Rates for 30-Year Mortgages Increase for a Third Straight Day, March 17, 2025

After recently sinking to a four-month low, 30-year mortgage rates have risen six of the last eight market days—including a Friday increase to 6.84%. Many other types of mortgage rates also rose on Friday.

No matter what type of home loan or mortgage you are looking for, it is wise to shop around and compare rates regularly to find the best rate.

Compare Current Mortgage Rates – March 17, 2020

Today's New Purchase Mortgage Rate Averages

Rates for 30-year new purchase mortgages rose another 6 basis point Friday, following two days of 15-point increases. The national average is now 6.84%, which is more than a third of a percentage point above last week's 6.50% reading—a 2025 low.

In January, the 30-year-average jumped to its highest level since last October, 7.13%. So today's rates are still significantly improved vs. two months ago. They're also nearly 1.2 percentage points cheaper than the historic 23-year peak of 8.01% reached in October 2023.

But last September, 30-year rates plunged—sinking as far as a two-year low of 5.89%. In the three months that followed, the average rate rose by almost 1.25 percentages.

Rates on 15-year mortgages ticked up 3 basis points Friday to a 5.93% average—which is 33 points pricier than their recent four-month low. The 15-year rate average fell to its lowest level in the past two years in September. It was as low as 4.97 percent. Though today's 15-year average is elevated, it's 1.15 percentage points below October 2023's historic 7.08% reading—a high since 2000.

Jumbo 30-year mortgage rates also gained 3 basis points Friday, pushing the average up to 6.85%. Last fall, the jumbo 30-year rate plummeted from 6.24% to 6.24%. This was their lowest level in 19 month. Meanwhile, it's estimated that the 8.14% peak of October 2023 was the most expensive jumbo 30-year average in 20-plus years.

The Weekly Freddie Mac Average

Freddie Mac, a government sponsored buyer of mortgages, publishes a weekly mortgage rate average every Thursday. Last week's reading was close to flat, edging up just 2 basis points to 6.65%. In September last year, the average fell as low as 6.08%. But back in October 2023, Freddie Mac's average saw a historic rise, surging to a 23-year peak of 7.79%.

Freddie Mac's average differs from what we report for 30-year rates because Freddie Mac calculates a weekly average that blends five previous days of rates. Investopedia 30 year average is a reading taken daily, which provides a more precise, timely indicator of rates. In addition, the criteria for included loans (e.g., amount of down payment, credit score, inclusion of discount points) varies between Freddie Mac's methodology and our own.

Calculate monthly payment for different loan scenarios using our Mortgage Calculator.

The rates we publish won’t compare directly with teaser rates you see advertised online since those rates are cherry-picked as the most attractive vs. the averages you see here. Teaser rates may involve paying points in advance or may be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan. The rate you receive will depend on your credit score, your income, and other factors. It may differ from the averages shown here.

What causes mortgage rates rise or fall?

Mortgage rates are determined by the complex interaction of macroeconomics and industry factors.

• The level and direction in the bond market, particularly the 10-year Treasury yields
• The Federal Reserve’s current monetary policies, particularly as they relate to bond purchases and funding government-backed loans
• Mortgage lenders compete with each other for different loan types.

Because any number of these can cause fluctuations simultaneously, it's generally difficult to attribute the change to any one factor.

Macroeconomic factors have kept the mortgage market low for most of 2021. The Federal Reserve bought billions of dollars’ worth of bonds to respond to the economic pressures caused by the pandemic. This bond-buying strategy is a major factor in determining mortgage rates.

Starting in November 2021 the Fed will begin to reduce its bond purchases, reducing them by a significant amount each month, until they reach zero in March.

The Fed raised the federal fund rate aggressively between then and July 2023 to combat inflation that has been high for decades. The fed funds rate does not directly affect mortgage rates. The fed funds rate can actually move in the opposite direction to mortgage rates.

But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.

The Fed kept the federal funds rate at a peak level for nearly 14 months, starting in July 2023. In September, the Fed announced a rate cut of 0.50 percent, followed by quarter-point cuts in November and Decembre.

For its first meeting of the new year, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months. The Fed released their quarterly rate forecast at their meeting on December 18, which showed that the central bankers’ median expectations for the coming year were only two quarter-point cuts. Eight rate-setting meetings are scheduled each year, so we could see several rate-hold announcements by 2025.

How We Track Mortgage Rates

The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The rates that result are what borrowers will receive when they receive quotes from lenders, based on the qualifications of the borrower. These rates can differ from teaser rate advertisements. © Zillow, Inc., 2025. The Zillow Terms and Conditions of Use apply.

Article Sources Investopedia requires that writers use primary sources in order to support their work. White papers, original reporting, government data and interviews with experts in the industry are some of these sources. We also use original research from other reputable publications when appropriate. Our website contains more information about the standards that we use to produce accurate, unbiased content. Editorial Policy

1. Freddie Mac. “Mortgage Rates."

2. Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.

3. Federal Reserve Board. “Summary Economic Projections, Dec 18, 2024,” Page 4