As of Wednesday U.S. mortgage rates are holding steady, but rising costs are putting pressure on home loan demand. Here’s the latest on where rates stand — and what it means if you’re buying or refinancing.
Today’s mortgage rates snapshot
According to Zillow Home Loans, here are the current rates by loan type:
- 30-year fixed: 6.625% (APR: 6.809%)
- 15-year fixed: 5.75% (APR: 6.062%)
- 30-year FHA: 6.375% (APR: 7.076%)
- 30-year VA: 6.5% (APR: 6.813%)
- 7-year ARM: 7.375%
These rates reflect average offers with points and closing costs factored in, and they may vary by lender and borrower profile.
Loan applications drop as rates tick up
New data from the Mortgage Bankers Association shows a significant pullback in mortgage demand:
- Overall mortgage applications dropped 10% for the week ending July 11.
- Purchase applications fell 12%, while refinance applications declined 7%.
- Despite the drop, refinance activity is still up 25% year-over-year.
“Mortgage rates rose after two weeks of declines, which contributed to slower application activity,” said Joel Kan, MBA’s Deputy Chief Economist.
Weekly mortgage rate changes:
| Loan Type | Avg. Rate (This Week) | Change from Last Week |
|---|---|---|
| 30-Year Fixed (Conforming) | 6.82% | +0.05% |
| Jumbo Loans | 6.75% | +0.06% |
| FHA Loans | 6.52% | +0.01% |
| 15-Year Fixed | 6.16% | +0.12% |
| 5/1 ARM | 6.08% | +0.07% |
What’s driving mortgage rate trends?
Mortgage rates are tied closely to movements in the 10-year Treasury yield, which edged higher last week amid concerns about President Trump’s new tariffs and their impact on inflation. Despite this, experts note the broader trend for rates remains relatively stable.
“Mortgage rates have moved within a narrow range for the past few months,” said Sam Khater, Chief Economist at Freddie Mac. “Rate stability, improving inventory, and slower house price growth are an encouraging combination.”
How to get the lowest rate right now
If you’re looking to lock in a better mortgage rate, focus on the following:
- Improve your credit score: Higher credit profiles qualify for better rates.
- Increase your down payment: More equity reduces lender risk.
- Lower your debt-to-income ratio: Lenders favor borrowers with manageable debt.
Zillow’s BuyAbility tool can provide a custom mortgage rate estimate based on your credit, income, and location.
Should you wait to buy or refinance?
Experts caution against trying to time the market. Rates may decline slightly over the rest of 2025, but volatility and inflation pressures remain. As Danielle Hale, Chief Economist at Realtor.com, explains:
“I expect a generally downward trend for rates this year, but at a slow enough pace that it might not be noticeable in any given month.”
Key takeaways
- Rates are steady but elevated, with 30-year fixed around 6.625%.
- Loan demand is falling amid affordability concerns.
- Market volatility driven by tariffs and inflation may keep rates in flux.
- Stability offers a clearer window for buyers to act now.
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