Mortgage Rates Drop in August 2025 to Lowest Rates Since
April 2025

Mortgage rates have taken a welcome dip in recent weeks, offering a glimmer of relief for homebuyers, homeowners, and anyone watching the housing market forecast. The recent shift is tied directly to a decline in the 10-year Treasury yield and the economic trends influencing it.

Mortgage Rates in August 2025: The Latest Numbers

The 10-year Treasury yield, a key benchmark for 30-year mortgage rates, has fallen from 4.7% earlier this year to about 4.25% today. This decline has helped push mortgage rates down from 7.04% in early 2025 to the 6.125%–6.5% range now.

Some borrowers, particularly those using government-backed mortgages like FHA, VA, or USDA loans, are seeing even lower rates thanks to more favorable note yields.

Why Are Mortgage Rates Dropping?

Several recent economic developments have contributed to the decline in the 10-year Treasury yield and mortgage rates:
● Slowing job growth and softer employment reports
● Signs that the overall economy is cooling
● Expectations of a Federal Reserve interest rate cut in September 2025

When the economy slows, investors often anticipate rate cuts from the Fed. This tends to push Treasury yields lower, and when yields fall, mortgage rates usually follow.

Mortgage Rate Forecast for Late 2025

Right now, the 10-year yield is hovering near an important level: 4.2%. If yields drop below that point and head toward 4.0%, possibly due to cooling inflation or further economic slowdown, mortgage rates could fall into the high 5% to low 6% range by Q4 2025. However, there are still factors that could keep rates higher:
● Proposed tariffs, which could be inflationary or deflationary depending on implementation
● Persistent inflation is keeping the Fed cautious about cutting rates too quickly

What Lower Mortgage Rates Mean for Buyers and Homeowners

Lower mortgage rates can increase affordability for homebuyers and improve refinancing opportunities for homeowners. Even a small decrease in interest rates can make a noticeable difference in monthly payments and long-term interest costs.

If you’re planning to buy or refinance, now is the time to contact a trusted Ruhl Mortgage Lender who can consult with you on your next best step. Since home prices are still appreciating, waiting for a minor rate adjustment may not be the smartest move, considering that the trade-off would be paying a higher price for the property. For more information about Ruhl Mortgage, visit RuhlMortgage.com.

RuhlMortgage.com | 866-441-1862 | [email protected]
Ruhl Mortgage LLC, NMLS #935629 | IL Residential Mortgage | License MB.6760937 | IA #2012-0110 | WI #935629BA - For licensing information, go to: www.nmlsconsumeraccess.org

About Ruhl&Ruhl Realtors

A family-owned company since 1862, Ruhl&Ruhl Realtors has grown to 286 sales associates, 59 employees, and 10 offices, selling nearly 4,200 homes in eastern Iowa, northwest Illinois, and southwest Wisconsin. The company has residential sales offices in Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, and Muscatine, Iowa; and in Moline, Illinois. For more information on Ruhl&Ruhl Realtors, visit their website at www.RuhlHomes.com.

###