Mortgage rates today have fallen to their lowest levels in 10 months. This decline offers relief to potential homebuyers. The weekly average for a 30-year fixed-rate mortgage now sits near 6.58%. The lower rates are directly impacting affordability. The median U.S. monthly mortgage payment has dropped to $2,616. This is its lowest point since the beginning of the year.
Today’s Average Mortgage Rates
As of August 28, 2025, rates vary by loan type. A conventional 30-year fixed mortgage averages around 6.58%. Lenders are also offering competitive rates for shorter terms. The average 15-year fixed mortgage is now at 5.500%. Adjustable-rate mortgages (ARMs) also reflect the downward trend. These lower borrowing costs are starting to energize the housing market.
Buyer Demand and Sales Begin to Rise
The drop in mortgage rates is boosting market activity. Pending home sales rose 1.6% year-over-year. This marks the second straight month of increases. Buyer interest is also climbing. Redfin’s Homebuyer Demand Index is up about 3% from a month ago. Sellers are responding to this renewed interest. New listings have also increased slightly, up 1.9% from last year.
Homebuyers Remain Cautious
Despite positive signs, some buyers remain on the sidelines. Many are waiting to see if rates will fall further. They are watching for the Federal Reserve’s next interest rate decision in September. However, many economists believe this anticipated cut is already priced into today’s rates. Real estate agents report that some buyers are acting now to avoid future competition if rates drop more.
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