Key Takeaways
- Mortgage rates dropped Friday to their lowest level since June, making new loans significantly more affordable than during the spring surge.
- At the current 30-year fixed rate average of 6.78%, a $350,000 loan costs about $1,020 less per year than it would have at the spring peak of 7.14% in mid-April.
- While mortgage rate trends are hard to predict, many experts say meaningful rate relief is unlikely in the near term.
- That makes it smart to buy when you find the right home—especially with the option to refinance later if rates drop further.
- See our tables below for rate and payment comparisons by loan type.
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Last Week’s Drop Pushes Mortgage Rates Well Below the Spring Peak
In April, mortgage rates spiked as the bond market reacted to President Trump’s unveiling of dramatic tariff proposals, pushing 10-year Treasury yields sharply higher and triggering a dramatic jump in mortgage rates.
Since early June, however, homebuyers have gotten some relief, with the flagship mortgage rate average moving further and further below the 7% mark—and last week dropping to its cheapest level in five weeks. Rates for other loan types have also dropped to June levels, while jumbo 30-year rates are down to their lowest reading since April.
Below, we break down how rates have changed for each new purchase loan average, followed by a closer look at 30-year, 15-year, and jumbo 30-year fixed-rate loans.
New Purchase Mortgage Rate Changes Since the April Surge
| Mortgage Type | Spring peak on Apr 11 | Aug 1 | Change |
|---|---|---|---|
| 30-Year Fixed | 7.14% | 6.78% | – 0.36 |
| FHA 30-Year Fixed | 7.04% | 7.55% | + 0.51 |
| VA 30-Year Fixed | 6.81% | 6.43% | – 0.38 |
| 20-Year Fixed | 7.09% | 6.53% | – 0.56 |
| 15-Year Fixed | 6.31% | 5.75% | – 0.56 |
| FHA 15-Year Fixed | 6.32% | 6.76% | + 0.44 |
| 10-Year Fixed | 6.69% | 5.52% | – 1.17 |
| 7/6 ARM | 7.34% | 7.23% | – 0.11 |
| 5/6 ARM | 7.22% | 7.25% | + 0.03 |
| Jumbo 30-Year Fixed | 7.15% | 6.73% | – 0.42 |
| Jumbo 15-Year Fixed | 7.07% | 6.44% | – 0.63 |
| Jumbo 7/6 ARM | 7.59% | 6.70% | – 0.89 |
| Jumbo 5/6 ARM | 7.77% | 7.15% | – 0.62 |
30-Year Mortgage Rates Drop Further Below 7%
After peaking at a weekly average of 7.14% on April 11, rates on new 30-year purchase loans have dropped to a much lower range. The flagship average now stands at 6.78%—more than a third of a percentage point below the springtime high.
15-Year Rates Drop Sharply in Weekly Decline
Rates on 15-year new purchase loans dropped 15 basis points last week, lowering the average to 5.75%. That’s now more than half of a percentage point below the April peak of 6.31%.
Jumbo Mortgage Rates Hit Lowest Mark Since April
A decline last week of 8 basis points for jumbo 30-year rates has reduced the average to 6.73%—its lowest level since the first week of April. That’s now an improvement of 42 basis points from the April peak of 7.15%.
What’s a Jumbo Loan?
A jumbo mortgage exceeds the loan limits set for conforming loans by Fannie Mae and Freddie Mac—$806,500 for most U.S. single-family homes in 2025 and up to $1,209,750 in high-cost areas.
Don’t Wait on Rates—Buy When the Home Is Right
Though today’s rates are higher than they were last fall and winter, 30-year averages in the 6% range are still an improvement over much of 2025—including the year-to-date peak of 7.14% in mid-April.
In addition, many experts predict rates will remain in the mid-6% range for the foreseeable future. That means even waiting until next year may not lead to meaningful savings.
Counting on a Fed rate cut to bring relief is also unreliable. There’s no guarantee the Fed will lower rates in 2025—and even if it does, mortgage rates may not follow. In fact, after three Fed cuts totaling a full percentage point in late 2024, mortgage rates didn’t drop—they surged.
That’s why it’s often smarter to base your buying decision on your financial readiness and finding the right home—not on trying to time the mortgage market, which is nearly impossible and may not pay off. And if future rates drop significantly, you can always refinance into a more affordable loan later.
To show how recent rate changes affect monthly payments, the tables below break down principal-and-interest costs for various loan amounts using 30-year, 15-year, and jumbo 30-year fixed-rate new purchase mortgages.
Here’s What You’d Pay Monthly at Today’s Rates
Monthly Mortgage Payments for 30-Year Loans
| National average rate | $250,000 | $350,000 | $450,000 | $550,000 | $650,000 | |
|---|---|---|---|---|---|---|
| Fri, Apr. 11 | 7.14% | $1,687 | $2,362 | $3,036 | $3,711 | $4,386 |
| Fri, Aug 1 | 6.78% | $1,626 | $2,277 | $2,928 | $3,578 | $4,229 |
| Change vs. spring peak | – 0.36 | – $61 | – $85 | – $108 | – $133 | – $157 |
| Annual savings | $732 | $1,020 | $1,296 | $1,596 | $1,884 |
Monthly Mortgage Payments for 15-Year Loans
| National average rate | $250,000 | $350,000 | $450,000 | $550,000 | $650,000 | |
|---|---|---|---|---|---|---|
| Fri, Apr. 11 | 6.31% | $2,152 | $3,012 | $3,873 | $4,734 | $5,595 |
| Fri, Aug 1 | 5.75% | $2,076 | $2,906 | $3,737 | $4,567 | $5,398 |
| Change vs. spring peak | – 0.56 | – $76 | – $106 | – $136 | – $167 | – $197 |
| Annual savings | $912 | $1,272 | $1,632 | $2,004 | $2,364 |
Monthly Mortgage Payments for Jumbo 30-Year Loans
By definition, jumbo 30-year mortgages are larger loans. So below we’ve run our calculations on loan amounts of $800,000 to $1.2 million.
| National average rate | $800,000 | $900,000 | $1,000,000 | $1,100,000 | $1,200,000 | |
|---|---|---|---|---|---|---|
| Fri, Apr. 11 | 7.15% | $5,403 | $6,079 | $6,754 | $7,429 | $8,105 |
| Fri, Aug 1 | 6.73% | $5,178 | $5,825 | $6,473 | $7,120 | $7,767 |
| Change vs. spring peak | – 0.42 | – $225 | – $254 | – $281 | – $309 | – $338 |
| Annual savings | $2,700 | $3,048 | $3,372 | $3,708 | $4,056 |
How We Calculate and Report Mortgage Rates
The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.
Mortgage Rates Haven’t Moved Much—And That Might Be Your Window
30-Year Mortgage Rates March in Place for a Second Day – August 1, 2025
30-Year Mortgage Rates Rise Slightly, Matching One-Month High – July 29, 2025
30-Year Mortgage Rates Hold Their Ground After Recent Drop – July 31, 2025
30-Year Mortgage Rates Hovering Below One-Month High – July 28, 2025
30-Year Mortgage Rates Drop, Fully Erasing 3-Day Gain – July 30, 2025
30-Year Mortgage Rates Rise Again, Nearing One-Month High – July 25, 2025
Refinance Rates Drop Again, Moving Below Notable Threshold – July 31, 2025
