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

Glen is an editor on the Fortune personal finance group covering housing, mortgages, and credit. He's been immersed in the world of individual finance since 2019, holding editor and author roles at USA TODAY Blueprint, Forbes Advisor, and LendingTree before he joined Fortune. Glen likes getting an opportunity to go into complicated subjects and break them down into workable pieces of info that folks can quickly digest and use in their 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 company Optimal Blue. That's less than a full basis point of change from the previous day's report, and down roughly 6 basis points from a week ago. Keep reading to compare average rates for a range of conventional and government-backed mortgage types and see whether rates have actually increased or reduced.

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Current mortgage rates data:

30-year conventional

30-year jumbo

30-year FHA

30-year VA

30-year USDA

15-year traditional

Note that Fortune evaluated Optimal Blue's latest readily available data on Aug. 18, with the numbers reflecting mortgage locked in as of Aug. 15.

What's taking place 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 viewing the market anticipated rates would alleviate when the Federal Reserve started minimizing the federal funds rate last September, however that didn't take place. There was a short-lived decline leading up to the September Fed conference, however rates quickly rebounded later.

In truth, by January 2025 the typical rate for a 30-year, fixed-rate mortgage surpassed 7% for the very first time given that last May, according to Freddie Mac statistics. That's a considerable increase 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 recession.

Barring another major crisis, experts say we will not have mortgage rates in the 2% to 3% range once again in our lifetimes. However, rates around the 6% level are entirely possible if the U.S. is successful in managing inflation and loan providers feel optimistic about the financial outlook.

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

Still, with unpredictability relating to 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 confronted with high mortgage rates-though some can still find approaches to make their purchase more workable, such as working out rate buydowns with a builder when buying recently constructed homes.

How to get the best mortgage rate you can

While financial conditions are beyond your control, your monetary profile as an applicant also has a substantial impact on the mortgage rate you're used. With that in mind, aim to do the following:

Ensure your credit is in outstanding condition. The minimum credit report for a conventional mortgage is typically 620 (for FHA loans, you may certify with a score of 580 or a rating as low as 500 with a 10% deposit). However, if you're hoping to get a low rate that might possibly conserve you five or perhaps 6 figures in interest over the life of your loan, you'll want a score substantially higher. Consider that according to loan provider Blue Water Mortgage, a top-tier score 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, someone with a $3,000 monthly earnings and $750 in month-to-month debt payments has a 25% DTI. When getting a mortgage, it's normally best to have a DTI of 36% or below, though you may be approved with a DTI as high as 43%.
Get prequalified with multiple lending institutions. Consider trying a mix of big banks, local cooperative credit union, and online loan providers and compare deals. Additionally, connecting with loan officers at a number of different institutions can assist you evaluate what you're trying to find in a lender and which one will finest fulfill your requirements. Just ensure that when you're comparing rates, you're doing so in a consistent way-if one estimate includes purchasing mortgage discount points and another doesn't, it is necessary to recognize there's an upfront expense for buying down your rate with points.


Mortgage interest rates 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 extraordinary federal government action focused on preventing recession as the country grappled with a worldwide pandemic.

However, under more typical financial conditions, specialists concur we're unlikely to see such extremely low interest rates again. Historically, rates around 7% are not abnormally 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 standard, with a significant spike in the early 1980s. In reality, September, October, and November of 1981 all saw mortgage rates of interest surpassing 18%.

Obviously, this historic perspective offers little consolation to house owners who might wish to move but are secured with an unbelievable low rate of interest. Such situations are typical enough in the current market that low pandemic-era rates keeping house owners from moving when they otherwise would have ended up being known as the "golden handcuffs."

Factors that affect mortgage rates of interest

The health of the U.S. economy is most likely the most significant driver of mortgage rates. When lenders stress over inflation, they can bump up rates to secure their profits down the roadway.

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

Demand for mortgage matters too. When need is low, lenders might drop rates to bring in organization. But if lots of individuals are seeking mortgages, lenders might raise rates to manage the extra processing work.

The Federal Reserve likewise plays a key function, and can influence mortgage rates by changing the federal funds rate and by buying or offering assets.

Much is made of modifications to the federal funds rate. When it increases or down, mortgage rates often do the same. But it's important to comprehend the Fed doesn't set mortgage rates straight, and they don't constantly move in ideal sync with the fed funds rate.

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

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

Why it is essential to compare mortgage rates

Comparing rates on various types of loans and searching with different loan providers are both necessary actions in getting the best mortgage for your situation.

If your credit is excellent, choosing for a traditional mortgage may be the ideal choice for you. However, if your score is below 600, an FHA loan may supply a chance where a conventional loan would not.

When it pertains to checking out choices with various banks, credit unions, and online lending institutions, it can make a considerable difference in your overall costs. Freddie Mac research shows that in a market with high rates of interest, homebuyers may have the ability to conserve $600 to $1,200 annually if they apply with several mortgage lending institutions.