Current mortgage rates report for Aug. 19, 2025: Rates still mostly hold steady

Glen is an editor on the Fortune individual finance group covering housing, mortgages, and credit. He's been immersed in the world of individual finance because 2019, holding editor and writer roles at USA TODAY Blueprint, Forbes Advisor, and LendingTree before he signed up with Fortune. Glen loves getting a chance to dig into complicated topics and break them down into workable pieces of details that folks can easily digest and use in their every day lives.

The typical interest rate for a 30-year, fixed-rate adhering 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 around 6 basis points from a week ago. Read on to compare average rates for a variety of traditional and government-backed mortgage types and see whether rates have increased or reduced.

Check Out Our Daily Rates Reports

- Discover the greatest high-yield savings rates, approximately 5% for August 20, 2025.
- Discover the greatest CD rates, approximately 4.50% for August 20, 2025.
- Discover the present mortgage rates for August 20, 2025.
- Discover present refi mortgage rates report for August 20, 2025.
- Discover current ARM mortgage rates report for August 20, 2025.
- Discover the existing price of gold for August 20, 2025.

Current mortgage rates data:

30-year conventional

30-year jumbo

30-year FHA

30-year VA

30-year USDA

15-year standard

Note that Fortune reviewed Optimal Blue's newest readily available information on Aug. 18, with the numbers reflecting mortgage secured since Aug. 15.

What's happening with mortgage rates in the market?

If it appears like 30-year mortgage rates have been hovering around 7% for an eternity, that's not far off the mark. Many seeing the market prepared for rates would ease when the Federal Reserve began decreasing the federal funds rate last September, however that didn't happen. There was a short-lived decline leading up to the September Fed conference, but rates quickly rebounded afterward.

In truth, by January 2025 the typical rate for a 30-year, fixed-rate mortgage exceeded 7% for the first time since last May, according to Freddie Mac data. That's a considerable boost from the record-low average of 2.65% observed in January 2021, when the federal government was still attempting to improve the economy and prevent a pandemic-induced slump.

Barring another major crisis, specialists say we won't have mortgage rates in the 2% to 3% range again in our lifetimes. However, rates around the 6% level are entirely possible if the U.S. succeeds in managing inflation and loan providers feel optimistic about the financial outlook.

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

Still, with unpredictability regarding how far President Donald Trump will press policies such as tariffs and deportations, some experts worry the labor market might constrict and inflation might resurface. In this environment, U.S. homebuyers are confronted with high mortgage rates-though some can still find approaches to make their purchase more workable, such as negotiating rate buydowns with a builder when purchasing freshly built homes.

How to get the very best mortgage rate you can

While financial conditions are beyond your control, your monetary profile as an applicant likewise has a considerable effect on the mortgage rate you're provided. With that in mind, goal to do the following:

Ensure your credit is in exceptional condition. The minimum credit rating for a standard mortgage is usually 620 (for FHA loans, you may qualify with a rating of 580 or a score as low as 500 with a 10% deposit). However, if you're hoping to get a low rate that could possibly save you 5 or even six figures in interest over the life of your loan, you'll desire a score significantly greater. Consider that according to lender Blue Water Mortgage, a top-tier score is among 740 or higher.
Maintain a low debt-to-income (DTI) ratio. You can calculate your DTI by dividing your month-to-month financial obligation payments by your gross monthly earnings, then multiplying by 100. For instance, someone with a $3,000 month-to-month income and $750 in regular monthly financial obligation payments has a 25% DTI. When requesting a mortgage, it's normally best to have a DTI of 36% or below, though you may be authorized with a DTI as high as 43%.
Get prequalified with multiple loan providers. Consider trying a mix of large banks, local cooperative credit union, and online lending institutions and compare deals. Additionally, connecting with loan officers at numerous various institutions can assist you assess what you're searching for in a lending institution and which one will finest fulfill your needs. Just make sure that when you're comparing rates, you're doing so in a constant way-if one price quote involves acquiring mortgage discount points and another doesn't, it is necessary to acknowledge there's an in advance expense for purchasing down your rate with points.


Mortgage rates of interest historical chart

Some context for the discussion about high mortgage rates is that rates in the area of 7% feel high due to the fact that rates in the series of 2% to 3% are still a relatively current memory. Those rates were possible due to unprecedented federal government action targeted at preventing economic downturn as the nation faced an international pandemic.

However, under more common economic conditions, professionals agree we're not likely to see such exceptionally low interest rates 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 basically the norm, with a considerable spike in the early 1980s. In truth, September, October, and November of 1981 all saw mortgage rate of interest surpassing 18%.

Obviously, this historical point of view offers little consolation to homeowners who may desire to move however are locked in with an once-in-a-lifetime low interest rate. Such scenarios prevail enough in the current market that low pandemic-era rates keeping house owners from moving when they otherwise would have ended up being referred to as the "golden handcuffs."

Factors that impact mortgage rate of interest

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

And on a related note, the national debt is another huge element. When the federal government invests more than it takes in and has to borrow, that can press rate of interest greater.

Demand for mortgage matters too. When need is low, lenders may drop rates to draw in company. But if lots of people are looking for mortgages, lending institutions might raise rates to manage the extra processing work.

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

Much is made of changes to the federal funds rate. When it increases or down, mortgage rates frequently do the same. But it's essential to comprehend the Fed does not set mortgage rates straight, and they do not constantly move in best sync with the fed funds rate.

The Fed also affects mortgage rates by means of its balance sheet. During difficult financial times, it can purchase properties like mortgage-backed securities (MBS) to pump money into the economy.

But recently, the Fed has been diminishing its balance sheet, letting properties mature without changing them. This tends to press mortgage rates up. So while everyone watches for cuts to the fed funds rate, what the central bank makes with its balance sheet may matter a lot more for the mortgage rate you may get offered.

Why it is very important to compare mortgage rates

Comparing rates on different kinds of loans and looking around with numerous lenders are both vital steps in acquiring the finest mortgage for your circumstance.

If your credit is exceptional, opting for a conventional mortgage might be the best option for you. However, if your score is listed below 600, an FHA loan might provide a chance where a standard loan would not.

When it pertains to exploring choices with various banks, cooperative credit union, and online lending institutions, it can make a significant difference in your general costs. Freddie Mac research indicates that in a market with high rate of interest, property buyers may be able to save $600 to $1,200 every year if they apply with numerous mortgage lenders.