U.S. 30-Year Mortgage Rate Falls to 6.552%, Lowest Since April

The average interest rate for a 30-year, fixed-rate conforming mortgage in the U.S. dropped to 6.552% on Aug. 15, 2025, according to data from mortgage data provider Optimal Blue. This represents a 5 basis point decline from the previous day and marks the lowest rate for this type of mortgage since early April [1]. The current rate is approximately 8 basis points lower than the average a week ago and continues a gradual decline from a peak of 6.717% a month earlier [1].

The 30-year jumbo mortgage rate stands at 6.776%, down from 6.963% a month ago. Meanwhile, the 30-year FHA mortgage rate is at 6.351%, the 30-year VA mortgage rate is 6.141%, and the 30-year USDA mortgage rate is 6.320%, all showing modest decreases from their respective rates one month ago [1].

These figures reflect a broader trend of declining mortgage rates following months of relative stability near 7%. In January 2025, the 30-year fixed-rate mortgage average surpassed 7% for the first time since May of the previous year, according to Freddie Mac data. However, recent declines indicate a tentative easing of borrowing costs, although rates remain significantly higher than the 2.65% low recorded in January 2021 [1].

Experts suggest that absent another major economic crisis, mortgage rates in the 2% to 3% range are unlikely in the foreseeable future. However, a return to the 6% range is considered plausible if inflation is effectively managed and economic optimism stabilizes [1]. There was a brief dip in rates at the end of February 2025, and another temporary decline in early April, although these were followed by subsequent increases.

The uncertainty surrounding potential policies under a second Trump administration, including proposed tariffs and immigration enforcement measures, has led to concerns about inflationary pressures and a tightening labor market. These factors contribute to the current high mortgage rate environment, despite some recent relief for homebuyers [1].

For borrowers seeking the most favorable terms, maintaining a strong credit profile remains essential. A credit score of 740 or higher is typically considered top tier by lenders, which can lead to significantly lower interest rates over the life of a loan [1]. Additionally, keeping a low debt-to-income ratio—ideally 36% or below—can improve lending prospects and reduce borrowing costs.

Comparing offers from multiple lenders is also critical in securing the best rate. Freddie Mac research suggests that in a high-interest-rate environment, homebuyers can save between $600 and $1,200 annually by shopping around for the most competitive mortgage offers [1].

The broader economic context is equally important in understanding mortgage rate movements. While the Federal Reserve's decisions on the federal funds rate receive much attention, its balance sheet adjustments—such as the current reduction in asset holdings—also play a significant role in shaping long-term interest rates. A shrinking balance sheet can increase borrowing costs by reducing the supply of available credit in the financial system [1].

Historical comparisons also provide context. While current rates near 7% feel high due to the memory of the 2% to 3% range during the pandemic, such rates are actually in line with historical norms from the 1970s through the 1990s. This suggests that while today’s rates are high relative to recent history, they are not uncommon in a broader economic timeframe [1].

Given these factors, homebuyers are advised to remain proactive in their mortgage shopping, particularly in a competitive and uncertain market. By improving personal financial metrics and seeking out multiple lending options, buyers can potentially reduce their long-term borrowing costs and navigate the current high-rate environment more effectively [1].

Source: [1] Current mortgage rates report for Aug. 15, 2025: Lowest 30-year conventional rate since April (https://fortune.com/article/current-mortgage-rates-08-15-2025/)