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After soaring and falling this month, 30-year mortgage rates have once again changed direction. The flagship refi average dropped 3 basis points on Wednesday to 7.22%, ending a four-day rise. 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 about half a percentage point pricier. The 30-year refi average is also around 1.2 percentage points above last September's two-year low of 6.01%.
Wednesday, several other refi loan types also fell. The 15-year average refi dropped 6 basis point, while the 20 year and jumbo 30 year averages each fell 4 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| Fixed 30-Year Rate | 7.22% | -0.03 |
| FHA 30-Year Fixed | 6.62% | No Change |
| VA 30-Year Fixed | 6.64% | -0.07 |
| Fixed Rate 20 Year | 7.08% | -0.04 |
| Fixed 15-Year Rate | 6.07% | -0.06 |
| FHA 15 Year Fixed | 6.07% | No Change |
| Fixed Rate 10-Year Agreement | 6.60% | No Change |
| 7/6 ARM | 7.60% | +0.09 |
| 5/6 ARM | 7.60% | +0.05 |
| Jumbo 30-Year Fixed | 7.30% | -0.04 |
| Jumbo 15-Year Fixed | 7.11% | +0.04 |
| Jumbo 7/6 ARM | 7.30% | No Change |
| Jumbo 5/6 ARM | 7.44% | +0.04 |
| 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 that you will receive is based on factors such as 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 payments using our Mortgage Calculator.
What causes mortgage rates to 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 program is a major influencer on 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.
Fed aggressively increased the federal funds rate between July 2023 and then to fight the inflation which has been high since the 1970s. 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 kept the federal funds rate at a peak level for nearly 14 months, starting in July 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 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 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. Zillow’s Terms of Service apply.
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Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve Board. “Summary Economic Projections for March 19, 2025,” page 4.
