Current mortgage rates report for Aug. 18, 2025: Rates fairly consistent

Glen is an editor on the Fortune individual financing group covering housing, mortgages, and credit. He's been immersed in the world of personal finance because 2019, holding editor and writer roles at USA TODAY Blueprint, Forbes Advisor, and LendingTree before he joined Fortune. Glen likes getting a possibility to go into complicated subjects and break them down into manageable pieces of details that folks can quickly absorb and use in their lives.

The average rates of interest for a 30-year, fixed-rate conforming mortgage loan in the U.S. is 6.571%, according to data available from mortgage data business Optimal Blue. That's up around 2 basis points from the prior day's report, and less than a full basis point altered compared to a week ago. Read on to compare average rates for a variety of traditional and government-backed mortgage types and see whether rates have actually increased or decreased.

Check Out Our Daily Rates Reports

- Discover the greatest high-yield savings rates, as much as 5% for August 19, 2025.
- Discover the highest CD rates, as much as 4.50% for August 19, 2025.
- Discover the present mortgage rates for August 19, 2025.
- Discover existing refi mortgage rates report for August 19, 2025.
- Discover present ARM mortgage rates report for August 19, 2025.
- Discover the existing cost of gold for August 19, 2025.

Current mortgage rates data:

30-year traditional

30-year jumbo

30-year FHA

30-year VA

30-year USDA

15-year traditional

Note that Fortune evaluated Optimal Blue's latest available information on Aug. 15, with the numbers showing mortgage secured as of Aug. 14.

What's happening with mortgage rates in the market?

If it seems like 30-year mortgage rates have been stuck near 7% forever, that's not far from the truth. Many observers were hoping that rates would soften when the Federal Reserve started cutting the federal funds rate last September, but that didn't happen. There was a brief dip preceding the September Fed meeting, but rates shot back up afterward.

In reality, by January 2025 the average rate on a 30-year, fixed-rate mortgage topped 7% for the very first time considering that last May, according to Freddie Mac information. That's a far cry from the historic average low of 2.65% we saw in January 2021, when the government was still attempting to promote the economy and stave off a pandemic-induced economic downturn.

Barring another enormous disaster, experts concur we will not see rates in the 2% to 3% range in our life times. But rates around the 6% mark are absolutely feasible if the U.S. manages to tame inflation and lenders feel positive in the financial outlook.

In truth, rates took a small dip at the end of February, dropping closer to the 6.5% mark than had been seen for some time. Rates even fell listed below 6.5% for a brief period in early April before promptly increasing straight afterward.

Right now, with uncertainty about how far President Donald Trump will go pursuing policies such as tariffs and deportations, some observers fear the labor market could tighten up and inflation might reignite. Against that backdrop, U.S. property buyers are stuck with high mortgage rates-though some can still discover methods to make their purchase more budget friendly, such as negotiating rate buydowns with a contractor when purchasing freshly built housing.

How to get the finest mortgage rate possible

While economic conditions are out of your control, your monetary profile as an applicant has a significant influence on the mortgage rate you get. With that in mind, aim to do the following:

Ensure your credit is in excellent shape. The minimum credit score to get a traditional mortgage is normally 620 (for FHA loans, you might be able to certify with a score of 580 or a score as low as 500 and a 10% deposit). But, if you're wanting to get a low rate that might potentially conserve you 5 and even six figures in interest over the life of your loan, you'll desire a score a fair bit higher. For instance, lender Blue Water Mortgage keeps in mind that a score of 740 or greater is thought about top tier.
Keep your debt-to-income (DTI) ratio low. You can compute your DTI by dividing your monthly financial obligation payments by your gross month-to-month income, then multiplying by 100. For instance, somebody with a $3,000 month-to-month income and $750 in monthly debt payments has a 25% DTI. It's usually best when applying for a mortgage to have a DTI of 36% or below, though you might get authorized with a DTI as high as 43%.
Get prequalified with numerous lending institutions. You might wish to try a mix of big banks, local credit unions, and online lenders and compare offers. Plus, getting linked with loan officers at several different organizations can help you assess what you're looking for in a lender and which one will be best able to meet your requirements. Just make certain when you're comparing rates that you're doing it in such a way that's apples to apples-if one quote depends on you purchasing mortgage discount rate points and another does not, it is very important to realize there's an upfront cost for buying down your rate with points.


Mortgage rates of interest historic chart

Rates feel high since almost everybody recalls the ultra-low rates that prevailed over the last 15 years approximately. An unique set of historical circumstances drove that market: The extended period when the Fed held its key rate at zero to recuperate from the Great Recession, followed by the unmatched policies put in place as the nation fought the global Covid-19 pandemic.

Now that more normal financial conditions prevail, specialists agree we're not likely to see such drastically low rates of interest again. Taking the viewpoint, rates around 7% are not abnormally high.

Consider this St. Louis Fed chart tracking Freddie Mac data on the 30-year, fixed-rate mortgage average. In the 1990s, 7% rates were basically the standard. Compared to rates in the 1970s and 80s, 7% rates appear like a deal. In fact, September, October, and November of 1981 all saw mortgage rates of interest above 18%.

Historical context is little convenience for homeowners who desire to move but feel locked in with an once-in-a-lifetime low rates of interest. Such scenarios prevail enough in the present market that low pandemic-era rates keeping homeowners put when they 'd otherwise move have become referred to as the "golden handcuffs."

Factors that impact mortgage interest rates

The current state of the U.S. economy is the biggest aspect affecting mortgage rates of interest. If lending institutions fear inflation, they raise mortgage rates to safeguard their long-term profits.

Another big-picture aspect is the national financial obligation. When the federal government runs large deficits and needs to borrow to make up the distinction, that can put upward pressure on rates of interest.

Demand for mortgage plays a key function. If demand for loans is low, lending institutions may decrease rates to attract more customers. On the other hand, high need indicates lending institutions may decide to raise rates as a way of covering expenses for dealing with a greater volume of loans.

And of course, we need to think about the Federal Reserve's actions. The Fed can influence interest rates on monetary items such as mortgages both through deciding to hike or cut the federal funds rate and through what actions it decides to take concerning its balance sheet.

The federal funds rate gets considerable media attention, as boosts or decreases to this benchmark rate (which is the rate banks charge each other for obtaining cash overnight) frequently accompany boosts or reduces to the interest rates for mortgage and other kinds of credit. That said, the Fed does not set rates for mortgages or other credit products straight, and such interest rates do not constantly track perfectly with the fed funds rate.

Another way the Fed influences mortgage rates is by means of its balance sheet. In times of financial distress, the central bank buys monetary assets and holds them on their balance sheet, injecting liquidity into the economy. Mortgage-backed securities (MBS) are an essential kind of property for the Fed in such circumstances.

However, the Fed has been slendering down its balance sheet, enabling possessions to develop without purchasing new ones to replace those that have aged off it. That puts an upward pressure on mortgage rates of interest. In other words, even though a great deal of attention is focused on when the main bank decides to cut or hike the federal funds rate, what the Fed makes with its balance sheet may be a lot more important for those intending to snag a lower mortgage rate.

Why it is very important to compare mortgage rates

Comparing rates on different kinds of loans and going shopping around with various loan providers are both crucial steps in getting the very best mortgage for your scenario.

If your credit remains in excellent shape, choosing a standard mortgage might be the very best option for you. But, if your score is sub-600, an FHA loan might provide you a chance a traditional loan would not.

When it pertains to searching with various banks, cooperative credit union, and online lenders, it can make a tangible distinction in how much you pay. Freddie Mac research shows that in a market with high rates of interest, property buyers might be able to save $600 to $1,200 yearly if they use with numerous mortgage loan providers.