Mario Cazombo

What to know about current mortgage rates: Mortgage rates moved lower on Wednesday. According to Money’s daily survey, the 30-year fixed-rate loan averaged 6.675%, down by 0.053 percentage points. The expectation of a rate cut next month could lead to lower mortgage rates over the next few weeks as mortgage lenders anticipate the move by the Federal Reserve. According to Freddie Mac’s benchmark survey for the week ending August 14, the rate on a 30-year fixed-rate loan averaged 6.58%, down by 0.05 percentage points from a week ago. The rate on a 15-year fixed-rate loan averaged 5.71%, a 0.04 percentage point decline. Freddie Mac’s rates have decreased for four consecutive weeks. This week’s average rate for a 30-year loan reached its lowest level since October 2024. Mortgage rate trends On August 12, the Bureau of Labor Statistics released its July Consumer Price Index, which showed that inflation was a little lower than expected. The news, combined with the previously reported weakness in the labor market, has increased the expectation of a rate cut by the Federal Reserve at its next meeting in September. With inflation seemingly under control, focus has shifted to the labor market and concerns over the strength of the U.S. economy. As a result, yields on the 10-year Treasury note and the mortgage rates that follow their movement have decreased over the last few days. Average mortgage and refinancing rates for August 14, 2025 Average mortgage rates for August 14, 2025 Loan terms Latest rates 30-year fixed-rate mortgage 6.675% ? 0.053% 15-year fixed-rate mortgage 5.966% ? 0.049% 7/1 ARM 6.164% ? 0.029% 10/1 ARM 6.482% ? 0.041% Average mortgage refinance rates for August 14, 2025 Loan terms Lastest rates 30-year fixed-rate refinance loan 6.728% ? 0.045% 15-year fixed-rate refinance loan 5.993% ? 0.045% 7/1 adjustable-rate refinance loan 6.147% ? 0.029% 10/1 adjustable-rate refinance loan 6.487% ? 0.041%   Source: Money.com Money’s daily mortgage rates are a national average and reflect what a borrower with a 20% down payment, no points paid and a 780 credit score — considered an excellent score that qualifies a borrower for the best rates — might pay if they applied for a home loan right now. Each day’s rates are based on the average rate 8,000 lenders offered to applicants the previous business day. Your individual rate will vary depending on your location, lender and financial details. These rates differ from Freddie Mac’s, which represent a weekly average based on a survey of quoted rates offered to borrowers with strong credit, a 20% down payment and discounts for points paid. If you’re offered a higher rate than expected, make sure to ask why and compare offers from multiple lenders. (Money’s list of the Best Mortgage Lenders is a good place to start. Homeowners considering a mortgage refinance should consider our list of the Best Mortgage Refinance Companies.) Use Money’s mortgage calculator to estimate your monthly payment, considering different rate scenarios. Freddie Mac’s mortgage rates for the week ending August 14, 2025 Freddie Mac mortgage rate trends For its weekly rate analysis, Freddie Mac looks at rates offered for the week, ending each Thursday. The average rate roughly represents the rate a borrower with strong credit and a 20% down payment can expect to see when applying for a mortgage right now. Borrowers with lower credit scores will generally be offered higher rates. What you need to know about current mortgage rates Mortgage rates, along with home prices, are an important part of the formula for homeownership. Most importantly, they can be key in determining how much home you can afford to buy. This guide answers some of the most common questions about rates and how they affect the housing market. Types of mortgage rates When shopping for a mortgage, you may be offered two types, each with a different interest-rate arrangement: fixed-rate and adjustable-rate loans. Understanding the difference between the two is important when deciding which will best suit your needs. Fixed-rate mortgages As the name implies, fixed-rate loans have a stable interest rate that won’t change for the loan’s duration. The most common term lengths are 30 and 15 years, although some lenders offer other options. Generally, the interest rate on a 30-year loan will be higher than that on a 15-year loan, but the monthly payment will be lower because you’re extending the payback period. Most home buyers prefer fixed-rate loans because they don’t change; the monthly mortgage payments are relatively constant throughout the life of the loan. However, other costs typically rolled into the mortgage, like homeowners’ insurance and property taxes, can change, leading to variations in your monthly payment over time. Adjustable-rate mortgages (ARMs) The interest rate on adjustable-rate mortgages does not adjust from the beginning. Rather, the rate will be fixed for a predetermined number of years. Once that fixed period ends, the rate becomes variable and adjusts at a regular interval, known as the “adjustment period,” with the period length defined in the mortgage terms. Depending on market conditions, rates could increase or decrease at the end of each period. The most common terms for ARMs are 5/6 loans, in which the interest rate is fixed for five years and then starts to adjust every six months. There are also options for 7/6 loans and 10/6 loans. Because the interest rates on ARMs tend to be lower than those on fixed-rate loans during the initial (fixed-rate) phase, these adjustable loans are a good option for borrowers who don’t plan to stay in the home beyond the fixed-rate period of the loan. Other information you should know about mortgage rates When comparing rates from different lenders, you’ll see two different numbers: the interest rate and the annual percentage rate (APR). The interest rate is what a lender will charge on the principal amount being borrowed. Consider it the basic cost of borrowing money for a home purchase. An APR represents the total cost of borrowing money. It includes the interest rate plus any fees associated with generating the loan. The APR

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High schoolers understand that they may have to rely on student debt to make a college degree accessible, but they’re still underestimating just how big a role loans play. Students anticipate graduating with about $17,000 in loans, according to Fidelity’s newly released 2025 College Savings and Student Debt study. The actual amount a typical student borrows varies a bit depending on which source you look at. But it’s safe to say it’s much higher — almost double — what students in this survey are expecting. For example, The Institute for College Access & Success (TICAS), using government statistics from 2020, reports that 61% of students at four-year public colleges borrowed for their degree, with the average at graduation being $27,470. At private four-year colleges, 67% of students had debt, graduating with an average of $33,673. The averages are based on data reported in the National Postsecondary Student Aid Study, which is conducted every four years. The student debt knowledge gap, as Fidelity dubs it, also exists with parents, who reported expecting students to owe $16,000 after graduation. As for how much parents will take on for their students’ college education, the estimates were similarly unrealistically low. Students expected their parents to borrow about $13,000; parents expected to borrow $15,000. In reality, parent debt has surged over the past decade or so. As of 2022, the average parent PLUS debt burden topped $29,000, according to Federal Student Aid. It’s not clear how students and parents came to their estimates. The survey reports that more than half of respondents said they “used their own best guess.” The results are based on a survey of 2,008 respondents who were either in grades 10 to 12 of high school or were the parents of a student in those grades. Because education data, including student loan statistics, tends to lag, it’s possible that the numbers for currently enrolled college students will show a decline in borrowing. Results for the 2024 National Postsecondary Student Aid Study haven’t been released yet. But it’s highly unlikely the drop will be steep enough to match what respondents in the Fidelity survey are expecting. After increasing steadily between 2000 and 2012, the average borrowing load has remained fairly constant over the past several years. In the 2012 iteration of the national student aid study, for example, the overall average for bachelor’s degree recipients from all types of colleges was $29,412. Eight years later, in the 2020 version, that figure had increased by just $1,000. Cost continues to play a major role in students’ college plans Beyond their expectations around student loans, the Fidelity survey also asked students and parents about college costs more generally. Forty-seven percent of students said cost is “most important” when choosing whether and where to enroll — up from 40% just four years ago. The emphasis on tuition prices is even higher as students get closer to applying to college: 54% of seniors named it the most important consideration. Those findings match other recent surveys that have shown how cost is one of the primary determinants of students’ postsecondary plans. In Sallie Mae’s latest How America Pays for College report, which also came out this month, respondents named proximity to home, affordability and academic offerings as the three top factors driving their decision about where to attend. Nearly 80% of families said they’d eliminated at least one college because of cost, and 72% said they’d rather take on loans than risk not attending. Among those who did borrow, 35% said access to student loans allowed them to consider more expensive schools. One bright spot in both surveys? Parents and students are communicating about the cost of college and what they can afford. More than two-thirds of parents and students in Fidelity’s survey said they’ve discussed how they’ll finance a college degree. That’s often experts’ first piece of advice — to talk early about how much your family can afford to spend out of pocket so students can look for colleges in their budget. As the study authors put it, the discussions help families focus on “realistic expectations and strategies for managing the cost of college.” Still, the authors of the Sallie Mae report stress that there’s room for improvement. While six in 10 families said they’d made a plan for paying for a bachelor’s degree before they enrolled, fewer families reported talking about specifics. For example, 40% discussed typical starting salaries in their field of study — a key component to figuring out how much you can afford to borrow — and less than a third talked about how much they’re willing to borrow or who would be responsible for paying back student loans. More from Money: Paying for College Soon? Here’s How to Protect Your 529 Plan Amid Market Uncertainty Interest Rates on Federal Loans Just Ticked Down 9 Essential Steps to Take Before Choosing a Private Student Loan