Interest rates for mortgages reach their lowest point in nearly a year and a half
Mortgage Rates Remain Stable with Slight Downward Trend
Mortgage rates have been showing a slight downward trend in recent weeks, according to a national survey conducted by ourwebsite.com. The current average for a 30-year fixed mortgage stands at 6.61%, while the average for a 30-year jumbo fixed mortgage is slightly higher at 6.62%.
The survey results suggest that the outlook for the upcoming week (Aug. 21 - 27, 2025) is generally slightly downward or stable. About 33% of experts expect rates to go up, while 25% expect rates to go down. The largest group, 42%, expect rates to remain unchanged.
The anticipated trend is due to a variety of factors, including market anticipation of softening inflation and economic cooling. Dr. Anthony O. Kellum expects a modest dip, while Dick Lepre predicts a slow downward movement with the 30-year fixed rate around 6.5% to 6.625%. Les Parker also supports the downward trend, citing market supply-demand balance and economic factors favoring lower rates.
Inflation, however, remains a concern, with the rate moving up to 2.7% in June 2025 and remaining at that level for July. The U.S. economy grew by 3% in the second quarter of 2025, but this growth has not significantly affected mortgage rates.
The 10-year Treasury yields were below 4.3% as of Wednesday afternoon in 2025, and this investor appetite for 10-year Treasury bonds plays a significant role in determining mortgage rates.
The median price of an existing home sold in June 2025 was $435,300, according to the National Association of Realtors. Based on a 20 percent down payment, a 6.61 percent mortgage rate, and the given incomes and prices, the monthly payment would amount to 26 percent of the typical family's monthly income, according to the U.S. Department of Housing and Urban Development, which reported a national median family income for 2025 of $104,200.
Some buyers are waiting for both rates and prices to come down before entering the market, according to Lisa Sturtevant, chief economist at Bright MLS. Origination points, fees lenders charge to create, review, and process loans, and discount points, a way to lower mortgage rates, also play a role in the overall cost of a mortgage.
It's important to note that the survey by ourwebsite.com differs from Freddie Mac's weekly published rates in methodology. Lenders surveyed by Freddie Mac for its weekly rates are a mix of lender types.
In conclusion, while mortgage rates are currently at their lowest since mid-October 2024, they are not expected to drop below 6%. The outlook is for modest or stable mortgage rates for the coming week, with a slight downward trend possible.
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