As of today mortgage rates remain relatively steady, with slight variation across loan types. Meanwhile, President Donald Trump is considering a new housing-related tax cut that could impact sellers if it moves forward.
Current mortgage rates (July 23, 2025)
According to Zillow Home Loans, here’s where today’s mortgage rates stand:
- 30-Year Fixed: 6.625% (APR: 6.771%)
- 30-Year FHA: 6.375% (APR: 7.048%)
- 30-Year VA: 6.500% (APR: 6.787%)
- 20-Year Fixed: 6.500% (APR: 6.738%)
- 15-Year Fixed: 5.625% (APR: 5.934%)
- 7-Year ARM: 7.375% (variable)
Rates last updated July 22, 2025. Points and loan terms vary by applicant profile.
What’s behind today’s rates?
Mortgage rates have been relatively stable, but remain elevated due to the Federal Reserve’s continued stance on inflation control. Although the Fed has not moved rates recently, pressure is mounting from both consumers and political leaders for relief.
Earlier this month, the Fed Chair warned that inflation could rise due to persistent tariff impacts and rising costs passed to consumers. This has contributed to cautious lending environments and tighter rate conditions.
Trump floats tax cut for home sellers
In a surprising policy tease on Tuesday, July 22, former President Donald Trump said he’s considering eliminating capital gains taxes on home sales. The move would apply when a homeowner sells a property for more than they paid for it — potentially saving sellers thousands.
“We are thinking about no tax on capital gains on houses,” Trump said during a White House meeting with the president of the Philippines.
While the idea has yet to be backed by legislation, it aligns with Trump’s ongoing campaign for lower taxes and increased economic stimulus. His remarks come just weeks after signing a major extension of his 2017 tax cuts, which included breaks for tipped wages, overtime pay, and auto loans.
Critics point out that such a policy would disproportionately benefit wealthier homeowners and could increase the federal deficit.
How to get a better mortgage rate
Regardless of the rate environment, borrowers can improve their chances of securing a lower rate by focusing on key financial factors:
- Boost your credit score: A higher score = better lending terms
- Increase your down payment: More upfront = less lender risk
- Lower your debt-to-income ratio: Shows you can handle a mortgage responsibly
📌 Tip: Use tools like Zillow’s BuyAbility calculator to see personalized rate estimates based on your credit, income, and location.
Should you lock in your rate now?
With today’s average rates holding firm — and political uncertainty adding new variables — locking in a rate may be smart for buyers ready to move. Adjustable-rate mortgages (ARMs) are currently priced higher than fixed options, which may drive more borrowers toward 15- or 30-year fixed loans in the near term.
What happens next?
Markets will closely watch any developments related to Trump’s proposed housing tax break. Meanwhile, attention remains on the Fed’s next move — especially if inflation data triggers a policy pivot later this quarter.
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