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After a roller-coaster month of April, 30-year mortgage rates have been in a narrow range over the last week. The flagship refi average dropped 2 basis points on Thursday to 7.03%. That's better than April 11, when a week-long surge pushed the average to 7.31%—its most expensive level since July 2024.
Given the 30-year refi average fell as low as 6.71% in early March, however, today's rates are elevated. The 30-year refi average is also more than a percentage point above last September's two-year low of 6.01%.
The rates also dropped for other refi loans. The average 15-year and the 20-year refi rates each dropped one basis point. Meanwhile, the average jumbo 30-year rate fell 21 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| Fixed 30-Year Rate | 7.03% | -0.02 |
| FHA 30-Year Fixed | 7.50% | No Change |
| VA 30-Year Fixed | 6.50% | No Change |
| 20-Year Fixed | 6.85% | -0.01 |
| Fixed 15-Year Rate | 5.90% | -0.01 |
| FHA 15-Year Fix | 6.69% | No Change |
| Fixed 10-Year Rate | 6.61% | +0.65 |
| 7/6 ARM | 7.43% | No Change |
| 5/6 ARM | 7.20% | +0.23 |
| Jumbo 30-Year Fixed | 6.92% | -0.21 |
| Jumbo 15-Year Fixed | 6.64% | +0.07 |
| Jumbo 7/6 ARM | 7.17% | No Change |
| Jumbo 5/6 ARM | 7.27% | -0.18 |
| Zillow Mortgage API is available. | ||
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 factors such as your credit score and income.
Since rates vary widely across lenders, it's always wise to shop around for your best mortgage refinance option and compare rates regularly, no matter the type of home loan you seek.
Calculate monthly payments using our Mortgage Calculator.
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 in which the bond market is moving, especially with regard to 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 at the same time, it's generally difficult to attribute any single 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 influencer on mortgage rates.
Starting in November 2021 the Fed will begin reducing its bond purchases, reducing them by a significant amount each month, until they reach zero in March.
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 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. At its March 19 meeting, Fed released their 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. These include whitepapers, government data, original reports, and interviews with experts in the industry. We also use original research from other reputable publications when appropriate. Our website contains more information about the standards that we use to produce accurate, unbiased content. Editorial policy
Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve Board. “Summary Economic Projections for March 19, 2025,” page 4.
