Home Loan Rates Inch Higher for Borrowers: Mortgage Interest Rates Today for July 21, 2025

Consult the forecasts for the weekly Money mortgage rate for a more in-depth overview of the next step for Fed rate decreases, labor data and inflation.

The average for a fixed mortgage of 30 years is 6.81% today, up 0.05% compared to seven days ago. The average rate for a fixed mortgage at 15 years is 6.03%, which represents an increase of 0.06% compared to the same period last week. To guarantee a lower mortgage interest rate, consider increasing your deposit, improving your credit scoring or buying mortgage points.

What is behind high prices these days? The concerns about persistent inflation, the threats of a world trade war and political turbulence have created an uncertain economic perspective. In response, the Federal Reserve has adopted a waiting approach and to hold stable borrowing rates since the start of the year.

Most economists predict that the Fed will start to reduce rates in September, especially if President Trump mitigates some of his aggressive tariff measures or if the labor market continues to deteriorate.

Potential buyers should not expect mortgage rates to become affordable overnight. Although cheaper borrowing costs gradually decrease on the housing market, the Fed did not directly fix the mortgage rates of lenders.

On the unaffordable housing market today, mortgage rates are just a piece of the puzzle. The high prices of the houses and the soaring of home ownership expenses, such as insurance and property taxes, further aggravates the pressure on potential buyers. The possibility of a job recession also pushes many households to tighten their budgets and take less financial risks.

When mortgage rates start to drop, be ready to take advantage of it. Experts recommend shopping and compare several offers to obtain the lowest rate. Enter your information here to obtain a personalized quote from one of CNET’s partner lenders.

About these rates: The Bankrate tool offers rates of partner lenders that you can use when comparing multiple mortgage rates.

What’s going on with mortgage rates at the moment?

The average fixed rate of 30 years has oscillated just below 7% in recent months, resulting in costly costly payments to costs.

Mortgage rates are closely linked to the bond market, in particular the performance of the treasury at 10 years, which reflects the expectations of investors in terms of inflation, labor data, changes in monetary policy and global measures such as prices.

“The rates could drop if inflation continues to cool and the labor market softens,” said Jeb Smith, approved real estate agent and a member of the CNET Money expert committee. “On the other hand, the prices could create new inflation pressure. Add government deficits and the increase in bond supply, and this exerts upward pressure on rates.”

Even if the Fed finally begins to reduce interest rates, experts warn that significant market volatility is likely. Consequently, buyers adopt a more patient and strategic approach to financing, the comparison of various types of loans and planning in advance.

“Some are waiting, others are pre-prone now, so they are ready to act if the rates drop,” said Smith.

For an overview of the mortgage rates movement in recent years, see the graph below.

Will experts predict: will mortgage rates increase or fall?

While the housing market was to bounce back in 2025, it remained stagnating due to continuous economic and political uncertainties. The median family income has not followed the pace of the high increase in housing costs, forcing many households to gain double or triple of their salary to afford a modest house in certain cities.

Mortgage rates should drop considerably, almost 6% or less, to increase the demand for the purchase of a large house. According to Smith, however, the most likely scenario is a slow and regular drop in borrowing costs. A return to record rates, around 2 to 3%, we saw during the pandemic would only occur if the economy went to a serious recession.

Fannie Mae’s forecasts represent rates around 6.5% by the end of 2025 and 6.1% by the end of 2026.

Continuous uncertainty could ensure that rates remain high or increase more. For example, if the prices cause inflation inflation, which most experts and officials of the Fed expect, this could lead to higher bond yields and less interest rate drops by the central bank. Both would be bad for mortgage rates.

Which mortgage term and type should I choose?

Each mortgage has a loan period or a payment schedule. The most common mortgage conditions are 15 and 30 years old, although mortgages of 10, 20 and 40 years old also exist. With a fixed rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable rate mortgage, the interest rate is only set for a certain time (generally five, seven or 10 years), after which the rate is adjusted annually depending on the market. Fixed rate mortgages are a better option if you plan to live in a long -term house, but adjustable rate mortgages can offer lower interest rates in advance.

Fixed rate mortgages of 30 years

The average engine rate fixed at 30 years is now 6.81%. A 30 -year fixed mortgage is the most common loan duration. It will often have a higher interest rate than a mortgage of 15 years, but you will have a lower monthly payment.

Fixed rate mortgages of 15 years

Today, the average rate of a fixed mortgage of 15 years is 6.03%. Although you will have a larger monthly payment than a fixed mortgage of 30 years, a 15 -year loan is generally delivered with a lower interest rate, allowing you to pay less long -term interest and reimburse your mortgage earlier.

5/1 adjustable mortgages

A mortgage with adjustable rate 5/1 has an average rate of 6.02% today. You will generally get an interest rate of lower introduction with an arm 5/1 during the first five years of the mortgage. But you can pay more after this period, depending on how the rate adjusts each year. If you plan to sell or refinance your home within five years, an arm may be a good option.

Calculate your monthly mortgage payment

Obtaining a mortgage should always depend on your financial situation and your long -term goals. The most important thing is to make a budget and try to stay according to your means. The CNET mortgage calculator below can help buyers prepare for monthly mortgage payments.

How can I get the lowest mortgage rates?

Although mortgage rates and house prices are high, the housing market will not be unaffordable forever. It’s always the right time to save for a deposit and improve your credit scoring to help you guarantee a competitive mortgage rate when the time has come.

1. Save for a more important deposit: Although a 20% deposit is not required, a larger initial payment means withdrawing a smaller mortgage, which will help you save interest.
2. Boost your credit scoring: You can be eligible for a conventional mortgage with a credit rating of 620, but a higher score of at least 740 will get you better prices.
3. Repay the debt: Experts recommend a 36% or less debt ratio to help you be eligible for the best rates. Do not wear another debt will put you in a better position to manage your monthly payments.
4. Loans and research assistance: The government sponsored by the government have more flexible borrowing requirements than conventional loans. Certain programs sponsored by the government or private can also help you with your deposit and your fence costs.
5. Go around the lenders: Research and comparison of multiple loan offers from different lenders can help you guarantee the lowest mortgage rate for your situation.