Mortgage Rates Climb Again, Testing New Heights Amid Market Uncertainty

After remaining within a tight range for over a week, 30-year mortgage rates have now increased for three straight days, reaching the 7% threshold once again. This upward momentum also extended to several other mortgage categories on Monday.

Since mortgage rates can vary significantly between lenders, it’s crucial to shop around and compare rates regularly, regardless of the loan type you’re considering.

Current Mortgage Rate Overview

Rates for 30-year fixed mortgages on new purchases inched up by 0.02% on Monday, marking the third consecutive day of increases totaling 0.09%. The average rate now stands at 7.00%, which remains slightly below the mid-April peak of 7.14%—the highest level observed since May 2024.

Back in September, mortgage rates experienced a notable decline, dropping to a two-year low of 5.89%, more than a full percentage point lower than today’s figures. Despite the recent rise, current rates are still more favorable compared to the late 2023 historic high of 8.01%, the highest in 23 years.

Rates for 15-year fixed mortgages also climbed, increasing by 0.05% on Monday and accumulating an 0.11% rise over three days. The average is now 6.08%, which is 0.23% lower than the April 11 peak of 6.31%, the highest in nearly a year. This remains well below the historic 7.08% peak reached in October 2023. Similar to 30-year loans, 15-year rates hit a two-year low last September at 4.97%.

Jumbo 30-year mortgage rates increased by 0.05% on Monday following an 0.08% rise over the previous two days. The current average of 7.01% improves upon last month’s 7.15%, a 10-month high. However, last fall, jumbo rates reached a low of 6.24%, their most affordable level in 19 months, while October 2023 saw a record 20-year peak of 8.14%.

Freddie Mac’s Weekly Mortgage Rate Insights

Freddie Mac, a government-backed mortgage buyer, releases its weekly average for 30-year mortgage rates every Thursday. Last week, the average remained steady at 6.76%, following a recent dip from 6.83%. In September, the average dropped as low as 6.08%, while October 2023 marked a 23-year high of 7.79%.

Note that Freddie Mac’s weekly averages differ from daily readings like those reported here because they are calculated using data from the previous five days and include different loan criteria, such as down payment amounts and credit score requirements.

Use our Mortgage Calculator to estimate monthly payments across various loan scenarios.

Important Considerations

The mortgage rates presented here represent averages and differ from promotional teaser rates advertised online. Teaser rates often require upfront points or are based on ideal borrower profiles with excellent credit and smaller loan amounts. Your actual rate will depend on your creditworthiness, income, and other personal factors, which may cause variations from these averages.

Factors Influencing Mortgage Rate Fluctuations

Mortgage rates are shaped by a complex blend of economic and industry variables, including:

• The movements of the bond market, especially the 10-year U.S. Treasury yields
• The Federal Reserve’s monetary policies, particularly regarding bond purchases and government-backed mortgage funding
• Competitive dynamics among mortgage lenders and loan products

Because these factors often interact simultaneously, pinpointing a single cause for rate changes is challenging.

Throughout much of 2021, macroeconomic policies kept mortgage rates relatively low. The Federal Reserve’s extensive bond-buying program in response to the pandemic was a key driver.

However, beginning in November 2021, the Fed gradually tapered its bond purchases, culminating in a complete halt by March 2022. Subsequently, the Fed raised the federal funds rate aggressively through mid-2023 to combat inflation, indirectly pushing mortgage rates higher despite the fed funds rate not directly setting mortgage rates.

After maintaining peak rates for nearly 14 months starting July 2023, the Fed initiated rate cuts in September, followed by smaller reductions in November and December. In early 2025, the Fed paused rate changes, with forecasts suggesting only modest cuts throughout the year.

Our Mortgage Rate Tracking Approach

The national and state mortgage rate averages presented are sourced from the Zillow Mortgage API. These averages assume an 80% loan-to-value ratio (20% down payment) and a credit score range of 680–739. They reflect realistic borrower quotes rather than idealized teaser rates. © Zillow, Inc., 2025. Use is subject to Zillow Terms of Use.

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