2025 Mortgage Rates Update: 30-Year Loans Hold Steady Below 7% with Rates Starting at 6.87%

For over two weeks, the 30-year fixed mortgage rates have consistently hovered in the upper 6% range, signaling a period of relative stability in the housing finance market.

Note: Due to the Juneteenth federal holiday closure, today's report reflects mortgage rate averages as of Tuesday's market close.

Following a recent dip to the lowest point since March, 30-year mortgage rates have inched up by 0.10 percentage points to 6.87%. Meanwhile, other mortgage categories experienced varied rate movements.

Mortgage rates can differ significantly between lenders, making it essential for borrowers to shop around and compare offers regularly to secure the best possible loan terms.

Current Mortgage Rate Averages for New Purchases

After a 6 basis point increase on Monday, the 30-year mortgage rate held firm at 6.87% on Tuesday. This figure remains just above last week's two-month low of 6.77%, which was influenced by a favorable inflation report.

Though rates have risen from the early February low of 6.36%, they remain well below the record 23-year peak of 8.01% recorded in October.

15-year new purchase mortgage rates increased by 5 basis points to average 6.04%, rebounding after a 33 basis point decline last week. These rates remain significantly lower than last fall's 7.08% peak, the highest since 2000.

Jumbo 30-year mortgage rates declined by 5 basis points to 6.99%, below the recent May high of 7.30%. The previous fall's 8.14% peak marks the highest jumbo rate in over two decades.

Weekly Freddie Mac Mortgage Rate Report

Freddie Mac's weekly average for 30-year mortgages fell 8 basis points to 6.87%, marking the third consecutive week of declines. This contrasts with their October 23-year record high of 7.79%, and the mid-January low of 6.60%.

Freddie Mac's weekly averages differ from our daily ZAMONA figures due to methodology differences, including averaging periods and loan criteria.

Refinance Mortgage Rate Trends

Refinance rates showed mixed activity Tuesday: the 30-year refinance average rose by 15 basis points, and the 15-year average increased by 21 basis points, while other refinance rates remained stable.

Use our Mortgage Calculator to estimate monthly payments tailored to your loan scenario.

Important Considerations

Displayed rates are averages and may not reflect promotional teaser rates advertised online, which often require upfront points or assume ideal borrower profiles. Your actual rate will depend on personal creditworthiness, loan size, and other factors.

Mortgage Rates by State

State-level differences affect mortgage rates due to variations in credit profiles, loan types, and lender strategies. Currently, New York, Washington, Texas, Florida, Louisiana, and Indiana offer some of the lowest 30-year mortgage rates. Conversely, West Virginia, Iowa, Washington, D.C., North Dakota, South Carolina, Alaska, and Virginia see higher averages.

Factors Influencing Mortgage Rate Fluctuations

Mortgage rates are shaped by multiple factors, including:

• Movements in the bond market, especially 10-year Treasury yields
• The Federal Reserve’s monetary policies, particularly bond purchases and mortgage-backed securities funding
• Lender competition and loan product variations

The interplay of these elements makes isolating a single cause for rate changes challenging.

In 2021, robust Fed bond-buying programs helped maintain lower mortgage rates despite economic challenges. However, from late 2021 through early 2022, the Fed tapered these purchases to zero, and aggressively raised the federal funds rate by 5.25 percentage points to combat inflation, indirectly pushing mortgage rates higher.

Since July 2023, the Fed has held rates steady amid slowing inflation, although inflation remains above their 2% target. Future rate cuts await confirmation of sustained inflation declines, with four more Fed meetings planned this year.

Our Mortgage Rate Tracking Methodology

All rate averages are derived via the Zillow Mortgage API, assuming an 80% loan-to-value ratio and a credit score between 680–739. These figures provide realistic expectations based on typical borrower profiles but may differ from advertised rates. © Zillow, Inc., 2024. Use subject to Zillow Terms of Use.

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