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Tuesday, rates on 30-year mortgage refinances rose again by 11 basis points. The new average rate is now 7.12%. The flagship refi has gained 19 points in just two days.
The highest water mark so far this year is 7.30%, which was registered in January. Early March saw the average fall to 6.71%. In any case, today's 30-year refi rates are more than a full point more expensive than last September's plunge to 6.01%, a two-year low.
Other refi loan types added significant points as well on Tuesday. The 15-year refi average shot up 10 basis points, while 20-year rates added 19 points—after surging 23 points the previous day. The jumbo 30-year average refi rate added 23 basis point.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance rates | Daily Change |
| 30-Year Fixed | 7.12% | +0.11 |
| FHA 30-Year fixed | 6.62% | No Change |
| VA 30-Year Fixed | 6.66% | +0.15 |
| Fixed Rate 20 Year | 7.05% | +0.19 |
| Fixed 15-Year Rate | 6.01% | +0.10 |
| FHA 15 Year Fixed | 6.07% | No Change |
| Fixed Rate 10-Year Agreement | 6.44% | +0.31 |
| 7/6 ARM | 7.36% | +0.12 |
| 5/6 ARM | 7.39% | +0.27 |
| Jumbo 30-Year Fixed | 7.08% | +0.23 |
| Jumbo 15-Year Fixed | 6.78% | +0.32 |
| Jumbo 7/6 ARM | 7.15% | No Change |
| Jumbo 5/6 ARM | 7.59% | -0.06 |
| 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 10-year Treasury rates
- 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 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 strategy is a major factor in determining 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 and mortgage rates can even move in opposite directions.
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. At its March 19 meeting, Fed released its quarterly forecast. It showed that at that time the central banks’ median expectation for rest of year was only two quarter point rate 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 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. White papers, government statistics, original reporting and interviews with industry professionals are all examples. Where appropriate, we also reference original research by other reputable publishers. 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.
