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Rates for 30-year mortgage refinances dropped by a single basis-point Wednesday, to an average of 6.97%. That continues a yo-yo pattern just below 7%—a threshold last crossed in mid-February. The current average of 6.71 % is a quarter point higher than its 2025 low.
Though still improved vs. this year's high-water mark of 7.30%, reached in January, 30-year refinance rates remain elevated compared to last September's plunge to a two-year low of 6.01%.
The rate movements for other refi types were mixed on Wednesday. The average 15-year and the 20-year refi loan rates each fell by 3 basis points. However, the average 30-year refi rate rose 4 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| 30-Year Fixed | 6.97% | -0.01 |
| FHA 30-Year Fixed | 6.91% | +0.05 |
| VA 30-Year Fixed | 6.57% | +0.06 |
| Fixed Rate 20 Year | 6.87% | -0.03 |
| Fixed-Term 15-Year Agreement | 5.88% | -0.03 |
| FHA 15-Year Fix | 6.82% | No Change |
| 10-Year Fixed | 5.76% | No Change |
| 7/6 ARM | 7.33% | +0.02 |
| 5/6 ARM | 6.81% | -0.02 |
| Jumbo 30-Year Fixed | 6.92% | +0.04 |
| Jumbo 15-Year Fixed | 6.49% | +0.09 |
| Jumbo 7/6 ARM | 7.60% | +0.80 |
| Jumbo 5/6 ARM | 7.40% | -0.26 |
| Zillow Mortgage API provides access to the Zillow Mortgage API | ||
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 you receive will depend on your credit score, income and other factors. It may differ from the averages shown here.
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 determined by the complex interaction of macroeconomics and industry factors.
- The level and direction in the bond market, particularly 10-year Treasury rates
- 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 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. The Federal Reserve, in particular, had bought billions in bonds as a response to the economic pressures brought on by the pandemic. This bond-buying program 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.
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 can indirectly influence mortgage rates but not directly. 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’s quarterly rate forecast was released at its March 19 meeting. It showed that central bankers had a median expectation of two quarter-point cuts for the rest the year. 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 receiving quotes from lending institutions based on qualifications. They may 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 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
Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve Board. “Summary Economic Projections, 19 March 2025,” Page 4.
