Today’s Mortgage Rates – September 5, 2025: 30-Year FRM Goes Down by 3 Basis Points

As of September 5, 2025, mortgage rates have slightly decreased overall from the previous week, with the national average for a 30-year fixed mortgage standing at 6.56%, down 3 basis points from last week's 6.59%, according to Zillow. The 15-year fixed mortgage rate fell to 5.52%, a 4 basis point decrease, while the 5-year adjustable-rate mortgage (ARM) increased to 6.90%, up by 10 basis points.

Conversely, refinance rates saw a slight uptick in the 30-year fixed refinance rate to 6.83%, up 7 basis points, but it remains down 1 basis point compared to the previous week's average of 6.84%. These current rates reflect a cautiously optimistic scene for both homebuyers and refinancers, with economic signals pointing toward potential Federal Reserve interest rate cuts that might further lower borrowing costs soon.

Today's Mortgage Rates – September 5, 2025: 30-Year FRM Goes Down by 3 Basis Points

Key Takeaways

• 30-year fixed mortgage rate: 6.56%, down 3 basis points from last week.
• 15-year fixed mortgage rate: 5.52%, down 4 basis points.
• 5-year ARM rate: 6.90%, up 10 basis points.
• 30-year fixed refinance rate: 6.83%, increased by 7 basis points but down 1 basis point from last week.
• Federal Reserve expectations: Market pricing in a 91% chance of a 0.25% rate cut at the September meeting.
• Rates remain above 6% for now: Industry experts expect rates to hover above 6% through 2025.
• Mortgage applications for refinance: Nearly 47%, the highest since October (Freddie Mac).
• Economic context: Cooling inflation but persistent core inflation; slowing job growth influencing Fed policy.

Current Mortgage Rates Today (September 5, 2025)

Mortgage rates today slightly improved for fixed-rate loans and fluctuated for adjustable-rate mortgages. The small decrease in fixed mortgage rates reinforces some optimism for homebuyers who have been seeing mortgage rates stuck mostly above 6.5% for much of 2025. Below is a comparative table with the most recent rates and weekly changes.

Loan Type	Rate (%)	Change Last Week (%)	APR (%)	APR Change Last Week (%)
30-Year Fixed	6.56	-0.03	6.92	-0.11
20-Year Fixed	6.28	-0.15	6.56	-0.29
15-Year Fixed	5.52	-0.04	5.75	-0.20
10-Year Fixed	5.79	0.00	6.09	0.00
7-Year ARM	7.08	+0.03	7.60	-0.10
5-Year ARM	6.90	+0.10	7.46	-0.13

Data Source: Zillow, September 5, 2025

The 30-year fixed mortgage rate, the most popular among homebuyers for its stability and predictable payments, remains just above 6.5%, providing marginally improved conditions compared to a week ago. Meanwhile, ARMs have shown volatility, reflecting market uncertainty about future rate fluctuations.

Government Loans Mortgage Rates

Government-backed loans like FHA and VA typically offer slightly lower rates for eligible borrowers. Here are the latest government loan mortgage rates:

Program	Rate (%)	Change Last Week (%)	APR (%)	APR Change Last Week (%)
30-Year Fixed FHA	5.80	-0.21	6.81	-0.21
30-Year Fixed VA	5.86	-0.21	6.07	-0.20
15-Year Fixed FHA	5.38	-0.13	6.34	-0.13
15-Year Fixed VA	5.27	-0.43	5.62	-0.40

These government loan programs continue to carry rates generally lower than conventional loans, making them attractive options especially for first-time buyers or veterans.

Refinance Rate Trends on September 5, 2025

Refinance rates have seen mixed results this week. The average 30-year fixed refinance rate increased slightly to 6.83% from 6.76% last week, but remains virtually unchanged compared to the previous week's 6.84%.

Refinance Loan Type	Rate (%)	Change Last Week (%)
30-Year Fixed Refinance	6.83	+0.07
15-Year Fixed Refinance	5.59	+0.09
5-Year ARM Refinance	7.39	+0.07

Refinancing activities have been buoyed by borrowers looking to capitalize on the recent dip in rates and are expected to grow further if the Federal Reserve cuts interest rates later this month as predicted.

Economic and Monetary Context for Mortgage Rates

The Federal Reserve’s monetary policy is playing a pivotal role in shaping mortgage rates. Following an aggressive rate hike cycle from 2022 to mid-2023, the Fed has held steady throughout 2025 but is poised to cut interest rates by 0.25% at its September meeting, a move largely priced in by markets. This easing is a response to slower job growth, persistently high core inflation (around 2.7%), and overall economic headwinds.

Market signals support this view:

• The 10-year U.S. Treasury yield, closely tied to mortgage rates, dropped to approximately 4.19% as of September 4, 2025.
• Economic indicators show inflation easing but wage growth cooling, which together justify the Fed’s likely shift to easier policy.

The Federal Reserve does not directly set mortgage rates but influences them via the broader bond market and economic outlook. Rate cuts could lead to gradual declines in mortgage interest rates, although experts expect rates to remain above 6% for the foreseeable future.

Mortgage Rate Forecast and Impact

Several respected organizations have issued forecasts for mortgage rates through 2025 and 2026:

Source	Forecast 2025 Avg Rate	Forecast 2026 Avg Rate	Notes
Fannie Mae (August 2025)	6.5%	6.1%	Rates expected to ease gradually with easing Fed policy
Realtor.com	~6.4% by year-end	–	Anticipates rates to ease slowly, matching prior year
Mortgage Bankers Association	6.7% by end of 2025	6.5% by end of 2026	Rate volatility expected; refinance volume rising
National Association Realtors	6.4% H2 2025	6.1%	Emphasizes mortgage rate impact on housing demand

The consensus forecast suggests mortgage rates will remain relatively high through 2025 but trend downward, possibly reaching just above or below 6% by mid-2026. This outlook implies steady but cautious optimism for potential homebuyers and existing homeowners considering refinancing.

Example Scenario: How Monthly Payments Change with Current Rates

Consider a $300,000 home loan to understand how current mortgage rates affect your monthly payments:

Loan Type	Rate (%)	30-Year Fixed Monthly P&I Payment*
6.59% (Last Week)	6.59	$1,899
6.56% (Today)	6.56	$1,891
6.00% (Forecast)	6.00	$1,799

*P&I = Principal and Interest only; does not include taxes or insurance.

A reduction of just a few basis points in mortgage rates translates to noticeable monthly savings for borrowers, highlighting why even small changes in rates can be significant.

Refinancing Considerations

Refinance applicants are increasing as rates decline; with nearly 47% of recent mortgage applications being refinance requests, many homeowners see opportunities to lower their monthly payments or adjust their loan terms. For example, refinancing a $300,000 loan from a 7% rate to a 6.8% rate could save upwards of $70 monthly on principal and interest alone.

However, refinancing decisions depend on individual financial situations and timing, especially in a market where rate volatility is expected to continue.

Why Are Mortgage Rates Still Elevated?

Despite signs of cooling inflation and anticipated Fed rate cuts, mortgage rates remain elevated above 6% largely because:

• Inflation, though slowing, remains stubbornly above the Fed’s 2% target.
• The Fed’s accumulated interest rate hikes have raised the baseline borrowing cost.
• Economic uncertainties and tariff tensions continue to create caution in financial markets.
• Mortgage rates reflect longer-term bond yields that respond not only to immediate Fed policy but also to inflation expectations and global economic factors.

What Does the Federal Reserve’s September Meeting Mean for Borrowers?

The Fed's meeting on September 16-17, 2025, is the focal point for mortgage rate movements in the near term. The widespread expectation of a 25 basis point rate cut is built into current bond prices and mortgage rates, meaning actual rate reductions may materialize in the weeks following if the Fed acts as anticipated.

Markets will closely watch the Fed's updated economic projections (“dot plot”) to gauge the pace and scale of future easing. Any deviation from expectations—such as a smaller cut or no cut—could result in sudden mortgage rate adjustments.

Personal Insights and Market Outlook

Based on the available data and trends:

• Mortgage rates remain high by historical standards but have eased slightly from their peaks earlier in 2025.
• A cautious approach is warranted since rates can be volatile, reacting to economic data and Fed communications.
• For buying and refinancing, personal financial goals should guide decisions rather than attempts to perfectly time market fluctuations.
• The expected Fed rate cut in September is an important event that might improve mortgage affordability, but rates are unlikely to plunge drastically overnight.
• Government loan programs continue to offer competitive rates, providing alternatives for eligible borrowers.
• Continued monitoring of job reports and inflation data is essential because these heavily influence Fed policy and mortgage rates.