As of today (August 14, 2025) mortgage rates remain elevated to historical standards continuing to pressure buyers. However, the market is cooling. Today’s 30-year fixed rate stands at 6.375%, while the 15-year fixed is 5.5%—unchanged from earlier this week.
Current mortgage rate averages
Zillow Home Loans has listed the following as average rates:
- 30-Year Fixed:
- Rate: 6.375%
- APR: 6.560%
- Points: 1.910 ($5,252.50)
- 15-Year Fixed:
- Rate: 5.500%
- APR: 5.786%
- Points: 1.836 ($5,049.00)
- 30-Year FHA:
- Rate: 6.000%
- APR: 6.671%
- Points: 1.537 ($4,226.75)
- 30-Year VA:
- Rate: 6.125%
- APR: 6.402%
- Points: 1.647 ($4,529.25)
- 20-Year Fixed:
- Rate: 6.125%
- APR: 6.331%
- Points: 1.631 ($4,485.25)
- 7-Year ARM (adjustable):
Why rates remain high in August
Rates are still hovering near 6.4% due to persistent inflation, the Federal Reserve’s cautious stance, and stronger-than-expected economic signals. This week, housing data revealed that more than half of U.S. homes are selling for below asking price—a sign that high rates are cooling buyer demand.
According to Cotality, 56% of listings in May sold below asking, a stark contrast to the competitive bidding wars of just a few years ago. With more inventory and fewer aggressive buyers, sellers are lowering prices or offering incentives like closing cost assistance and mortgage rate buydowns.
Tips to secure a better mortgage rate
You can still reduce your rate with the right strategy. Zillow recommends:
- Improve your credit score: A higher score = better rate.
- Make a larger down payment: Lowers lender risk.
- Lower your debt-to-income ratio: Pay down existing debts.
Zillow’s BuyAbility tool lets you estimate a personalized rate based on your income, credit score, and other key factors. Buyers can also get a Verified Pre-approval, which helps lock in rates early and strengthens offers.
Should you lock in now?
With the 30-year fixed holding near 6.375% and no major Fed policy shifts expected before fall, this could be a smart time to lock in—especially if your credit and finances are in strong shape. Adjustable-rate options are riskier right now, given ongoing rate volatility.
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