Average U.S. mortgage interest rates were flat for the week ending August 21, 2025, after declining four consecutive weeks, according to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS).
The 30-year, fixed-rate mortgage loan interest rate stood at 6.58 percent, unchanged from the previous week. A year ago at this time, the 30-year note averaged 6.46 percent; however, today's interest rates are at their lowest point since the fall of 2024.
"Over the summer, rates have come down and purchase applications are outpacing 2024, though a number of homebuyers continue waiting on the sideline for rates to further decrease," Sam Khater, Freddie Mac's Chief Economist, said.
The 15-year, fixed-rate loan, a popular choice for homeowners refinancing their mortgage, averaged 5.69 percent compared to 5.71 percent the prior week. A year ago, the 15-year note averaged 5.62 percent.
The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Due to the competitiveness of the mortgage market in Massachusetts, homebuyers with good credit are often able to secure interest rates better than the national averages.
Related: What is Mortgage Insurance?
Mortgage applications to purchase a home decreased 2 percent compared with the previous week for the week ending August 25, 2025, but were 23 percent higher than the same week one year ago, according to the Mortgage Bankers Association.
Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts in the near future during a speech on Friday, August 22, 2025. A cut in the central bank's benchmark interest rate will influence various borrowing costs, including mortgage interest rates.
Should home buyers wait for lower mortgage interest rates before purchasing a home? Given the tight inventory environment throughout most of Greater Boston, it may be risky to stay on the sidelines, as lower interest rates are likely to increase the number of homebuyers actively searching for a home.
