Current Mortgage and Refinance Interest Rates as of July 21, 2025: National Averages

As of July 21, 2025, current mortgage interest rates have increased since last July, with the average 30-year fixed mortgage rate at 6.72% and the average 15-year fixed mortgage rate at 5.97%. Rates have risen from 6.58% and 5.86% respectively in July 2024. Refinance rates are slightly higher, with a 30-year fixed rate at 6.70%. The best time to buy a house is when the timing works for the buyer, rather than following interest rate trends.

As of July 21, 2025, current mortgage interest rates have shown an upward trend, with the average 30-year fixed mortgage rate at 6.72% and the average 15-year fixed mortgage rate at 5.97%. These rates have risen from 6.58% and 5.86% respectively in July 2024 [1]. Refinance rates are slightly higher, with a 30-year fixed rate at 6.70%.

The increase in mortgage rates is primarily attributed to concerns about persistent inflation, threats of a global trade war, and policy turbulence. The Federal Reserve has adopted a cautious approach, holding borrowing rates steady since the start of the year. Most economists predict that the Fed will start lowering rates in September, particularly if President Trump eases some of his aggressive tariff measures or if the labor market continues to deteriorate [1].

Prospective homebuyers should not expect mortgage rates to become affordable overnight. While cheaper borrowing costs gradually trickle down to the housing market, the Fed does not directly set lenders' mortgage rates. In today’s unaffordable housing market, mortgage rates are just one piece of the puzzle. High home prices and skyrocketing homeownership expenses, like insurance and property taxes, are further compounding the pressure on prospective buyers [1].

When mortgage rates start to fall, homebuyers are encouraged to be patient and strategic. Experts recommend shopping around and comparing multiple offers to get the lowest rate. For a more in-depth look at what’s next for Fed rate cuts, labor data, and inflation, check out CNET Money's weekly mortgage rate forecast [1].

Which Mortgage Term and Type Should I Pick?

Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20-, and 40-year mortgages 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 fixed for a certain amount of time (commonly five, seven, or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront [2].

How Can I Get the Lowest Mortgage Rates?

Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right. Save for a bigger down payment, boost your credit score, pay off debt, research loans and assistance, and shop around for lenders to get the lowest mortgage rate for your situation [1].

References

[1] https://www.cnet.com/personal-finance/mortgages/home-loan-rates-inch-higher-for-borrowers-mortgage-interest-rates-today-for-july-21-2025/
[2] https://www.loanonhouse.com/category/house-loan-rates