Today’s Mortgage Rates – September 1, 2025: 30-Year FRM Jumps, Refinance Rates Dip

As of September 1, 2025, mortgage rates have edged slightly higher, with the average 30-year fixed mortgage rate increasing to 6.62%, up from last week’s 6.59%, while refinance rates have dropped modestly. This marks a small rise on Labor Day, highlighting continued market sensitivity to economic data and Federal Reserve policies. Despite this uptick in mortgage rates, refinance rates show some downward momentum, reflecting the complex interplay of monetary policy, inflation expectations, and economic growth indicators.

Today's Mortgage Rates – September 1, 2025: 30-Year FRM Jumps, Refinance Rates Dip

Key Takeaways

• 30-year fixed mortgage rate rose to 6.62%, up 3 basis points week-over-week (Zillow)
• 15-year fixed mortgage rate slightly decreased to 5.64%
• 5-year ARM mortgage rate decreased to 6.80%
• Refinance rates for 30-year fixed mortgages fell slightly to 6.82%
• Market expects a Federal Reserve interest rate cut in mid-September 2025
• Economic data points to cooling inflation and slowing job growth
• Mortgage experts forecast rates to hover above 6% into 2026
• The Federal Reserve's decisions remain the most significant factor influencing rates

Current Mortgage Rates Overview — September 1, 2025

Mortgage rates have moved in different directions this week, indicating how sensitive they remain to economic signals. The 30-year fixed mortgage rate climbed by 0.03% to 6.62%, whereas the 15-year fixed rate dipped slightly to 5.64%, showing a nuanced change in borrowing conditions depending on loan type and maturity.

Loan Type	Current Rate	Weekly Change	APR	APR Change
30-Year Fixed	6.62%	+0.04%	6.96%	-0.07%
20-Year Fixed	6.67%	+0.23%	7.09%	+0.25%
15-Year Fixed	5.64%	-0.01%	5.85%	-0.09%
10-Year Fixed	5.79%	0.00%	6.09%	0.00%
7-Year ARM	7.04%	0.00%	7.70%	0.00%
5-Year ARM	6.80%	-0.08%	7.43%	-0.16%

Source: Zillow Mortgage Rates Data — 9/1/2025

Government-Backed Loan Rates

Loan Type	Current Rate	Weekly Change	APR	APR Change
30-Year Fixed FHA	6.88%	+0.86%	7.91%	+0.88%
30-Year Fixed VA	6.14%	+0.07%	6.36%	+0.08%
15-Year Fixed FHA	5.38%	-0.13%	6.34%	-0.13%
15-Year Fixed VA	5.63%	-0.07%	5.98%	-0.05%

Mortgag eRefinance Rates Today

Refinance rates are showing a slight downtrend, a subtle difference from purchase mortgage rates. The average 30-year fixed refinance rate decreased modestly to 6.82%, down 2 basis points from last week, which may provide some relief for homeowners looking to reduce their borrowing costs.

Refinance Type	Current Rate	Weekly Change
30-Year Fixed Refinance	6.82%	-0.02%
15-Year Fixed Refinance	5.59%	-0.03%
5-Year ARM Refinance	7.14%	-0.05%

Source: Zillow Refinance Rates — 9/1/2025

Economic Factors Influencing Mortgage Rates Today

Mortgage rates today are influenced largely by the broader economic picture, especially Federal Reserve policies and market expectations of interest rate changes. Here are some critical factors impacting rates:

• Labor Market Slowdown: Job growth has weakened noticeably, with unemployment rising modestly to 4.2%. This cooling labor market signals a potential slowing economy, which tends to lead to lower interest rates in the long run.
• Inflation Data: Inflation, though somewhat persistent, is showing signs of easing. Core Personal Consumption Expenditures (PCE) hovered around 2.7%, edging closer to the Fed’s 2% target.
• Federal Reserve Actions: The Fed has kept rates steady through five consecutive meetings in 2025 but is widely expected to reduce rates by a quarter-point in the upcoming September 16-17 meeting to stimulate growth amid economic headwinds.
• Bond Market Reactions: Treasury yields, especially the 10-year yield which typically influences mortgage rates, have fluctuated but currently stand around 4.23%. The yield curve, having partly normalized, suggests markets are pricing in an interest rate cut soon.

These economic signals create a complex picture: mortgage rates rose slightly on September 1 despite expectations of cuts, potentially reflecting market volatility and uncertainty.

Looking Ahead: Mortgage Rate Forecasts

Most experts agree that rates will remain above 6% for the foreseeable future but may ease gradually.

• Fannie Mae Forecast: Mortgage rates expected to close 2025 at around 6.5% and drop to approximately 6.1% by the third quarter of 2026.
• Realtor.com Outlook: Anticipates a gradual easing to about 6.4% by the end of 2025.
• Mortgage Bankers Association: Projects a 30-year mortgage rate around 6.7% through year-end, declining to about 6.5% in 2026.
• National Association of REALTORS®: Forecasts a steady 6.4% average in the second half of 2025, with further decreases in 2026.

This information highlights an ongoing period of elevated rates compared to historic lows but hints at a slow return to more affordable financing — a notable shift from the rate spikes early in 2025.

What Recent Federal Reserve Policy Means for Mortgage Rates

The Federal Reserve remains the key driver of mortgage rate trends:

• Following aggressive rate hikes through 2022 and mid-2023 to fight inflation, the Fed paused hikes in early 2025.
• Market sentiment currently expects a quarter-point rate cut on September 16-17, with further easing possible before the end of 2025.
• Fed Chair Jerome Powell’s recent comments suggest cautious optimism towards cutting rates, contingent on incoming economic data.
• Despite this, inflation’s resilience and untamed economic forces mean rates likely won’t drop below 6% soon, causing continued upward pressure on mortgage borrowing costs.

The Fed’s monetary policy will likely keep mortgage rates above historically low levels, but subtle monetary easing could make loans more affordable in the latter half of the year and into 2026.

Mortgage Rate Impact on Homebuyers and Refinancers

The current mortgage rate environment presents a mixed bag:

• For Homebuyers: The slight uptick to 6.62% for 30-year fixed mortgages means borrowing costs remain high compared to recent years. However, expectations for rate cuts by the Fed offer hope that rates may soften soon, potentially improving home affordability.
• For Refinancers: The small decline in refinance rates (to 6.82% for 30-year fixed) may not yet be enough to spur a surge in refinancing but could become more attractive if anticipated Fed cuts materialize.
• Managing expectations is crucial — while timing the perfect moment for rates is challenging, watching for significant Federal Reserve policy changes will be key for making refinance and buying decisions.

Example: Monthly Payment Calculation for a 30-Year Fixed Mortgage at 6.62%

To make this easier to understand, let's look at a practical example. Imagine you take out a $300,000 mortgage with today's average 30-year fixed rate of 6.62%. On this loan, your monthly payment for just the loan principal and interest would be around $1,923.

This means every month, you'd pay about $1,923 toward slowly paying off the loan balance and the interest charged by the lender. Keep in mind that this doesn’t include other costs like property taxes, homeowners insurance, or any private mortgage insurance that might be required. But this number gives you a solid idea of the core monthly payment you'd expect with that loan amount and interest rate.

Summary of Mortgage and Refinance Rate Trends

Type	Rate 9/1/2025	Weekly Change	Trend Commentary
30-Year Fixed	6.62%	+0.03%	Slight increase, still elevated
15-Year Fixed	5.64%	-0.01%	Marginally down
5-Year ARM	6.80%	-0.03%	Slight decrease
30-Year Fixed Refi	6.82%	-0.02%	Small downward adjustment
15-Year Fixed Refi	5.59%	-0.03%	Slightly improving