{"id":2050,"date":"2025-08-02T05:57:13","date_gmt":"2025-08-02T05:57:13","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2025\/08\/02\/will-mortgage-rates-go-down-in-august-bankrate\/"},"modified":"2025-08-02T05:57:13","modified_gmt":"2025-08-02T05:57:13","slug":"will-mortgage-rates-go-down-in-august-bankrate","status":"publish","type":"post","link":"https:\/\/ft365.org\/index.php\/2025\/08\/02\/will-mortgage-rates-go-down-in-august-bankrate\/","title":{"rendered":"Will Mortgage Rates Go Down In August? | Bankrate"},"content":{"rendered":"
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The U.S. economy is going strong, inflation is holding above the Federal Reserve\u2019s target rate of 2 percent, and the central bank has yet to lower its benchmark rate in 2025. Add up those key variables, and mortgage rates aren\u2019t likely to move much this month.<\/p>\n

\u201cThe Fed is not in a rush to cut interest rates, and there is still a lot of uncertainty about what impact tariffs will have on consumer inflation,\u201d says Greg McBride, Bankrate\u2019s chief financial analyst. \u201cExpect more of the same as mortgage rates yo-yo up and down within the familiar range of the past five months.\u201d<\/p>\n

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The Fed is not in a rush to cut interest rates, and there is still a lot of uncertainty about what impact tariffs will have on consumer inflation.<\/q> \u2014 Greg McBride, CFA, chief financial analyst for Bankrate <\/cite> <\/p><\/blockquote><\/div>\n

For months, mortgage rates have been held aloft by the combination of a still-strong economy, inflation fears and growing concerns about a rising federal deficit.<\/p>\n

So much for hopes that mortgage rates were headed back into the 5 percent range. The average 30-year mortgage rate began declining from 7 percent last summer, fell as low as 6.2 percent in September, then quickly reversed course, tracking back above 7 percent by the end of 2024, according to Bankrate\u2019s weekly lender survey. However, as of July 30, rates stood at 6.75 percent.<\/p>\n

The Fed doesn\u2019t directly set mortgage prices, but it does influence them. The central bank cut its benchmark rate three times last year. The Fed next meets in September.<\/p>\n

\u201cIf a September rate cut starts to be more likely, it is possible that we could see mortgage rates edge downward at the end of the summer, similar to what we saw last year at this time,\u201d says Lisa Sturtevant, chief economist at Bright MLS. \u201cBut there are still factors at play that could keep mortgage rates higher. If inflation expectations continue to be high, mortgage rates could also remain higher. And, complicating things, if investors believe that rate cuts are coming under pressure from the Trump administration, that will also drive mortgage rates higher.\u201d <\/p>\n

Learn more:<\/strong> How the Fed affects mortgage rates<\/strong><\/p>\n

Will mortgage interest rates go down again?<\/h2>\n

The possibility of sub-6 percent mortgage rates has grown fainter. Fannie Mae predicts rates will edge down to 6.4 percent by the end of the year, while the Mortgage Bankers Association expects 30-year rates will barely decrease, to 6.7 percent by the end of 2025.<\/p>\n

\u201cThe good news is that the economy is chugging along. But with inflation ticking higher, the Fed has no reason to cut rates,\u201d says Melissa Cohn of William Raveis Mortgage. \u201cThe next rate cut may not happen until the end of the year.\u201d<\/p>\n

Learn more:<\/strong> Housing market trends to watch in 2025<\/strong><\/p>\n

Current mortgage rate trends<\/h2>\n

Higher mortgage rates have kept homeowners clinging to lower-cost loans, a trend known as the \u201clock-in effect.\u201d Meanwhile, the median national home price clocked in at $435,300 in June, an all-time record, according to the National Association of Realtors.<\/p>\n

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Mortgage Icon<\/title> <\/svg> <\/p>\n
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Bankrate\u2019s weekly mortgage rate averages differ slightly from the statistics reported by Freddie Mac, the government-sponsored enterprise that buys mortgages and packages them as securities. Bankrate\u2019s rates tend to be higher because they include origination points and other costs, while Freddie Mac removes those figures and reports them separately. However, both Bankrate and Freddie Mac report similar overall trends in mortgage rates.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

What to do if you\u2019re getting a mortgage this year<\/h2>\n