Mortgage and refinance rates for July 10, 2025: Rates relatively steady as Fed minutes show thin support for July cut

Average mortgage rates are relatively steady as of Thursday, July 10, 2025, though climbing higher week over week. The Federal Reserve comes down with another interest rate decision in three weeks, when it’s expected to announce on July 30 a fifth consecutive hold on the Fed rate at 4.25% and 4.50%. Minutes for June’s Fed meeting released yesterday show policymakers aligned on rate cuts later this year, yet when and how deep to cut are still up for debate. Mortgage rates aren’t tied to the Fed rate, but they depend on the same economic indicators, including inflation and employment trends, the Fed evaluates when making policy decisions.

If you’re looking to buy a home this busy summer season, it’s best to focus on your long-term housing needs rather than short-term rate movements. Don’t wait to start shopping for a mortgage for a sense of what you can afford, comparing quotes across conventional, FHA, VA and other popular home loans and locking in the lowest rate you’re approved for.

The current average rate for a 30-year fixed mortgage is 6.74% for purchase and 6.82% for refinance — up 4 basis points from 6.70% for purchase and no change from 6.82% for refinance last Thursday, according to the latest data from Bankrate. Rates on a 15-year mortgage stand at an average 5.93% for purchase and 6.13% for refinance — up 7 basis points from 5.86% for purchase and 8 basis points from 6.05% for refinance this time last week. The average rate on a 30-year fixed jumbo mortgage is 6.82%.

⭐️ Must read: Is right now a good time to buy a house? What to know about the current housing market

Purchase rates for Thursday, July 10, 2025

Refinance rates for Thursday, July 10, 2025

Source: Bankrate lender survey

Mortgage rates are determined by many factors that include inflation rates, economic conditions, housing market trends and the Federal Reserve’s target interest rate. Lenders also consider your personal credit score, the amount available for your down payment, the property you’re interested in and other terms of the loan you’re requesting, like 30-year or 15-year offers.

Because rates can fluctuate daily, it’s best to lock in a mortgage rate when you’re comfortable with the overall conditions of your mortgage or home loan.

🔍 Learn more: How to shop for a mortgage: A step-by-step guide for smart homebuyers in 2025

Freddie Mac weekly mortgage report: Mortgage rates decrease

Freddie Mac reports an average 6.67% for a 30-year fixed-rate mortgage, down 10 basis points from last week’s average 6.77%, according to its weekly Prime Mortgage Market Survey of nationwide lenders published on July 3, 2025. The fixed rate for a 15-year mortgage is 5.80%, down 9 basis points from last week’s average 5.89%. These figures are lower compared to a year ago, when rates averaged 6.95% for a 30-year term and 6.25% for a 15-year term.

“The average 30-year fixed-rate mortgage decreased for the fifth consecutive week,” says Sam Khater, Freddie Mac’s chief economist, of the latest data. “This is the largest weekly decline since early March. Declining mortgage rates are encouraging and, while overall affordability challenges remain, we are seeing more sellers enter the market giving prospective buyers an advantage.”

Freddie Mac updates its Prime Mortgage Market Survey data weekly on Thursdays at noon ET.

🔍 Learn more: 6 ways to get the lowest rate on your next mortgage right now

4 top factors that affect your mortgage rate

The difference of even half a percentage point on your interest rate can save you hundreds of dollars a month and thousands of dollars over the life of your mortgage, but the mortgage rate you’re ultimately offered depends on the mortgage you’re interested in, payments you’re willing to pay up front and your overall financial health.

• Your credit score. Knowing your credit score can help you shop around for lenders you’re likely to get approval through, as well as understand the type of mortgage for your lifestyle and income. The best mortgage rates go to borrowers with good to excellent credit — typically a FICO credit score of at least 670 — though even with fair credit, you may be able to find a mortgage offering decent rates.

• Your down payment. The more money you can put down toward your home, the better it benefits your interest rate. Paying at least 20% of your home’s purchase price up front generally results in a lower interest rate — and you can avoid mortgage insurance, which increases your total cost.

• Your loan term. While the 30-year mortgage remains a popular way for Americans to purchase homes, you can find terms of 20 years, 15 years and 10 years. Shorter loan terms usually come with lower interest rates, though with higher monthly payments. Longer mortgage terms can result in smaller monthly payments, though you’ll pay higher total interest over the life of your loan.

• Interest rate type. Mortgage rates come with two basic types of rates — fixed and variable. Fixed-rate mortgages offer a consistent interest rate over the life of your loan, whereas adjustable-rate mortgages (ARMs) often start with a lower fixed rate for an agreed-on time and then adjust to a variable rate based on market conditions for the remainder of your term. Choosing between these two rates depends on your financial goals and tolerance for risk.

Prequalification vs. preapproval: What’s the difference?

Both processes help you determine how much house you can afford, though each in a different way. Think of prequalification as a quick peek into your wallet: It gives you a rough idea of what you can borrow based on the most basic information only. Preapproval, on the other hand, is when a lender takes a deeper dive into your finances to give you a more precise and reliable estimate of how much they’re willing to lend you. Learn more about these important steps of the homebuying journey in our comprehensive guide to prequalification and preapproval.

🔍 Learn more: How much does a change in mortgage rates actually matter?

Mortgage rates in the news

Mortgage lenders keep a close eye on the benchmark federal funds target interest rate set by the Federal Reserve, the U.S.’s central bank. Called the Fed rate, it’s the benchmark that affects rates on deposit accounts, loans and other financial products. Typically, as the fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts, money market accounts and home equity loans. Mortgage rates don’t follow the Fed rate as closely, but they do reflect the same elements the Fed evaluates when making decisions on the benchmark — especially inflation — which means as the Fed rate increases, mortgage rates also tend to rise.

After increasing the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic, the Federal Reserve announced a highly anticipated half-point cut to its federal funds target interest rate on September 18, followed by two additional quarter-point cuts after its November and December policy meetings.

🔍 Learn more about how the Federal Reserve affects your finances

• How the Federal Reserve affects your savings

• How the Federal Reserve affects your student loans

• How the Federal Reserve affects mortgage rates

June 18, 2025: Fed pauses rate cuts for fourth consecutive time

At the conclusion of its fourth rate-setting policy meeting of 2025 on June 18, 2025, the Federal Reserve announced it was leaving the federal funds target interest rate unchanged at 4.25% to 4.50% for a four time after three cuts in 2024: a jumbo half point in September 2024, followed by quarter-point cuts in November and December.

In its post-meeting statement, the Federal Reserve said it was maintaining the target range in its continuing effort to achieve “maximum employment” and tame inflation to 2%.

“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the Fed said in its statement, noting, “Uncertainty around the economic outlook has diminished but remains elevated.”

“In considering the extent and timing of additional adjustments,” the Fed said it would “carefully assess incoming data, the evolving outlook, and the balance of risks.”

After June’s meeting, the Fed restated March’s rate projections for two quarter-point cuts in 2025, expecting inflation to be higher than spring’s estimations.

What to expect at the Fed’s next policy meeting: July 29–30, 2025

The Federal Reserve is widely expected to hold the Fed rate at 4.25% to 4.50% at its next policy meeting on July 29 and July 30, 2025. The CME FedWatch Tool, which measures market expectations for Fed fund rate changes, predicts a more than 90% chance the Fed keeps rates where they are.

Economists are keeping a close eye on inflation and labor reports amid speculation as to timing of future cuts to the Fed rate, with data indicating sticky inflation from a peak of 9.1% in June 2022 to rates that have ranged from 2.5% and 4% since May 2023.

Fresh jobs data released on July 3 from the Bureau of Labor Services showed employers adding 147,000 jobs to payrolls in June, slightly higher than projections and just above the revised 144,000 roles added in May. Unemployment edged lower to 4.1% from 4.2% reported last month but still considerably higher than the Fed’s 2% target goal.

Consumer price index data released on June 11 showed the annual inflation rate rising to 2.4% in May from 2.3% reported in April. Overall prices rose 0.1% for May after increasing 0.2% in the previous month, with economists warning the larger impacts of tariff policies won’t be clear until later in the year. The producer price index released on June 12 showed a modest rise in wholesale prices by 0.1% from May, bringing up the increase in wholesale prices to 2.6% year over year. New inflation readings for June are due the week of July 14.

Despite mounting pressure from Pres. Trump to cut federal interest rates, at his twice yearly testimony on June 24 before the House Committee on Financial Services, Federal Reserve Chair Jerome Powell said the central bank is “well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.” Powell reiterated the Fed’s wait-and-see approach to cuts emphasized at a post-meeting press conference on June 18, when he warned that while “we’re beginning to see some effects” of Pres. Trump’s tariffs, it “takes some time for tariffs to work their way through the chain of distribution to the end consumer,” adding, “We haven’t been through a situation like this and I think we have to be humble about our ability to forecast it.”

The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on Wednesday, July 30, 2025, at 2 p.m. ET.

🔍 Learn more: When’s the next Federal Reserve meeting? What to expect — and how it affects your finances

Other stories in our mortgages and homebuying series

• How to shop for a mortgage: A guide for homebuyers in 2025

• 4 popular mortgage loans for homebuyers: Conventional, FHA, VA and jumbo loans

• When should you refinance your mortgage?

• What is a mortgage rate lock?

• Pros and cons of an adjustable-rate mortgage

FAQs: Mortgage rates, buying a home and your finances

Learn more in these common questions about how mortgages work when narrowing down the best for your budget and financial goals. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth.

What are mortgage lenders?

Lenders are financial institutions that loan money to homebuyers. A lender is different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, talking directly with borrowers and sending monthly statements.

What does it mean to refinance a mortgage?

Refinancing is a process of trading in your current mortgage to another lender for lower rates and better terms than your current loan. With a refinance, the new lender pays off your old mortgage and you then pay your monthly statements from the new lender. Learn more about how the process works in our guide to timing your refinancing.

I’ve owned a home in the past. Can I still qualify for homebuyer assistance?

Yes. While many homebuyer assistance programs are for first-time buyers, both the IRS and the Department of Housing and Urban Development (HUD) consider you a first-time homebuyer if neither you nor your spouse has owned a principal residence within the past three years. Learn more about programs that might be available to you — even if you’ve already owned a home — in our guide to homebuyer assistance.

What is an adjustable-rate mortgage?

An adjustable-rate mortgage — commonly called an ARM — is a type of home loan with a variable rate. Unlike a fixed-rate mortgage, which locks in an interest rate and predictable payments that apply over the full loan term, an ARM starts at an initial fixed rate for a period of three years or longer, after which it adjusts to a higher rate and then further adjusts periodically over the remaining life of the loan.

For a 5/1 adjustable-rate mortgage, the first number indicates the number of years at the fixed rate — or five years — and the second number indicates the rate at which the mortgage rate readjusts after — in this case, each year or annually. Learn more about how to convert your ARM to a fixed-rate mortgage in our guide to refinancing your adjustable-rate mortgage.

Can I negotiate my mortgage rate?

It’s not likely — lenders consider the market conditions and other financial factors when determining rates. You can, however, ask about how you can reduce costs in other ways when comparing mortgage lenders. For instance, many lenders offer lower rates in exchange for “mortgage points” — upfront fees you pay to your lender. A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan. Learn more in our guide to getting the lowest rate on your next mortgage.

What happens to my mortgage after I die?

Your home’s mortgage is treated a little differently from your other debt, which is typically settled through your estate before any assets are passed along to your heirs. Most mortgages aren’t transferable, which means the home must be paid off in full to transfer the property title.

But that also means only those who signed on to the loan can be held liable for a mortgage. Learn more about what happens to your mortgage after death.

I already own a home. Can I borrow against my home’s equity to cover a high-dollar or unexpected cost?

Yes. If it’s cash you’re after to pay for home renovations, pay off high-interest credit card debt or cover an emergency, tapping into your home’s value is a way to unlock lower rates without refinancing — and without losing your low-rate mortgage. You typically need good to excellent credit and to have built enough equity in your home. Learn how to get equity out of your home as rates come down.

Editor’s note: Rates shown are as of Thursday, July 10, 2025, at 6 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

Sources

• Mortgage Industry Insights, Bankrate. Accessed July 10, 2025.

• Primary Mortgage Market Survey, Freddie Mac. Accessed July 3, 2025.

• Employment Situation Summary, U.S. Bureau of Labor and Statistics. Accessed July 7, 2025.

• Consumer Price Index Summary, U.S. Bureau of Labor and Statistics. Accessed June 12, 2025.

• Producer Price Index News Release summary, U.S. Bureau of Labor and Statistics. Accessed June 13, 2025.

• CME FedWatch Tool, CME Group. Accessed July 10, 2025.