Mortgage Rates 📢 August 25th, 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

📉 Powell Signals Cuts Ahead: Fed Chair Jerome Powell confirmed that job growth has slowed more than previously reported and that risks to employment are rising. This opens the door for a rate cut at the Fed’s September 17 meeting, with markets already pricing in odds as high as 90%. Remember, we are talking about the FED FUNDS RATE.

🛑 Inflation Still a Watch Point: Powell noted that tariff-driven inflation should be temporary and not derail policy changes. As long as inflation data doesn’t spike higher than expected, it likely won’t stop the Fed from cutting.

📊 Data Will Drive the Decision: The key event between now and the September Fed meeting will be the Jobs Report on September 5. If the numbers come in weak again, it almost guarantees a cut. If they’re surprisingly strong, it could raise doubts. Also, keep an eye on revisions coming September 9, which could reshape the labor market picture.

💡 Realtor Insight: A Fed cut would put downward pressure on mortgage rates, making financing more attractive for buyers. If jobs data shows cracks in the labor market, that could fast-track relief on rates—but if the numbers come in strong, volatility may spike short term.