Mortgage rates are holding steady after a volatile June, with the 30-year fixed mortgage rate now at 6.625%, according to Zillow Home Loans. The market remains in flux, but falling rates in recent weeks have sparked a surge in buyer and refinance activity.
Current mortgage rates snapshot
Here are today’s national averages for popular mortgage products:
- 30-Year Fixed
- Rate: 6.625%
- APR: 6.778%
- Points: 1.564 (≈ $4,301)
- 15-Year Fixed
- Rate: 5.75%
- APR: 6.034%
- Points: 1.805 (≈ $4,964)
- 30-Year VA Loan
- Rate: 6.5%
- APR: 6.771%
- Points: 1.523 (≈ $4,188)
- 20-Year Fixed
- Rate: 6.5%
- APR: 6.719%
- Points: 1.71 (≈ $4,703)
- 7-Year ARM (Adjustable)
- Rate: 7.375% (per Mortgage News Daily)
Buyer and refinance activity jump as rates dip
Following a modest but meaningful dip in mortgage rates last week, total mortgage application volume surged 9.4%, according to the Mortgage Bankers Association. Two segments led the jump:
- Refinance applications increased 9% week-over-week — up a massive 56% year-over-year
- Home purchase applications also rose 9%, and are 25% higher than this time last year
“Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth,” said Joel Kan, deputy chief economist at the MBA.
What’s driving demand?
Several factors are pushing more Americans back into the housing market:
- Lower rates: The average 30-year mortgage rate briefly hit a three-month low at 6.77% last week
- More listings: A growing housing supply is giving buyers more choice
- Price stability: Slower home-price growth is easing affordability pressures
The average loan size on a purchase application dropped to $432,600, the lowest since January 2025 — signaling a shift toward more affordable housing options.
Are rates going back up?
Mortgage News Daily reports that rates have started to tick up again this week, after bottoming out in late June. This may be a natural market correction after weeks of downward movement.
“We often see slightly brisk movement in the opposite direction after a consistent trend,” said Matthew Graham, COO at Mortgage News Daily. “Today’s rates, despite the uptick, are still the lowest since late April.”
Tips for getting the best mortgage rate
If you’re in the market for a home loan, keep these factors in mind:
- Improve your credit score: Lenders reward low-risk borrowers with better rates
- Increase your down payment: A higher down payment can lower your interest rate
- Maintain a low debt-to-income ratio: This shows lenders you can handle additional monthly payments
Zillow’s BuyAbility tool can also help you estimate your customized rate based on your location, income, and credit profile.
Should you act now?
With demand rebounding and rates hovering near recent lows, it may be a smart time to lock in a rate — especially for those considering refinancing. That said, home shoppers should still monitor the market closely as economic uncertainty and seasonal shifts continue to affect rates.
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