Refinance rates drop, building a 2-day decline – April. 25, 2025

The 30-year refinance rate has once again reversed its course, continuing the April yoyo pattern. After a notable 8 basis point drop on Thursday, the flagship refi rate has now declined two consecutive days and is at 7.14%. That's better than April 11, when a week-long surge pushed the average to 7.31%—its most expensive level since July 2024.

But given the 30-year refi average fell as low as 6.71% in early March, today's rates are still elevated. The 30-year refi average is also around 1.1 percentage points above last September's two-year low of 6.01%.

On Thursday, several other refi loans types also fell. The 15-year average and the 20-year average of refi loans were down 5 and 10 points, respectively. Meanwhile, the 30-year average for jumbo refi loans was down 9 points.

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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 that you will receive is based on factors such as your credit score and income.

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 by the complex interaction of macroeconomics and industry factors.

• 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 purchases and funding 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 much of 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 influencer on 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. While the fed fund rate can affect mortgage rates, it does not do so directly. The Fed Funds Rate and mortgage rates can even move in opposite directions.

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 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 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. In 2025, we may see multiple rate holds announced. There are eight rate-setting sessions scheduled per year.

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 rates that result are what borrowers will receive when receiving quotes from lending institutions based on qualifications. They may differ from advertised teaser rate. © Zillow, Inc., 2025. Zillow’s Terms of Service apply.

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1. Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.

2. Federal Reserve Board. “Summary Economic Projections for March 19, 2025,” page 4.