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After adding 20 points over three days, the 30-year mortgage refinance rate held on Monday. The average rate of 6.98% now stands more than a quarter of a percentage point above 6.71%, the recent low.
Although still improved vs. a 2025 peak of 7.30%, registered in mid-January, current 30-year refinance rates remain elevated compared to September's plunge to a two-year low of 6.01%.
On Monday, rates for other refi loans were mixed. The 15-year- and 20-year-averages of refi loans gained 9 and 7 basis point, respectively. Meanwhile, the jumbo 30-year-average added 8 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| Fixed Rate 30-Year Agreement | 6.98% | No Change |
| FHA 30-Year fixed | 6.88% | -0.39 |
| VA 30-Year Fixed | 6.51% | +0.05 |
| Fixed Rate 20 Year | 6.87% | +0.07 |
| Fixed-Term 15-Year Agreement | 5.94% | +0.09 |
| FHA 15-Year Fix | 6.76% | -0.06 |
| Fixed Rate 10-Year Agreement | 6.28% | +0.41 |
| 7/6 ARM | 7.22% | -0.26 |
| 5/6 ARM | 6.85% | -0.58 |
| Jumbo 30-Year Fixed | 6.96% | +0.08 |
| Jumbo 15-Year Fixed | 6.48% | -0.27 |
| Jumbo 7/6 ARM | 6.83% | -0.28 |
| Jumbo 5/6 ARM | 6.79% | -0.24 |
| 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 you receive will depend on your credit score, your income, and other factors. It may differ from the averages shown here.
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 through a complex interplay of macroeconomic factors and industry factors such as:
- The direction and level in which the bond market is moving, especially with regard to 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 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.
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. 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 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 a quarter-point reduction in November and December.
For its first meeting of the new year, 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’s quarterly rate forecast was released at its meeting on Dec. 18. It showed that central bankers had a median expectation of two quarter-point rates cuts for the upcoming year. 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. Zillow’s Terms of Service apply.
Article Sources Investopedia requires that writers use primary sources in order to support their work. These include whitepapers, government data and original reporting as well as interviews with industry experts. We also use original research from other reputable publications when appropriate. Our website contains more information about the standards that we use to produce accurate, unbiased content. Editorial Policy
Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve Board. “Summary Economic Projections, Dec 18, 2024,” Page 4
