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After rising on four of the five previous market days in a row, 30-year mortgage rates showed a welcome retreat. The flagship refi rate average fell to 7.23%, shaving off 8 basis points. Friday's reading of 7.31%, meanwhile, was the most expensive level for 30-year refi rates since July 2024.
In early March, the 30-year refi average fell as low as 6.71%—leaving today's rates more than half of a percentage point higher. Today's 30-year refi average is also about 1.2 percentage points more expensive than last September's two-year low of 6.01%.
Most other refi loans types also fell Monday. The 15-year- and 20-year-refi averages lost 11 and 16 basis point, respectively, whereas the jumbo 30-year-refi average dropped 12 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| Fixed Rate 30-Year Agreement | 7.23% | -0.08 |
| FHA 30-Year Fixed | 6.62% | No Change |
| VA 30-Year Fixed | 6.84% | -0.10 |
| 20-Year Fixed | 7.13% | -0.16 |
| Fixed-Term 15-Year Agreement | 6.10% | -0.11 |
| FHA 15-Year Fix | 6.07% | No Change |
| Fixed 10-Year Rate | 6.49% | No Change |
| 7/6 ARM | 7.21% | -0.06 |
| 5/6 ARM | 6.76% | +0.08 |
| Jumbo 30-Year Fixed | 7.19% | -0.12 |
| Jumbo 15-Year Fixed | 6.72% | -0.22 |
| Jumbo 7/6 ARM | 7.50% | -0.42 |
| Jumbo 5/6 ARM | 7.58% | -0.37 |
| 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 that you will receive is based on your credit rating, income and more. Therefore, it may differ from what you see in the averages.
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 payment for different loan scenarios 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 level and direction in the bond market, notably 10-year Treasury rates
- 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 at the same time, it's generally difficult to attribute any single change to any one factor.
Macroeconomic forces kept the mortgage markets relatively low throughout 2021. In response to the economic pressures brought on by the pandemic, the Federal Reserve purchased billions in bonds. This bond-buying program is a major influencer on mortgage rates.
Starting in November 2021 the Fed will begin reducing its bond purchases, making significant monthly reductions until reaching net zero by 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, starting 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 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. At its March 19 meeting, Fed released its quarterly forecast. It showed that at that time the central banks’ median expectation for rest of 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. 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, Page 4,” March 19, 2025.
