Today’s Mortgage Rates – September 12, 2025: Rates Drop Easing Borrowing Costs for Buyers

Mortgage rates today, September 12, 2025, show a slight decrease in the 30-year fixed mortgage rate, now at 6.49%, down 1 basis point from last week, while refinance rates have dropped more significantly with the 30-year fixed refinance rate at 6.46%, down 29 basis points. This marks a welcome shift for borrowers seeking new home loans or refinance options, as rates have been trending downward amid market hopes of a Federal Reserve rate cut in the upcoming September meeting. The cooling labor market and falling Treasury yields have driven this decrease, offering a more favorable borrowing environment compared to earlier in the year.

Today's Mortgage Rates – September 12, 2025: Rates Drop Easing Borrowing Costs for Buyers

Key Takeaways

• 30-year fixed mortgage rate: 6.49% (down 1 bps from last week)
• 30-year fixed refinance rate: 6.46% (down 29 bps from last week)
• Mortgage rates are falling due to anticipated Federal Reserve rate cuts and softer economic data.
• The cooling job market and lower Treasury yields are major contributing factors.
• Refinancing activity increases as more homeowners seek to capitalize on lower rates.
• Market experts expect rates to stay above 6% through 2025 but drop slightly in 2026.
• Home loan affordability improves, potentially boosting home buying demand.

Current Mortgage Rates Overview

Mortgage rates can vary by loan type and term length. Here is a breakdown of the national average mortgage rates as of September 12, 2025, according to Zillow:

Loan Type	Mortgage Rate	1-Week Change	APR	1-Week APR Change
30-Year Fixed	6.49%	+0.02%	6.85%	-0.09%
20-Year Fixed	6.22%	+0.10%	6.54%	+0.04%
15-Year Fixed	5.33%	-0.18%	5.55%	-0.29%
10-Year Fixed	5.79%	0.00%	6.09%	0.00%
7-Year ARM	6.38%	-0.55%	7.43%	-0.23%
5-Year ARM	6.94%	+0.18%	7.56%	+0.01%

Government-backed loans (FHA and VA) offer slightly different rates:

Loan Type	Mortgage Rate	1-Week Change	APR	1-Week APR Change
30-Year Fixed FHA	5.67%	-0.20%	6.68%	-0.21%
30-Year Fixed VA	6.10%	+0.15%	6.31%	+0.17%
15-Year Fixed FHA	5.18%	-0.19%	6.15%	-0.19%
15-Year Fixed VA	5.75%	+0.18%	6.10%	+0.20%

Source: Zillow

Refinance Rates Decline Significantly

Refinancing rates have seen a more substantial dip, which benefits current homeowners looking to lower their monthly payments or shorten loan terms. The latest data from September 12, 2025:

Refinance Loan Type	Rate	1-Week Change	APR	1-Week APR Change
30-Year Fixed Refinance	6.46%	-0.20%	—	—
15-Year Fixed Refinance	5.39%	0.00%	—	—
5-Year ARM Refinance	6.88%	-0.25%	—	—

This decline—a fall of nearly 30 basis points for the 30-year fixed refinance rate—has opened up renewed opportunities for homeowners to refinance their mortgages, especially those who locked in rates above 7% earlier this year.

Why Are Mortgage Rates Falling?

Mortgage rates are influenced by many forces, but three main factors are leading to the current downward trend:

• Anticipated Federal Reserve Rate Cut: There’s a strong market expectation that the Fed will reduce rates by 25 basis points at the upcoming September 16–17 meeting. Mortgage lenders often preemptively lower their rates in anticipation of such policy changes.
• Cooling Economic Indicators: Notably, the U.S. labor market has shown signs of slowing, with unemployment rising to 4.3% in August (up from 4.2% in July) and a mere 22,000 jobs added, a significant slowdown (Zillow “Mortgage Rates Drop to Lowest Level in a Year”). When growth slows, inflation pressure eases, allowing the Fed more room to cut rates.
• Falling Treasury Yields: Mortgage rates are closely linked to the 10-year Treasury yield, which recently dropped to around 4.08%, down 0.21 points from a month ago as investors seek safety (Zillow). This decline directly pushes mortgage rates lower.

The Federal Reserve’s Influence on Mortgage Rates

The Federal Reserve’s monetary policy drives much of the movement in mortgage rates. Here is a brief review of the Fed’s impact leading to September 2025:

• Pandemic Low to Inflation Fight: Early in the pandemic, the Fed’s bond-buying kept mortgage rates exceptionally low. Then, during 2022 and 2023, aggressive rate hikes to control inflation pushed mortgage rates to highs unseen in two decades.
• Rate Cuts in Late 2024: After a long pause, the Fed began cutting rates in late 2024, prompting mortgage rates to moderate.
• 2025 Stability and Anticipation: The Fed held rates stable for five meetings in 2025 amid internal debate, but recent weak job data has increased pressure for cuts.
• Upcoming September Decision: The Fed is expected to cut rates by 0.25% this month, which likely will bring mortgage rates down further.

Economic Context Behind Rate Trends

Although mortgage rates have fallen in recent weeks, they remain historically elevated compared to the ultralow rates during the pandemic era. Still, this decline:

• Encourages refinance activity, with refinance applications reaching their highest share since October of the previous year (Freddie Mac).
• Helps overcome affordability challenges, supporting housing demand despite ongoing price pressures.
• Suggests a potentially slow but steady improvement in housing market activity if rates stay near or below 6.5%.

Forecasts for Mortgage Rates

Leading economists and organizations offer the following outlooks for mortgage rates over the next 12-18 months:

Source	2025 Forecast	2026 Forecast
National Association of REALTORS®	Average 6.4% in H2 2025	Dip to 6.1%
Fannie Mae	End of 2025: 6.5%	6.1%
Realtor.com	Slow easing, ~6.4% by year's end	—
Mortgage Bankers Association	6.7% end of 2025	6.5%

Forecasts indicate that mortgage rates will likely remain above 6% for the foreseeable future but could slowly ease into 2026. This suggests buyers and refinancers will face moderately high rates, though more affordable than early 2025.

Examples of Impact: Calculation on a $350,000 Loan

To illustrate the effect of recent mortgage rate changes, consider a $350,000 loan:

Rate (%)	Monthly Principal & Interest*	Difference from 6.75% Rate
6.75% (previous week's average)	$2,268	Baseline
6.49% (current 30-year fixed)	$2,215	Saves $53 per month
6.46% (refinance rate)	$2,211	Saves $57 per month

*Estimated principal and interest payment on a 30-year fixed rate mortgage, excluding taxes and insurance.

The $57 monthly savings through refinancing at today’s rate can add up to nearly $700 annually and over $20,000 across the life of the loan, underscoring the significance of even small rate changes for borrowers.

In Summary

Recent data demonstrates a trend of slightly lower mortgage and refinance rates on September 12, 2025, delivering some relief to homebuyers and homeowners. These declines are primarily driven by market expectations of a near-term Federal Reserve rate cut, a cooling labor market, and falling Treasury yields. While mortgage rates remain higher than in recent pandemic years, this shift could spark increased activity in both home buying and refinancing in the coming months.