Mortgage Market Update

Today’s Mortgage Market Update

Slight Dip in U.S. 30-Year Mortgage Rates

The average interest rate for a 30-year fixed-rate conforming mortgage has edged down to 6.599%.
This modest decline comes amid heightened market volatility, with inflation data contributing to this fluctuation.

Rates Still Elevated—but Cooling

Bankrate reports the average 30-year fixed rate at 6.71%, and the 15-year fixed at 5.87% Bankrate—slightly higher than the recent dip but consistent with the current high-rate environment.
Despite elevated costs, signs of a cooling housing market are emerging, hinting at growing buyer leverage.

U.S. Homeowners Lean into Cash-Out Refinancing

Cash-out refinances surged in Q2 2025—now accounting for roughly 60% of all refinance activity—as homeowners tap into rising equity.
On average, homeowners pulled out $94,000, increasing their monthly payment by around $590 and incurring rates about 1.45 percentage points higher.
This trend reflects record-high equity levels—with the median U.S. home price reaching $435,500, and total tappable equity reaching $11.6 trillion.

Mortgage Market Update: Expert Tips & Takeaways

Market Watch

Keep an eye on upcoming inflation data and Fed signals—these will likely influence mortgage rate direction in the short term.

For Buyers

Monitor daily rate movements—today’s dip below 6.6% could offer some leverage for rate locks.
Shop across lenders—small differences in points or rates can lead to significant savings.

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What Buyers Should Do Right Now

Act Quickly on Dips: Small drops—like today’s—can mean thousands saved over the life of a loan.
Compare Multiple Lenders: Even a 0.1% rate difference can significantly reduce monthly payments.
Get Pre-Approved: A pre-approval locks in your rate for a set time and strengthens your offer in a competitive market.

Equity Strategies for Homeowners

Cash-out refinancing is on the rise, with homeowners pulling an average of $94,000 from their home equity. But rates for these loans are about 1.45 percentage points higher than standard refinances.

Smart moves if you’re considering a cash-out refinance:

Run the Numbers: Higher monthly payments (+$590 on average) may offset short-term cash benefits.
Explore Alternatives: HELOCs or home equity loans may offer more flexible terms.
Think Long-Term: Use tapped equity for value-building purposes—such as home improvements or debt consolidation—not short-term splurges.

For Homeowners Considering Cash-Out Refinancing

Understand both short- and long-term costs: higher monthly payments and interest rates may outweigh equity benefits.
Compare alternatives like HELOCs, which may provide lower rates or more flexible terms

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Key Trends to Watch

Fed Policy Signals: Any hint of rate cuts or hikes could shift mortgage rates within days.
Inflation Data: Slowing inflation tends to ease borrowing costs, while unexpected spikes push rates up.
Housing Market Leverage: Cooling market conditions may give buyers more negotiating power this fall.

Mortgage rates slipped slightly to 6.599%, even as national averages hover near 6.7%. Rising inflation and market volatility are at play. Meanwhile, homeowners are increasingly opting for cash-out refinance strategies, tapping into substantial equity—but with higher monthly costs and interest rates.

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