The average 30-year fixed mortgage rate dropped nine basis points since last week, its lowest level since April.
According to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday, the 30-year fixed-rate mortgage (FRM) averaged 6.63% this week, down from last week’s average of 6.72%.
“The 30-year fixed-rate mortgage dropped to its lowest level since April,” said Sam Khater, Freddie Mac’s chief economist. “The decline in rates increases prospective homebuyers’ purchasing power and our research shows that buyers can save thousands by getting quotes from a few different lenders.”
Realtor.com Senior Economist Anthony Smith commented, “Softer jobs data and signs of cooling inflation are building pressure on the Fed, while dissent from two voting members who favored a cut supports expectations of a potential policy shift as early as this fall.”
Looking at the historical context, Smith added, “Even with rates drifting lower, they remain above pre-pandemic levels, continuing to weigh heavily on affordability. For many would-be buyers, the dip in borrowing costs can improve monthly payment calculations and expand their range of options. However, mortgage rates have been moving within a relatively narrow band in recent months, suggesting a market in holding pattern while awaiting clearer signals from the Fed.”
Smith noted that housing inventory continues to build with active listings rising nearly 25% year over year in July, pushing the total number of homes for sale above 1.1 million for the third straight month and hitting a post-pandemic high, he said. “Homes are also sitting on the market longer,” he added, “with the national median time to sell now a full week longer than last year. As sellers face more competition and more buyers wait on the sidelines, the market is gradually tilting toward more buyer-friendly conditions.”
This week’s numbers:
- The 30-year FRM averaged 6.63% as of August 7, 2025, down from last week when it averaged 6.72%. A year ago at this time, the 30-year FRM averaged 6.47%.
- The 15-year FRM averaged 5.75%, down from last week when it averaged 5.85%. A year ago at this time, the 15-year FRM averaged 5.63%.
To view the full report, click here.
