Mortgage Rates This Week – July 17, 2025

Mortgage rates are slightly higher this week as the markets were surprisingly calm following two key inflation reports, including the Consumer Price Index (CPI) and the Producer Price Index (PPI). The 30-year fixed mortgage rate at the time of this post is 6.00%, 6.236% APR with 2.348 points; or 6.624%, 6.637% APR with 0 points for top-tier borrowers putting 25% down with 780+ credit. The 15-year fixed mortgage rate for the same category of borrowers is 5.125%, 5.506% APR with 2.323points; or 5.875%, 5.896% APR with 0 points.

On Tuesday, the June CPI report showed overall inflation rising 0.3% for the month and year-over-year inflation increasing from 2.4% to 2.7%, meeting expectations. Energy prices lead the way, rising 0.9% for the month. The Core inflation rate, removing food and energy prices, increased by 0.2%, slightly higher than expected. Annually, the core rate rose from 2.8% to 2.9% which was cooler than the expected 3.0% rise. Rates moved higher on the news as the trend of lower inflation overall has reversed. While these inflation numbers aren’t hot, they are above the Fed’s 2% target, and components within the report show potential signs that tariffs are having a negative impact on prices. However, the move higher in rates was minimal, as fears that the tariffs will cause another round of out-of-control inflation like we saw post-pandemic are easing.

Yesterday, the June PPI report showed wholesale inflation flat, which was cooler than the 0.2% expected. While rates did move lower on the headline report, the move lower was minimal as the May number was revised higher from 0.1% to 0.3%. While PPI doesn’t impact rates as much as CPI and the Fed’s favorite measure of inflation, PCE, this report did help reverse the rate trend of higher rates, as PPI is seen as a leading indicator of future inflation. Additionally, some PPI data feeds into the more crucial PCE report due later this month.

While inflation generally is the key to the direction of mortgage rates, employment has taken over in recent months as the Fed has repeatedly indicated they need to see the labor market break before they’d be willing to lower rates. This week, Initial Jobless Claims continued to decline, falling to 221k, the lowest number in several weeks. Since the monthly BLS non-farm payroll report came in stronger than expected earlier this month, we have seen rates being pressured higher, and the weekly jobless claims reversing and improving over the past few weeks haven’t helped. Many economists think we need increasing layoffs before the Fed will adjust its current rate policy, which will keep rates from falling much from their current levels.

Bank deregulation took another step forward as the Federal Reserve proposed a rollback of bank capital requirements. The move would lower reserve thresholds and allow banks to buy treasuries without negatively impacting their lending ability. Once implemented, Treasury Secretary Scott Bessent expects this change could push 10-year treasury rates down “10’s of basis points,” which, if true, would help lower mortgage rates significantly. 

Summer Buying Season

As we enter the summer buying season, demand among home buyers remains high. Fully underwritten pre-approvals are crucial for securing offers in this highly competitive market, particularly as interest rates dip.

To get the best possible rate, comparing lenders and working with a firm that provides transparent mortgage rates and associated costs online is recommended. At Sammamish Mortgage, knowledgeable and experienced Mortgage Advisors and Loan Officers are available to assist you in navigating the current market landscape and determining the best path ahead.

Current Mortgage Rates This Week for WA, OR, ID, CA, and CO From Sammamish Mortgage
07/18/2025

**Conforming assumptions – $800k Purchase Price, 25% Down, 800+ Credit
**Jumbo assumptions – $1.5MM Purchase Price, 25% Down, 800+ Credit

Washington State mortgage rates

Mortgage rates In Oregon

Mortgage rates in Idaho

Mortgage Rates for Colorado

California Mortgage Rates

National Average Mortgage Rates:

(State-specific rates sourced from Sammamish Mortgage – National Average rates sourced from Zillow)

Consumer Price Index, Consumer Sentiment & Inflation

Without a doubt, the biggest driver of interest rates is inflation. With that in mind, we continue to focus on inflation data and expectations going forward to gauge what we can expect to see interest rates in the coming months. Current inflation is cooling and moving closer to the Fed’s target of 2%. While current inflation numbers would typically warrant a lower Fed Funds Rate, the Fed has indicated that it wants to see the impact of tariffs before moving on to additional rate cuts.

Consumer Price Index (CPI) June= 0.3% – Annual = 2.7%  

Producer Price Index (PPI) June = 0.0% – Annual = 2.3%

Personal Consumption Expenditures (PCE) May = 0.1% – Annual = 2.3% 

Overall, it is difficult to predict what will happen with mortgage rates in the near term. With global economic turmoil, banking issues, inflation, and thus far a far more resilient economy than many expected, trying to predict rates from one day to the next to time a rate lock is almost impossible or at least requires luck. However, looking at a longer time horizon, it’s much easier to see that there is an excellent chance we could see rates move lower from current levels, providing an opportunity for recent and existing buyers to potentially refinance in the future.

See Current Rates

What the Fed rate hike means for borrowers, savers, and investors

When the Federal Reserve raises interest rates, it affects various aspects of the economy, including the housing market, savings, and investment.

For potential homebuyers, a Fed rate hike typically leads to an increase in mortgage rates in the early stages of a tightening cycle; however, if the market thinks the Fed rate increases will hurt the economy and cause inflation to decrease, mortgage rates can improve when the Fed raises the Fed Funds Rate. It’s important to note that the Fed does not control mortgage rates. Fed rate increases do directly impact credit card rates, car loans, and commercial loans, which are shorter in duration than a typical 30-year fixed mortgage.

For savers, a Fed rate hike may lead to higher returns on savings accounts and certificates of deposit (CDs). In addition, banks and other financial institutions may increase the interest rates they pay to savers to remain competitive, which can benefit savers looking to earn more on their savings.

A Fed rate hike may impact the stock and bond markets for investors. Typically, when interest rates rise, the value of stocks and bonds can fall as investors may shift their money to fixed-income investments with higher returns. However, the impact of a rate hike on the markets can be complex and depends on various factors, such as the overall state of the economy, inflation expectations, and global events.

Loan Limits Increased For 2025

Loan limits have increased for 2025. Each county in every state has its loan limit. That said, the new standard conforming loan limit is $806,500, and high balance limits in select high-priced areas can go up as high as $1,037,300 for 1-unit properties in 2024.

Visit our 2025 conforming loan limit pages for Washington State, Oregon, Idaho, California,, and Colorado.

For FHA loan limits for 2025, visit our pages for Washington State, Idaho, Colorado, California and Oregon.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Instant Mortgage Rate Quote

Ready to Apply For a Mortgage?

Do you have questions about rates this week and home loans? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, Colorado & California. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Our programs include the Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Contact us today with any questions you have about mortgages.

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