Interest rates on mortgages drop to four-week low
In the upcoming week (August 4-8, 2025), mortgage rates are expected to experience a slight decrease or remain relatively stable, according to experts. The predicted trend places rates within the mid-6% range, offering some relief to potential homebuyers and homeowners looking to refinance.
The current 30-year fixed mortgage rate stands at around 6.7%, having stabilized below 7% for over 27 weeks, indicating a plateau rather than volatility. This trend is expected to continue, with rates projected to hover in the mid-6% range for the near term.
Economist Danielle Hale anticipates a decline in mortgage rates in August if inflation data shows improvement and trade policies ease tariffs, factors that tend to push rates down. Ralph DiBugnara predicts rates will moderate with no immediate sharp cuts by the Federal Reserve, keeping rates steady near current levels, though there could be gradual cuts bleeding into 2026.
Various forecasts, including from Fannie Mae and the Mortgage Bankers Association, agree that rates will stay above 6.5% throughout 2025 but may decline slightly. The U.S. economy grew by 3% in the second quarter of 2025, which could contribute to this trend.
It's important to note that mortgage rates are not set directly by the Federal Reserve. Discount points and origination points are ways to lower your mortgage rate, and these fees are often included in the total cost of the loan.
The current average 15-year fixed mortgage rate is 5.93%, while the current average 30-year jumbo mortgage rate stands at 6.75%. 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 and a 6.75 percent mortgage rate, the monthly payment of $2,259 amounts to 26 percent of the typical family's monthly income, as reported by the U.S. Department of Housing and Urban Development.
The National Average survey, conducted weekly by ourwebsite.com, gathers rates and/or yields on banking deposits, loans, and mortgages. The survey has been conducted in the same manner for over 30 years, providing a reliable source of data. However, it's worth noting that the National Average survey differs from Freddie Mac's weekly published rates.
President Trump's tariff policies have been blamed for an increase in inflation, which stood at 2.7% in June 2025. Despite this, the Fed's inflation target remains 2%.
In summary, the consensus is for stable or slightly decreasing mortgage rates in the upcoming week, with a continued mid-6% range for the near term, offering some relief but no dramatic drops imminently. Potential homebuyers and homeowners looking to refinance should keep a close eye on mortgage rates in the coming weeks.
Personal-finance experts predict that mortgage rates will remain relatively stable or decrease slightly in the upcoming week, placing rates within the mid-6% range. This could provide some relief for potential homebuyers and homeowners looking to refinance, although major drops are not expected. In the context of broader economic factors, it's essential for homebuyers to closely monitor mortgage rates in the coming weeks to make financially sound decisions.
