Mortgage and refinance interest rates today, Tuesday, August 25, 2026: Rates mixed this morning

Mortgage and refinance interest rates are mixed this morning, Tuesday, August 25, 2026, according to the Zillow lender marketplace. The average 30-year fixed rate stands at 6.63%, down 1 basis point from yesterday. Meanwhile, the 15-year fixed loan is at 5.95%, 7 basis points higher than the previous day. The 5/1 ARM is currently at 6.62%, 12 basis points lower than on Monday.

These national averages are rounded to the nearest hundredth. Mortgage refinance rates are generally higher than purchase rates. A mortgage calculator can help you understand how different interest rates and loan terms will impact your monthly payments. It takes into account additional costs like property taxes and homeowners insurance, providing a more accurate estimate of your total monthly payment.

A 15-year mortgage typically offers lower interest rates compared to a 30-year mortgage. While monthly payments are higher due to the shorter repayment period, you save significantly on interest over the life of the loan. For instance, a $400,000 mortgage with a 30-year term and a 6.19% interest rate results in about $481,021 in interest over 30 years. In contrast, a $400,000 15-year mortgage at a 5.65% rate would incur approximately $194,047 in interest.

With fixed-rate mortgages, the interest rate remains constant from the start. However, refinancing your mortgage will secure a new rate. Adjustable-rate mortgages (ARMs) offer an initial fixed-rate period, after which the rate adjusts based on various economic factors. For example, a 7/1 ARM locks in the rate for seven years before annual adjustments.

Although ARMs may start lower than fixed rates, there is a risk of higher rates once the initial period ends. Mortgage rates are expected to remain relatively stable in 2027, with the MBA forecasting 30-year fixed rates around 6.70%.