Interest rates for mortgages increase, maintaining proximity to the lowest levels experienced in nearly 11 months

In the recent months, mortgage rates have been moving within a narrow range, offering some stability to potential homebuyers. According to the latest data from the National Association of Realtors, the median price of an existing home sold in July 2025 was $422,400.

The current average 15-year fixed mortgage rate stands at 5.76%, while the average 30-year fixed mortgage rate is slightly higher at 6.55%. This is noteworthy, as mortgage rates haven't been this low since mid-October 2024.

Despite the relatively low rates, some buyers are waiting for both rates and prices to come down before entering the market. Lisa Sturtevant, chief economist at Bright MLS, notes that this trend is not uncommon.

Inflation has been steady, with the Consumer Price Index moving up to 2.7 percent in June and July 2025. The U.S. economy, however, has shown strong growth, expanding by 3 percent in the second quarter of 2025.

The Federal Reserve (Fed) left the federal funds rate untouched at its most recent meeting, but Chairman Jerome Powell suggested a rate cut might be coming at the central bank's Sept. 18 meeting. Some investors are increasingly confident that a 25-basis point cut is on the table, while others speculate that a larger 50-point cut could occur depending on upcoming economic data.

Discount points and origination points are two ways lenders can adjust mortgage rates. Discount points allow borrowers to lower their interest rate by paying a fee upfront, while origination points are fees lenders charge to create, review, and process loans.

On the international front, the mortgage reference interest rate in Switzerland is currently at a historic low of 1.25%, with any increase not expected before the end of 2026 or even 2027. In contrast, fixed mortgage interest rates for financing in 2025 are generally between about 3% to 4%, and a strong change is not expected for 2026.

Based on a 20 percent down payment and a 6.55 percent mortgage rate, the monthly payment for an existing home sold in July 2025 would amount to $2,147. This represents 25 percent of the typical family's monthly income in 2025, highlighting the ongoing affordability concerns for many potential homebuyers.

The methodology for the national survey of large lenders conducted by our website.com involves obtaining rate information from the 10 largest banks and thrifts in 10 large U.S. markets. As of Wednesday afternoon, 10-year Treasury yields were below 4.3 percent.

In conclusion, while mortgage rates have remained relatively stable, affordability remains a significant concern for many potential homebuyers. The upcoming Fed meeting on Sept. 18 could provide some clarity on the direction of interest rates in the near future.