Mortgage Rates Drop and Finally Halt Multi-Day Climb April. 24, 2025

Mortgage rates continue their roller coaster ride through April, and are changing direction yet again. Wednesday saw a drop in the 30-year average rate to 7.03%. Other mortgage types also saw a decline.

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 Rates – April 24, 2020

Today's New Purchase Mortgage Rate Averages

After rising by 13 basis points during the previous four day, 30-year mortgage rates for new purchases have finally taken some time off, dropping 4 points to a lower 7.03% on Wednesday. The week before last, the flagship average had surged by a dramatic 44 basis points, peaking on April 11 at 7.14%—its most expensive reading since May 2024.

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 nearly a percentage point better than in late 2023, when rates catapulted to a historic 23-year peak of 8.01%.

The average 15-year mortgage rate dropped 6 basis points to 6.13% on Wednesday. That's an improvement vs. the April 11 average of 6.31%, which was the highest reading in almost a year. In September last year, the 15-year rate average also fell to its lowest level for two years. It plummeted to 4.97%. Though today's 15-year average is elevated, it's 95 basis points below October 2023's historic 7.08% reading—a high since 2000.

In the meantime, rates on jumbo 30-year loans dropped by 3 basis points on Wednesday. The current 7.09% is just below a reading of 7.15% a week ago, which was at a 10-month-high. 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

Freddie Mac, a government sponsored buyer of mortgages, publishes a weekly mortgage rate average every Thursday. This week's reading dipped 2 basis points to 6.81%. 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 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 and more. Therefore, it may differ from what you see in the averages.

What causes mortgage rates to 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 funding of 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 factors remained the main reason for the relatively low mortgage market in 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.

Starting in November 2021 the Fed will begin to reduce 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. 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 cut 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. 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 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. 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. 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 for March 19, 2025,” page 4.