Average 30-Year Mortgage Rate Today Drops by 15 Basis Points – August 8, 2025

Good news for potential homebuyers and those looking to refinance! The 30-year fixed mortgage rate (FRM) has seen a welcome dip. As of today, August 8, 2025, the national average for a 30-year fixed mortgage has dropped by 15 basis points to 6.67%, according to Zillow. This marks a change from the previous week's average of 6.82%. Let's dive into what this means for you and the broader housing market.

Average 30-Year Mortgage Rate Today Drops by 15 Basis Points – August 8, 2025

What's Happening with Mortgage Rates Today?

While the headline focuses on the 30-year FRM, it's important to get the full picture. Here's a quick rundown of where rates stand today. I have summarized the table below.

• 30-Year Fixed Rate: 6.67% (Down 0.16% from last week)
• 20-Year Fixed Rate: 6.41% (Down 0.05% from last week)
• 15-Year Fixed Rate: 5.73% (Down 0.15% from last week)
• 10-Year Fixed Rate: 5.48% (Down 0.26% from last week)
• 7-year ARM: 7.08% (Down 0.14% from last week)
• 5-year ARM: 7.38% (Down 0.17% from last week)

It's interesting to notice that the 20-year FRM is at 6.41% which is lower than the 30-year FRM.

Digging Deeper: What Do These Numbers Mean?

A basis point is simply one-hundredth of a percent. So, a 15 basis point drop translates to a 0.15% decrease in the interest rate. While it might seem small, this can add up to significant savings over the life of a 30-year mortgage. For example, on a $300,000 loan, a 0.15% decrease can translate to thousands of dollars saved in interest over three decades.

Here's the current rate landscape for conforming loans, according to Zillow, as of August 8, 2025:

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	6.67%	down0.16%	7.00%	down0.28%
20-Year Fixed Rate	6.41%	down0.05%	6.80%	down0.13%
15-Year Fixed Rate	5.73%	down0.15%	5.96%	down0.21%
10-Year Fixed Rate	5.48%	down0.26%	5.84%	down0.28%
7-year ARM	7.08%	down0.14%	7.59%	down0.29%
5-year ARM	7.38%	down0.17%	7.71%	down0.20%
3-year ARM	—	0.00%	—	0.00%

The APR (Annual Percentage Rate) includes not just the interest rate, but also other fees associated with the mortgage. These fees can include origination fees, discount points, and other closing costs. The 1-Week change (1W CHANGE) indicates the drop in percentages over the last one week.

Expert Opinions and Predictions: What's in Store for the Future?

Predicting the future of mortgage rates is always a tricky business. However, we can look at forecasts from various experts to get an idea of where things might be headed.

• Realtor.com Housing Forecast: Foresees mortgage rates easing slowly, potentially matching the prior year's average, with a possible dip to 6.4% by year-end.
• Fannie Mae: Projects mortgage rates to end 2025 at around 6.5% and 2026 at 6.1%.
• Mortgage Bankers Association: Anticipates 30-year mortgage rates to remain mostly unchanged and near 6.8% through September 2025, then settling in the mid-6% range (6.4%-6.6%) by the end of the year. Note that they expect the rates to hold steady around 6.3% into 2026
• Morgan Stanley: Suggests rates could fall with Treasury yields, with home prices potentially decreasing slightly due to increased housing supply.

These predictions suggest a general consensus that mortgage rates will likely moderate in the coming months, but significant drops aren't necessarily expected.

The Federal Reserve's Influence: The Puppet Master Behind the Curtain

It's crucial to understand the role of the Federal Reserve (the Fed) in shaping mortgage rate trends. The Fed's decisions regarding monetary policy have a direct impact on interest rates, including mortgage rates.

• Pandemic Era: During the pandemic, the Fed's bond purchases kept mortgage rates artificially low.
• Rate Hikes (2022-2023): To combat inflation, the Fed aggressively raised the federal funds rate, pushing mortgage rates to 20-year highs.
• Recent Actions: At the 2024 end, Fed cut rates three times and have now held rates steady for five meetings in 2025 (through July 30)

The Fed's projections currently indicate two potential rate cuts in 2025. If these cuts materialize, we could see mortgage rates move closer to 6% by the end of the year. However, this is contingent on various economic factors, including inflation and GDP growth.

My Take: Why This Matters and What to Watch

As someone who's been watching the housing market for a while, here's my perspective on this news:

It's positive! Any drop in mortgage rates is a welcome sign for buyers, especially in a market where affordability has been a major challenge. However, don't get overly excited just yet. A 15 basis point drop is a step in the right direction, but it's not a game-changer.

Here are some key things to keep an eye on:

• Inflation data: Persistently high inflation could force the Fed to delay or even reverse course on rate cuts.
• Economic growth: A slowing economy could prompt the Fed to be more aggressive with rate cuts.
• Geopolitical events: Unexpected global events can impact financial markets and interest rates.
• The Fed's next move (Sept 16-17): This is very crucial as the market currently stands at 47% for Fed cuts
• The Fed's last chance to cut rate (December Meeting): This meeting is going to be crucial.

Final Thoughts

The slight dip in the 30-year fixed mortgage rate is a small but encouraging development. The housing market is complex, and navigating it requires staying informed and understanding the various factors at play.