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Rates on 30-year refinance loans have risen slightly after falling to their lowest level in over four months last week. A gain of three basis points Wednesday takes the average up to 6.81%. That’s just a 10th of a percent above the recent lowest rate of 6.71%.
Although notably improved vs. a January peak of 7.30%, current 30-year refinance rates remain elevated compared to September's plunge to a two-year low of 6.01%.
Wednesday, rates were mixed for the other refi loan types. The average 15-year refi rate rose 4 points and the average 20-year rate climbed 8 points. The jumbo 30-year index fell 6 basis points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| 30-Year Fixed | 6.81% | +0.03 |
| FHA 30-Year fixed | 6.83% | -0.03 |
| VA 30-Year Fixed | 6.18% | +0.09 |
| Fixed 20-Year Rate | 6.60% | +0.08 |
| Fixed-Term 15-Year Agreement | 5.71% | +0.04 |
| FHA 15 Year Fixed | 6.51% | +0.05 |
| Fixed 10-Year Rate | 6.12% | +0.41 |
| 7/6 ARM | 7.28% | +0.10 |
| 5/6 ARM | 7.31% | +0.05 |
| Jumbo 30-Year Fixed | 6.77% | -0.06 |
| Jumbo 15-Year Fixed | 6.75% | +0.03 |
| Jumbo 7/6 ARM | 7.11% | +0.04 |
| Jumbo 5/6 ARM | 7.09% | +0.08 |
| 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 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 level and direction in the bond market, particularly the 10-year Treasury yields
- The Federal Reserve’s current monetary policies, particularly as they relate to bond buying and government-backed loans
- 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 forces kept the mortgage market at a relatively low level 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 to reduce 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 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 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 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 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. 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. 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, Dec 18, 2024,” Page 4
