What’s Happening To Interest Rates?

Mortgage interest rates have stabilized in August 2025, settling at an average of 6.62% to 6.89% for 30-year fixed loans in California and nationwide, reflecting gradually improving economic conditions and lower inflation compared to previous years.bankrate+3

What Is Happening to Interest Rates Now?

As of August 2025, mortgage interest rates are relatively steady after years of volatility and significant increases during 2022 and 2023. Most recent reports show that a 30-year fixed-rate mortgage in California averages between 6.57% and 6.89%, depending on lender, loan type, and borrower profile. Rates peaked close to 8% in late 2023 but have come down through 2024 and stabilized in 2025, mostly ranging in the mid-to-high sixes. Nationally, the average for a 30-year loan is about 6.62% to 6.63%, reflecting ongoing market adjustments.fortune+3

Why Are Rates Where They Are?

Several factors influence mortgage interest rates today:

• Inflation has cooled: Annual inflation ran at 2.7% in July—above the Federal Reserve’s preferred rate, but much lower than previous spikes.bankrate

• Economic data signals slower growth, easing pressure on rates and helping bring them off their highs.bankrate

• Federal Reserve policy: The Fed has held rates steady recently, with markets anticipating no major hikes or drastic reductions for the remainder of 2025.realtor+1

• Bond market stability: Calmer movements in Treasury yields and increased demand for mortgage-backed securities have moderated rate swings.bankrate

What Determines Your Mortgage Rate?

Interest rates offered to each borrower continue to depend on individual factors, including:

• Credit score (FICO)

• Loan-to-value ratio and down payment amount

• Property occupancy (primary, secondary, or investment property)

• Documentation type (income verification, self-employment, stated documentation)

• Loan product selection (fixed vs. adjustable rate, FHA/VA, jumbo, etc.)noradarealestate+1

Southern Oaks Mortgage Advantage

Southern Oaks Mortgage partners with over 32 different lenders, now offering access to the full spectrum of available products and competitive rates—from conforming loans to FHA, VA, jumbo, and specialty products. This makes it much easier for clients to find a loan tailored to their unique financial circumstances and goals. If searching for the best rate and product feels daunting, their team is equipped to guide through the process and help achieve homeownership or refinancing objectives. For personalized assistance, contact Southern Oaks Mortgage at 661-964-2600.

Rates and conditions can change quickly, and it’s best to stay informed about the latest offerings. Reach out to the team and see how Southern Oaks Mortgage can maximize options in today’s market.bankrate+3