August 7, 2025 — For the third week in a row, average mortgage rates in the U.S. have sunk to their lowest levels since April, offering a glimmer of relief in an otherwise high-cost environment. According to Freddie Mac’s latest Primary Mortgage Market Survey®, the 30-year fixed-rate mortgage dropped to 6.63%, down from 6.72% last week per AP News and RISMedia. The 15‑year fixed rate also declined, averaging 5.75%, compared with 5.85% a week earlier. (AP News)
What’s Driving the Dip?
- Easing economic signals are playing a strong role. Softer jobs data and signs of cooling inflation are creating expectations that the Federal Reserve might move toward a rate cut as early as this fall. (RISMedia)
- Jesse Williams paraphrases Realtor.com Senior Economist Anthony Smith: with inflation cooling and dissent growing among policymakers, the Fed could be gearing up for a shift (RISMedia)
What It Means for Buyers (and Sellers)
- Increased Buying Power: Even a modest rate drop can meaningfully lower monthly payments, potentially bringing thousands of dollars in savings over the life of a mortgage. (RISMedia)
- More Inventory, More Choices: Active home listings surged nearly 25% year-over-year in July, maintaining a post-pandemic high above 1.1 million homes for sale. (RISMedia)
- Longer Selling Windows: Listings now stay on the market about one week longer than last year, signaling a shift toward a more buyer-friendly market. (RISMedia)
But Don’t Pop the Champagne Yet
While the current decline is welcome, mortgage rates remain elevated compared to pre-pandemic levels. The market is treading water, waiting for clear guidance and action from the Fed before making a sustained move. (RISMedia)
Final Thoughts
- Short-term relief is real—but fleeting.
- Buyers have a chance to act, but uncertainty remains.
- Sellers may need to reassess expectations as the balance continues to shift.
Your next move? Shop around for quotes if you're considering a new mortgage—and stay tuned for what the Fed does next.
