Today’s Mortgage Rates – July 29, 2025: 30-Year FRM Drops, Refinance Rates Rise

As of today, July 29, 2025, mortgage rates have shown mixed but mostly slight increases. The current average 30-year fixed mortgage rate fell 3 basis points from 6.90% to 6.87% on Tuesday, according to Zillow’s latest data. However, it has edged up slightly to 6.87% this week, a modest increase from last week's 6.86%.

Refinancing rates tell a similar story, with the 30-year fixed refinance rate also rising slightly from 7.06% to 7.08%. These small shifts indicate that the mortgage market is relatively steady but leans slightly higher in the short term, largely influenced by expectations around Federal Reserve policies and economic forecasts.

Today's Mortgage Rates – July 29, 2025: 30-Year FRM Drops, Refinance Rates Rise

Key Takeaways

• 30-year fixed mortgage rates rose slightly to 6.87%, up 1 basis point from the previous week.
• 15-year fixed mortgage rates increased marginally to 5.97%, showing a 3 basis point rise.
• 5-year ARM rates climbed slightly to 7.72%.
• Refinance rates moved similarly, with the 30-year refinance rate going up to 7.08% and the 15-year refinance rate falling a bit to 5.89%.
• The Federal Reserve is expected to keep interest rates steady in its July meeting to be held today and tomorrow, which may keep mortgage rates stable in the near future.
• Economic forecasts anticipate mortgage rates to remain in the mid-6% range for the remainder of 2025 and into 2026.
• Small rate changes are impacting housing affordability but not drastically shifting the market landscape.

Detailed Overview of Mortgage Rates Today: July 29, 2025

Mortgage rates are closely tied to economic conditions, inflation expectations, and Federal Reserve monetary policy. Currently, the 30-year fixed-rate mortgage, the most common loan type for homebuyers, has edged slightly upward to 6.87%. This is a tiny increase of 1 basis point (0.01%) since last week. The 15-year fixed rate, favored for quicker payoff and lower interest costs, rose by 3 basis points to 5.97%. Variable rates like the 5-year ARM (Adjustable Rate Mortgage) also increased marginally to 7.72%.

Mortgage Rates by Loan Type

The following table summarizes the key mortgage rates as of July 29, 2025:

Loan Type	Current Rate	Weekly Change (Basis Points)	APR*	APR Change
30-Year Fixed	6.87%	+1	7.34%	+2
20-Year Fixed	6.32%	-6	6.80%	+2
15-Year Fixed	5.97%	+3	6.28%	+7
10-Year Fixed	5.94%	+19	6.34%	+22
7-Year ARM	7.56%	+80	7.81%	+15
5-Year ARM	7.72%	-1	8.03%	0

*APR stands for Annual Percentage Rate, which includes fees and other costs to give a fuller picture of loan cost.

Government-Backed Loans

Government loans continue to present slightly different rates, influenced by program-specific factors.

Government Loan Program	Rate	Weekly Change	APR	APR Change
30-Year Fixed FHA	7.25%	-15 bps	8.29%	-15 bps
30-Year Fixed VA	6.41%	+10 bps	6.63%	+11 bps
15-Year Fixed FHA	5.48%	-3 bps	6.49%	-2 bps
15-Year Fixed VA	5.89%	+4 bps	6.24%	+4 bps

Where FHA stands for Federal Housing Administration loans, and VA loans denote Department of Veterans Affairs-backed mortgages.

Today's Mortgage Refinance Rates Outlook

Refinancing remains an important part of the mortgage market, allowing homeowners to potentially reduce monthly payments or access equity. As of today, the 30-year fixed refinance rate slightly decreased by 3 basis points this Tuesday to 7.08%, but remains 2 basis points higher than last week. The 15-year fixed refinance rate dropped 5 basis points to 5.89%, and the 5-year ARM refinance rate has gone down 6 basis points to 7.91%.

Refinance Loan Type	Rate	Weekly Change
30-Year Fixed Refinance	7.08%	-3 bps
15-Year Fixed Refinance	5.89%	-5 bps
5-Year ARM Refinance	7.91%	-6 bps

Why Are Mortgage Rates Slightly Rising?

The Federal Reserve’s upcoming July meeting strongly influences mortgage markets. President Donald Trump had urged the Fed to cut interest rates by several points to boost economic growth. However, economic analysts widely expect the Fed to hold rates steady this week. This likely means a period of relative stability for mortgage rates in the near term.

Fannie Mae forecasts mortgage rates to end 2025 near 6.5%, while the Mortgage Bankers Association predicts rates hovering around 6.7% through September 2025, stabilizing near 6.3% through 2026. Morgan Stanley and Realtor.com forecasts expect slow easing or marginal dips but nothing drastic, as inflation risks and economic growth remain significant factors.

Mortgage Rates Impact on Monthly Payments

To put rates into perspective, consider the impact on monthly payments for a $500,000 home loan:

Interest Rate	Monthly Principal & Interest Payment
6.87%	$3,317
6.50%	$3,161
7.00%	$3,327

(Using a 30-year fixed loan amortization formula)

Even small percentage changes in rates translate into significant monthly costs, which directly affects housing affordability for many buyers.

Expert Opinion and Market Sentiment

From my experience analyzing this market, the slight uptick in rates reflects ongoing caution by lenders and investors who are watching inflation and economic data closely. While rising rates can deter some potential buyers, the careful balance maintained by the Federal Reserve suggests the market will not see sharp spikes anytime soon.

Homebuyers should expect mortgage rates to remain relatively high compared to historical lows seen in previous years but fairly stable across the coming months. The refinance market is more dynamic with some borrowers able to edge down their rates, especially on shorter-term loans.

Summary Tables: Mortgage and Refinance Rates Overview

Rate Type	Current Rate	Weekly Change
30-year fixed mortgage	6.87%	+1 bp
15-year fixed mortgage	5.97%	+3 bps
5-year ARM mortgage	7.72%	+2 bps
30-year fixed refinance	7.08%	-3 bps
15-year fixed refinance	5.89%	-5 bps
5-year ARM refinance	7.91%	-6 bps

The overall takeaway for July 29, 2025, is that mortgage and refinance rates have experienced small, incremental increases this week, signaling a cautious but steady environment for prospective buyers and homeowners looking to refinance. Fed policies and economic factors will continue to play a critical role in shaping where rates head next.