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Rates for 30-year refinances moved lower on Thursday after surging by a third of percentage points in just three days. They had reached their highest level since January. The flagship refi rate average fell by 2 basis point to a 7.4% average.
This year's high water mark is 7.30%, registered in January. In early March, however, the 30-year average refinance rate fell to as low as 6.71 percent. In any case, today's rates are more than a full percentage point above last September's two-year low of 6.01%.
Other refi loan types declined as well on Thursday. The averages for 15-year and 30-year refi loans decreased by 4 and 3 basis point, respectively. However, the averages for jumbo 30-year loan types increased by 2 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| Fixed 30-Year Rate | 7.24% | -0.02 |
| FHA 30-Year fixed | 6.62% | No Change |
| VA 30-Year Fixed | 6.80% | -0.01 |
| 20-Year Fixed | 7.15% | -0.03 |
| Fixed 15-Year Rate | 6.11% | -0.04 |
| FHA 15-Year Fix | 6.07% | No Change |
| Fixed 10-Year Rate | 6.44% | -0.10 |
| 7/6 ARM | 7.31% | -0.01 |
| 5/6 ARM | 6.73% | -0.38 |
| Jumbo 30-Year Fixed | 7.19% | +0.02 |
| Jumbo 15-Year Fixed | 6.71% | +0.07 |
| Jumbo 7/6 ARM | 8.15% | +1.00 |
| Jumbo 5/6 ARM | 7.42% | -0.23 |
| Zillow Mortgage API is available. | ||
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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 a variety of factors, including 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 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 policy on monetary policy. This includes bond purchases and government-backed mortgages.
- Mortgage lenders are competing with each other to offer different types of loans.
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 have kept the mortgage market 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.
Starting in November 2021 the Fed will begin to reduce its bond purchases, reducing them by a significant amount each month, until they reach zero in March.
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 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. 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 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 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, 19 March 2025,” Page 4.
