As of Tuesday, mortgage rates today are holding steady — but homebuyers are stepping back, and sellers are responding by pulling listings amid mounting affordability pressures.
Current mortgage rates (August 5, 2025)
Zillow Home Loans reports the following average mortgage rates today:
- 30-year fixed: 6.375% (APR: 6.566%)
- 15-year fixed: 5.500% (APR: 5.795%)
- 20-year fixed: 6.125% (APR: 6.365%)
- 30-year FHA: 6.000% (APR: 6.691%)
- 30-year VA: 6.125% (APR: 6.431%)
- 7-year ARM: 6.375% (est.)
While these rates have remained relatively stable, they continue to limit buying power for many Americans.
Sellers pull back as buyers push back
The high interest rate environment is forcing a slowdown in the housing market. A new analysis shows:
- Delistings surged 47% nationwide in May compared to 2024
- Homeowners are opting to wait rather than reduce prices
- Inventory hit a post-pandemic high in June (1.36 million homes)
Experts say sellers feel less urgency to sell thanks to strong equity positions.
“Today’s homeowners benefit from record-high levels of home equity, so they have the flexibility to wait it out,” said Jake Krimmel, senior economist at Realtor.com.
Home prices remain high, despite lower demand
Even as homes sit longer, prices remain high — especially in areas like the Sun Belt and Mountain West. In June:
- 26.6% of sellers lowered their asking prices
- Many others delisted their homes instead of negotiating
- The Federal Reserve held rates steady in July, citing continued economic uncertainty
What’s keeping mortgage rates elevated?
Several factors are contributing to stubbornly high mortgage rates:
- Federal Reserve policy: The Fed hasn’t cut rates, keeping borrowing costs high
- Economic resilience: A solid job market and consumer spending are keeping inflation sticky
- Lender risk pricing: Lenders still view today’s market as high-risk, adding premiums to rates
How to get the best mortgage rate today
Borrowers can still improve their chances of securing a lower rate. Zillow Home Loans recommends:
- Boosting your credit score
- Making a larger down payment
- Reducing your debt-to-income ratio
Using Zillow’s BuyAbility tool, borrowers can get a daily customized rate estimate.
Should you buy a home now?
For many, the answer is: not yet. With both high rates and high prices, affordability remains a serious challenge. However, for those who can afford a purchase:
- Inventory is up
- Sellers may be more open to negotiations
- Pre-approval gives you rate-lock certainty
What happens next?
Market watchers are closely monitoring the Fed’s next move. Any signs of inflation cooling could bring mortgage rates down — but for now, the standoff between buyers and sellers continues.
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