Mortgage rates for 30-year mortgages surge to a record high – March 25, 2025

After falling for three consecutive days, 30-year mortgage interest rates soared to an average of 6,84% on Monday, matching the highs of last week. Rates for other mortgage types were mixed.

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 Interest Rates Today – March 25, 2025

Today's New Purchase Mortgage Rate Averages

After falling by the same amount in the previous three days, rates on 30-year purchase mortgages increased 8 basis points on Monday. The national average rate is now 6.84%. That’s more than a quarter of a percentage above the low of 2025 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 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 following three months, the average increased by almost 1.25 percent points.

Rates on 15-year mortgages also added 8 basis points Monday, reaching a 5.98% average—38 points higher than their recent four-month low. In September, the 15-year rate average fell to its lowest level in over two years. It was 4.97%. Though today's 15-year average is elevated, it's 1.10 percentage points below October 2023's historic 7.08% reading—a high since 2000.

Jumbo 30-year mortgages also added 8 basis points on 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

Every Thursday, Freddie Mac publishes a weekly mortgage rate average. Last week's reading edged up just 2 basis points to 6.67%. 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’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 that you will receive is based on your credit rating, income and other factors.

What causes mortgage rates rise or fall?

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

• The direction and level of the bond markets, particularly 10-year Treasury yields
• The Federal Reserve’s current monetary policies, particularly as they relate to bond buying and government-backed loans
• Competition between mortgage lenders across 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. In response to the economic pressures brought on by the pandemic, the Federal Reserve purchased billions in bonds. This bond-buying program is a major influence on mortgage rates.

Starting in November 2021 the Fed will begin to reduce its bond purchases, making significant monthly reductions until reaching net zero by 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 maintained its federal funds rate near its highest level for almost 14-months, beginning 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. 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. Eight rate-setting meetings are scheduled each year, so we could see several rate-hold announcements by 2025.

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 asks writers to use primary resources to support their writing. White papers, government statistics, original reporting and interviews with industry professionals are all examples. 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, 19 March 2025,” Page 4.