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Rates for 30-year refinance mortgages are rising after falling 10 days earlier to their lowest level in October. The average increased by 4 basis points on Friday after a two-day rise of 16 points. The new average is 6.98%, which is more than a quart of a point higher than the recent low of 67.11%.
Although still improved vs. a 2025 peak of 7.30%, registered in mid-January, current 30-year refinance rates remain elevated compared to September's plunge to a two-year low of 6.01%.
Friday, rates were up for many refi loan types. The 15-year- and 20-year-refi averages rose by 2 and 6 points, respectively. However, the 30-year-average jumbo loan fell 7 basis points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance rates | Daily Change |
| Fixed Rate 30-Year Agreement | 6.98% | +0.04 |
| FHA 30-Year Fixed | 7.27% | No Change |
| VA 30-Year Fixed | 6.46% | +0.10 |
| Fixed Rate 20 Year | 6.80% | +0.06 |
| Fixed-Term 15-Year Agreement | 5.85% | +0.02 |
| FHA 15 Year Fixed | 6.82% | No Change |
| Fixed Rate 10-Year Agreement | 5.87% | No Change |
| 7/6 ARM | 7.48% | -0.02 |
| 5/6 ARM | 7.43% | +0.01 |
| Jumbo 30-Year Fixed | 6.88% | -0.07 |
| Jumbo 15-Year Fixed | 6.75% | -0.01 |
| Jumbo 7/6 ARM | 7.11% | No Change |
| Jumbo 5/6 ARM | 7.03% | -0.10 |
| 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 that you will receive is based on a variety of factors, including 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 rise or fall?
Mortgage rates are determined through a complex interplay of macroeconomic factors and industry factors such as:
- The level and direction in the bond market, particularly the 10-year Treasury yields
- The Federal Reserve’s current policy on monetary policy. This includes bond purchases and government-backed mortgages.
- 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. 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 influence on 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.
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 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 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. At its meeting on Dec. 18, the Fed released a quarterly rate forecast. It showed that at that time the central banks’ median expectation for next year was only two quarter point rate cuts. Eight rate-setting meetings are scheduled each year, so we could see several rate-hold announcements by 2025.
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. The Zillow Terms and Conditions of Use apply.
Article Sources Investopedia asks writers to use primary resources to support their writing. 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, Dec 18, 2024,” Page 4
