Mortgage Interest Rates Today: Mortgage Rates Slip to Another 10-Month Low Ahead of Crucial Fed Decision

By SNEJANA FARBEROV

August 28, 2025

Mortgage rates edged down on Thursday, registering another 10-month low, as they continued their uneven downward trend ahead of a widely anticipated Federal Reserve rate cut in the coming weeks.

The average rate on 30-year fixed home loans was 6.56% for the week ending Aug. 28, down from 6.58% the previous week, according to Freddie Mac. Rates averaged 6.35% during the same period in 2024.

“Mortgage rates are at a 10-month low,” says Sam Khater, Freddie Mac’s chief economist. “Purchase demand continues to rise on the back of lower rates and solid economic growth. Though many potential homebuyers still face affordability challenges, consistently lower rates may provide them with the impetus to enter the market.”

After peaking in May, mortgage rates have generally pulled back, offering existing home sales a modest boost in July, but new homes sales have slowed, says Realtor.com® Chief Economist Danielle Hale. 

Meanwhile, consumer buying power has steadily eroded since 2019, as mortgage rates remain stuck in the upper 6% range. 

The median-income family nationwide saw a nearly $30,000 drop in homebuying power this summer compared to 2019. Read More

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