Mortgage Rates Today: August 13, 2025 - 30-Year and 15-Year Rates Hold Firm

Forbes

a day ago

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The current average mortgage rate on a 30-year fixed mortgage is 6.56%, according to the Mortgage Research Center. The average rate on a 15-year mortgage is 5.51%, while the average rate on a 30-year jumbo mortgage is 6.70%.
Today's average rate on a 30-year, fixed-rate mortgage is 6.56%, which is 0.12% higher than last week.
The interest plus lender fees, called the annual percentage rate ( APR ), on a 30-year fixed mortgage is 6.59%. The APR was 6.58% last week.
To get an idea about how much you might pay in interest, consider that the current 30-year, fixed-rate mortgage of 6.56% on a $100,000 loan will cost $636 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total amount you'll pay in interest during the loan's lifespan is $129,561.
The average interest rate on a 15-year mortgage (fixed-rate) declined to 5.51%. This same time last week, the 15-year fixed-rate mortgage was at 5.52%.
On a 15-year fixed, the APR is 5.56%. Last week it was 5.57%.
A 15-year fixed-rate mortgage of $100,000 with today's interest rate of 5.51% will cost $817 per month in principal and interest. Over the life of the loan, you would pay $47,610 in total interest.
On a 30-year jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas), the average interest rate fell to 6.7%, lower than it was at this time last week. The average rate was 6.82% at this time last week.
Borrowers with a 30-year fixed-rate jumbo mortgage with today's interest rate of 6.7% will pay $645 per month in principal and interest per $100,000. That means you'd pay approximately $132,754 in total interest over the life of the loan.
After reaching 7.04% in January, the average interest rate for a 30-year fixed mortgage has steadily remained in the mid-to-high 6% range. The 15-year fixed mortgage rate has hovered between the low-6% and high-5% range since its January peak of 6.27%.
While rates dropped in mid-January 2025, experts aren't forecasting a significant decrease in the near future.
Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop .
Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit.
The Federal Reserve's decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows.
A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens.
The first step on your homebuying journey should be to calculate affordability. You'll want to find out how much you can afford based on things like income, debt and savings.
Here are a few important factors that go into home affordability: Income
Debt
Debt-to-income ratio (DTI)
Down payment
Credit score
Mortgage interest rates are determined by several factors, including some that borrowers can't control: Federal Reserve. The Fed rate hikes and decreases adjust the federal funds rate, which helps determine the benchmark interest rate that banks lend money at. As a result, mortgage rates tend to move in the same direction with the Fed's rate decision.
The Fed rate hikes and decreases adjust the federal funds rate, which helps determine the benchmark interest rate that banks lend money at. As a result, mortgage rates tend to move in the same direction with the Fed's rate decision. Bond market. Mortgages are also loosely connected to long-term bond yields as investors look for income-producing assets—specifically, the 10-year U.S. Treasury Bond. Home loan rates tend to increase as bond prices decrease, and vice versa.
Mortgages are also loosely connected to long-term bond yields as investors look for income-producing assets—specifically, the 10-year U.S. Treasury Bond. Home loan rates tend to increase as bond prices decrease, and vice versa. Economic health. Rates can increase during a strong economy when consumer demand is higher and unemployment levels are lower. Anticipate lower rates as the economy weakens and there is less demand for mortgages.
Rates can increase during a strong economy when consumer demand is higher and unemployment levels are lower. Anticipate lower rates as the economy weakens and there is less demand for mortgages. Inflation. Banks and lenders may increase rates during inflationary periods to slow the rate of inflation. Additionally, inflation makes goods and services more expensive, reducing the dollar's purchasing power.
While the above factors set the base interest rate for new mortgages, there are several areas that borrowers can focus on to get a lower rate: Credit score. Applicants with a credit score of 670 or above tend to have an easier time qualifying for a better interest rate. Typically, most lenders require a minimum score of 620 to qualify for a conventional mortgage.
Applicants with a credit score of 670 or above tend to have an easier time qualifying for a better interest rate. Typically, most lenders require a minimum score of 620 to qualify for a conventional mortgage. Debt-to-income (DTI) ratio. Lenders may issue mortgages to borrowers with a DTI of 50% or less. However, applying with a DTI below 43% is recommended.
Lenders may issue mortgages to borrowers with a DTI of 50% or less. However, applying with a DTI below 43% is recommended. Loan-to-value (LTV) ratio. Conventional home loans charge private mortgage insurance when your LTV exceeds 80% of the appraisal value, meaning you need to put at least 20% down to avoid higher rates. Additionally, FHA mortgage insurance premiums expire after the first 11 years when you put at least 10% down.
Conventional home loans charge private mortgage insurance when your LTV exceeds 80% of the appraisal value, meaning you need to put at least 20% down to avoid higher rates. Additionally, FHA mortgage insurance premiums expire after the first 11 years when you put at least 10% down. Loan term. Longer-term loans such as a 30-year or 20-year mortgage tend to charge higher rates than a 15-year loan term. However, your monthly payment can be more affordable over a longer term.
Longer-term loans such as a 30-year or 20-year mortgage tend to charge higher rates than a 15-year loan term. However, your monthly payment can be more affordable over a longer term. Residence type. Interest rates for a primary residence can be lower than a second home or an investment property. This is because the lender of your primary mortgage receives compensation first in the event of foreclosure.
As you compare lenders, consider getting rate quotes for several loan programs. In addition to comparing rates and fees, these programs can have flexible down payment and credit requirements that make qualifying easier.
Conventional mortgages are likely to offer competitive rates when you have a credit score between 670 and 850, although it's possible to qualify with a minimum score of 620. This home loan type also doesn't require annual fees when you have at least 20% equity and waive PMI.
Several government-backed programs are better when you want to make little or no down payment: FHA loans. Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with FHA loans.
Borrowers with a credit score above 580 only need to put 3.5% down and applicants with credit scores ranging from 500 to 579 are only required to make a 10% down payment with VA loans. Servicemembers, veterans and qualifying spouses don't need to make a down payment when the sales price is less than the home's appraisal value. VA loan credit requirements vary by lender.
Servicemembers, veterans and qualifying spouses don't need to make a down payment when the sales price is less than the home's appraisal value. credit requirements vary by lender. USDA loans. Applicants in eligible rural areas can buy or build a home with no money down using a USDA loan . Moderate-income borrowers can qualify for a 30-year fixed-rate term through the Guaranteed Loan Program. Further, buyers with a very low or low income can receive a 33-year term and payment assistance is available through the agency's Direct Loans program. Credit requirements differ by lender. Frequently Asked Questions (FAQs)
Comparing lenders and loan programs is an excellent start. Borrowers should also strive for a good or excellent credit score between 670 and 850 and a debt-to-income ratio of 43% or less.
Further, making a minimum down payment of 20% on conventional mortgages can help you automatically waive private mortgage insurance premiums, which increases your borrowing costs. Buying discount points or lender credits can also reduce your interest rate.
The Federal Reserve's efforts to stabilize the economy during the Covid-19 pandemic drove the historically low rates. As the economy recovers, the unemployment rate decreases and inflation is controlled, rates may dip below current levels, but they're unlikely to fall as low as 3% again anytime soon.
Choosing between a fixed- or adjustable-rate mortgage (ARM) depends on your financial situation. A fixed-rate mortgage suits those who want consistent monthly payments throughout the loan term without worrying about fluctuations in their rate or payments in response to market changes. If mortgage rates are low, securing a fixed rate can save you money in the long run.
An ARM , on the other hand, may appeal to those who want a lower initial rate and monthly payment. However, you also run the risk of ending up with higher payments if your rate fluctuates. If you expect your income to rise, you may feel confident handling these potential payment increases. These mortgages can also work well for those who plan to live in a home for only a few years, as you might sell or move before the rate adjusts.