Mortgage Rates Today: September 5, 2025 – Rates Hold Firm

Today, the mortgage interest rate on a 30-year fixed mortgage is 6.38%, according to the Mortgage Research Center. On a 15-year fixed mortgage, the average rate is 5.33%, and the average rate on a 30-year jumbo mortgage is 6.61%.

30-Year Mortgage Rates Drop 0.61%

Borrowers paid an average rate of 6.38% on a 30-year mortgage. This was down from the previous week’s rate of 6.42%.

Currently, the average APR on a 30-year fixed-rate mortgage is 6.41%. This is lower than last week when the APR was 6.45%. The APR contains both mortgage interest and the lender fees to help give a more complete picture of loan costs.
To get an idea of how much you’ll pay: a $100,000 mortgage with a 30-year fixed-rate loan at the current average interest rate of 6.38% will cost you about $624 including principal and interest (taxes and fees not included) each month, the Forbes Advisor mortgage calculator shows. That’s around $125,465 in total interest over the life of the loan.

15-Year Mortgage Rates Drop 1.22%

Today’s 15-year mortgage (fixed-rate) is 5.33%, down 1.22% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.39%.

The APR on a 15-year fixed is 5.37%. It was 5.44% a week earlier.

A 15-year, fixed-rate mortgage with today’s interest rate of 5.33% will cost $808 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $45,874 in total interest.

Jumbo Mortgage Rates Drop 0.29%

The current average interest rate on a 30-year fixed-rate jumbo mortgage (a mortgage above 2025’s conforming loan limit of $806,500 in most areas) is 6.61%. Last week, the average rate was 6.63%.

If you lock in the latest rate on a 30-year, fixed-rate jumbo mortgage, you will pay $640 per month in principal and interest per $100,000 borrowed, which amounts to $130,679 in total interest over the life of the loan.

Mortgage Rate Trends in 2025

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.

When Will Mortgage Rates Go Down?

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.

How To Calculate Mortgage Payments

One of the first steps in buying a house is budgeting. To get a general idea of how much owning a home will cost, start by using a mortgage calculator to crunch the numbers.

Just input the following data to get an idea of how much a house will cost:

• Home price
• Down payment amount
• Interest rate
• Loan term
• Taxes, insurance and any HOA fees

How Are Mortgage Rates Determined?

Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s APR.

Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.

Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.

The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases.

What Type of Mortgage Is Best for You?

Many home buyers are eligible for several mortgage loan types. Each program can have its own advantages:

• Conventional mortgage. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums.
• FHA loan. An FHA home loan is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579.
• VA loan. Borrowers with a qualifying military background may prefer a VA loan for its flexibility. A down payment may not be required. While you pay a one-time funding fee, there are no ongoing mortgage insurance premiums or service fees.
• USDA loan. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower.
• Jumbo loan. Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency’s conforming loan limits. The limit in most municipalities is $806,500 in 2025.

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