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The 30-year refinance mortgage rates dipped on Monday, after having bounced around in a narrow band just below 7% over the past week. The current average of 6.96% remains a quarter of a percentage point above the recent lowest rate of 6.71%.
Although still improved vs. a 2025 peak of 7.30%, registered in mid-January, 30-year refinance rates remain elevated compared to September's plunge to a two-year low of 6.01%.
Rates fluctuated for other refi types on Friday. The average rate for 15-year loans increased by 4 basis, while that of 20-year loans jumped 16 percentage points. The jumbo 30-year average refi added 10 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 | 6.86% | +0.07 |
| VA 30-Year Fixed | 6.24% | -0.12 |
| 20-Year Fixed | 6.84% | +0.16 |
| Fixed-Term 15-Year Agreement | 5.90% | +0.04 |
| FHA 15-Year Fix | 6.32% | -0.50 |
| Fixed 10-Year Rate | 5.76% | No Change |
| 7/6 ARM | 7.31% | -0.14 |
| 5/6 ARM | 6.86% | -0.57 |
| Jumbo 30-Year Fixed | 6.92% | +0.10 |
| Jumbo 15-Year Fixed | 6.45% | -0.40 |
| Jumbo 7/6 ARM | 6.80% | No Change |
| Jumbo 5/6 ARM | 7.67% | +0.70 |
| Zillow Mortgage API is available. | ||
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, 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 determined by the complex interaction of macroeconomics and industry factors.
- 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 purchases and funding 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 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, making significant monthly reductions until reaching net zero by 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. 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 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 Interest 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 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. 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.
