Freddie Mac Mortgage Rates—Aug. 21, 2025
What happened to mortgage rates this week
The Freddie Mac 30-year fixed mortgage rate was unchanged this week, holding at 6.58% and remaining at its lowest level since October 2024. Rates have now fallen 31 basis points in the past three months and 17 basis points since mid-July, as bond markets may already be pricing in a likely Federal Reserve rate cut at its mid-September FOMC meeting. Recent macroeconomic data have not made the Fed’s decision entirely straightforward: A weak jobs report points toward easing, while a rise in core inflation gives reason for pause in the months ahead. Markets will look to Fed Chair Jerome Powell’s final Jackson Hole speech this Friday for clarity. Meanwhile, the MOVE index, a measure of implied interest rate volatility, fell to year-to-date lows last week, suggesting the potential for a narrower spread between the 10-year Treasury and mortgage rates.
What it means for the housing market
For housing, mortgage rates hovering near 10-month lows could offer a much-needed boost to buyer sentiment and affordability. High mortgage rates over the past several years have eroded consumers’ buying power, despite rising incomes. More recently, though, it’s been a particularly cruel summer for buyers, sellers, and builders alike, as existing- and new-home sales remain slow, despite recent pickups. Luckily, a combination of lower rates and easing economic uncertainty could be enough to jumpstart the fall market by boosting buyers’ purchasing power and giving them the confidence to get off the sidelines.