U.S. Mortgage Rates Rise 5 Basis Points on Aug. 12 Amid Market Volatility

Mortgage rates in the U.S. edged higher on Aug. 12, 2025, marking a small increase following a recent decline, according to data from Optimal Blue, a mortgage data provider. The average rate for a 30-year fixed-rate conforming mortgage stood at 6.627%, up 5 basis points from the previous day and down 2 basis points from a week ago. While the uptick is modest, the broader trend reflects continued volatility in the mortgage market amid ongoing economic uncertainty [1].

The data also shows varied movement across different mortgage types. For the 30-year jumbo mortgage, the current rate is 6.812%, a decrease from the 6.874% reported a week ago. The 30-year FHA mortgage rate is at 6.478%, up from 6.415% the previous week. The 30-year VA mortgage rate is currently 6.315%, up from 6.214%, and the 30-year USDA rate is at 6.366%, down from 6.424% the previous week. Meanwhile, the 15-year conventional mortgage rate is at 5.738%, slightly lower than the 5.783% reported a week ago [1].

This rate movement follows months of fluctuation, with the 30-year rate exceeding 7% in January 2025 for the first time since May 2024, according to Freddie Mac statistics. This marks a significant departure from the record-low average of 2.65% in January 2021, when the government was still implementing measures to prevent economic downturn during the pandemic [1].

Experts note that mortgage rates are unlikely to return to the 2–3% range anytime soon, barring another major economic disruption. However, rates in the 6% range remain plausible if inflation is controlled and economic optimism returns. Despite brief dips—such as the rate falling below 6.5% in early April—rates have largely remained elevated. Analysts have expressed concerns about the potential impact of Trump-era policies, including tariffs and immigration measures, which could tighten the labor market and push inflation higher [1].

For potential homebuyers, the key to securing favorable mortgage rates lies in their financial profile. Maintaining a high credit score, ideally 740 or above, can significantly improve a borrower’s rate. Keeping a low debt-to-income (DTI) ratio—ideally below 36%—is also crucial. Additionally, shopping around with multiple lenders, including online platforms, banks, and credit unions, can yield better terms. Freddie Mac research suggests that in a high-rate environment, comparing offers across lenders could save homebuyers between $600 and $1,200 annually [1].

Historically, the current rates of around 6.7% may feel high to many, but in the broader context, they are relatively normal. From the 1970s to the 1990s, mortgage rates frequently hovered around or above 7%, with a peak exceeding 18% in 1981. While the recent drop in rates from the 7% range is welcome, it is a temporary shift rather than a trend [1].

The Federal Reserve continues to play a pivotal role in shaping mortgage rates, not only through its federal funds rate but also via its balance sheet actions. The Fed’s recent policy of letting its assets mature without replacement has contributed to higher mortgage rates. Thus, while many eyes are on potential cuts to the federal funds rate, the central bank’s broader monetary policy could have a more direct impact on the rates available to consumers [1].

As the market continues to navigate a complex economic landscape, homebuyers and refinancers must remain vigilant. While they cannot control macroeconomic factors, proactive steps—such as improving credit scores, reducing debt, and comparing offers—can help them secure the most favorable mortgage terms available [1].

Source: [1] Current mortgage rates report for Aug. 12, 2025: Rates tick up a bit after recent drops (https://fortune.com/article/current-mortgage-rates-08-12-2025/)