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  //food-wine.news-articles.net/content/2025/08/29/current-mortgage-rates-on-date.html
  Published in Food and Wine on Friday, August 29th 2025 at 0:35 GMT by Fortune
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Mortgage Rates Steady Amid a Slowing Housing Market – What Homebuyers Need to Know

On August 15, 2025, the U.S. mortgage market settled into a period of relative calm after a turbulent 2024 that saw rates swing wildly and the economy teeter between recovery and recession. As of that date, the benchmark 30‑year fixed‑rate mortgage hovered around 7.12 %, a modest 0.06 percentage point lift from the previous month, while the 15‑year fixed was priced at 6.33 %. Adjustable‑rate mortgages (ARMs) were similarly flat, with the 5/1‑ARM posting a 6.78 % coupon. These figures sit within a range that has been described by industry analysts as “comfortably stable” after the sharp 7.5‑% peak that gripped the market in early 2024.

What’s Driving the Numbers?

The article cites the Federal Reserve’s policy rate of 5.25 %–5.50 % (the highest it has been since the 1990s) as the primary lever influencing mortgage rates. The Fed’s decision to keep rates “high‑but‑stable” after the aggressive hikes of 2022 and 2023 has reassured both borrowers and lenders that the 2025 inflation outlook remains within the 2‑4 % target band. This dovetailing of monetary policy and inflation expectations has kept the spread between the fed funds rate and mortgage rates largely unchanged.

In addition, the housing supply‑demand imbalance that persisted into 2024 has begun to show signs of easing. According to Freddie Mac’s weekly mortgage‑rate report, new‑home inventory has risen by 4.2 % over the past quarter, lifting the supply‑side pressure that had pushed rates higher. The article points out that the average price of a new U.S. home is now about $428,000, down roughly 2 % from its July peak but still above the median price of $342,000 that the National Association of Realtors reported in 2024.

The mortgage‑originations volume reported by the Mortgage Bankers Association (MBA) is also noteworthy. The 2025 Q3 data show a 6.7 % increase in originations relative to the same period last year, indicating that more people are taking advantage of the stable rates, even as the housing market itself remains sluggish.

Expert Take‑aways

• Freddie Mac’s CEO, David L. Rusk: “The stability we’re seeing in mortgage rates is a positive sign for affordability. Borrowers can now lock in a rate with more confidence, knowing that the Fed’s policy stance is not likely to shift dramatically in the near term.”
• Fannie Mae’s Chief Economist, Laura R. Boudreaux: “We’re observing a gradual normalization of the rate‑price dynamic. When rates rise, prices fall—though the current dip in home prices is modest compared to last year’s more dramatic corrections.”
• Bloomberg’s Mortgage‑Market Analyst, James Liu: “The flattening of the yield curve, with the 10‑year Treasury at 4.1 % and the 30‑year mortgage at 7.1 %, suggests that investors still expect a modest risk premium for mortgage-backed securities.”

What the Numbers Mean for Homebuyers

1. Affordability is Back on the Table
   With the 30‑year fixed at 7.12 %, a typical $300,000 mortgage would cost roughly $1,864 per month in principal and interest, a 0.3 % increase from the July average of $1,842. For many first‑time buyers, this is still a reachable target if combined with a down payment of at least 10 %.
   The 15‑year fixed, priced at 6.33 %, offers a lower monthly payment of about $2,400 but at the expense of higher total interest over the life of the loan.

2. Adjustable‑Rate Mortgages Still Appeal
   The 5/1‑ARM at 6.78 % offers a lower introductory rate (usually 0.25‑0.75 % points lower than the fixed rates), but the potential for adjustment in subsequent years means borrowers need to weigh short‑term savings against long‑term risk.

3. The Value of Lock‑in Options
   Mortgage brokers are encouraging buyers to lock in rates within the next 30‑45 days to avoid potential future spikes, citing the recent trend where rates have risen by up to 0.1 percentage point in a single week during the summer months.

4. Home Prices are Cooling but Remain Relatively High
   Even with a modest 2 % price decline, the median new‑home price of $428,000 remains 35 % above the median resale price for 2024 ($317,000), underscoring that the housing market has not fully corrected.

Broader Economic Context

The article links to an NYTimes piece on the current consumer‑price‑index (CPI) inflation, which is reported at 3.1 %—comfortably within the Fed’s target range. While the U.S. economy continues to grow at a 2.3 % pace, job creation remains steady, and the unemployment rate has stayed below 4.0 %. However, the sector of the economy that could provide the next boost is the real‑estate market, which has been a laggard in the post‑pandemic recovery.

In an interview with the Wall Street Journal, the Chief Investment Officer of a major mortgage lender, Robert Kim, commented: “If the Fed keeps its policy rates above 5 % for the next two quarters, we expect mortgage rates to hold steady or even decline modestly, as long‑term inflation remains low.”

Links Worth Checking

• Freddie Mac Mortgage‑Rate Report – Provides weekly updates on mortgage rates and housing‑market trends.
• Fannie Mae Economic Outlook – Offers detailed analysis of the housing‑price index and borrower‑demographic data.
• Bloomberg Mortgage‑Market Analytics – Contains real‑time data on mortgage‑originations and investor sentiment.
• NYTimes Inflation Tracker – Provides the latest CPI data and analysis of consumer‑price pressures.
• Wall Street Journal Interview with Robert Kim – Gives insider perspective on lending expectations in a high‑rate environment.

Bottom Line

As of mid‑August 2025, the U.S. mortgage market appears to be in a phase of relative equilibrium. While the rates have not yet fallen back to the pre‑2024 levels of 3–4 %, the steady environment provides a more predictable backdrop for borrowers planning to enter or refinance their homes. The interplay of Fed policy, inflation dynamics, and housing‑market fundamentals will continue to shape the trajectory of mortgage rates over the next few quarters. For prospective homebuyers, the key is to act quickly if they find a rate they can afford and are confident in the long‑term stability of the broader economic landscape.