Mortgage Rates Today: September 4, 2025 – Rates Stand Still

Today, the mortgage interest rate on a 30-year fixed mortgage is 6.45%, according to the Mortgage Research Center, while the average rate on a 15-year mortgage is 5.40%. On a 30-year jumbo mortgage, the average rate is 6.65%.

30-Year Mortgage Rates Climb 0.14%

Borrowers paid an average rate of 6.45% on a 30-year mortgage. This was up from the previous week’s rate of 6.44%.

Currently, the average APR on a 30-year fixed-rate mortgage is 6.48%. This is higher than last week when the APR was 6.47%. The APR contains both mortgage interest and the lender fees to help give a more complete picture of loan costs.

To get an idea of how much you’ll pay: a $100,000 mortgage with a 30-year fixed-rate loan at the current average interest rate of 6.45% will cost you about $629 including principal and interest (taxes and fees not included) each month, the Forbes Advisor mortgage calculator shows. That’s around $127,119 in total interest over the life of the loan.

15-Year Mortgage Rates Drop 0.48%

Today’s 15-year mortgage (fixed-rate) is 5.4%, down 0.48% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.43%.

The APR on a 15-year fixed is 5.45%. It was 5.47% a week earlier.

A 15-year, fixed-rate mortgage with today’s interest rate of 5.4% will cost $812 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $46,598 in total interest.

Jumbo Mortgage Rates Drop 0.03%

The current average interest rate on a 30-year fixed-rate jumbo mortgage (a mortgage above 2025’s conforming loan limit of $806,500 in most areas) is 6.65%. Last week, the average rate was 6.65%.

If you lock in the latest rate on a 30-year, fixed-rate jumbo mortgage, you will pay $642 per month in principal and interest per $100,000 borrowed, which amounts to $131,632 in total interest over the life of the loan.

Overview of 2025 Mortgage Rate Trends to Date

After reaching 7.04% in January, the average interest rate for a 30-year fixed mortgage has steadily remained in the mid-to-high 6% range. The 15-year fixed mortgage rate has hovered between the low-6% and high-5% range since its January peak of 6.27%.

While rates dropped in mid-January 2025, experts aren’t forecasting a significant decrease in the near future.

When Can I Expect Mortgage Rates To Drop?

Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop.

Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit.

The Federal Reserve’s decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows.

A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens.

How To Calculate Mortgage Payments

One of the first steps in buying a house is budgeting. To get a general idea of how much owning a home will cost, start by using a mortgage calculator to crunch the numbers.

Just input the following data to get an idea of how much a house will cost:

• Home price
• Down payment amount
• Interest rate
• Loan term
• Taxes, insurance and any HOA fees

How Are Mortgage Rates Determined?

Multiple factors affect the interest rate for a mortgage, including the economy’s overall health, benchmark interest rates and borrower-specific factors.

The Federal Reserve’s rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn’t directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation.

Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment.

Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term.

What Is the Best Type of Mortgage Loan?

Many home buyers are eligible for several mortgage loan types. Each program can have its own advantages:

• Conventional mortgage. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums.
• FHA loan. An FHA home loan is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579.
• VA loan. Borrowers with a qualifying military background may prefer a VA loan for its flexibility. A down payment may not be required. While you pay a one-time funding fee, there are no ongoing mortgage insurance premiums or service fees.
• USDA loan. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower.
• Jumbo loan. Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency’s conforming loan limits. The limit in most municipalities is $806,500 in 2025.

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