their slightly fluctuating rates:

• 5-year ARM purchase rate: 7.58%, down by 3 basis points from last week.
• 7-year ARM purchase rate: Up notably by 80 basis points to 7.56%.

While ARMs often start with lower initial rates, their adjustments introduce uncertainty. The recent jump in the 7-year ARM suggests tighter market conditions or lender caution.

FHA and VA Loan Rates: What You Should Know

Government-backed loans through FHA and VA programs often present lower initial rates or easier qualifying criteria:

• FHA 30-year fixed rate dropped significantly to 6.00% (down 1.40%), a notable decrease likely to attract more buyers.
• VA 30-year fixed rate held steady near 6.30%, slightly down from last week.

These loans remain attractive for first-time homebuyers or those with less-than-perfect credit and can sometimes offer lower monthly payments despite similar APRs.

Example: Comparing Monthly Payments on a 30-Year Fixed-Rate Mortgage

Let’s compare a typical mortgage payment today for a $300,000 loan using two rate scenarios:

Rate	Monthly Payment (Principal & Interest)
6.84%	$1,946
7.06%	$2,006

A 0.22% rate difference translates to about $60 per month, or $720 annually — significant over the life of a loan.

Longer-Term Mortgage Rate Forecast

Industry forecasts by Fannie Mae and the Mortgage Bankers Association suggest:

• Average mortgage rates will stay around 6.5%-6.8% through late 2025.
• Slight declines are expected in 2026 as inflation eases and monetary policy loosens.
• By 2028, rates could approach 5% if economic conditions stabilize.

This forecast aligns with economic growth projections of 1.4% GDP growth for 2025 and a slow but steady increase in home prices.

Housing Market and Mortgage Rate Interaction

Mortgage rates significantly influence buyer behavior and home prices:

• Higher rates mean higher monthly payments, reducing affordability.
• Slower home sales forecast for 2025 reflect buyer caution amid current rates.
• Price growth slowing to 2.5% helps counterbalance rate pressures for buyers.

My Perspective

Given today’s rate environment and economic outlook, I view the current mortgage rates as a plateau after months of fluctuation. The Fed walks a tightrope between managing inflation and supporting growth, resulting in a cautious but stable mortgage market. Buyers should watch the Federal Reserve announcements closely in coming months. Even small shifts of 0.10%-0.20% in rate can impact affordability and refinancing decisions.

Refinance applicants, while facing rates slightly higher than purchase rates, may still find value due to potential loan term restructuring or cash-out possibilities. Government loans like FHA now offer comparatively attractive fixed rates that could benefit many.

This period is not excitingly low-rate like the pandemic era, but rates below 7% might still be manageable in the context of current incomes and home prices, especially given expected slowing home price increases.

Summary Tables of July 30, 2025 Mortgage and Refinance Rates

Loan Type	Purchase Rate (%)	Weekly Change	Refinance Rate (%)	Weekly Change
30-Year Fixed	6.84	Down 0.02%	7.09	Down 0.01%
15-Year Fixed	5.90	Up 0.01%	5.92	Down 0.01%
5-Year ARM	7.58	Down 0.03%	7.91	Down 0.04%
FHA 30-Year Fixed	6.00	Down 1.40%	N/A	N/A
VA 30-Year Fixed	6.30	Down 0.02%	N/A	N/A