Mortgage rates jump, largest one-day increase of 2025 – Mar. 14, 2025

After slowly inching higher for a week, 30-year mortgage rates shot up Thursday to 6.78%—a three-week high. All other mortgage rates increased as well.

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 Rates – March 14, 2020

Today's New Purchase Mortgage Rate Averages

Rates for 30-year mortgages with new purchases jumped 12 basis point to a national median of 6.78% on Thursday. That's now more than a quarter percentage point above last week's 6.50% reading, which had been its most affordable level in four and half months.

In January, it reached its highest level of the year. 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 following three months, the average increased by almost 1.25 percent points.

Rates on 15-year mortgages also added 12 basis points Thursday to average of 5.90%—which is 30 points pricier 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 almost 1.2 percentage points below October 2023's historic 7.08% reading—a high since 2000.

Thursday, the average rate of jumbo 30-year loans increased by 9 basis points, bringing it to 6.82%. Last fall jumbo 30 year rates plunged 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

Freddie Mac, a government sponsored buyer of mortgages, publishes a weekly mortgage rate average every Thursday. Yesterday's reading was close to flat, edging up just 2 basis points to 6.65%. 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 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.

Calculate monthly payments using our Mortgage Calculator.

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, your income, and other factors. It may differ from the averages shown here.

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 in which the bond market is moving, particularly 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 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 kept mortgage rates low for most of 2021. The Federal Reserve bought billions of dollars’ worth of bonds to respond to the economic pressures caused by the pandemic. This bond-buying program is a major factor in 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 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 first meeting of the new year, 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 meeting on Dec. 18, the Fed released a quarterly rate forecast. It showed that at that time the central banks’ median expectation for next year was only two quarter point rate cuts. In 2025, we may see multiple rate holds announced. There are eight rate-setting sessions scheduled per 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. 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 for December 18, 2024,” page 4.