Increased mortgage rates approach extended historical lows, hovering for nearly eleven months

With the housing market showing signs of stability, potential homebuyers are cautiously waiting for a dip in both rates and prices before entering the market. The current mortgage rates, which have been hovering between 3.6% and 4.2%, are not expected to rise significantly, reflecting a relatively stable to slightly decreasing trend.

The movement of mortgage rates is influenced by various factors, including investor appetite for 10-year Treasury bonds. The Federal Reserve's decisions also play a significant role. Despite not making any changes to the federal funds rate at its most recent meeting, Fed Chairman Jerome Powell suggested a potential rate cut at the central bank's Sept. 18 meeting, sparking speculation among investors.

The Bankrate.com national survey, conducted weekly, gathers rate information from the 10 largest banks and thrifts in 10 large U.S. markets. This survey, which has been consistent for over 30 years, provides an accurate national comparison. For the past 10 months, mortgage rates have moved in a narrow range.

Inflation, however, has been a concern, moving up to 2.7 percent in June 2025 and staying at that level for July. Despite this, the U.S. economy grew by 3 percent in the second quarter of 2025.

The current average 30-year fixed mortgage rate is 6.55%, with the average total of discount and origination points for 30-year fixed mortgages in this week's survey being 0.35. The median price of an existing home sold in July 2025 was $422,400.

Discount points are a way to lower a mortgage rate, while origination points are fees lenders charge to create, review, and process a loan. The current average 15-year fixed mortgage rate is 5.76%.

As of Wednesday afternoon, 10-year Treasury yields were below 4.3 percent, indicating a potential influence on mortgage rates. Some investors are confident that a 25-basis point rate cut is possible at the central bank's Sept. 18 meeting, while others speculate about a potential 50-point rate cut depending on upcoming economic data.

In 2025, the national median family income is $104,200. With a 20 percent down payment and a 6.55 percent mortgage rate, the monthly payment for a home sold in July 2025 would be $2,147. This monthly payment amounts to 25 percent of the typical family's monthly income in 2025.

Mortgage rates in 2025 are expected to fluctuate moderately, with top rates for 10-year loans remaining between approximately 3% and 3.5%. Extreme spikes or shocks are considered unlikely, providing some reassurance to potential homebuyers.

The Bankrate.com national survey differs from Freddie Mac's weekly published rates in its approach to gathering data. This survey, which has been a trusted source for mortgage rate information for over three decades, continues to provide valuable insights into the current state of the housing market.