As of August 7, 2025, mortgage rates remain under 7%, giving potential homebuyers and those considering refinancing a modest break from the highs seen in recent years. However, analysts say significant declines aren’t likely in the immediate future.
Current Mortgage Rate Overview
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30-year fixed-rate mortgage: 6.68% — down 0.08% from last week
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15-year fixed-rate mortgage: 5.90% — down from 5.99% last week
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Refinance rates: 30-year fixed at 6.83%, 15-year fixed at 6.13%
These slight declines reflect shifting market expectations, but experts caution that rates may stay in the mid-to-high 6% range through the end of 2025.
Why Rates Are Where They Are
Mortgage rates are influenced by a combination of economic factors:
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Federal Reserve Policy – While the Fed doesn’t directly set mortgage rates, its decisions on interest rates impact borrowing costs. The Fed has paused rate hikes in 2025 and could cut rates later this year if economic conditions align.
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Inflation – Persistent inflation makes it less likely the Fed will slash rates aggressively, limiting the potential for sharp mortgage rate drops.
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Bond Markets – Mortgage rates closely follow the 10-year Treasury yield, which moves based on investor expectations for the economy and Fed policy.
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Housing Market Conditions – If buyer demand slows and inventory rises, lenders may reduce rates slightly to attract borrowers.
What Experts Predict for the Rest of 2025
Economists from Norada Real Estate Investments and MarketWatch expect rates to stay between 6.5% and 6.9% for the remainder of the year. While small dips are possible, a major drop is unlikely unless the Fed moves forward with significant interest rate cuts — something Yahoo Finance says is still on the table in the coming months.
How to Get the Best Mortgage Rate Right Now
Even with rates hovering near 6.7%, borrowers can still take steps to secure a more favorable deal:
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Boost your credit score — A score of 740+ can help you qualify for the best rates.
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Lower your debt-to-income ratio (DTI) — A lower DTI shows lenders you can manage debt responsibly.
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Make a larger down payment — Reduces lender risk and may improve your rate.
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Shop around — Compare multiple lenders to find the most competitive terms.
Bottom Line
While today’s rates are not at record lows, they are below the recent 7% peaks, providing an opportunity for well-prepared buyers and refinancers. Staying informed about Federal Reserve actions, inflation trends, and market conditions will be key for those looking to lock in the best rate in 2025.
