Rates for 30-Year Mortgages are Holding their Ground – March 27, 2025

After reaching a six-week peak at the beginning of the week the 30-year mortgage rate averaged 6.83% on Wednesday. Other mortgage types saw mixed rate movements.

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

Compare Current Mortgage Interest Rates – March 27, 2025

Today's New Purchase Mortgage Rate Averages

The average rate on 30-year mortgages for new purchases remained steady at 6.83% Wednesday, after rising to a six week high of 6.84% Monday. The current average is one-third of a percentage above the 2025 minimum of 6.50%.

In January, the average 30-year rate jumped up to 7.13%. This was its highest level in October. So today's rates are still significantly improved vs. two months ago. They're also almost 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, however, the average rate rose by almost 1.25 percentages.

The average rate on 15-year mortgages dropped by 1 basis point to 5.96%. That's 36 points higher than their recent four-month low of 5.60%. As with 30-year rates in September, the average 15-year rate fell as low as 4.97%. Though today's 15-year average is elevated, it's about 1.1 percentage points below October 2023's historic 7.08% reading—a high since 2000.

Jumbo 30-year mortgage rates dropped 2 basis points on Wednesday to an average of 6.77%. Last fall, the jumbo 30-year rate plummeted from 6.24% to 6.24%. This was their lowest level in 19 months. 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

Every Thursday, Freddie Mac (a government-sponsored buyer for mortgage loans) publishes a weekly mortgage rate average. Today's reading inched down 2 basis points to 6.65%. Last September, the average dropped as low as 6.08 percent. 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 that you will receive is based on your credit rating, income, etc., so it may vary from what you see.

What causes mortgage rates to rise or fall?

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

• 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 forces kept the mortgage market at a relatively low level 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 program is a major influencer on 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.

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 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. At its March 19 meeting, Fed released its quarterly forecast. It showed that at that time the central banks’ median expectation for rest of year was only two quarter point rate cuts. In 2025, we may see several rate freezes announced. There are eight rate-setting sessions scheduled per year.

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 resulting rates are what borrowers will receive when receiving quotes from lending institutions based on qualifications. They may differ from advertised teaser rate. © Zillow, Inc., 2025. Zillow’s Terms of Service 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, 19 March 2025,” Page 4.