U.S. 30-Year Refinance Rates Hold at 6.62% Amid Stagnant Market

As of August 15, 2025, the average refinance rate for a 30-year fixed-rate mortgage in the U.S. stands at 6.62%, according to the latest data from Zillow [1]. This figure reflects the latest snapshot of mortgage market conditions and serves as a reference for homeowners considering refinancing to reduce their interest costs or access home equity. The report also highlights refinance rates across different loan types and terms, with conventional mortgages showing a 6.68% rate for 20-year terms and 5.70% for 15-year terms. Jumbo mortgages carry a slightly higher burden, with 30-year terms averaging 7.13% and 15-year terms at 6.35%. FHA and VA loans also feature distinct averages, with FHA at 6.13% for 30-year terms and 5.59% for 15-year terms, while VA loans average 6.24% and 5.77% respectively [1].

The broader market context indicates that mortgage rates have remained relatively high compared to the historically low levels seen during the pandemic. Despite expectations that the Federal Reserve’s rate cuts in late 2024 would translate into lower mortgage rates, the impact has been limited, with 30-year rates hovering near the 7% threshold for months. A modest decline in late February 2025 brought the 30-year rate closer to 6.5%, but the level still remains significantly above the 2-3% rates observed in 2020 and 2021 [1]. This trend has left a large segment of homeowners—82.8% of those with mortgages in the third quarter of 2024—with rates below 6%—effectively locked into their current loans due to either lack of incentive or ineligibility for refinancing [1].

From an analytical standpoint, the current refinance landscape suggests that refinancing is most viable for those who can secure a rate at least 1 percentage point lower than their current mortgage rate. Given the 6.62% average for 30-year conventional mortgages, homeowners with existing rates above this threshold may find refinancing beneficial, particularly if they plan to stay in their homes for several years to recoup closing costs. Additionally, refinancing can serve as a strategic tool for those seeking to alter their loan structure, such as converting from adjustable-rate to fixed-rate mortgages or shifting from a 15-year to a 30-year term to reduce monthly payments [1].

Cash-out refinancing remains another viable option for homeowners with significant equity, though it typically requires at least 20% equity in the property. For those who took out mortgages with minimal down payments—such as 5% on conventional loans—this may take time to achieve. The costs associated with refinancing, including lender fees, appraisal costs, and title insurance, typically range between 2% to 6% of the loan amount, which can add up significantly for larger loans [1].

Refinancing options have expanded to include rate-and-term refinancing, no-closing-cost refinancing, and streamlined refinancing options for borrowers with existing FHA, VA, or USDA loans. Borrowers are encouraged to explore multiple lenders to find the best rate and terms, though some existing lenders may offer incentives such as reduced closing costs to retain customers [1].

Source: [1] Current refi mortgage rates report for Aug. 15, 2025 (https://fortune.com/article/current-refi-mortgage-rates-08-15-2025/)