30-Year Fixed Mortgage Rate Holds at 6.69% as Refinancing Gains Remain Limited

On August 19, 2025, the average refinance rate for a 30-year fixed-rate mortgage stood at 6.69%, according to Zillow data[1]. The report highlights a range of mortgage refinancing options, with rates varying by loan type and term. For conventional mortgages, the rates range from 5.48% for a 10-year term to 6.69% for a 30-year term. Jumbo mortgages saw slightly higher rates, with 6.98% for a 30-year loan and 6.29% for a 15-year term. FHA loans are reported at 6.75% for 30 years and 5.67% for 15 years, while VA loans offer slightly better rates at 6.24% and 5.43%, respectively[1].

Mortgage refinancing remains a strategic consideration for homeowners seeking to lower monthly payments or access home equity. The process generally involves meeting lender requirements such as creditworthiness, income verification, and debt-to-income ratio criteria. Refinancing can result in a temporary dip in credit scores due to hard inquiries and carries the risk of denial for those who do not meet lender standards[1].

Despite the Federal Reserve’s rate cuts in late 2024, mortgage rates have remained relatively stable, hovering around the 7% level for 30-year fixed-rate loans. A slight decline was observed at the end of February 2025, bringing rates closer to 6.5%, but these levels are still well above the historically low rates between 2% and 3% seen during the pandemic[1]. As of Q3 2024, 82.8% of homeowners with mortgages had rates below 6%, according to a Redfin report, suggesting a significant portion of the homeowner population is currently locked in at lower rates and less inclined to refinance[1].

The decision to refinance often hinges on securing a rate at least 1 percentage point lower than the current one, as this can lead to meaningful interest savings over the life of the loan. A cash-out refinance is another option for homeowners with at least 20% equity, enabling them to access cash for various purposes such as home improvements, debt consolidation, or investments. Borrowers can also use refinancing to adjust their loan term—such as switching from a 15-year to a 30-year loan for reduced monthly payments—or to change loan types, such as converting an FHA loan to a conventional one to eliminate ongoing mortgage insurance requirements[1].

Refinancing typically involves closing costs that range from 2% to 6% of the loan amount. These costs include lender fees, appraisal charges, title insurance, and other administrative expenses. For example, a $300,000 loan might incur between $6,000 and $18,000 in closing costs. Borrowers are advised to compare refinancing offers from multiple lenders to secure the most favorable terms, although current lenders may offer incentives such as waived fees to retain customers[1].

Homeowners are presented with a variety of refinance options, including rate-and-term refinancing to adjust rates or terms, cash-out refinancing to tap equity, no-closing-cost refinancing where the lender covers fees in exchange for a higher rate, and streamline refinancing for existing FHA, VA, and USDA loan holders, which typically requires less documentation and offers a simplified process[1].

Source: [1] Current refi mortgage rates report for Aug. 19, 2025 (https://fortune.com/article/current-refi-mortgage-rates-08-19-2025/)