Rates for 30-Year Mortgages Drop by the Most in 3 Weeks on One Day – March 21, 2025

After a slight decline the day before, 30-year mortgage interest rates saw their biggest drop since late-February on Thursday. They averaged 6.77%. 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 Today – March 21, 2025

Today's New Purchase Mortgage Rate Averages

Rates on 30-year purchase mortgages fell 5 basis points, after dropping 2 points the previous morning. The national average rate is now 6.77%. This is about a quarter point above the 2025 minimum of 6.50%.

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 1.25 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 decreased by 10 basis points Thursday, reaching a 5.87% average—still 27 points higher than their recent four-month low. In September, 15-year mortgage rates fell to their lowest level in two years, falling as low as 4.97%. Though today's 15-year average is elevated, it's 1.21 percentage points below October 2023's historic 7.08% reading—a high since 2000.

Jumbo 30-year mortgage rates dropped 7 basis points on Thursday, bringing the average down to 6.80%. Last fall jumbo 30 year rates fell to 6.24%. It was their lowest level for 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 30-year average mortgage rate. This week's reading edged up just 2 basis points to 6.67%. In September of last year, averages fell as far 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’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 payment for different loan scenarios 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 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 10-year Treasury rates
• The Federal Reserve’s current monetary policies, particularly as they relate to bond purchases and funding government-backed loans
• 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 most 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 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. But in September 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. 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. 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.