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After a yoyo pattern of rising, falling, and rising again in April, 30-year mortgage rates are once more in decline. After subtracting 9 basis points on Friday, the flagship refi has dropped 20 points in the past three days to 7.05%. 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 about a percentage point above last September's two-year low of 6.01%.
Friday saw a drop in many other refi loan types. The average 15-year loan rate dropped by 5 basis points while the 20 year average fell by 13 points. Jumbo 30-year rates dropped more dramatically on Friday, losing 24 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| Fixed Rate 30-Year Agreement | 7.05% | -0.09 |
| FHA 30-Year fixed | 6.62% | No Change |
| VA 30-Year Fixed | 6.51% | -0.07 |
| Fixed Rate 20 Year | 6.85% | -0.13 |
| Fixed 15-Year Rate | 5.97% | -0.05 |
| FHA 15 Year Fixed | 6.07% | No Change |
| 10-Year Fixed | 6.60% | No Change |
| 7/6 ARM | 7.51% | -0.09 |
| 5/6 ARM | 7.53% | -0.06 |
| Jumbo 30-Year Fixed | 6.97% | -0.24 |
| Jumbo 15-Year Fixed | 6.82% | -0.34 |
| Jumbo 7/6 ARM | 7.35% | +0.05 |
| Jumbo 5/6 ARM | 7.41% | +0.04 |
| 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 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 payment for different loan scenarios using our Mortgage Calculator.
What causes mortgage rates to 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 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 kept mortgage rates low for most 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 factor in determining mortgage rates.
Starting in November 2021 the Fed will begin to reduce 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. 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, 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 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 their 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 for March 19, 2025,” page 4.
