Rates for 30-Year Mortgages Drop for a Second Time – April 25, 2025

Rates of mortgages are still on a roller coaster in April. The Thursday average rate is now 6.99%, after a dramatic drop in the last two weeks. Other mortgage types also saw declines.

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 25, 2020

Today's New Purchase Mortgage Rate Averages

After falling and then rising, 30-year mortgage rates have now started to fall. The flagship average dropped another 4 points to 6.99% on Thursday.

The week before last, the flagship average had surged by a dramatic 44 basis points, peaking on April 11 at 7.14%—its most expensive reading since May 2024.

But back in September, 30-year rates saw a historic plunge—sinking to a two-year low of 5.89%. The average is now 1.1 points higher. Still, today's rates are about a percentage point better than in late 2023, when rates catapulted to a historic 23-year peak of 8.01%.

Rates for 15-year mortgages fell another 4 basis points on Friday, bringing the average down to 6.09%. That's an improvement vs. the April 11 average of 6.31%, which was the highest reading in almost a year. The 15-year rate average, like the 30-year rate, fell to its lowest level in two years, a plummet to 4.97%, last September. Though today's 15-year average is elevated, it's almost a full percentage point cheaper than October 2023's historic 7.08% reading—a 23-year high.

The average rate for jumbo 30-year mortgages also fell on Thursday, by 5 basis points. This compares with a reading of 7.15% about two weeks ago, which was a 10-month-high. Last fall, jumbo 30-year rates sank to 6.24%, their cheapest level in 19 months, while it's estimated their 8.14% peak in October 2023 was the most expensive jumbo 30-year average in over 20 years.

The Weekly Freddie Mac Average

Every Thursday, Freddie Mac publishes a weekly mortgage rate average. This week's reading dipped 2 basis points to 6.81%. Last September, the reading dropped as low as 6.81%. 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’s 30-year average, on the other hand, is a daily reading that provides a more accurate and timely indication of rate movements. 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 payments using our Mortgage Calculator.

It is important to note that

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, income and other factors. It may differ from the averages shown here.

What causes mortgage rates to rise or fall?

Mortgage rates are determined through a complex interplay of macroeconomic factors and industry factors such as:

• The level and direction in the bond market, especially the 10-year Treasury yields
• The Federal Reserve’s current policy on monetary policy. This includes bond purchases and government-backed mortgages.
• Mortgage lenders are competing with each other to offer different types of loans.

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. In response to the economic pressures brought on by the pandemic, the Federal Reserve purchased billions in bonds. 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 can indirectly influence mortgage rates but not directly. 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 maintained its federal funds rate near its highest level for almost 14-months, starting in July of 2023. In September, the Fed announced a rate cut of 0.50 percent, followed by quarter-point cuts in November and Decembre.

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. In 2025, we may see multiple rate holds announced. There are eight rate-setting sessions scheduled per year.

How We Track Mortgage Interest 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 resulting rates are what borrowers will receive when they receive quotes from lenders, based on the qualifications of the borrower. These rates can differ from advertised teaser rate. © 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, government data and original reporting are some of the sources. We also use original research from other reputable publications when appropriate. 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.