Today's Mortgage Rates - 09/11/2025

Additional Rate Retreat

The downtrend for mortgage rates continued this week.

Freddie Mac reported today that the average offered interest rate for a conforming 30-year fixed-rate mortgage (FRM) declined by another fifteen basis points (0.15%) to 6.35%, a ten-moth low. The most popular mortgage type and term has declined by four tenths of a percentage point (0.40%) over the last eight weeks.

The average offered rate for 15-year fixed-rate mortgage also stepped lower, posting a ten basis point (0.10%) decline of its own, landing at 5.50%, a level last seen in mid-October 2024.

An alternative to the 30-year fixed rate mortgage, the average offered rate for a 5-year hybrid ARM eased an amount in between its fixed-rate counterparts. The Mortgage Bankers Association said that the initial fixed interest rate on a hybrid 5-year ARM decreased by thirteen basis points (0.13%) to 5.77%,

Currently, a 5/1 ARM might offer a homebuyer a lower-cost alternative to a long-term fixed-rate mortgage, although the difference in rate between 30-year FRMs and 5-year hybrid ARMs narrowed slightly this week. With the change in rates, the gap in rate compared to a 30-year FRM is now 60 basis points (0.58%). Comparing this average rate against one for a 30-year FRM, a homebuyer with a $300,000 loan amount who selects the 5-year ARM would have a monthly payment that is $112.18 lower, will spend $8,716 less in interest cost and pay off an additional $1,985 in principal over the first five years of the loan compared to a 30-year fixed rate loan.

ARMs aren't for everybody, though. To help decide whether one might work for you, read HSH's Comprehensive Guide to Adjustable Rate Mortgages.

The more recent data on the labor markets -- and revisions to hiring during the period between April 2024 and March 2025 -- is soft enough to virtually guarantee that the Fed will be cutting rates next week. While a quarter-percentage-point move is expected, at least some speculators think that a half-point move may be on the table.

More important than what the Fed does next week is what it says about where monetary policy is likely to go over the remainder of this year and well into 2026. Financial markets are now expecting to see a series of rate cuts, perhaps as many as three yet year and more to follow. What happens with inflation and labor markets over the next few months will dictate the pace of future cuts, if any.

As is often the case, long-term yields and mortgage rates have moved down before the Fed has made any move at all. Presently, there does appear to yet be some downward pressure on long-term rates, so mortgage rates may ease a bit more yet over the next couple of days. After that, what the Fed indicates may either enhance or revert the move.

Each week in HSH's MarketTrends newsletter, we track and discuss economic conditions that affect mortgage rates and their impact on housing markets and consumers. Read the most recent edition of MarketTrends or subscribe for email delivery.