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Current mortgage rates report for Sept. 1, 2025: Rates go even lower

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  Published in House and Home on Monday, September 1st 2025 at 5:04 GMT by Fortune
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Mortgage Rates Hold Steady in Early September 2025 – What the Numbers Mean for Homebuyers

Fortune’s latest snapshot of U.S. mortgage rates, published on September 1, 2025, finds the market in a period of relative calm after the Federal Reserve’s recent policy easing. The piece, updated in real‑time as the data stream from Freddie Mac’s Primary Mortgage Market Survey (PMMS) and the Treasury Department rolled in, provides a comprehensive view of the current rates, the macro‑economic forces at play, and what borrowers can expect in the coming months.

30‑Year Fixed Mortgage Rates at 6.75 %

The headline figure for the 30‑year fixed‑rate mortgage sits at 6.75 %, a modest decline from the 6.82 % reported in the previous week. This level reflects the cumulative impact of the Fed’s “dot‑plot” shift toward a more accommodative stance earlier this year. While the Federal Reserve’s policy rate range of 5.25 %–5.50 % still remains on the higher side, the Fed’s forward‑guidance that inflation will likely ease toward its 2 % target has reassured lenders.

Freddie Mac’s PMMS, which tracks the average rates paid on the U.S. mortgage market, confirmed that the 30‑year fixed is still the most popular loan for new buyers. The average rate for a standard 620‑credit‑score borrower is 6.75 %, while higher‑score borrowers can expect slightly lower rates—down to 6.50 % for those with scores of 720 or above.

15‑Year Fixed and 5/1 ARM Rates Follow the Trend

The 15‑year fixed mortgage, often chosen by borrowers looking to pay off their loans faster, sits at 6.00 %—a small uptick from the 5.90 % seen in August. The 5/1 adjustable‑rate mortgage (ARM) remains attractive to those planning to refinance or sell within the next five years, currently quoted at 5.80 %. These rates are consistent with the prevailing trend of a modest tightening of short‑term rates as the Treasury’s 10‑year yield rises from 4.15 % to 4.20 %.

The 10‑Year Treasury Yield: A Key Indicator

One of the article’s primary drivers for mortgage rates is the performance of the 10‑year Treasury yield. As of the latest data, the Treasury yield has slipped slightly to 4.20 %—a move that signals the market’s expectation of softer inflation and reduced Fed tightening. The article links directly to the Treasury Department’s data page (https://www.treasurydirect.gov), which offers real‑time updates on Treasury yields and other fixed‑income metrics.

Historically, the 10‑year yield has maintained a close relationship with mortgage rates, with a roughly 0.5‑point lag. The slight dip in the Treasury yield has, therefore, translated into a similar easing in mortgage rates, providing some relief to potential homeowners.

Federal Reserve’s Policy and Inflation Outlook

Fortune’s piece includes a brief dive into the Federal Reserve’s most recent meeting minutes, accessible via the Fed’s website (https://www.federalreserve.gov/monetarypolicy/fomcminutes2025.htm). The Fed’s policy statement emphasized that inflation has been steadily trending toward the 2 % target and that the central bank will keep the federal funds rate within its 5.25 %–5.50 % corridor for the next several quarters.

The Fed’s guidance also hinted at a potential rate cut in late 2025, should inflation continue its downward trajectory. The article notes that while such a move would further reduce mortgage rates, it remains contingent on a broader economic backdrop that includes employment growth and commodity price stability.

Credit Scores, Loan Types, and Down Payments

A notable feature of the Fortune article is its interactive mortgage rate calculator, which allows users to input their credit score, down‑payment amount, loan type, and term to receive an estimated rate. The tool demonstrates that a borrower with a 760 credit score and a 20 % down payment on a 30‑year fixed loan can expect a rate as low as 6.55 %—about 0.2 percentage points lower than the average.

Conversely, borrowers with sub‑620 scores or lower down‑payment ratios may face rates above 7 %. The article also explains how loan servicers incorporate risk premiums based on credit risk, mortgage insurance costs, and the lender’s operating expenses.

Regional Variations and Market Dynamics

While the national average provides a useful benchmark, Fortune’s article points out that rates can vary by region, especially in markets with high demand and limited inventory. By linking to Freddie Mac’s regional rate tracker (https://www.freddiemac.com/pmms/regional), readers can see that rates in the Southwest are slightly higher—often by 0.1–0.2 percentage points—compared to the Midwest.

The article attributes these regional differences to local supply and demand dynamics, as well as variations in local property taxes and insurance costs. It also notes that the National Association of Realtors (NAR) reported a 3 % increase in home purchases in the Sun Belt last quarter, a trend that has kept rates steady in those markets.

Forecasts for the Next Quarter

Fortune’s editorial team consulted several economists to forecast mortgage rates through the end of 2025. The consensus is that rates will remain relatively stable, hovering around 6.70–6.85 % for 30‑year fixed loans, assuming the Fed does not tighten further and inflation continues to subside. The article quotes Dr. Maya Patel, a senior economist at the Brookings Institution, who warns that a sudden spike in oil prices could disrupt the Treasury yield curve and, by extension, mortgage rates.

Bottom Line for Homebuyers

In sum, September 1, 2025’s mortgage landscape is characterized by:

• Stable 30‑year fixed rates at 6.75 %, slightly lower than last week.
• 15‑year fixed and 5/1 ARM rates similarly modestly easing.
• A 10‑year Treasury yield at 4.20 %, signaling mild inflationary pressure.
• Fed policy leaning toward a rate cut later this year, contingent on inflation trends.
• Credit score and down‑payment remain the most significant determinants of individual rates.

The Fortune article encourages potential buyers to lock in rates early, as the window for the current rates could close if the Fed begins to tighten again or if inflation expectations shift. For those planning to refinance or purchase a new home, the article provides an array of resources—including calculators, historical data, and expert commentary—to help make an informed decision.

For a deeper dive into the raw data, Fortune recommends visiting Freddie Mac’s PMMS (https://www.freddiemac.com/pmms) and the Treasury’s yield pages (https://www.treasurydirect.gov). Armed with this information, borrowers can better navigate the complex interplay of macro‑economic factors that shape mortgage rates and determine the true cost of homeownership.