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After a modest fluctuation in a narrow band for about a full week, 30-year mortgage rates shot up Friday. The benchmark refi rate has now risen to 7.14%, an 11 basis point increase. That's slightly better than mid-April, when a five-day surge pushed the average to 7.31%—its most expensive level since July 2024.
Given the 30-year refi average fell as low as 6.71% in early March, however, today's rates are elevated. The 30-year refi average is also more than 1.1 percentage points above last September's two-year low of 6.01%.
Several other refi loan types also saw rates rise. The 15-year, jumbo-30-year, and 20-year averages of refi loans have increased by 4 and 5, respectively.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| 30-Year Fixed | 7.14% | +0.11 |
| FHA 30-Year Fixed | 7.50% | No Change |
| VA 30-Year Fixed | 6.55% | +0.05 |
| Fixed 20-Year Rate | 6.99% | +0.14 |
| Fixed 15-Year Rate | 5.94% | +0.04 |
| FHA 15-Year Fix | 6.69% | No Change |
| 10-Year Fixed | 6.61% | No Change |
| 7/6 ARM | 7.43% | No Change |
| 5/6 ARM | 7.26% | +0.06 |
| Jumbo 30-Year Fixed | 6.97% | +0.05 |
| Jumbo 15-Year Fixed | 6.69% | +0.05 |
| Jumbo 7/6 ARM | 7.17% | No Change |
| Jumbo 5/6 ARM | 7.41% | +0.14 |
| 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 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 funding of 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 factors remained the main reason for the relatively low mortgage market in 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 factor in mortgage rates.
Starting in November 2021 the Fed will begin to reduce 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 combat the inflationary levels that have been in place for decades. While the fed fund rate can affect mortgage rates, it does not do so directly. 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 points. This was followed by a quarter-point rate 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. 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. Zillow’s Terms of Service apply.
Article Sources Investopedia asks writers to use primary resources to support their writing. White papers, original reporting and government data are all examples. 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, Page 4,” March 19, 2025.
