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Mortgage Rates Drop to Lowest Level Since April

What It Means for Homeowners and Buyers

Mortgage rates just took a meaningful dip, offering a window of opportunity—especially for homeowners looking to refinance.

According to data released by the Mortgage Bankers Association, the average contract rate for a 30-year fixed-rate mortgage fell to 6.67% during the week ending August 8. That’s the lowest it’s been since early April, and it triggered a 23% surge in refinance applications, the highest level in four months.

But the story isn’t as bright for new homebuyers.

Refinancers Rush In — Buyers Still Holding Back

While refinancing activity jumped, purchase applications rose by only 1%—a sign that elevated borrowing costs and persistent home price inflation are still keeping many prospective buyers on the sidelines.

Even with this recent dip in rates, affordability challenges remain. Home prices continue to climb, and the Federal Reserve has held short-term interest rates steady throughout 2025. The Fed’s cautious stance is due in part to inflation concerns, which have been complicated by ongoing import tariffs and rising goods prices.

What’s the Fed Watching?

Recent economic signals show mixed momentum. Inflation in July held steady at 2.7% year-over-year, and job growth has cooled—but the unemployment rate remains relatively low at 4.2%.

Some Federal Reserve officials have expressed growing concern about the labor market. Markets are now betting that the Fed could cut rates as early as September, especially if upcoming reports on inflation and employment show further signs of slowing.

If that happens, mortgage rates could dip even lower.

What This Means for You

Homeowners: If you’ve been waiting for a chance to refinance, this may be your moment. A 10 basis point drop might not sound like much, but over the life of a 30-year loan, the savings can be significant.
Buyers: While rates are softening, home prices remain high—and inventory remains tight in many markets. If you’re considering buying, this rate drop might provide a slightly more favorable environment, but it’s important to weigh your long-term affordability.
Investors: With mortgage rates down and potential for further Fed cuts, we may see increased movement in real estate and capital markets in the coming weeks.

Bottom Line

The 30-year mortgage rate drop to 6.67% is a meaningful shift in an otherwise challenging housing landscape. Whether you're refinancing or thinking about buying, staying informed on rate trends—and working with an experienced mortgage advisor—can help you make the most of market opportunities as they arise.

Need help navigating your next move? Reach out for personalized guidance on refinancing, buying, or selling in today’s market.