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After a three day retreat of over 20 basis points at the start of the week, 30-year rates for refinancing ticked a bit back up on Thursday. The flagship refi average has risen by 5 basis points to 7.14%. A surge last week, however, pushed Friday's average to 7.31%, the most expensive reading 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 nearly 45 points pricier. The 30-year refi average is also almost 1.15 percentage points above last September's two-year low of 6.01%.
On Thursday, several other refi loan types also rose. The averages for 15-year and the 20-year refi loans both increased by 3 basis points. However, the average rate of jumbo 30 year refi rates dropped 5 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| Fixed Rate 30-Year Agreement | 7.14% | +0.05 |
| FHA 30-Year fixed | 6.62% | No Change |
| VA 30-Year Fixed | 6.70% | +0.02 |
| Fixed 20-Year Rate | 7.04% | +0.03 |
| Fixed-Term 15-Year Agreement | 6.01% | +0.03 |
| FHA 15 Year Fixed | 6.07% | No Change |
| Fixed 10-Year Rate | 6.60% | No Change |
| 7/6 ARM | 7.33% | +0.01 |
| 5/6 ARM | 7.27% | +0.12 |
| Jumbo 30-Year Fixed | 7.11% | -0.05 |
| Jumbo 15-Year Fixed | 6.80% | +0.28 |
| Jumbo 7/6 ARM | 7.64% | +0.44 |
| Jumbo 5/6 ARM | 7.35% | -0.08 |
| Zillow Mortgage API provides access to the Zillow Mortgage API | ||
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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 your credit rating, income and more. Therefore, it may differ from what you see in the averages.
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 influenced by a complex combination of macroeconomic and industrial factors, including:
- 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 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 forces kept the mortgage market at a relatively low level 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 program 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.
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 maintained its federal funds rate near its highest level for almost 14-months, starting in July of 2023. In September, however, 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 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. Eight rate-setting meetings are scheduled each year, so we could see several rate-hold announcements by 2025.
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. We also use original research from other reputable publications when appropriate. 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, Page 4,” March 19, 2025.
