| New Purchase Rate Averages as of Aug. 14, 2025 | ||
|---|---|---|
| Loan Type | New Purchase Rates | Daily Change |
| 30-Year Fixed | 6.69% | -0.01 |
| FHA 30-Year Fixed | 6.65% | +0.01 |
| VA 30-Year Fixed | 6.28% | No Change |
| 20-Year Fixed | 6.34% | No Change |
| 15-Year Fixed | 5.70% | +0.04 |
| FHA 15-Year Fixed | 6.38% | +0.06 |
| 10-Year Fixed | 5.74% | No Change |
| 7/6 ARM | 7.26% | +0.02 |
| 5/6 ARM | 7.26% | +0.03 |
| Jumbo 30-Year Fixed | 6.68% | -0.08 |
| Jumbo 15-Year Fixed | 6.34% | -0.02 |
| Jumbo 7/6 ARM | 7.30% | No Change |
| Jumbo 5/6 ARM | 7.08% | -0.06 |
| Provided via the Zillow Mortgage API | ||
30-Year Mortgage Rates Drop to Lowest Since March
Rates on new 30-year mortgages have dropped 9 basis points so far this week, bringing the average to 6.69%—its cheapest level since March 12 (6.66%). That’s well below the 7.15% peak two months ago, which was the highest in a year, and is far under the 8.01% peak in late 2023, a 23-year high. Last fall, however, rates were even lower, dipping to 5.89%, the cheapest in two years.
15-Year Rates Remain Near Five-Month Low
Rates on 15-year mortgages inched up a few basis points Thursday to 5.70%, after touching 5.66% the day before—their lowest since March 4. Even with the slight uptick, today’s average is well below the 6.31% mid-April spike and about 1.4 percentage points under the October 2023 peak of 7.08%, the highest in 23 years. Last September, however, rates sank as far as 4.97%, a two-year low.
Jumbo 30-Year Rates Tumble to New March Low
Jumbo 30-year mortgage rates fell sharply Thursday, dropping 8 basis points to 6.68%—their lowest level in more than five months. That’s a big improvement from the 8.14% peak in October 2023, the highest jumbo rate in over 20 years. Last fall, however, jumbo 30-year rates dipped even further, hitting a 19-month low of 6.24%.
Freddie Mac’s Weekly Average—And How It Differs From Ours
Every Thursday, Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates. This week’s reading fell another 5 basis points to 6.56%—its lowest level in 10 months. That’s still well above the two-year low of 6.08% reached last September. But in October 2023, Freddie Mac’s average surged to a historic 7.79%, the highest in 23 years.
Freddie Mac’s Thursday figure is different from ours because it’s a five-day average, reflecting rates from the past week, while our Investopedia 30-year average is calculated daily, providing a more precise and timely view of rate movement. Their methodology also uses different loan criteria—such as down payment amount, credit score, and the inclusion of discount points—which can make the results vary from ours.
Calculate monthly payments for different loan scenarios with our Mortgage Calculator.
What Drives Mortgage Rates Up or Down?
Mortgage rates are shaped by a combination of forces—not just a single lever that policymakers pull. Bond market movements, especially 10-year Treasury yields, play a major role. So does investor demand for mortgage-backed securities, as well as competition among lenders. These factors can move in the same direction or pull against each other, creating a constantly shifting landscape.
The Federal Reserve is one piece of that puzzle, but its influence is often overstated. The Fed’s decisions—such as changing the federal funds rate or buying and selling bonds—can ripple through financial markets, sometimes nudging mortgage rates. But the link isn’t direct, and mortgage rates don’t always follow the Fed’s lead. In some periods, they’ve even moved in the opposite direction—like when the Fed cut rates a full percentage point in late 2024 but mortgage rates surged higher.
That’s why upcoming Fed rate cuts are no guarantee of falling mortgage rates. Other forces, like inflation trends, economic growth, and global investor sentiment, can outweigh or even reverse the Fed’s influence. A slowdown in inflation, for example, can help bring rates down even if the Fed holds steady. Conversely, strong economic data can push mortgage rates higher despite Fed cuts.
The takeaway: mortgage rates respond to a complex set of market conditions, not a single announcement from Washington. While the Fed is an important player, it’s only one of several drivers. This is why predicting exactly where mortgage rates will go next—and timing your home purchase around that—is nearly impossible.
Today’s Mortgage Rate News
We cover new purchase and refinance mortgage rates every business day. Find our latest rate reports here:
Important
The rates we publish are averages and won’t directly compare to the teaser rates often advertised online. Those rates are typically cherry-picked to be the most attractive and may involve paying points upfront or be based on a hypothetical borrower with an ultra-high credit score or a smaller-than-typical loan. The rate you actually secure will depend on factors like your credit score, income, and more, so it may differ from the averages you see here.
How We Track the Best 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.
