Mortgage Rates Hold Below 6.5% as August 2025 Begins

Mortgage rates remain steady to start the week, offering some buyers a bit of breathing room in an otherwise stubbornly high-rate environment. According to Zillow, the average 30-year fixed rate sits at 6.44%, while the 15-year fixed is averaging 5.73%.

While these numbers are lower than the recent highs seen earlier this year, they’re still well above the 2–3% rates many homeowners locked in just a few years ago. Experts don’t expect rates to dip below 6% until at least the third quarter of 2026, based on the latest Fannie Mae Housing Forecast.

Current Average Rates (Zillow Data)

• 30-year fixed: 6.44%
• 20-year fixed: 6.16%
• 15-year fixed: 5.73%
• 5/1 ARM: 6.75%
• 7/1 ARM: 6.58%
• 30-year VA: 6.07%
• 15-year VA: 5.57%

Refinance rates follow a similar pattern, with a 30-year fixed refinance averaging 6.48% and a 15-year refinance at 5.71%.

What That Means for Borrowers

If you take out a $300,000 loan on a 30-year term at 6.44%, your monthly payment for principal and interest would be about $1,884. Over the life of the loan, you’d pay roughly $378,000 in interest more than the original loan amount.

With a 15-year term at 5.73%, payments jump to $2,488 a month, but total interest drops dramatically to $147,843. It’s a bigger hit to your budget each month, but a massive savings over time.

Fixed vs. Adjustable Rates

Adjustable-rate mortgages (ARMs) like the popular 5/1 or 7/1 start with lower introductory rates but can rise after the fixed period ends. While ARMs can make sense for buyers who plan to sell or refinance within a few years, current ARM rates aren’t always much lower than fixed rates, so it pays to shop around.

How to Get a Lower Rate

Lenders tend to reward borrowers who bring:

• A higher down payment (more equity means less risk for the bank)
• A strong credit score
• A low debt-to-income ratio

You can also buy down your rate by paying for discount points upfront. For example, a 2-1 buydown on a 6.5% loan could give you 4.5% in year one, 5.5% in year two, and 6.5% for the rest of the term. Just weigh whether you’ll stay in the home long enough to make the upfront cost worthwhile.

Outlook

Economists expect mortgage rates to hover above 6% for the foreseeable future. Any short-term dips will likely depend on inflation data, Federal Reserve policy, and market reaction heading into the Fed’s September meeting.

Bottom line: Rates aren’t low, but they’ve pulled back from recent peaks. If you find a deal you’re comfortable with and the home is right for you locking in before the next market shift could be a smart move. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.