Mortgage and refinance interest rates today, July 22, 2025: Mortgage rates trend downward
With stock market analysts gaining cautious optimism as equities begin to rise, traders are adding to bond positions, including the 10-Year Treasury, causing prices to rise and yields to drop. Treasury yields fell 1.35% yesterday, and if this trend continues, mortgage rates could closely follow.
Dig deeper: What determines mortgage rates?
Today's mortgage rates
Here are the current mortgage rates, according to our latest Zillow data:
30-year fixed: 6.66%
20-year fixed: 6.36%
15-year fixed: 5.82%
5/1 ARM: 7.22%
7/1 ARM: 7.08%
30-year VA: 6.21%
15-year VA: 5.67%
5/1 VA: 6.15%
Remember that these are the national averages and rounded to the nearest hundredth.
Have questions about buying, owning, or selling a house? Submit your question to Yahoo's panel of Realtors using this Google form.
Today's mortgage refinance rates
These are the current mortgage refinance rates, according to the latest Zillow data:
30-year fixed: 6.78%
20-year fixed: 6.61%
15-year fixed: 5.94%
5/1 ARM: 7.58%
7/1 ARM: 7.80%
30-year VA: 6.32%
15-year VA: 6.17%
5/1 VA: 6.28%
Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates.
Refinance interest rates
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Yahoo Finance mortgage calculator
A mortgage calculator can help you see how various mortgage term lengths and interest rates will affect your monthly payments. Use this mortgage calculator to play around with different outcomes.
The Yahoo Finance mortgage calculator also considers factors like property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.
30-year vs. 15-year fixed mortgage rates
As a general rule, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15- versus 30-year mortgage rates, know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you're paying off the same loan amount in half the time.
For example, with a $400,000 mortgage with a 30-year term and a 6.66% rate, you'll make a monthly payment of about $2,571 toward your mortgage principal and interest. As interest accumulates over decades, you'll end up paying $525,383 in interest.
If you get a $400,000 15-year mortgage with a 5.82% rate, you'll pay about $3,337 monthly toward your principal and interest. However, you'll only pay $200,597 in interest over the years.
If that 15-year mortgage monthly payment is too high, remember you can always make extra mortgage payments on your 30-year loan to pay off your mortgage faster and ultimately pay less interest.
Fixed-rate vs. adjustable-rate mortgages
With a fixed-rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage.
An adjustable-rate mortgage keeps your rate the same for a set period of time. Then the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remainder of your term.
Adjustable rates sometimes start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up. ARM rates have also been starting higher than fixed rates recently, so sometimes you don't get a rate break.
Dig deeper: Adjustable-rate vs. fixed-rate mortgage — Which should you choose?
When will mortgage rates finally drop?
Economists don't expect drastic mortgage rate drops before the end of 2025.
In 2024, mortgage rates trended downward from early August to the Sept. 18 Federal Reserve meeting, when the central bank announced a 50-basis-point slash to the federal funds rate. Since that announcement, mortgage rates have mostly increased or held steady.
The Fed decreased its rate again at its November and December meetings (by 25 bps each time). The trajectory of future mortgage rates will largely depend on the Federal Reserve's decision on whether or not to cut the federal funds rate at its 2025 meetings.
The Fed has not cut its rate at any of its 2025 meetings so far. According to the CME FedWatch tool, there's a 95% chance that the rate will remain unchanged at the Fed's next meeting on July 30. This means rates probably won't significantly drop in the next couple of months.
A sudden financial setback could change that.
Dig deeper: Understanding the Fed's rate decisions — Do we want high or low interest rates?
Mortgage rates today: FAQs
What is today's 30-year fixed rate?
According to Zillow data, today's 30-year fixed rate is 6.66% for home purchases and 6.78% for refinances. These are the national averages, so keep in mind the average in your state or city could be different. Your rate will also vary depending on your personal finances.
Are mortgage rates expected to drop?
Mortgage rates may be slightly lower by the end of 2025, but they're unlikely to drop drastically anytime soon.
Will mortgage rates go down in 2025?
Mortgage rates may ease a bit lower before the end of 2025, though probably not as sharply as many expected a few months ago. Depending on the economy, inflation, and the Fed, any decreases may be relatively small.
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