Mortgage Refinance Rates Hold Near 6.64% as 2025 Market Stalls

As of August 8, 2025, the average refinance rate for a 30-year, fixed-rate home loan stands at 6.64%, according to data from Zillow [1]. This rate reflects the latest trends in mortgage markets, where refinancing opportunities remain limited compared to the historically low rates seen during the pandemic. The broader refinancing landscape includes various loan types and terms, with conventional, jumbo, FHA, and VA loans each offering distinct rates based on their respective risk profiles and borrower eligibility criteria [1].

For conventional mortgages, the 30-year refinance rate is 6.64%, while the 20-year term is slightly lower at 6.41%. The 15-year and 10-year conventional refinancing options are more competitive, with rates of 5.71% and 5.48% respectively [1]. Jumbo mortgages, which are typically larger than conforming loan limits, show similar trends, with a 30-year refi rate of 6.94% and a 15-year rate of 5.96%. FHA loans are somewhat more affordable, with 30- and 15-year refinance rates at 5.75% and 5.50% respectively, while VA loans offer a 30-year rate of 6.30% and a 15-year rate of 5.57% [1].

Mortgage refinancing, as a financial strategy, involves replacing an existing home loan with a new one, often to secure better terms such as a lower interest rate, a different loan term, or to access home equity through a cash-out refinance [1]. However, this process comes with costs, including lender origination fees, appraisal fees, title insurance, and other closing costs that can range from 2% to 6% of the loan amount [1]. Borrowers must weigh these upfront expenses against the long-term benefits of refinancing, particularly when considering whether a new rate is at least one percentage point lower than the current one.

Market observers had anticipated that mortgage rates might decline following the Federal Reserve’s cuts to the federal funds rate in late 2024. However, mortgage rates have remained stubbornly near the 7% mark for much of the year, despite a slight drop toward the end of February 2025, bringing 30-year rates closer to 6.5% [1]. A Redfin report indicates that as of the third quarter of 2024, 82.8% of homeowners with a mortgage had rates below 6%, many of whom are currently locked into their existing loans [1].

Refinancing can be strategically beneficial in several scenarios, such as reducing the interest rate, accessing home equity, changing loan terms, or switching from an adjustable-rate mortgage to a fixed-rate loan [1]. For instance, refinancing a 15-year mortgage to a 30-year term could provide lower monthly payments at the expense of higher lifetime interest costs, while a cash-out refinance requires at least 20% equity in the home to qualify [1]. Borrowers also have multiple refinance options, including rate-and-term, cash-out, no-closing-cost, and streamline refinances, each tailored to different financial goals and constraints [1].

When deciding whether to refinance, homeowners are advised to shop around and compare offers from multiple lenders, as rates and fees can vary significantly. Some lenders may offer incentives, such as closing cost assistance, to attract refinancing customers [1]. Additionally, those with existing FHA, VA, or USDA loans may be eligible for streamline refinancing programs that simplify the application process and reduce documentation requirements [1].

Overall, while the current refinancing environment offers some competitive rates, especially for 15- and 10-year terms, homeowners must carefully evaluate the costs and benefits before committing to a new loan [1]. With mortgage rates still elevated compared to the early 2020s, the decision to refinance remains a strategic one, depending on individual financial circumstances and long-term housing plans [1].

Source:

[1] Current refi mortgage rates report for Aug. 8, 2025 (https://fortune.com/article/current-refi-mortgage-rates-08-08-2025/)