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The average 30-year mortgage refinance rate fell by one basis point on Thursday, to 6.96%. That continues a yo-yo pattern just below 7%—a threshold last crossed in mid-February. The current average is a quarter of a percentage point higher than 2025’s low of 6.71%.
Though still improved vs. this year's high-water mark of 7.30%, reached in January, 30-year refinance rates remain elevated compared to last September's plunge to a two-year low of 6.01%.
Thursday’s rate movements were mixed for the other refi loan types. The 15-year, 20-year, and jumbo 30-year refi averages all fell by one basis point each, while the 15-year, 20-year, and jumbo 30-year refi averages rose by five points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance rates | Daily Change |
| Fixed Rate 30-Year Agreement | 6.96% | -0.01 |
| FHA 30-Year Fixed | 6.91% | No Change |
| VA 30-Year Fixed | 6.58% | +0.01 |
| 20-Year Fixed | 6.84% | -0.03 |
| Fixed 15-Year Rate | 5.87% | -0.01 |
| FHA 15-Year Fix | 6.82% | No Change |
| Fixed Rate 10-Year Agreement | 5.76% | No Change |
| 7/6 ARM | 7.32% | -0.01 |
| 5/6 ARM | 7.17% | +0.36 |
| Jumbo 30-Year Fixed | 6.97% | +0.05 |
| Jumbo 15-Year Fixed | 6.62% | +0.13 |
| Jumbo 7/6 ARM | 7.60% | No Change |
| Jumbo 5/6 ARM | 6.90% | -0.50 |
| 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 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 payment for different loan scenarios 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 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. 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 reducing its bond purchases, reducing them by a significant amount each month, until they reach zero in March.
Fed aggressively increased the federal funds rate between July 2023 and then to fight the inflation which has been a problem 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, starting 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. 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 several rate freezes announced. There are eight rate-setting sessions scheduled each 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 that result are what borrowers will receive when they receive quotes from lenders, based on the qualifications of the borrower. These rates can differ from teaser rate advertisements. © 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. 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 for March 19, 2025,” page 4.
