Mortgage Rates Edge Up in July 2025: Here’s Where They Stand Now

If you’ve been waiting for a major dip in mortgage rates before buying or refinancing, you may need to keep waiting. Rates are showing minimal movement this week and remain higher than where they stood a year ago even as market watchers continue to hope for relief.

According to the latest data from Zillow, the average 30-year fixed mortgage rate currently sits at 6.68%, while the 15-year fixed rate comes in at 5.91%. That’s slightly higher than where we were in July 2024, when the same rates were 6.58% and 5.86%, respectively.

The slight rise is disappointing for borrowers hoping for a more noticeable decline, but experts suggest timing the market perfectly isn’t the best strategy. Instead, focus on your financial readiness and long-term plans.

📉 Current National Mortgage Rates

• 30-year fixed: 6.68%
• 20-year fixed: 6.52%
• 15-year fixed: 5.91%
• 5/1 ARM: 7.26%
• 7/1 ARM: 7.25%
• 30-year VA: 6.29%
• 15-year VA: 5.64%
• 5/1 VA: 6.15%

(These are national averages and rounded to the nearest hundredth.)

🔁 Refinance Rates Today

• 30-year fixed refinance: 6.79%
• 20-year fixed refinance: 6.31%
• 15-year fixed refinance: 5.91%
• 5/1 ARM refinance: 7.37%
• 7/1 ARM refinance: 7.15%
• 30-year VA refinance: 6.26%
• 15-year VA refinance: 6.11%
• 5/1 VA refinance: 5.86%

Refinancing often comes with slightly higher rates compared to new home purchases. Still, for many homeowners, a refinance could lead to long-term savings depending on their original rate and current home equity.

🏡 What These Rates Mean for Borrowers

A 30-year mortgage remains the most popular option thanks to its lower monthly payments, even if it means paying more in interest over time. For example, a $300,000 mortgage at 6.68% results in a monthly principal and interest payment of roughly $1,932, with nearly $395,000 in interest over the life of the loan.

By contrast, a 15-year mortgage at 5.91% would raise your monthly payment to about $2,846, but you’d pay only around $153,000 in total interest.

Adjustable-rate mortgages (ARMs), such as the 5/1 or 7/1 options, can offer initial savings but carry the risk of rising payments down the road. They might make sense for short-term homeowners, but fixed rates continue to dominate in today’s uncertain economy.

💡 Tips for Locking in a Lower Mortgage Rate

To score a more competitive mortgage rate:

• Aim for a strong credit score (usually above 740)
• Put down more money upfront if possible
• Lower your debt-to-income ratio
• Shop around and compare lenders
• Consider buying points to reduce your interest rate

You can also explore temporary buydowns, which reduce your rate for the first 1–2 years of the loan term, but they require an upfront payment at closing.

🤔 What’s Next for Rates?

While inflation and global trade tensions continue to cloud the economic outlook, most experts don’t expect significant rate drops in the immediate future. The Federal Reserve remains cautious, and many economists say any potential cuts are likely months away.

In short: Mortgage rates may continue hovering near current levels in the coming weeks. If you’re financially ready to buy or refinance, now may still be a good time waiting for the “perfect” rate could mean missing out on the right property or opportunity. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.