Today’s Mortgage Rates – August 6, 2025: Rates Fall Steadily Across the Spectrum

As of August 6, 2025, mortgage rates have dropped slightly across the board, providing a modest break for both homebuyers and those looking to refinance. The average 30-year fixed mortgage rate is now 6.67%, down 15 basis points from last week’s 6.82%, and the 15-year fixed rate decreased from 5.75% to 5.70%, according to Zillow's latest data.

Refinance rates also saw mild declines, with the 30-year fixed refinance rate dropping from 6.93% to 6.90%. These shifts indicate a cooling, if gradual, easing after months of higher rates that have challenged affordability.

Today's Mortgage Rates – August 6, 2025: Rates Fall Steadily Across the Spectrum

Key Takeaways

• 30-year fixed mortgage rates dropped to 6.67%, down from 6.82% last week
• 15-year fixed rates also fell slightly to 5.70%
• 5-year and 7-year ARM rates declined as well, hovering around 7.08%
• 30-year fixed refinance rates eased to 6.90%, down from 6.93%
• The Federal Reserve’s ongoing monetary policy closely influences rates, with potential cuts expected later in 2025
• Experts forecast mortgage rates could further drop to around 6.4% by year-end 2025 and 6.1% in 2026 (National Association of REALTORS®)
• Economic factors—such as inflation, GDP growth, and employment trends—continue to shape the mortgage market

Understanding Today’s Mortgage Rates: What You Need to Know

Mortgage rates, the interest charged on home loans, have experienced significant fluctuations over the past few years due to economic changes and Federal Reserve policy moves. Today’s rates around 6.67% for a 30-year fixed mortgage are lower than recent highs but still elevated in historical terms. This is important because mortgage rates directly affect monthly payments, home affordability, and real estate demand.

The Federal Reserve’s moves on interest rates and inflation have strongly affected mortgage costs. Following several rate hikes to combat inflation, the Fed has paused in 2025, with market watchers anticipating potential rate cuts in the coming months. These developments create some optimism for borrowers looking for lower borrowing costs.

Current Mortgage Rates by Loan Type (August 6, 2025)

Loan Program	Rate	1-Week Change	APR	1-Week APR Change
30-Year Fixed	6.67%	-0.15%	7.12%	-0.16%
20-Year Fixed	6.41%	-0.05%	6.80%	-0.13%
15-Year Fixed	5.70%	-0.17%	5.99%	-0.19%
10-Year Fixed	5.48%	-0.26%	5.84%	-0.28%
7-Year ARM	7.08%	-0.14%	7.59%	-0.29%
5-Year ARM	7.08%	-0.47%	7.70%	-0.21%

Source: Zillow, August 6, 2025

Government-backed loans (FHA and VA) see slight changes, with 30-year fixed FHA dropping notably by over 1%, highlighting some relief for borrowers relying on these options.

Government Loan Program	Rate	1-Week Change	APR	1-Week APR Change
30-Year Fixed FHA	6.13%	-1.07%	7.14%	-1.10%
30-Year Fixed VA	6.21%	-0.08%	6.42%	-0.08%
15-Year Fixed FHA	5.88%	+0.36%	6.84%	+0.33%
15-Year Fixed VA	5.85%	+0.01%	6.20%	+0.02%

Current Refinance Rates (August 6, 2025)

Refinancing has seen a bit of a mixed picture but mostly slight declines for most loan types, signaling potential opportunities for homeowners wanting to lower monthly payments.

Loan Type	Rate	1-Week Change
30-Year Fixed Refi	6.90%	-0.03%
15-Year Fixed Refi	5.73%	+0.01%
5-Year ARM Refi	7.67%	+0.01%

What Does This Mean in Real Numbers? Sample Calculations

To understand how these shifts affect borrowers, let’s consider the following example based on a $300,000 loan amount with a 30-year fixed mortgage:

Rate	Monthly Principal & Interest	Difference vs. 6.82% Rate
6.82%	$1,953	Baseline
6.67%	$1,930	-$23 per month

Savings of $23 a month may seem small, but over a year that’s nearly $275, and over the life of the loan, thousands could be saved if rates stay low and other conditions remain constant.

Why Are Mortgage Rates Changing Now?

Several factors influence daily mortgage rate movements:

• Federal Reserve Policy: The Fed’s decisions on interest rates impact borrowing costs. After aggressive hikes to counter inflation, the Fed paused in 2025, signaling possible rate cuts later this year (FOMC Minutes, July 2025).
• Economic Data: Inflation remains stubborn (core PCE around 2.7%), slowing GDP growth (~1.2% annualized), and creeping unemployment (4.5%) contribute to market uncertainty.
• Bond Markets: Mortgage rates tend to track the 10-year Treasury yield, recently fluctuating near 4.34%. As bond investors react to Fed forecasts, mortgage rates adjust accordingly.
• Housing Market Dynamics: With buyer affordability challenged by past rate highs, modest declines can ease some pressure but the backlog and inventory also affect pricing.

National Forecast for Mortgage and Refinance Rates

Multiple leading associations and analysts offer projections that help frame what borrowers might expect:

Source	Forecast
National Association of REALTORS®	Average mortgage rates at ~6.4% in H2 2025, 6.1% in 2026
Realtor.com	Rates easing slowly, expected dip to 6.4% by year-end 2025
Fannie Mae	6.5% mortgage rate at end of 2025, dropping to 6.1% in 2026
Mortgage Bankers Association	Rates holding near mid-6% range through 2025 and 2026

These forecasts consider the likelihood of Fed rate cuts amid inflation uncertainties and economic headwinds, suggesting that while rates won’t return to historic lows soon, the trend may gently move downward into 2026.

The Federal Reserve’s Role in Mortgage Rates in 2025

The Federal Reserve continues to hold significant power over mortgage interest rates through its monetary policy:

• 2021-2023: The Fed’s pandemic bond buying kept mortgage rates near historic lows; subsequent hikes drove rates sharply higher.
• Late 2024: The Fed cut rates thrice, bringing the federal funds rate down to 4.25%-4.5%.
• 2025: The Fed has paused rate changes but faces pressure to cut due to slowing growth and inflation complexities.
• Upcoming Key Dates:
  • September 16-17, 2025: Next Fed meeting, with ~47% market chance of a rate cut.
  • December 2025: Last expected opportunity for rate cuts this year.
• Long-Term Outlook: The Fed aims for rates near 2.25%-2.5% by 2027, which would support lower mortgage rates eventually.

Impact on Borrowers and Market Participants

For buyers and refinancers facing these rates today:

• Homebuyers must weigh affordability carefully. While rates are high compared to earlier decades, the recent drops offer some financial relief and hope for continued declines.
• Refinancers with mortgages above 7% may find August-December 2025 an ideal time to watch market moves and potentially lock a lower rate.
• Investors and Lenders continue to navigate volatile bond markets influenced by Fed communications and global economic shifts.

Final Thought on Mortgage Rates Today

Mortgage and refinance rates dropping slightly across the board is positive news but reflects a cautious economic environment. The Federal Reserve’s actions this year play a crucial role. Analysts generally expect a gradual easing of rates by the end of 2025 and into 2026, but factors like inflation persist as challenges. Borrowers should remain informed and closely watch upcoming Fed meetings for clearer direction.