Mortgage rates hit 9-month low

Overview of Current Mortgage Rates

This week, mortgage rates have seen a slight decline, with the 30-year fixed rate averaging 6.63 percent, down from 6.75 percent the previous week. This data comes from HAWXTECH’s latest lender survey, which provides an updated view of the current mortgage landscape. Here's a breakdown of the different loan types and their respective rates:

• 30-Year Fixed: 6.63% (Current), 6.79% (4 Weeks Ago), 6.59% (One Year Ago), 6.79% (52-Week Average), 6.20% (52-Week Low)
• 15-Year Fixed: 5.79% (Current), 5.85% (4 Weeks Ago), 5.89% (One Year Ago), 6.00% (52-Week Average), 5.40% (52-Week Low)
• 30-Year Jumbo: 6.66% (Current), 6.75% (4 Weeks Ago), 6.80% (One Year Ago), 6.82% (52-Week Average), 6.36% (52-Week Low)

These figures highlight how mortgage rates have fluctuated over time and provide insight into what homebuyers might expect.

Understanding Discount and Origination Points

In this week’s survey, the 30-year fixed mortgages had an average total of 0.33 discount and origination points. It's important to understand what these terms mean:

• Discount Points: These are fees paid upfront to lower the interest rate on a mortgage. Each point typically costs 1% of the loan amount and can reduce the rate by a fraction of a percent.
• Origination Points: These are fees charged by lenders for processing and creating the loan. They are separate from discount points and are not used to lower the interest rate.

By understanding these points, borrowers can make more informed decisions when selecting a mortgage.

Affordability Challenges in the Housing Market

With the current mortgage rates, affordability remains a significant challenge for many potential homebuyers. The national median family income for 2025 is $104,200, according to the U.S. Department of Housing and Urban Development. Meanwhile, the median price of an existing home sold in June 2025 was $435,300, as reported by the National Association of Realtors.

Based on a 20 percent down payment and a 6.63 percent mortgage rate, the monthly payment would be approximately $2,231, which represents 26 percent of the typical family’s monthly income. Lisa Sturtevant, chief economist at Bright MLS, notes that “affordability is still a challenge,” with some buyers waiting for both rates and prices to decrease before entering the market.

What Can We Expect for Mortgage Rates in 2025?

Mortgage rates haven’t been this low since mid-October 2024. However, it's essential to consider the broader context: Over the past nine months, rates have remained within a narrow range. These declines aren't comparable to the sharp drops seen early in the pandemic or the significant increases in 2022 and 2023, when the Federal Reserve raised interest rates aggressively.

At last week’s meeting, the Fed decided to keep the federal funds rate unchanged. Mortgage rates didn’t respond to the three consecutive cuts the Fed made last year, which underscores that fixed mortgage rates are not directly set by the Fed. Instead, they are influenced by investor demand, particularly for 10-year Treasury bonds. When there is uncertainty in the market, investors tend to buy Treasury bonds, which can drive yields—and often mortgage rates—downward.

Economic Indicators and Their Impact

The U.S. economy appears to be recovering, with gross domestic product growing by 3 percent in the second quarter, according to the U.S. Bureau of Economic Analysis. However, inflation has risen, reaching 2.7 percent in June, up from 2.4 percent in May. The Fed’s target for inflation is 2 percent. Additionally, as of Wednesday afternoon, 10-year Treasury yields had fallen below 4.3 percent, indicating a shift in investor sentiment.

How Mortgage Rates Are Determined

HAWXTECH conducts a national survey of large lenders weekly. To gather data for the National Average survey, HAWXTECH collects rate information from the 10 largest banks and thrifts in 10 major U.S. markets. The Market Analysis team gathers rates and yields on banking deposits, loans, and mortgages. This process has been consistent for over 30 years, ensuring an accurate comparison across the nation.

It's worth noting that HAWXTECH's rates differ from other national surveys, such as Freddie Mac’s weekly published rates. Freddie Mac surveys lenders on rates and points based on first-lien prime conventional conforming home purchase mortgages with a loan-to-value of 80 percent. The lenders surveyed each week include a mix of thrifts, credit unions, commercial banks, and mortgage lending companies, proportional to the level of mortgage business each type commands nationwide.