30-Year Rate Falls to 6.67%, Refinance & VA Applications Surge

Neil Caron
6 days ago
2 min read

August 29, 2025 | Mortgage Market Trends | Presented by ReadySetLoan™️

When mortgage rates dip, homeowners pay attention—and this week was no exception. The 30-year fixed mortgage rate fell to 6.67%, triggering the strongest week for refinance activity since April. Refinance applications jumped 23%, now making up 46.5% of all mortgage activity, with VA and conventional refinances especially driving growth.

Adjustable-rate mortgages (ARMs) also surged—up 25%, reaching levels not seen since 2022. Meanwhile, purchase applications barely budged, rising just 1% week-over-week, despite being 17% higher than a year ago.

What’s Happening and Why It Matters

Rates Dipped: The 30-year fixed rate sliding to 6.67% opened the door for more refinancing activity.
Refi Boom: Homeowners seized the opportunity, pushing refinance volume to nearly half of all mortgage applications.
VA Loans Active: VA borrowers in particular took advantage of rate relief, showing strong demand.
ARM Interest Rising: Adjustable-rate mortgages are seeing renewed attention as borrowers seek lower initial payments.
Purchase Market Still Slow: Even with rates easing, buyers remain cautious, highlighting affordability and inventory challenges.

🎤 Neil’s Take“A dip to 6.67% for a 30-year fixed rate turned heads—especially for refinancing homeowners. We’re seeing momentum in VA and conventional refis, and ARMs are gaining steam. Buyers, however, remain cautious. If you can time this right, locking lower rates now could pay off—just be clear on ARM risks.”—Neil Caron, Area Sales Manager at CMG Mortgage

🐷 RSL Piggy Points

Refinance activity spiked 23%, the strongest since April.
VA and conventional refinances are driving demand.
ARM applications surged 25%, nearly 10% of all activity.
Purchase applications rose just 1%, showing buyers are still hesitant.

RSL Perspective

At ReadySetLoan™️, we view this as a split story: refinancers are jumping at opportunities, while buyers remain on the sidelines. Whether you’re considering a refinance, weighing an ARM, or entering the housing market, timing and preparation matter. ReadySetLoan™️ is your partner in navigating these shifts with confidence.