Mortgage rates remained mostly steady on Monday, with the average 30-year fixed rate holding at 6.625%, according to Zillow. The 15-year fixed rate sits at 5.75%, continuing to offer a lower interest option for buyers who can manage higher monthly payments.
This rate stability comes at a pivotal moment, as investors and analysts prepare for a wave of housing-related data and Federal Reserve commentary later this week.
Current mortgage rates by loan type
The following are Zillow Home Loans’ national averages as of July 21, 2025:
30-Year Fixed
Rate: 6.625%
APR: 6.785%
Points: 1.635 ($4,496.25)
15-Year Fixed
Rate: 5.750%
APR: 6.021%
Points: 1.726 ($4,746.50)
30-Year FHA
Rate: 6.375%
APR: 7.055%
Points: 1.526 ($4,196.50)
30-Year VA
Rate: 6.500%
APR: 6.792%
Points: 1.736 ($4,774.00)
20-Year Fixed
Rate: 6.500%
APR: 6.755%
Points: 1.985 ($5,458.75)
7-Year ARM
Rate: 7.375% (adjustable)
Initial fixed term; adjusts based on market conditions
Why rates are flat heading into a high-stakes week
Mortgage rates are showing little movement to start the week, but that may change quickly. Markets are closely watching a packed economic calendar, which includes:
- Existing home sales data on Wednesday
- New home sales data on Thursday
- Federal Reserve Chair Jerome Powell and Governor Michelle Bowman speaking Tuesday
These events could significantly influence Treasury yields and investor expectations for interest rate policy. A disappointing home sales report or dovish Fed comments could drive rates down, while strong data might push them higher.
Adding pressure, recent warnings from economists signal turbulence ahead. Single-family housing starts dropped 4.6% in June, and some experts say homebuilders are “giving up” amid rising construction costs and affordability concerns.
How to get the best mortgage rate
Even in a volatile environment, borrowers can take steps to lower their mortgage rate:
- Boost your credit score: A higher score means better terms.
- Increase your down payment: More money upfront can reduce risk for lenders.
- Reduce your debt-to-income ratio: Less debt signals stronger repayment ability.
- Shop around: Compare quotes from multiple lenders for the most competitive rate.
Zillow’s BuyAbility tool offers a personalized rate estimate based on your credit, location, and income details.
Should you buy or refinance now?
With rates elevated but stable, buyers waiting for a drop may not want to hold out too long. Refinancers may find value in 15-year or 20-year options, especially if they have strong credit and equity.
However, rate movement later this week could open or close opportunities quickly. Locking in a rate now may be wise for those on the fence.
What to watch next
Keep an eye on the Federal Reserve’s tone during Tuesday’s speeches and on housing data releases midweek. These will be the key indicators for whether mortgage rates will stay level or begin a new trend up or down.
Stay informed by checking daily rate updates and using tools like Zillow’s BuyAbility for custom quotes.
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