Today’s Mortgage Rate Snapshot (As of August 15, 2025)
- The average interest rate for a 30-year fixed-rate mortgage is 6.552%.
- This represents the lowest average for this type of loan since early August.
- The rate is down 5 basis points from the previous day and approximately 8 basis points from a week ago.
Why Are Rates Where They Are?
- Historical Perspective: Experts agree that the 2-3% mortgage rates seen during the pandemic were the result of unprecedented government action and are unlikely to be seen again in our lifetimes. Historically, rates around 7% are not considered unusually high. In fact, rates exceeded a staggering 18% in the fall of 1981.
- Future Outlook: It is entirely possible for rates to return to around the 6% mark if inflation is tamed and lenders feel optimistic about the economy.
What Factors Influence Mortgage Rates?
- The U.S. Economy: When lenders fear inflation, they often raise rates to protect their long-term profits.
- Government Debt: When the U.S. government borrows large sums, it can drive interest rates higher across the board.
- Demand for Loans: If fewer people are applying for mortgages, lenders may lower rates to attract more business, and vice-versa.
- The Federal Reserve: While the Fed doesn’t set mortgage rates directly, its actions play a huge role. Changes to the federal funds rate and, perhaps more importantly, the shrinking of its balance sheet of assets like mortgage-backed securities tend to push rates up.
3 Steps to Secure the Best Possible Rate
- Build Excellent Credit: For a conventional loan, the minimum credit score is generally 620. However, to get the best possible rate, you should aim for a score of 740 or higher, which lenders consider top-tier.
- Lower Your Debt-to-Income (DTI) Ratio: This is your total monthly debt payments divided by your gross monthly income. Lenders typically prefer a DTI of 36% or below.
- Compare Offers from Multiple Lenders: Shopping around is essential. According to Freddie Mac research, applying with multiple lenders could save a homebuyer $600 to $1,200 annually in a high-rate market.
Your Partner in the Homebuying Journey
Navigating the complexities of mortgage rates and the loan application process can be challenging, but you don’t have to do it alone. A knowledgeable and dedicated mortgage professional can guide you through every step, ensuring you find the best possible loan for your unique situation.
For expert advice and personalized service, contact me today!
Click here to get Pre-Approved now
Sal Trapani
Mortgage Banker & Owner
MJ Mortgage LLC
281-608-2846 | sal@mjmortgagellc.com
33130 Magnolia Circle
Magnolia, TX 77354
www.mjmortgagellc.com
NMLS 1055510 | NMLS 2381195
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