Today’s Mortgage Rates – September 6, 2025: Rates Drop Sharply, 30-Year FRM Plummets by 18 Basis Points

On September 6, 2025, mortgage rates, including refinance rates, generally declined compared to last week, signaling potential relief for homebuyers and homeowners looking to refinance. The average 30-year fixed mortgage rate dropped to 6.41%, down 18 basis points from 6.59%, while the 15-year fixed rate held steady at 5.46%. Refinance rates also fell, with the 30-year fixed refinance rate decreasing to 6.55% from 6.68%. This downward trend reflects current economic shifts, with the Federal Reserve expected to cut interest rates soon, encouraging more affordability.

Today's Mortgage Rates – September 6, 2025: Rates Drop Sharply, 30-Year FRM Plummets by 18 Basis Points

Key Takeaways

• 30-year fixed mortgage rate fell to 6.41% as of September 6, 2025, down from 6.59% last week (Zillow).
• 15-year fixed mortgage rate remained steady at 5.46%.
• 30-year fixed refinance rate dropped to 6.55%, down 13 basis points from the prior week.
• 5-year ARM mortgage rates slightly increased to 6.69% but refinance rates for ARMs decreased.
• The Federal Reserve is expected to cut interest rates in mid-September, driving hopes for further rate declines.
• Despite recent drops, mortgage rates remain above 6% and are expected to stay so into 2026 (Fannie Mae, Realtor.com).
• Job growth has slowed, unemployment rose slightly, influencing markets and mortgage trends.
• Refinancing applications rose close to 47% of total mortgage applications, the highest since last October (Freddie Mac).
• Mortgage originations are forecasted to increase modestly through 2026.

Current Mortgage Rates Overview (September 6, 2025)

Mortgage rates affect the cost of buying or refinancing a home because they dictate the interest you pay over the loan term. Here’s a breakdown of today's average rates by mortgage type, sourced from Zillow's latest data.

Loan Type	Current Rate	Change From Last Week	APR	APR Change
30-Year Fixed	6.41%	↓ 0.18%	6.78%	↓ 0.25%
20-Year Fixed	6.28%	↓ 0.15%	6.56%	↓ 0.29%
15-Year Fixed	5.46%	↓ 0.20%	5.70%	↓ 0.24%
10-Year Fixed	5.79%	Unchanged	6.09%	Unchanged
7-Year ARM	7.08%	↑ 0.03%	7.60%	↓ 0.10%
5-Year ARM	6.69%	↓ 0.19%	7.45%	↓ 0.14%

Government-backed loans often have different rates:

Government Loan Type	Rate	Change	APR	APR Change
30-Year Fixed FHA	5.67%	↓ 0.34%	6.68%	↓ 0.35%
30-Year Fixed VA	5.84%	↓ 0.23%	6.05%	↓ 0.22%
15-Year Fixed FHA	5.18%	↓ 0.32%	6.15%	↓ 0.33%
15-Year Fixed VA	5.50%	↓ 0.20%	5.85%	↓ 0.18%

(Data last updated September 6, 2025 — Zillow)

Refinance Rates Today

Refinancing allows homeowners to replace an existing mortgage with a new loan, typically for a lower interest rate or better terms. The refinance market is reacting positively to recent rate declines.

Refinance Loan Type	Current Refinance Rate	Weekly Change	APR	Weekly APR Change
30-Year Fixed Refinance	6.55%	↓ 0.13%	—	—
15-Year Fixed Refinance	5.37%	↑ 0.01%	—	—
5-Year ARM Refinance	6.90%	↓ 0.21%	—	—

The 30-year fixed refinance rate has fallen by 29 basis points from the previous week's 6.84%, signaling better opportunities for homeowners with higher existing rates to refinance. However, 15-year fixed refinance rates saw a slight uptick, emphasizing the need for careful evaluation based on personal goals.

Why Are Mortgage and Refinance Rates Changing?

Several economic indicators influence mortgage rates, often in complex tandem:

• Federal Reserve Policy: The Fed’s decisions on the federal funds rate heavily impact mortgage rates. After a series of aggressive hikes from 2022 to mid-2023, the Fed paused rate changes in 2025 amid slowing economic growth.
• Inflation: Persistent but slowing inflation, especially in the core personal consumption expenditures (PCE), keeps borrowing costs higher but may pave the way for rate cuts.
• Labor Market: The August 2025 report showed a slight increase in unemployment to 4.3% and only 22,000 jobs added—the slowest growth in months. This weaker job market feeds expectations for Fed rate cuts.
• Bond Markets: Mortgage rates closely follow 10-year Treasury yields, which have fallen recently due to expected Fed easing.

The anticipation of a Federal Reserve rate cut scheduled for September 16-17, 2025, of about 0.25% has led to mortgage rates softening, although experts still predict rates will remain above 6% for most of 2025 and into 2026 (Fannie Mae, MBA, Realtor.com).

Economic Indicators Influencing Mortgage Rates

Federal Reserve’s Role in 2025

The Fed’s rate hikes between 2022 and 2023 pushed mortgage rates to 20-year highs. But the Fed has now hit a plateau—holding steady through the first three quarters of 2025 amid inflation that is “cooling but persistent.”

At the July 30 meeting in 2025, two Fed governors dissented, urging immediate cuts due to slowing growth. The marketplace now prices a nearly 91% chance of a rate cut at the upcoming September meeting (Federal Reserve Reports).

This scenario makes mortgage rates likely to decline further shortly, especially if the September jobs report confirms weak employment growth.

Mortgage Rate Forecasts for 2025 and Beyond

Market forecasts help buyers and homeowners gauge what to expect next:

Source	2025 Forecast	2026 Forecast
National Association of REALTORS®	6.4% average in H2 2025	6.1% average
Fannie Mae (August 2025)	6.5% by year-end 2025	6.1% by year-end 2026
Realtor.com	Expected dip to 6.4%	—
Mortgage Bankers Association	6.7% end of 2025	6.5% end of 2026

Despite current dips, rates above 6% are expected to continue through most of 2025, influenced by persistent inflation and market volatility.

Example Calculation: Impact of Rate Change on Monthly Mortgage Payment

Consider a $300,000 mortgage on a 30-year fixed-rate loan:

• At 6.59% (previous week’s rate), monthly payment (principal + interest) ≈ $1,917
• At 6.41% (today’s rate), monthly payment ≈ $1,900

This 18 basis point (0.18%) rate drop reduces your monthly payment by roughly $17, highlighting how even small rate changes can affect affordability.

Current Realities for Buyers and Refinancers

For Home Buyers

Persistently high but somewhat declining rates mean:

• Monthly payments remain relatively high compared to the historic lows of the pandemic years.
• However, a dip near 6.4% can improve affordability slightly, encouraging some buyers to act.
• Affordable inventory remains a challenge, but lower rates may push more buyers off the sidelines.

For Homeowners Considering Refinancing

• Those with mortgage rates above 7% may find it especially advantageous to refinance, reducing costs as refinance rates fall.
• Rising refinance applications (up to 47% of all mortgage applications) reflect this growing interest.
• When the Fed cuts rates in September, refinancing opportunities may expand substantially.

What to Watch Going Forward

• The Federal Reserve's September 16-17 policy meeting is critical. A rate cut is widely expected and could trigger further rate declines.
• The upcoming jobs report will heavily influence the Fed’s actions—any surprise shift in employment data could affect mortgage rates.
• Continued inflation monitoring and global economic factors could keep rates volatile.