Today’s Mortgage Rates – August 10, 2025: Rates Drop Gradually for All Loan Categories

Mortgage rates today, August 10, 2025, show a slight decline in the 30-year fixed mortgage rate to 6.75%, down 7 basis points from last week’s 6.82%, while 15-year fixed and adjustable-rate mortgage (ARM) rates have varied slightly. Refinancing rates have generally decreased, with the 30-year fixed refinance rate falling to 6.91%. These subtle shifts reflect the interplay of economic data, Federal Reserve policies, and market expectations.

Today's Mortgage Rates – August 10, 2025: Rates Drop Gradually for All Loan Categories

Key Takeaways

• 30-year fixed mortgage rate: 6.75%, down by 0.07% from last week.
• 15-year fixed mortgage rate: 5.80%, up slightly by 0.01%.
• 5-year ARM mortgage: Increased slightly to 7.40%.
• Refinance 30-year fixed rate dropped to 6.91%, down 0.08%.
• CME FedWatch tool signals 89% chance of a federal funds rate cut in September, possibly leading to further mortgage rate declines.
• Experts forecast mortgage rates to average around 6.4% in the second half of 2025, with projections for a dip to about 6.1% in 2026.
• Fed's ongoing rate decisions remain the main influence on mortgage and refinance rates.

Current Mortgage Rates: August 10, 2025

Loan Type	Interest Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed	6.75%	Down 0.07%	7.08%	Down 0.19%
20-Year Fixed	6.65%	Up 0.19%	6.93%	No Change
15-Year Fixed	5.80%	Up 0.01%	6.02%	Down 0.16%
10-Year Fixed	5.48%	Down 0.26%	5.84%	Down 0.28%
7-Year ARM	7.08%	Down 0.14%	7.59%	Down 0.29%
5-Year ARM	7.40%	Down 0.14%	7.74%	Down 0.17%

Government-Backed Loan Rates

Loan Type	Interest Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed FHA	6.69%	Down 0.51%	7.71%	Down 0.52%
30-Year Fixed VA	6.30%	Up 0.01%	6.52%	Up 0.02%
15-Year Fixed FHA	5.49%	Down 0.03%	6.45%	Down 0.06%
15-Year Fixed VA	5.83%	Down 0.01%	6.19%	Up 0.01%

Current Refinance Rates: August 10, 2025

Loan Type	Interest Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed Refi	6.91%	Down 0.08%	N/A	N/A
15-Year Fixed Refi	5.79%	Down 0.04%	N/A	N/A
5-Year ARM Refi	7.65%	Down 0.14%	N/A	N/A

(Source: Zillow – Mortgage and refinance rates, August 10, 2025)

Understanding the Current Mortgage Landscape

Mortgage rates reflect a balance between economic indicators, inflation expectations, and Federal Reserve policy. The small decline in the 30-year mortgage rate from 6.82% to 6.75% this week signals a cautious easing after months of high rates.

The recent weak July employment report is influencing markets significantly, as it increases expectations that the Fed might cut its benchmark interest rate in September. Currently, there is an 89% probability of a rate cut according to the CME FedWatch tool, which would likely push mortgage rates lower over the next several weeks.

However, mortgage rates for shorter terms, such as the 15-year fixed and adjustable-rate mortgages, showed some mixed movement—small increases or stability—which reflects investor caution amid economic uncertainties like ongoing inflation pressures and global trade dynamics.

Refinancing in Today's Rate Environment

Refinancing rates mirror purchase mortgage trends but often include slightly different pricing due to borrower risk profiles and loan types. The 30-year fixed refinance rate decrease from 6.99% to 6.91% this week could encourage some homeowners with high existing rates (above 7%) to consider refinancing, especially if Fed rate cuts materialize later in 2025.

The 5-year ARM refinance rate dropping by 14 basis points to 7.65% is notable, although ARMs continue to carry higher rates than fixed loans due to interest rate reset risks. For borrowers weighing refinance decisions, tracking not only current rates but also Fed monetary policy developments is critical.

Mortgage Rate Forecasts: What Experts Expect

Looking forward, almost all key housing market analysts point to a gradual decline in mortgage rates through late 2025 and into 2026:

• National Association of REALTORS® forecasts mortgage rates to average 6.4% in H2 2025, with a dip to about 6.1% in 2026. They highlight mortgage rates as a pivotal factor influencing affordability and buyer demand.
• Realtor.com expects average rates to ease slowly and potentially return to levels close to the previous year by the end of 2025 (~6.4%).
• Fannie Mae revised its mortgage rate outlook, expecting rates to finish 2025 at 6.5%, then fall to 6.1% in 2026.
• The Mortgage Bankers Association (MBA) projects rates to remain near 6.8% through September but to settle between 6.4% and 6.7% by the end of the year.

These forecasts reflect an economic environment where inflation pressures persist but may respond to Fed interventions, especially if rate cuts occur as anticipated.

The Federal Reserve's Role in Shaping Mortgage Rates

The Fed's monetary policy has been the dominant factor driving mortgage rate trends since 2021. After aggressive rate increases totaling 5.25 percentage points between early 2022 and mid-2023, mortgage rates surged to 20-year highs. In late 2024, the Fed shifted gears and cut its benchmark rates three times, lowering the federal funds rate to 4.25%-4.5%.

In 2025, the Fed has paused further moves for five meetings amid conflicting indicators: inflation remains stubborn around 2.7% (core PCE), but economic growth is slowing, and unemployment has ticked upward.

The Fed's September 16-17 meeting is critical, with market odds nearly 50% for a rate cut. The decisions made there and at the December meeting could determine whether mortgage rates fall further or hold steady.

Longer-term, the Fed anticipates easing rates gradually toward 2.25%-2.5% by 2027, which would likely translate to more affordable borrowing costs over the upcoming years.

Example: Impact on Monthly Mortgage Payments

To put current rates into perspective, consider a $300,000 loan amount for a 30-year fixed mortgage:

Interest Rate	Monthly Principal & Interest Payment
6.82% (Last week’s average)	$1,960
6.75% (Current rate)	$1,947

A decrease of 7 basis points (0.07%) reduces the monthly payment by about $13. While this may seem minor, over 30 years, it equates to thousands saved in interest expenses.

For refinancing, a homeowner with a 7.03% rate dropping to 6.91% could see similar savings if refinancing costs are justified by the monthly and total interest reduction.

Why Mortgage and Refinance Rates Matter Today

Mortgage and refinance rates directly influence housing affordability, monthly payments, and homeowners' financial planning. Although rates remain higher than the historic lows seen during the pandemic, the downward movements and forecasts signal potential relief in the near future.

While waiting for rates to drop significantly might be tempting, the unpredictable nature of markets underlines the importance of evaluating personal financial situations and timing decisions accordingly.