Mortgage Rates Surge a third day – April 10, 2025

The 30-year mortgage rate average jumped yet again Wednesday, shooting up over three consecutive days to 7.06%—its highest level since mid-January. Most other mortgage types also saw rates rise.

It’s important to compare rates and shop around for the best mortgage rates, regardless of what type you want.

Compare Current Mortgage Rates – April 10, 2020

Today's New Purchase Mortgage Rate Averages

The average rate for 30-year mortgages with new purchases increased another 13 basis points on Wednesday to a total of 7.06%. This represents a dramatic 3-day gain of 36 point, pushing the flagship rate above 7% for almost three months. In January, the 30-year-average surged to its highest level since October.

In contrast, September saw a historic plunge in 30-year rates—sinking to a two-year low of 5.89%. The average is now 1,17 percentage points higher. Still, today's rates are almost a full percentage point cheaper than in late 2023, when rates catapulted to a historic 23-year peak of 8.01%.

The rates on 15-year mortgages rose for a third consecutive day, gaining another 15 basis points. They now stand at 6.22%. That's now well above a recent four-month low of 5.60%. In September, the 15-year rate average also fell to its lowest level in two years, plummeting down to 4.97%. Though today's 15-year average is elevated, it's 0.86 percentage points below October 2023's historic 7.08% reading—a high since 2000.

The average rate for jumbo 30-year mortgages also rose Wednesday, by 13 basis points. This brought the average above 7%. Last fall, jumbo 30 year rates fell to 6.24%. It was their lowest level for 19 months. Meanwhile, it's estimated their 8.14% peak in 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. This week's reading inched down 2 basis points to 6.62%, as it largely captured 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’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.

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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 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 rise or fall?

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

• The level and direction in the bond market, particularly the 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 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 strategy is a major factor in determining 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 fight the inflation which has been high since the 1970s. While the fed fund rate can affect mortgage rates, it does not do so 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. 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 requires that writers use primary sources in order to support their work. These include whitepapers, government data and original reporting as well as interviews with industry experts. 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, 19 March 2025,” Page 4.