Mortgage rates today are holding firm near 7%, deepening challenges for U.S. homebuyers. With fewer buyers in the market, listings are piling up—and taking longer than ever to sell.
Current mortgage rate averages
According to Zillow Home Loans, here’s where rates stand as of August 19, 2025:
- 30-Year Fixed: 6.375% (APR: 6.566%)
- 15-Year Fixed: 5.625% (APR: 5.912%)
- 30-Year FHA: 6.000% (APR: 6.691%)
- 30-Year VA: 6.125% (APR: 6.417%)
- 7-Year ARM: 7.375% (adjustable)
These rates reflect moderate stability, but they’re still too high for many buyers. A high APR paired with rising housing costs continues to push affordability out of reach.
Homes now sitting longest on market since 2015
New Redfin data shows homes sold in July 2025 took an average of 43 days to go under contract—the longest wait for a July in a decade. That’s up from:
- 35 days in July 2024
- 30 days in 2023
- 16 days in 2021, during the pandemic buying frenzy
Demand has slowed sharply due to:
- Persistent high mortgage rates
- Soaring home prices (median sale price: $443,867, a July record)
- Higher property taxes, HOA fees, and insurance premiums
Fewer buyers, more listings—and more power for those who wait
With home sales down and inventory up, buyers now hold more negotiating power:
- Pending home sales fell 11% from June to July 2025
- Active inventory climbed to 1.9 million homes—nearly a 5-year high
- Sellers are delisting at increasing rates to avoid selling at a perceived loss
In effect, the market has shifted from seller-friendly to buyer-cautious—without the benefit of lower rates.
Where are homes sitting the longest?
Florida and Texas dominate the list of metros where homes are sitting the longest:
- West Palm Beach, FL: 95 days
- Fort Lauderdale, FL: 92 days
- Miami, FL: 86 days
- Jacksonville, FL: 75 days
- Austin, TX: 68 days
- San Antonio, TX: 66 days
These states added massive new inventory during the pandemic boom. Now, much of that supply is stagnating.
How to get a lower mortgage rate
Even with high benchmarks, borrowers can still reduce their rate:
- Improve your credit score: Lenders reward stronger profiles
- Increase your down payment: Lowers lender risk and interest rate
- Lower your debt-to-income ratio: Helps qualify for better terms
- Shop around and get pre-approved: Lock in competitive offers before they change
Zillow’s BuyAbility tool helps estimate your personalized rate based on credit, income, and location.
Should you lock in now?
If you find a rate under 6.5%—especially for a fixed mortgage—it may be worth locking in. Rates have remained stubbornly high and show no sign of dropping sharply. But buyers with flexibility may benefit from waiting, as growing inventory could pressure sellers into better deals.
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.
