Mortgage rates for July 8, 2025, remain stable compared to recent weeks, with buyers continuing to navigate a high-rate environment. Zillow Home Loans reports the average 30-year fixed mortgage rate at 6.625% and the 15-year fixed at 5.75%, while rates for adjustable loans remain elevated.
Here’s a snapshot of today’s national averages across major loan types.
Current mortgage rates (as of July 8, 2025)
| Loan Type | Interest Rate | APR | Points (Cost) |
|---|---|---|---|
| 30-Year Fixed | 6.625% | 6.783% | 1.609 ($4,425) |
| 30-Year VA | 6.5% | 6.78% | 1.61 ($4,428) |
| 20-Year Fixed | 6.5% | 6.732% | 1.803 ($4,958) |
| 15-Year Fixed | 5.75% | 6.039% | 1.841 ($5,063) |
| 7-Year ARM | 7.375% | Varies | Varies |
How to qualify for a better mortgage rate
Not all borrowers get the same rate. Lenders consider several financial factors when determining your offer:
- Credit score: Higher scores signal lower risk and often unlock better rates.
- Down payment: A larger upfront payment lowers your loan-to-value ratio and can reduce your interest.
- Debt-to-income ratio: Keeping debts low relative to income shows you can manage a mortgage responsibly.
Using tools like Zillow’s BuyAbility estimator can help personalize your projected rate based on location, income, and credit profile.
Fixed vs. adjustable mortgage rates
Homebuyers choosing between fixed and adjustable-rate mortgages (ARMs) should weigh long-term plans and risk tolerance:
- Fixed-rate loans provide stability. Monthly payments remain unchanged for the life of the loan.
- Adjustable-rate loans often start with lower rates but can increase after the introductory period. As of today, 7-year ARMs are averaging around 7.375%, making them less attractive than fixed-rate options.
Tips for locking in a lower rate
If you’re planning to buy or refinance soon, consider the following strategies:
- Boost your credit score: Even a small increase can reduce your rate by fractions of a percent—saving thousands over time.
- Shop multiple lenders: Quotes can vary. Compare offers, fees, and closing costs.
- Consider discount points: Paying upfront for a lower interest rate may be worthwhile, especially for long-term stays.
- Act during rate dips: Market volatility can create windows of opportunity for locking in a lower rate.
What’s next for mortgage rates?
Mortgage rates remain high by historical standards, but stability in recent weeks offers some relief. The Federal Reserve has hinted at potential rate cuts later in 2025, which could bring mortgage rates down—though likely not significantly before Q4.
Homebuyers should monitor inflation data, Fed guidance, and housing inventory trends. Zillow analysts suggest cautious optimism, but warn that rates may stay elevated longer than expected.
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