Mortgage Rates Edge Slightly Higher From Long-Term Lows

After last week's Jackson Hole speech from Fed Chair Powell, rates fell to their lowest levels since October 3rd, 2024, narrowly surpassing the recent long-term low seen on August 13th. Powell tacitly suggested a stronger possibility of a September Fed rate cut due to growing concerns about the labor market. Now today, the market corrected mildly back in the other direction.  The average lender's conventional 30yr fixed rates moved back up ever-so-slightly (roughly 0.02%), but remain essentially in line with 10-month lows.  It always bears repeating that mortgage rates have much more in common with Fed rate EXPECTATIONS in the marketplace than with the Fed Funds Rate itself. Specifically, if expectations for rate cuts are increasing, mortgage rates tend to fall at the same time. The catch is that by the time the Fed ultimately holds its scheduled meeting and cuts rates, the market has long since priced that likelihood into prevailing levels. Thus, the actual Fed rate cut does little or nothing else to influence rates and the next wave of momentum takes cues from subsequent economic reports and developments.  Bottom line: the Fed Funds Rate is a battleship in a river whereas mortgage rates are far more nimble.

August 25, 2025 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Edge Slightly Higher From Long-Term Lows After last week's Jackson Hole speech from Fed Chair Powell, rates fell to their lowest levels since October 3rd, 2024, narrowly surpassing the recent long-term low seen on August 13th. Powell tacitly suggested a stronger possibility of a September F... (read more) MBS Commentary New Week, Same Struggles Last week may have ended on a high note with bonds rallying on Powell's Jackson Hole speech, but perception was better than reality at the time. The reality was/is that Friday's rally merely reinforced the trading range that has been ongoing since th... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.54% +0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.54% +0.02 0.00 15 Yr. Fixed 5.93% +0.03 0.00 30 Yr. FHA 6.12% +0.01 0.00 30 Yr. Jumbo 6.55% 0.00 0.00 7/6 SOFR ARM 5.99% 0.00 0.00 30 Yr. VA 6.14% +0.01 0.00 Updates Daily - Last Update: 8/25 15 Yr. Fixed Rate 5.93% +0.03% Rate Change Points Freddie Mac 30 Yr. Fixed 6.58% 0.00 0.00 15 Yr. Fixed 5.69% -0.02 0.00 Updates Weekly - Last Update: 8/21 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.68% +0.01 0.60 15 Yr. Fixed 5.96% +0.03 0.70 30 Yr. Jumbo 6.64% -0.06 0.60 Updates Weekly - Last Update: 8/20 MBS / Treasuries UMBS 30YR 5.5 100.31 -0.04 Price / Yield Change MBS UMBS 5.5 100.31 -0.04 UMBS 6.0 102.01 -0.02 GNMA 5.5 100.50 -0.04 GNMA 6.0 101.91 +0.02 Pricing as of: 8/25 5:31PM EST 10 Year US Treasury 4.2790 +0.0190 Price / Yield Change US Treasury 2 YR Treasury 3.727 +0.026 5 YR Treasury 3.787 +0.017 7 YR Treasury 4.006 +0.028 10 YR Treasury 4.279 +0.019 30 YR Treasury 4.896 +0.010 Pricing as of: 8/25 5:31PM EST Latest Video Douglas Elliman's Noble Black: Housing market remains a 'rate driven story' It's a big premium for homeowners to move right now, says Invitation Homes ... July new home sales comes in at 652,000, median home price falls Auto sales rise amid higher prices Around the Web Eye on Housing Multifamily Missing Middle Trends CNBC White House's Hassett says government likely to continue taking stakes in companies similar to Intel deal Eye on Housing New Home Sales Flat as Affordability Concerns Persist CNBC Student loan forgiveness delays and backlogs could lead to 'massive' tax bills for borrowers, advocate says Eye on Housing Multifamily Built-for-Rent Share CNBC U.S. Treasury yields tick higher as investors look toward key inflation data later in the week Calculated Risk Blog ICE First Look at July Mortgage Performance: "Delinquencies Ease in July" Eye on Housing Powell Appears to Signal Rate Cuts Due to Evolving Circumstances Calculated Risk Blog Housing August 25th Weekly Update: Inventory Up 0.1% Week-over-week; Down 9.4% from 2019 Levels Federal Reserve Monetary Policy and the Fed’s Framework Review Chair Jerome H. Powell Eye on Housing Single-Family Home Size: 2Q25 Data Calculated Risk Blog Q3 GDP Tracking Calculated Risk Blog Philly Fed: State Coincident Indexes Increased in 41 States in July (3-Month Basis)

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