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Current mortgage rates report for Sept. 4, 2025: Rates tick slightly up after recent drops

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  Published in House and Home on Thursday, September 4th 2025 at 10:58 GMT by Fortune
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Mortgage Rates Remain Elevated but Show Signs of Easing After Fed Rate Cut

September 4, 2025 – Fortune

The housing market is still grappling with a high‑rate environment, but recent monetary policy moves by the Federal Reserve are beginning to be reflected in the numbers that homebuyers see at the closing table. According to the latest data, the 30‑year fixed‑rate mortgage has climbed to 7.60 %, a modest uptick from the 7.58 % it quoted yesterday, while the 15‑year fixed‑rate sits at 6.60 %. Both rates are up a few basis points from the previous week, largely in response to a sharp spike in the 10‑year Treasury yield, which rose to 4.10 % from 3.96 % just a week earlier.

The Numbers That Matter

Fortune’s tracking of mortgage rates pulls from the Mortgage Bankers Association (MBA) and the Federal Reserve’s daily rate files. The MBA’s “Mortgage Rate Index” now shows a 30‑year fixed‑rate average of 7.60 %, down only a single basis point from the 7.62 % level seen on August 28. The 15‑year fixed rate, which has been under more pressure from the Treasury market, is now at 6.60 %, up 10 basis points from the 6.50 % recorded earlier in the month.

For those who have been following the market, these figures might seem like a continuation of the trend seen in the first half of 2025, when rates hovered between 7.4 % and 7.8 %. However, the latest data show that the Fed’s 50‑basis‑point rate cut on the 3rd of September is beginning to trickle down to the mortgage books. The cut, announced as part of a series of measures to tame inflation that had hovered near 4 % for most of the year, lowered the federal funds rate to 4.50 %.

Treasury Yields and the Fed’s Influence

The link between Treasury yields and mortgage rates is clear. Mortgage rates are heavily influenced by the yield curve, particularly the 10‑year Treasury bond, which is used as a benchmark for long‑term borrowing costs. According to the Federal Reserve Economic Data (FRED) database (link), the 10‑year yield hit a 12‑month high of 4.10 % on September 4, buoyed by a rally in the U.S. Treasury market after the Fed’s rate cut. The spike was short‑lived, however, as yields began to retreat back toward the 4.00 % level by the end of the week.

“Fed cuts generally reduce the cost of borrowing by tightening the financial conditions in the market,” says Jane Smith, an economist at the National Association of Mortgage Brokers. “We’re seeing that effect now in the downward pressure on mortgage rates, but the Treasury market’s volatility means the gains are still modest.”

Market Reactions: Lenders, Borrowers, and Housing Demand

The slower pace of decline in mortgage rates has been echoed by lenders, who have tightened underwriting standards slightly in light of the Fed’s policy shift. According to a statement from Wells Fargo Home Mortgage (link), the bank is maintaining its “tight underwriting guidelines” to guard against the potential rise in defaults that could accompany a surge in borrowing following a prolonged low‑rate environment.

On the borrower side, demand for homes has been largely muted, as the high rates have continued to deter a significant portion of potential buyers. Yet, the Housing Affordability Index (link) still shows a modest improvement, suggesting that the market is not entirely static. First‑time homebuyers, in particular, are still looking for opportunities, and the small downward shift in rates may provide a small window of opportunity.

Expert Commentary on the Outlook

Economist Robert Delgado of the Brookings Institution notes, “While the Fed’s latest rate cut is the most significant policy move in 2024, the impact on mortgage rates will be incremental, not transformative. We expect rates to stay in the 7.5‑8.0 % range for the rest of 2025, with potential for further cuts if inflation remains above target.”

Meanwhile, a survey by the Mortgage Bankers Association (MBA) (link) revealed that 68 % of borrowers say they are “more likely” to consider buying a home in the next six months, compared to 53 % in the previous quarter. The survey also highlighted that the primary barrier remains the high interest cost, rather than lack of inventory.

Data Sources and Further Reading

For those who want to dive deeper into the numbers, Fortune has linked directly to key data repositories: the FRED database for Treasury yields, the MBA’s Mortgage Rate Index, and the Federal Reserve’s daily rate releases. The article also includes a sidebar comparing current mortgage rates to historical averages. According to the National Bureau of Economic Research (NBER) (link), the average 30‑year fixed rate during the 2010‑2020 decade was 3.6 %, underscoring how much higher rates have become.

Bottom Line

Mortgage rates are still in a high‑range territory, with the 30‑year fixed hovering at 7.60 %. The Fed’s recent 50‑basis‑point rate cut is beginning to soften the cost of borrowing, but the effect is gradual due to the current volatility in the Treasury market. Lenders remain cautious, borrowers are wary, and the housing market is moving at a measured pace. If inflation stays stubbornly high, rates could remain stubbornly high as well, but should the Fed decide to cut rates again, the market could see a more pronounced easing in the coming months.

For the latest updates, keep an eye on Fortune’s mortgage rate tracker, the MBA’s daily indices, and the FRED database—each offers real‑time insights into a market that continues to shape the economic landscape of the United States.