Jacob Wackerhausen / Getty Images
After a dramatic rise last week the 30-year refinance rate is now on a downward trend for a third day in a row. Shaving off another 6 basis points Wednesday—for a three-day drop of 22 points—the flagship refi average is down to 7.09%. Friday's reading of 7.31%, meanwhile, was the most expensive level for 30-year refi rates since July 2024.
With the 30-year refi average falling as low as 6.71% in early March, today's rates are still 38 basis points more expensive. And the 30-year refi average is also almost 1.1 percentage points above last September's two-year low of 6.01%.
Wednesday, most other refi loan types fell as well. The averages for 15-year, 20-year, and jumbo-sized 30-year refi loans dropped by 3 and 5 basis point, respectively.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| 30-Year Fixed | 7.09% | -0.06 |
| FHA 30-Year fixed | 6.62% | No Change |
| VA 30-Year Fixed | 6.68% | -0.05 |
| 20-Year Fixed | 7.01% | -0.05 |
| Fixed-Term 15-Year Agreement | 5.98% | -0.03 |
| FHA 15 Year Fixed | 6.07% | No Change |
| 10-Year Fixed | 6.60% | +0.03 |
| 7/6 ARM | 7.32% | +0.02 |
| 5/6 ARM | 7.15% | +0.40 |
| Jumbo 30-Year Fixed | 7.16% | -0.04 |
| Jumbo 15-Year Fixed | 6.52% | -0.14 |
| Jumbo 7/6 ARM | 7.20% | -0.53 |
| Jumbo 5/6 ARM | 7.43% | -0.13 |
| 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 that you will receive is based on your credit rating, income and other factors.
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 to 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 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 kept mortgage rates 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 reducing its bond purchases, making significant monthly reductions until reaching net zero by March 2022.
The Fed raised the federal fund rate aggressively between then and July 2023 to combat inflation that has been high 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 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 quarter-point reductions of 0.50 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 resulting rates are what borrowers will receive when they receive quotes from lenders, based on the qualifications of the borrower. These rates can differ from advertised teaser rate. © Zillow, Inc., 2025. The Zillow Terms and Conditions of Use apply.
Article Sources Investopedia requires that writers use primary sources in order to support their work. White papers, government statistics, original reporting and interviews with industry professionals are all examples. 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.
