Mortgage rates remain elevated as of July 17, 2025, with the 30-year fixed mortgage holding at 6.625%, according to data from Zillow. As homebuyers weigh the cost of financing, today’s rates continue to reflect broader economic uncertainty and Federal Reserve caution.
Current average mortgage rates
Here’s a snapshot of today’s mortgage rates across common loan types:
- 30-year fixed: 6.625% (APR: 6.798%)
- 30-year FHA: 6.375% (APR: 7.070%)
- 30-year VA: 6.500% (APR: 6.806%)
- 20-year fixed: 6.625% (APR: 6.838%)
- 15-year fixed: 5.750% (APR: 6.062%)
- 7-year ARM: 7.375%
Rates last updated July 14, 2025.
Week-over-week mortgage trends
Compared to early July, mortgage rates have stayed relatively flat. The 30-year fixed rate has remained between 6.6% and 6.8%, showing minor fluctuations. Meanwhile, 15-year fixed rates remain a full percentage point lower, providing an option for buyers who can afford larger monthly payments in exchange for long-term savings.
Refinance rates have also ticked slightly higher:
- 30-year fixed refinance: 6.83%
- 15-year fixed refinance: 6.12%
- 10-year fixed refinance: 6.07%
What’s driving current mortgage rates?
Several key factors are influencing the trajectory of mortgage rates in July:
- Federal Reserve pause: After three cuts in 2024, the Fed has left its benchmark rate unchanged in 2025, awaiting clarity on economic policy under President Trump.
- Persistent inflation concerns: Despite some easing, inflationary risks tied to tariffs and spending remain.
- Market uncertainty: Bond market yields — which influence mortgage rates — remain volatile due to shifting investor sentiment around Fed action.
How to qualify for a better mortgage rate
Today’s rates aren’t necessarily the rate you’ll receive. Borrowers can still improve their position with the following:
- Boost your credit score: A FICO score of 740+ generally secures the most competitive rates.
- Lower your debt-to-income ratio (DTI): Keeping DTI below 36% increases loan eligibility.
- Make a larger down payment: A 20% down payment not only avoids private mortgage insurance (PMI), but may help secure better terms.
- Shop around: Comparing multiple lenders remains the most effective strategy for securing favorable terms.
Should you buy or refinance now?
Buying a home:
If you’re planning to buy this summer, locking in a rate may make sense — especially if you’re worried about potential Fed delays in further cuts. Consider a 15-year fixed if you can manage higher monthly payments to save on interest.
Refinancing:
For current homeowners, the incentive to refinance is limited unless you:
- Can reduce your rate by 1% or more
- Want to switch from an ARM to a fixed rate
- Are removing mortgage insurance by shifting from an FHA to conventional loan
What happens next?
Industry analysts forecast the Fed may resume cuts by September, but the impact on mortgage rates will lag. Most experts believe rates will remain above 6.5% through Q3 unless there’s significant economic cooling.
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