Today’s Mortgage Rates – August 23, 2025: Rates Go Down Across the Board

Mortgage rates today on August 23, 2025, have decreased across the board, with the average 30-year fixed mortgage rate falling to 6.60%, down from 6.67% last week, according to Zillow. Refinance rates have also seen declines, with the 30-year fixed refinance rate dropping to 6.81%. This drop is influenced by weaker job growth and expected Federal Reserve interest rate cuts, offering potential relief for buyers and homeowners looking to refinance.

Today's Mortgage Rates – August 23, 2025: Rates Go Down Across the Board

Key Takeaways

• 30-year fixed mortgage rates fell to 6.60%, down 7 basis points from last week.
• 15-year fixed mortgage rates dropped slightly to 5.72%.
• 5-year ARM mortgage rates saw the largest drop to 6.86%.
• 30-year fixed refinance rates declined to 6.81%, down 10 basis points.
• Economic data points to a high likelihood of a Fed rate cut in September 2025.
• Experts predict rates will remain above 6% through 2025, with gradual easing expected by 2026.
• Fed's monetary policy and economic signals strongly influence mortgage rate trends.

Overview of Today’s Mortgage Rates – August 23, 2025

Mortgage rates have spent much of 2025 fluctuating within a narrow range, roughly between 6.6% and 6.8%. This week, Zillow reports a modest drop in rates across the most common loan options.

Loan Type	Current Rate (8/23/25)	Change from Last Week	APR	APR Change
30-Year Fixed Rate	6.60%	↓ 0.07%	7.05%	↓ 0.07%
15-Year Fixed Rate	5.72%	↓ 0.01%	6.02%	↓ 0.01%
5-Year ARM	6.86%	↓ 0.12%	7.62%	↓ 0.19%
30-Year Fixed Refinance	6.81%	↓ 0.10%	–	–

The downtrend in rates is related primarily to economic data released in early August, showing weaker job growth and inflation easing more than expected. As markets react to this information, traders increasingly anticipate the Federal Reserve will reduce interest rates by 25 basis points in the upcoming September meeting. This near-certainty is pushing mortgage rates downward, though experts caution rates will likely stay above 6% for the foreseeable future.

Mortgage Rate Trends: Causes and Impacts

Economic Influences on Mortgage Rates

Economic reports from July and early August paint a picture of a slowing labor market and persistent but slightly improving inflation. The July jobs report showed weaker employment gains, with the unemployment rate edging up to 4.2%. While inflation remains sticky (Core PCE was about 2.7%), it has softened enough to fuel speculation of a rate cut by the Fed. These economic forces affect mortgage rates directly because:

• The Federal Reserve’s monetary policy guides short-term interest rates.
• Mortgage rates are influenced by the bond market, particularly the yield on 10-year Treasury notes.
• Expectations of Fed rate cuts encourage lower mortgage rates because borrowing costs for lenders are expected to reduce.

The Federal Reserve's Role

The Fed aggressively raised rates from 2022 through mid-2023 to combat inflation, causing mortgage rates to surge to levels unseen in two decades. However, after a pause, the Fed cut rates three times in late 2024 and has held steady in 2025 awaiting more data. The consensus now strongly favors a rate cut in September 2025, signaling a potential turning point for mortgage affordability.

Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium will be closely watched for confirmation of this outlook

Detailed Mortgage Rate Data by Loan Type

Conforming Loan Rates

Program	Rate	Change Last Week	APR	APR Change
30-Year Fixed Rate	6.59%	↓ 0.07%	7.05%	↓ 0.07%
20-Year Fixed Rate	6.43%	↓ 0.24%	6.90%	↓ 0.08%
15-Year Fixed Rate	5.72%	↓ 0.05%	6.02%	↓ 0.05%
10-Year Fixed Rate	5.79%	↑ 0.31%	6.09%	↑ 0.25%
7-Year ARM	7.13%	↓ 0.40%	7.60%	↓ 0.40%
5-Year ARM	6.86%	↓ 0.38%	7.62%	↓ 0.19%
3-Year ARM	—	0.00%	—	0.00%

Government Loan Rates

Program	Rate	Change Last Week	APR	APR Change
30-Year Fixed FHA	5.95%	↓ 0.10%	6.96%	↓ 0.10%
30-Year Fixed VA	6.20%	↑ 0.06%	6.42%	↑ 0.09%
15-Year Fixed FHA	5.53%	↓ 0.03%	6.49%	↓ 0.03%
15-Year Fixed VA	5.83%	↑ 0.08%	6.20%	↑ 0.12%

Refinance Rates Today

Refinance rates have also decreased this week, though movements are mixed depending on the loan product.

Refinance Program	Rate	Change from Last Week
30-Year Fixed Refinance	6.81%	↓ 0.10%
15-Year Fixed Refinance	5.64%	↓ 0.04%
5-Year ARM Refinance	7.58%	↑ 0.13%

Owners considering refinancing might find it beneficial to watch the Fed’s moves closely. A Federal Reserve rate cut could reduce mortgage interest rates more significantly in the coming weeks, opening up savings opportunities.

Mortgage Rate Forecasts for the Coming Months

Based on current data and expert forecasts:

• The National Association of REALTORS® forecasts mortgage rates to average about 6.4% in the second half of 2025 and decline to near 6.1% in 2026. Lower rates would improve homebuying affordability and boost market demand.
• Fannie Mae projects mortgage rates ending 2025 around 6.5%, easing to 6.1% in 2026. They expect mortgage originations to rise reflecting renewed market activity.
• Mortgage Bankers Association expects rates to hover near 6.8% through September 2025, then gradually dip into the mid-6% range through 2026, signaling a slow but steady decline.
• Realtor.com predicts rates will ease to about 6.4% by year-end.

These projections hinge particularly on inflation trends and the Fed’s policy actions. Should inflation remain stubborn, rate cuts may slow, sustaining higher borrowing costs longer.

Impact on Buyers and Refinancers

Mortgage rates hovering near or above 6% may seem high compared to historical norms of the last decade, but these rates are significantly below the peak mortgage rates experienced in early 2023. Buyers and refinancers face a complex decision environment:

• Buyers must balance the cost of borrowing with changes in home prices and their personal financial readiness. Waiting for rates to drop below 6% might delay homeownership past a point that is optimal for their situation.
• Homeowners with adjustable-rate mortgages (ARMs) or with rates above 7% are well-positioned to benefit from refinancing if rates decline further after the Fed's expected cuts.

Mortgage Calculation: Monthly Payment Difference at Current Rates

Let’s consider a $300,000 mortgage loan over 30 years to see how a small drop in rates affects monthly payments:

Rate	Monthly Principal & Interest Payment
6.67%	$1,934.28
6.60%	$1,914.02

A drop of 7 basis points (0.07%) reduces the monthly payment by approximately $20.26. Over a year, that is a savings of $243, which adds up significantly over the life of the loan.

Understanding the Fed’s Next Moves

The Fed's anticipated rate cut in mid-September is a major factor in the recent drop in mortgage rates. The Fed has prioritized balancing inflation control with avoiding a recession. If July and August economic data continue to signal a slowing economy, the Fed’s relief in the form of rate cuts will provide downward pressure on mortgage rates. However:

• The Fed’s decisions depend heavily on inflation data, employment reports, and broader economic indicators.
• Unexpected economic strength or new inflation pressures could delay or reduce the size of rate cuts.
• Financial markets and bond yields will react swiftly to Fed communications, impacting mortgage rates quickly.

Mortgage rates today reflect a cautious but hopeful shift toward lower borrowing costs. Borrowers, buyers, and refinancers who stay informed about economic trends and central bank signals will be best positioned to make savvy financial decisions as the market evolves.