Mortgage Rates 📢 August 18th, 2025

INTEREST RATES

Rate data as of morning of publication. Unless noted otherwise, all scenarios are assuming 30 Year-Fixed mortgage, Purchase or R/T Refinance. No origination points charged, 780 FICO score, and 20% down payment. Provided for consumer education only and does not serve as a binding offer to extend lending. Payment period, interest rate, APR, and other terms subject to income, asset, and credit profile qualification. Provided courtesy of GTG Financial, Inc. NMLS 1595076. Equal housing opportunity. www.nmlsconsumeraccess.org

💡 Why This Matters

📉 Rates Improve as Bonds Find Support
Mortgage rates ticked lower across all products this week, with FHA leading the way at a 0.250% drop and Conventional, VA, and Jumbo all improving by about 0.125%. This marks a welcome shift after weeks of sideways trading, giving buyers a bit more affordability heading into late summer.

🎤 All Eyes on Powell at Jackson Hole
The Fed’s Jackson Hole Symposium begins midweek, with Chair Powell speaking Friday. Markets widely expect a 25bp rate cut in September, but Powell is unlikely to overcommit. Instead, his tone will set the stage: a cautious “wait and see” message could keep rates steady, while a firmer signal toward cuts could drive further improvement.

📊 Fed Officials Stress ‘Move and Wait’
Atlanta Fed President Raphael Bostic echoed the “move and wait” stance, suggesting the Fed will likely cut in September, then pause to assess the data. This strategy could support mortgage bonds if economic numbers soften, but any strong growth or inflation readings would stall progress.

🔑 Realtor Insight
Rates are improving now, but this week’s Fed commentary could shift momentum quickly. Advise pre-approved clients not to wait too long—today’s dip in rates may not last if Powell strikes a more cautious tone.