2025 Mortgage Rates Update: 30-Year Loans Near 6.72%, Lowest Since March
Explore the latest mortgage rate trends for 2025 with 30-year fixed rates hovering near 6.72%, marking their lowest levels since March. Learn how regional differences and market factors affect your mortgage options today.
Mortgage rates for 30-year and 15-year loans remain close to their most affordable levels in over three months.
On Tuesday, the average rate for a new 30-year purchase mortgage inched up slightly to 6.72%, maintaining proximity to the lowest averages seen since early spring. This marks a significant drop from early July's rates above 7%. Most other mortgage categories showed minimal rate shifts on the same day.
Given the variability in lender offerings, it’s important to regularly compare mortgage rates to secure the best deal regardless of the loan type.
Current Mortgage Rate Averages for New Purchases
The 30-year mortgage average rose marginally by 0.02% on Tuesday to 6.72%, still 0.36% below the 7.08% reported on July 1. This level is near the lowest average recorded since March 29, 2024.
While these rates are slightly higher than the February low of 6.36%, they remain well below the historic peak of 8.01% from October 2023.
15-year mortgage rates also inched up by 2 basis points to 5.87%, hovering near lows last seen in late March. These rates are significantly lower than the 7.08% peak recorded last fall, which was the highest since 2000.
Jumbo 30-year mortgage rates decreased slightly by 1 basis point, settling at 7.00%. This is close to last week’s four-week low of 6.96% and remains below the May high of 7.30%. Although historical jumbo rates prior to 2009 are unavailable, the 8.14% peak last fall likely represented a 20+ year high.
Weekly Freddie Mac Mortgage Rate Averages
Freddie Mac’s weekly 30-year mortgage average dropped 6 basis points last week to 6.89%, marking the fifth decline over six weeks. This average peaked at 7.79% in October 2023 and hit a low of 6.60% in mid-January 2024.
Note that Freddie Mac’s weekly average blends rates over five days, while our daily ZAMONA averages provide a more immediate snapshot. Differences in loan criteria also contribute to variance between these figures.
Refinancing Rate Trends
Refinancing rates showed mixed movement Tuesday: the 30-year refinance average fell by 10 basis points, while 15-year and jumbo 30-year refinance rates experienced small declines and some increases.
Use our Mortgage Calculator to estimate monthly payments across various loan scenarios.
Important Note
Published rates differ from advertised teaser rates, which often highlight the most attractive offers with specific borrower qualifications or upfront points. Your actual mortgage rate will depend on your credit score, income, loan size, and other factors.
Mortgage Rates by State
Mortgage rates vary by state due to differences in credit profiles, loan types, average loan amounts, and lender risk strategies.
States with the lowest 30-year purchase mortgage rates include New York, Texas, Florida, Louisiana, California, Pennsylvania, and Washington. Conversely, Alaska, West Virginia, Iowa, South Carolina, Maryland, Vermont, and Washington, D.C. reported the highest averages.
Factors Influencing Mortgage Rate Fluctuations
Mortgage rates are shaped by complex factors including:
- Movements in the bond market, especially 10-year Treasury yields
- Federal Reserve monetary policies, particularly bond purchasing and government-backed mortgage funding
- Competition among lenders and across loan types
These factors often interact simultaneously, making it difficult to attribute rate changes to a single cause.
In 2021, the Federal Reserve's bond-buying efforts helped keep rates low amid the pandemic. However, tapering began in November 2021, reaching zero in March 2022.
From then until July 2023, the Fed raised the federal funds rate by 5.25 percentage points to combat inflation, indirectly pushing mortgage rates higher despite the fed funds rate not directly controlling mortgage pricing.
The Fed has held rates steady since July 2023 with a cautious approach to cutting rates until inflation sustainably declines from its current level above the 2% target.
Four more Fed meetings are planned for 2024, with the next concluding July 31.
How ZAMONA Tracks Mortgage Rates
Our national and state mortgage rate averages use data via the Zillow Mortgage API, based on an 80% loan-to-value ratio and borrower credit scores between 680 and 739. These rates reflect realistic lender quotes, differing from promotional teaser rates. © Zillow, Inc., 2024. Subject to Zillow Terms of Use.
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