US 30-Year Fixed Mortgage Rates Remain Elevated: Homebuyers Face Ongoing Challenges

By ariachiang

2025-07-22

As of July 2025, the average 30-year fixed mortgage rate in the United States remains elevated, hovering between 6.7% and 6.8%. Hopes that mortgage rates would retreat following Federal Reserve rate cuts have not materialized, and rates have held above 6% since the latter part of 2023—spiking to a 21-year high of 7.09% in August 2023. In July 2025, rates are quoted between 6.62% and 6.82%, little changed in recent months, and still a far cry from the pandemic-era low of 2.65% seen in early 2021.

  • U.S. national average 30-year fixed mortgage rate for July 2025: 6.75%, with some lenders quoting 6.625% (Zillow) and the MBA rate at 6.82%.
  • Compared to July 2024 (about 6.58%), the rate is slightly higher—showing a small year-over-year rise, but is moderately down from the August 2023 peak of 7.09%.
  • The average rate for 15-year fixed mortgages: 5.97%, notably lower than 30-year products.
  • Factors keeping rates high:
    • Ongoing Fed policy making significant rate cuts unlikely
    • Persistent inflation
    • Higher Treasury yields
    • Stubborn inventory shortages fueling home price resilience
    • Demand subdued by housing affordability headwinds

Although the 30-year fixed mortgage rate has dipped slightly from last year's highs, it remains well above historical averages, making homeownership more challenging for many buyers. Experts generally expect rates to remain within the 6–7% range throughout 2025, with little chance of returning to the ultra-low rates of recent years. Depending on the trajectory of inflation, employment, and Fed policy, mortgage rates may ease modestly, possibly ending the year near 6.1%–6.3%. Nevertheless, homebuyers are advised to base decisions on their financial situation, rather than hoping for significant rate drops.

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