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After a three-day decline of more than 20 basis point, 30-year refinance rate ended last week with two days of gains. The flagship refi average has risen by 4 basis points to 7.18%. That's still better, however, than the previous Friday, when a week-long surge pushed the average to 7.31%—its most expensive since July 2024.
With the 30-year refi average falling as low as 6.71% in early March, today's rates are nearly half a percentage point pricier. The 30-year refi average is also more than 1.15 percentage points above last September's two-year low of 6.01%.
Friday, the averages for several other refi loans types rose as well. The 20-year average and the 15-year average both increased by 2 and 4-basis points, respectively. The average rate for jumbo 30 year refi loans fell by 4 points.
| National Averages of Lenders' Best Rates – Refinance | ||
|---|---|---|
| Loan Type | Refinance rates | Daily Change |
| Fixed 30-Year Rate | 7.18% | +0.04 |
| FHA 30-Year Fixed | 6.62% | No Change |
| VA 30-Year Fixed | 6.67% | -0.03 |
| Fixed Rate 20 Year | 7.06% | +0.02 |
| Fixed-Term 15-Year Agreement | 6.05% | +0.04 |
| FHA 15-Year Fix | 6.07% | No Change |
| 10-Year Fixed | 6.60% | No Change |
| 7/6 ARM | 7.32% | -0.01 |
| 5/6 ARM | 7.20% | -0.07 |
| Jumbo 30-Year Fixed | 7.07% | -0.04 |
| Jumbo 15-Year Fixed | 6.78% | -0.02 |
| Jumbo 7/6 ARM | 7.30% | -0.34 |
| Jumbo 5/6 ARM | 7.35% | No Change |
| 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 that you will receive is based on factors such as 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 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
- Competition between mortgage lenders across 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 program is a major factor in 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.
Fed aggressively increased the federal funds rate between July 2023 and then to fight the inflation which has been at a high level 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 maintained its federal funds rate near its highest level for almost 14-months, starting in July of 2023. But in September the central bank announced its first rate cut, which was 0.50 percentage points. It then followed this with quarter-point cuts in November and in 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 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 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 teaser rate advertisements. © Zillow, Inc., 2025. The Zillow Terms and Conditions of Use apply.
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Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve Board. “Summary Economic Projections for March 19, 2025,” page 4.
