30-Year Mortgage rates fall again, dropping almost every day for over a week – April 7, 2025

The average rate for new 30-year mortgages fell again on Friday to 6.70%. The flagship average, which has declined over the last five market days, has steadily retreated since a six week high reached in late March. Rates for all other types were also lower on Friday.

It’s important to compare rates and shop around for the best mortgage rates, regardless of what type you want.

Compare Current Mortgage Rates – April 7, 2020

Today's New Purchase Mortgage Rate Averages

Rates on 30-year purchase mortgages dropped 5 basis points last Friday. The new average of 6.70% represents a 15 basis point decline in just over a weeks time, but it still leaves rates at two-tenths a percentage points above the 2025 lowest rate of 6.50%.

In January, it reached its highest level in October. So today's rates are substantially improved vs. three months ago. They're also more than 1.3 percentage points cheaper than the historic 23-year peak of 8.01% in October 2023.

In contrast, last September saw 30-year rates plunge—sinking to a two-year low of 5.89%. The relief, however was only temporary, as the average jumped almost 1.25 points in the following three months.

Rates on 15-year mortgages sank 7 basis points, lowering Friday's average to 5.77%. That's compared to a recent four-month low of 5.60%. In September, 15-year rates fell to their lowest level in the past two years. They plummeted to 4.97%. Though today's 15-year average is elevated, it's about 1.3 percentage points below October 2023's historic 7.08% reading—a high since 2000.

Jumbo 30-year mortgage rate averages dropped slightly on Friday, falling 2 basis points to 6.71 percent. Last fall, 30-year jumbo rates plunged to 6.24%. It was their lowest level for 19 months. Meanwhile, it's estimated their 8.14% peak in October 2023 was the most expensive jumbo 30-year average in 20-plus years.

The Weekly Freddie Mac Average

Every Thursday, Freddie Mac publishes a weekly mortgage rate average. Last week's reading inched down a single basis point to 6.64%. 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 accurate, 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.

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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 to rise or fall?

Mortgage rates are influenced by a complex combination of macroeconomic and industrial factors, including:

• The direction and level of the bond markets, particularly 10-year Treasury yields
• The Federal Reserve’s current policy on monetary policy. This includes bond purchases and government-backed mortgages.
• 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 forces kept the mortgage market at a relatively low level for much 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.

The Fed will begin to taper its bond purchases in November 2021. Each month, it will make significant reductions until the net is zero in March 2022.

Fed aggressively increased the federal funds rate between July 2023 and then to combat the inflationary levels that have been in place for decades. The fed funds rate does not directly affect mortgage rates. In fact, mortgage rates and the fed funds interest rate can move in opposite ways.

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, however, the central bank announced its first rate cut, which was 0.50 percentage points. This was followed by a quarter-point reduction in November and December.

For its second meeting of 2025, 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 March 19, which showed that the central bankers’ median expectations for the remainder of the year were only two quarter-point rates 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 are what borrowers can expect to receive from lenders when they get quotes based on their qualifications. These rates may differ from teaser rates advertised. © Zillow, Inc., 2025. The Zillow Terms and Conditions of Use apply.

Article Sources Investopedia asks writers to use primary resources to support their writing. These include whitepapers, government data and original reporting as well as interviews with industry experts. Where appropriate, we also reference original research by other reputable publishers. Learn more about our standards for producing accurate and unbiased content by visiting our 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 for March 19, 2025,” page 4.