Current mortgage rates report for Aug. 19, 2025: Rates still largely hold constant

Glen is an editor on the Fortune individual financing team covering housing, mortgages, and credit. He's been immersed in the world of personal financing given that 2019, holding editor and author roles at USA TODAY Blueprint, Forbes Advisor, and LendingTree before he signed up with Fortune. Glen enjoys getting an opportunity to dig into complex topics and break them down into workable pieces of details that folks can easily absorb and utilize in their daily lives.

The typical interest rate for a 30-year, fixed-rate conforming mortgage loan in the U.S. is 6.574%, according to information available from mortgage data business Optimal Blue. That's less than a complete basis point of modification from the prior day's report, and down approximately 6 basis points from a week earlier. Keep reading to compare average rates for a variety of conventional and government-backed mortgage types and see whether rates have actually increased or decreased.

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Current mortgage rates information:

30-year traditional

30-year jumbo

30-year FHA

30-year VA

30-year USDA

15-year standard

Note that Fortune examined Optimal Blue's most current available information on Aug. 18, with the numbers reflecting mortgage secured since Aug. 15.

What's occurring with mortgage rates in the market?

If it looks like 30-year mortgage rates have been hovering around 7% for an eternity, that's not far off the mark. Many watching the marketplace anticipated rates would reduce when the Federal Reserve began minimizing the federal funds rate last September, however that didn't take place. There was a temporary decrease leading up to the September Fed conference, but rates quickly rebounded later.

In reality, by January 2025 the average rate for a 30-year, fixed-rate mortgage exceeded 7% for the first time since last May, according to Freddie Mac stats. That's a substantial boost from the record-low average of 2.65% observed in January 2021, when the federal government was still trying to increase the economy and avoid a pandemic-induced recession.

Barring another significant crisis, professionals state we will not have mortgage rates in the 2% to 3% variety again in our life times. However, rates around the 6% level are totally possible if the U.S. succeeds in controlling inflation and lenders feel positive about the financial outlook.

Indeed, rates saw a small reduction at the end of February, falling closer to the 6.5% mark than had actually held true in some time. There was even a dip listed below 6.5% really briefly in early April before rates quickly escalated.

Still, with unpredictability regarding how far President Donald Trump will press policies such as tariffs and deportations, some experts fret the labor market could restrict and inflation might resurface. In this environment, U.S. homebuyers are faced with high mortgage rates-though some can still find techniques to make their purchase more workable, such as negotiating rate buydowns with a home builder when buying newly constructed homes.

How to get the best mortgage rate you can

While economic conditions are beyond your control, your monetary profile as a candidate likewise has a significant influence on the mortgage rate you're provided. With that in mind, aim to do the following:

Ensure your credit remains in excellent condition. The minimum credit rating for a traditional mortgage is generally 620 (for FHA loans, you may qualify with a rating of 580 or a rating as low as 500 with a 10% down payment). However, if you're wishing to get a low rate that could potentially conserve you five and even six figures in interest over the life of your loan, you'll desire a rating significantly greater. Consider that according to lender Blue Water Mortgage, a top-tier rating is one of 740 or higher.
Maintain a low debt-to-income (DTI) ratio. You can compute your DTI by dividing your month-to-month debt payments by your gross monthly earnings, then increasing by 100. For example, somebody with a $3,000 monthly income and $750 in regular monthly debt payments has a 25% DTI. When obtaining a mortgage, it's generally best to have a DTI of 36% or listed below, though you might be approved with a DTI as high as 43%.
Get prequalified with several loan providers. Consider attempting a mix of large banks, regional cooperative credit union, and online loan providers and compare deals. Additionally, getting in touch with loan officers at numerous different institutions can assist you examine what you're searching for in a lender and which one will finest fulfill your needs. Just make sure that when you're comparing rates, you're doing so in a consistent way-if one price quote involves purchasing mortgage discount rate points and another doesn't, it's crucial to recognize there's an in advance cost for purchasing down your rate with points.


Mortgage rates of interest historic chart

Some context for the discussion about high mortgage rates is that rates in the area of 7% feel high since rates in the variety of 2% to 3% are still a relatively current memory. Those rates were possible due to unmatched federal government action aimed at preventing economic crisis as the nation grappled with a worldwide pandemic.

However, under more typical financial conditions, specialists concur we're unlikely to see such exceptionally low interest rates once again. Historically, rates around 7% are not unusually high.

Consider this St. Louis Fed (FRED) chart tracking Freddie Mac information on the 30-year, fixed-rate mortgage average. From the 1970s through the 1990s, such rates were more or less the norm, with a substantial spike in the early 1980s. In fact, September, October, and November of 1981 all saw mortgage rate of interest exceeding 18%.

Obviously, this historical point of view provides little consolation to homeowners who might wish to move but are secured with an unique low rates of interest. Such scenarios are typical enough in the existing market that low pandemic-era rates keeping property owners from moving when they otherwise would have become referred to as the "golden handcuffs."

Factors that affect mortgage interest rates

The health of the U.S. economy is most likely the most significant driver of mortgage rates. When loan providers worry about inflation, they can bump up rates to safeguard their revenues down the road.

And on an associated note, the national debt is another huge factor. When the federal government spends more than it takes in and needs to borrow, that can press rate of interest higher.

Demand for mortgage matters too. When need is low, lenders might drop rates to attract service. But if lots of individuals are looking for mortgages, loan providers may raise rates to handle the additional processing work.

The Federal Reserve also plays a key role, and can affect mortgage rates by changing the federal funds rate and by buying or selling assets.

Much is made from changes to the federal funds rate. When it goes up or down, mortgage rates typically do the same. But it's crucial to understand the Fed doesn't set mortgage rates directly, and they do not always relocate ideal sync with the fed funds rate.

The Fed also affects mortgage rates by methods of its balance sheet. During hard financial times, it can buy possessions like mortgage-backed securities (MBS) to pump cash into the economy.

But lately, the Fed has been shrinking its balance sheet, letting possessions grow without replacing them. This tends to push mortgage rates up. So while everyone expect cuts to the fed funds rate, what the reserve bank finishes with its balance sheet might matter much more for the mortgage rate you may get offered.

Why it is very important to compare mortgage rates

Comparing rates on various types of loans and looking around with different loan providers are both important steps in obtaining the very best mortgage for your scenario.

If your credit is exceptional, going with a traditional mortgage might be the ideal choice for you. However, if your rating is below 600, an FHA loan might supply an opportunity where a standard loan would not.

When it comes to checking out choices with various banks, cooperative credit union, and online lending institutions, it can make a significant difference in your total expenses. Freddie Mac research study suggests that in a market with high rates of interest, homebuyers might have the ability to conserve $600 to $1,200 yearly if they apply with several mortgage lending institutions.