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After holding steady the previous day, 30-year mortgage rates increased by one basis point on Tuesday. The new average rate of 6.99% is more than a quarter of a percentage point higher than the recent low of just 6.71%.
Although still improved vs. a 2025 peak of 7.30%, registered in mid-January, current 30-year refinance rates remain elevated compared to September's plunge to a two-year low of 6.01%.
Tuesday, rates for other refi loans were mixed. The 15-year average refi rate increased by 2 basis points while the 20 year average refi rate decreased by 1 point. The jumbo 30 year refi average gained 1 point.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| Fixed Rate 30-Year Agreement | 6.99% | +0.01 |
| FHA 30-Year Fixed | 6.91% | +0.03 |
| VA 30-Year Fixed | 6.53% | +0.02 |
| Fixed Rate 20 Year | 6.86% | -0.01 |
| Fixed-Term 15-Year Agreement | 5.96% | +0.02 |
| FHA 15-Year Fix | 6.76% | No Change |
| Fixed Rate 10-Year Agreement | 6.35% | +0.07 |
| 7/6 ARM | 7.22% | No Change |
| 5/6 ARM | 6.82% | -0.03 |
| Jumbo 30-Year Fixed | 6.97% | +0.01 |
| Jumbo 15-Year Fixed | 6.43% | -0.05 |
| Jumbo 7/6 ARM | 6.74% | -0.09 |
| Jumbo 5/6 ARM | 6.79% | No Change |
| Zillow Mortgage API is available. | ||
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, your 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 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 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 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.
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.
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. 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 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. The Fed released their quarterly rate forecast at their meeting on December 18, which showed that the central bankers’ median expectations for the coming year were only two quarter-point cuts. Eight rate-setting meetings are scheduled each year, so we could see several rate-hold announcements by 2025.
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.
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Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve Board. “Summary Economic Projections, Dec 18, 2024,” Page 4
