Mortgage Rate Relief Continues—With a Third Day of Drops – Apr. 17, 2025

After a dramatic rise last week, 30-year-mortgage rates have dropped in the last three days. Wednesday saw rates drop again below 7%, to an average of 6.94%. Rates fell for a variety of other mortgage types.

No matter what type of home loan or mortgage you are looking for, it is wise to shop around and compare rates to find the best rate.

Compare Current Mortgage Interest Rates Today – April 17, 2025

Today's New Purchase Mortgage Rate Averages

The average rate on 30-year purchase mortgages dropped another 2 basis point Wednesday. This brings the three-day average down to 6,94%. Last week, the flagship average surged 44 basis points—reaching 7.14% Friday for its most expensive reading since May 29.

In September, 30-year rates saw a historic plunge—sinking to a two-year low of 5.89%. The average rate is now more than a percentage point higher. Still, today's rates are 1.07 percentage points better than in late 2023, when rates catapulted to a historic 23-year peak of 8.01%.

The average rate for 15-year mortgages dropped by 4 basis points on Wednesday, bringing it down to 6.04%. That's a widening improvement from Friday's 6.31%, which was the highest reading in almost a year. The 15-year average also fell to its lowest level in two years, a plummeting 4.97%, last September. Though today's 15-year average is elevated, it's more than a full percentage point below October 2023's historic 7.08% reading—a high since 2000.

Jumbo 30-year mortgage rates meanwhile declined below the 7% mark with a 5-point drop to 6.98% on average—an increasing improvement vs. Friday's 7.15% reading. 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 (a government-sponsored buyer for mortgage loans) publishes a 30-year average mortgage rate. Today's reading plunged 21 basis points to 6.41%, largely capturing the drop in rates seen late last week. In September last year, the average rate 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 30 year average is a reading taken daily, which provides a more accurate, timely indication 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 factors such as your credit score and income.

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 of the bond markets, particularly 10-year Treasury yields
• The Federal Reserve’s current policy on monetary policy. This includes bond purchases and government-backed mortgages.
• 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. 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 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 can indirectly influence mortgage rates but not directly. 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. 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 each 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 rates are what borrowers can expect to receive from lenders when they get quotes based on their qualifications. These rates may differ from teaser rates advertised. © 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. 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

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.