Current mortgage rates report for Aug. 19, 2025: Rates still mainly hold stable

Glen is an editor on the Fortune personal financing team covering housing, mortgages, and credit. He's been immersed on the planet of individual financing considering that 2019, holding editor and author roles at USA TODAY Blueprint, Forbes Advisor, and LendingTree before he joined Fortune. Glen likes getting a chance to dig into complicated subjects and break them down into workable pieces of info that folks can quickly absorb and use in their day-to-day lives.

The typical interest rate for a 30-year, fixed-rate adhering mortgage loan in the U.S. is 6.574%, according to data available from mortgage data business Optimal Blue. That's less than a full basis point of change from the previous day's report, and down approximately 6 basis points from a week ago. Read on to compare typical rates for a range of standard and government-backed mortgage types and see whether rates have increased or reduced.

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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 examined Optimal Blue's most current readily available data on Aug. 18, with the numbers showing mortgage secured as of Aug. 15.

What's occurring with mortgage rates in the market?

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

In reality, by January 2025 the typical rate for a 30-year, fixed-rate mortgage exceeded 7% for the first time considering that last May, according to Freddie Mac stats. That's a significant 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 decline.

Barring another significant crisis, experts state we won't have mortgage rates in the 2% to 3% range again in our lifetimes. However, rates around the 6% level are totally possible if the U.S. is successful in controlling inflation and lenders feel positive about the economic outlook.

Indeed, rates saw a slight decrease at the end of February, falling closer to the 6.5% mark than had actually been the case in a long time. There was even a dip below 6.5% really quickly in early April before rates quickly increased.

Still, with uncertainty concerning how far President Donald Trump will push policies such as tariffs and deportations, some analysts 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 methods to make their purchase more manageable, such as negotiating rate buydowns with a contractor when buying recently 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 also has a significant effect on the mortgage rate you're used. With that in mind, aim to do the following:

Ensure your credit remains in outstanding condition. The minimum credit score for a traditional mortgage is generally 620 (for FHA loans, you may certify with a score of 580 or a score as low as 500 with a 10% deposit). However, if you're wishing to get a low rate that could potentially conserve you 5 or perhaps 6 figures in interest over the life of your loan, you'll want a rating considerably higher. Consider that according to lender Blue Water Mortgage, a top-tier score is one of 740 or higher.
Maintain a low debt-to-income (DTI) ratio. You can calculate your DTI by dividing your regular monthly financial obligation payments by your gross monthly income, then increasing by 100. For example, someone with a $3,000 month-to-month income and $750 in monthly debt payments has a 25% DTI. When requesting a mortgage, it's generally best to have a DTI of 36% or listed below, though you may be approved with a DTI as high as 43%.
Get prequalified with numerous loan providers. Consider attempting a mix of big banks, regional credit unions, and online lending institutions and compare offers. Additionally, linking with loan officers at several different organizations can assist you assess what you're searching for in a loan provider and which one will finest satisfy your needs. Just make sure that when you're comparing rates, you're doing so in a consistent way-if one price quote involves acquiring mortgage discount rate points and another does not, it is essential to acknowledge there's an in advance expense for purchasing down your rate with points.


Mortgage rate of interest historic chart

Some context for the conversation about high mortgage rates is that rates in the vicinity of 7% feel high since rates in the range of 2% to 3% are still a relatively recent memory. Those rates were possible due to unmatched government action focused on preventing economic downturn as the nation grappled with a global pandemic.

However, under more normal financial conditions, specialists concur we're not likely to see such extremely low rates of interest again. Historically, rates around 7% are not abnormally high.

Consider this St. Louis Fed (FRED) chart tracking Freddie Mac data 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 reality, September, October, and November of 1981 all saw mortgage interest rates surpassing 18%.

Obviously, this historical viewpoint uses little consolation to property owners who may want to move however are secured with an unique low interest rate. Such situations are common enough in the existing market that low pandemic-era rates keeping property owners from moving when they otherwise would have become called the "golden handcuffs."

Factors that affect mortgage rates of interest

The health of the U.S. economy is most likely the biggest driver of mortgage rates. When loan providers fret about inflation, they can bump up rates to safeguard their earnings down the roadway.

And on a related note, the nationwide financial obligation is another big element. When the federal government invests more than it takes in and has to obtain, that can push rates of interest greater.

Demand for mortgage matters too. When need is low, lending institutions may drop rates to draw in organization. But if great deals of people are seeking mortgages, loan providers may raise rates to manage the extra processing work.

The Federal Reserve also plays an essential role, and can influence mortgage rates by altering the federal funds rate and by purchasing or offering properties.

Much is made from changes to the federal funds rate. When it increases or down, mortgage rates frequently follow suit. But it's crucial to comprehend the Fed does not set mortgage rates straight, and they don't constantly relocate perfect sync with the fed funds rate.

The Fed likewise influences mortgage rates by means of its balance sheet. During difficult economic times, it can purchase possessions like mortgage-backed securities (MBS) to pump money into the economy.

But recently, the Fed has been diminishing its balance sheet, letting assets mature without replacing them. This tends to press mortgage rates up. So while everybody expect cuts to the fed funds rate, what the reserve bank does with its balance sheet may matter even 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 searching with numerous lenders are both essential steps in obtaining the best mortgage for your circumstance.

If your credit is excellent, going with a traditional mortgage may be the right option for you. However, if your rating is listed below 600, an FHA loan might provide an opportunity where a traditional loan would not.

When it pertains to checking out options with different banks, cooperative credit union, and online lenders, it can make a substantial difference in your overall expenses. Freddie Mac research study shows that in a market with high interest rates, property buyers may have the ability to save $600 to $1,200 yearly if they apply with multiple mortgage lending institutions.