Today’s Mortgage Rates – August 14, 2025: 30-Year FRM Goes Down by 6 Basis Points

On August 14, 2025, mortgage rates have slightly decreased for 30-year fixed loans but mixed for other types, with refinance rates generally showing a slight drop compared to last week. According to Zillow, the national average 30-year fixed mortgage rate dropped to 6.61%, down 7 basis points from 6.68% the previous week, while the 15-year fixed rate inched up a bit to 5.70%. Meanwhile, the 30-year fixed refinance rates decreased by 7 basis points to 6.88%. This small dip is largely tied to mixed inflation data and expectations of potential Federal Reserve rate cuts later this year.

Today's Mortgage Rates – August 14, 2025: 30-Year FRM Goes Down by 6 Basis Points

Key Takeaways

• 30-year fixed mortgage rate dropped to 6.61%, slightly down from last week’s 6.68%.
• 15-year fixed mortgage rate increased marginally to 5.70%.
• 30-year fixed refinance rate fell to 6.88%, a 7 basis-point decrease.
• Inflation data and Federal Reserve outlooks influence rate fluctuations.
• Experts forecast rates to stay above 6% through 2025, with potential declines only expected closer to 2026.
• Different loan programs, including FHA and VA, show distinct rate trends.
• The Federal Reserve’s monetary policy remains the primary driver of mortgage rate trends.

Mortgage rates reflect the cost of borrowing money to buy a home or refinance an existing loan. Today’s mortgage rates are a close reflection of the financial market’s response to economic indicators, inflation, and Federal Reserve policies.

Current Mortgage Rate Overview

Loan Type	Rate on Aug 14, 2025	Weekly Change
30-Year Fixed	6.61%	Down 0.07%
15-Year Fixed	5.70%	Up 0.01%
5-Year ARM	7.24%	Up 0.13%

For conforming loans, the 30-year fixed rate remains stable but has edged slightly downward from last week’s average. On average, mortgage rates have settled into a pattern of modest fluctuations rather than dramatic spikes or drops.

Breakdown by Loan Program

Program	Rate	1-Week Change	APR	APR Change
30-Year Fixed (Conforming)	6.61%	Down 0.07%	7.11%	Down 0.03%
15-Year Fixed (Conforming)	5.70%	Down 0.06%	6.03%	Down 0.03%
30-Year Fixed FHA	6.07%	Down 0.30%	7.08%	Down 0.31%
30-Year Fixed VA	6.09%	Down 0.06%	6.31%	Down 0.04%

Source: Zillow

Government loan rates such as FHA and VA have seen slight declines, particularly for the 30-year fixed plans, which is favorable for borrowers looking for alternatives to conventional loans.

Refinance Rates as of August 14, 2025

Refinancing a mortgage involves replacing an existing loan with a new one, usually to take advantage of lower rates or different loan terms. Like purchase mortgages, refinance rates reflect current financial market conditions.

Refinance Loan Type	Rate	Weekly Change
30-Year Fixed Refinance	6.88%	Down 0.07%
15-Year Fixed Refinance	5.72%	Up 0.08%
5-Year ARM Refinance	7.81%	Up 0.25%

While the 30-year refinance rate dropped slightly this week, ARM refinance rates have increased, showing a mixed picture for homeowners considering a refinance.

Why Are Mortgage Rates Fluctuating?

Mortgage rate fluctuations in August 2025 are influenced by several economic events and indicators, including inflation data and Federal Reserve policy signals.

Inflation’s Role

The recent release of the July Consumer Price Index (CPI) showed mixed results:

• Core inflation (excluding food and energy) experienced the largest gain in six months.
• However, annual inflation remained steady and even beat economists’ expectations.

These mixed signals have caused mortgage rates to edge both up and down as markets try to assess the Fed’s next moves.

Federal Reserve Interest Rate Outlook

The Federal Reserve’s actions on the federal funds rate significantly impact mortgage rates. Following a series of hikes from 2022 to mid-2023, the Fed shifted to cutting rates three times in late 2024, reducing the benchmark to 4.25%-4.5%.

• In 2025, the Fed has held rates steady through several meetings but faces internal division on potential cuts.
• The September 2025 Fed meeting has an 89% probability of a rate cut, according to the CME FedWatch tool, which may push mortgage rates down.
• Long-term forecasts expect mortgage rates above 6% for the remainder of 2025, with easing closer to 2026.

Mortgage Rate Forecasts from Trusted Authorities

Several notable organizations have shared their expectations for mortgage rates in the coming months:

• National Association of REALTORS® expects mortgage rates to average 6.4% in the second half of 2025 and fall to about 6.1% in 2026.
• Fannie Mae revisions predict mortgage rates ending 2025 near 6.5%, with a dip to 6.1% in 2026.
• Mortgage Bankers Association projects rates will stay mostly steady near 6.8% through September 2025, then decline slightly to 6.7% by year-end.
• Realtor.com forecasts rates easing slowly, matching the previous year’s averages with a dip to 6.4% by 2025 year-end.

These forecasts reflect caution because ongoing inflation risks and economic uncertainties remain.

How Does This Affect Home Buyers and Refinancers?

For Home Buyers:

• Mortgage rates hovering above 6% mean monthly payments remain relatively high compared to recent years.
• The downward trend expected later in 2025 may encourage buyers to wait if possible.
• However, dramatic rate changes are unlikely, so decisions should consider personal financial readiness beyond timing the market.

For Refinancers:

• Those with mortgage rates above 7% will watch closely for rate cuts in September or December.
• The slight recent drop in 30-year refinance rates provides some relief but ARM refinances remain higher.
• Refinancers need to factor in closing costs against potential savings from a lower rate.

Examples of Payment Changes Based on Today’s Rates

Let’s consider examples of how payment amounts change with current 30-year fixed mortgage rates:

Loan Amount	Rate (%)	Monthly Principal & Interest Payment
$300,000	6.61	$1,916
$300,000	6.68	$1,933
$300,000	7.00	$1,996

Decreasing the rate by just 0.07% saves about $17 monthly on a $300,000 loan, which adds up over the life of the loan.

The Federal Reserve’s Monetary Policy and Mortgage Rates

The Fed’s decisions on interest rates are crucial for mortgage rate trends:

• From late 2021 to mid-2023, aggressive rate hikes to tackle inflation pushed mortgage rates to 20-year highs.
• In late 2024, the Fed started cutting rates modestly.
• In 2025, the Fed paused, balancing slowing growth against persistent inflation.
• Markets anticipate Fed rate cuts later this year may signal mortgage rate relief by late 2025 or early 2026.

Investors and borrowers alike watch the Fed closely because its policy stance dictates the broader economic conditions influencing mortgage lending rates.

Summary Table of Rate Changes for Major Mortgage Types (August 14, 2025)

Loan Type	Current Rate	Weekly Change	Trend Direction
30-Year Fixed (Purchase)	6.61%	Down 0.07%	Slightly Lower
15-Year Fixed (Purchase)	5.70%	Up 0.01%	Slightly Higher
5-Year ARM (Purchase)	7.24%	Up 0.13%	Increasing
30-Year Fixed FHA (Purchase)	6.07%	Down 0.30%	Significantly Lower
30-Year Fixed VA (Purchase)	6.09%	Down 0.06%	Slightly Lower
30-Year Fixed Refinance	6.88%	Down 0.07%	Slightly Lower
15-Year Fixed Refinance	5.72%	Up 0.08%	Slightly Higher
5-Year ARM Refinance	7.81%	Up 0.25%	Increasing