2025 30-Year Mortgage Rates Drop to 6.78% - Third Consecutive Day of Decline

In 2025, 30-year mortgage rates continue their downward trend, falling for the third consecutive day to an average of 6.78%. This marks a significant retreat from the six-week peak experienced earlier this year. While some loan types saw slight increases, the 30-year fixed-rate mortgages offer renewed opportunities for prospective homebuyers.

Because mortgage rates vary widely among lenders, it’s essential to compare offers regularly to secure the best deal tailored to your financial profile and loan type.

Current 30-Year Mortgage Rates for New Purchases - May 2025

The average rate for new 30-year purchase mortgages decreased by 3 basis points, settling at 6.78%. Although this is above the year's low of 6.50%, it is a notable improvement from January's high of 7.13%, the highest since October last year. Compared to the historic peak of 8.01% in October 2023, today's rates are over a full percentage point lower, offering more affordable borrowing options.

Back in September 2024, rates hit a two-year low of 5.89%, but that relief was short-lived as rates climbed sharply in the following months.

Meanwhile, 15-year mortgage rates inched up by 2 basis points to 5.86%, still well below last October’s historic high of 7.08%. Jumbo 30-year mortgages also saw a slight rise to 6.77%, remaining significantly lower than their peak of 8.14% recorded in October 2023.

Freddie Mac Weekly Mortgage Rate Update

Freddie Mac’s weekly average for 30-year mortgages recently dipped by 2 basis points to 6.65%. This rate is below last October’s 23-year high of 7.79% but above the 6.08% low reached last September. Freddie Mac’s weekly averages differ from daily figures as they incorporate data over five days, providing a broader market perspective.

Use our Mortgage Calculator to estimate monthly payments across various loan scenarios and better plan your home financing.

Important Considerations

Advertised teaser rates often do not reflect the averages shown here, as they may require upfront points or assume ideal borrower qualifications. Your actual rate depends on factors like credit score, income, and loan size, so always review personalized offers carefully.

Factors Influencing Mortgage Rate Changes

Mortgage rates fluctuate due to multiple economic and market forces, including:

• Movements in the bond market, especially 10-year Treasury yields
• The Federal Reserve’s monetary policies and bond purchasing activities
• Competitive dynamics among lenders and loan products

These elements interact in complex ways, making it challenging to pinpoint a single cause for rate changes.

Throughout 2021, mortgage rates were kept relatively low due to the Federal Reserve’s extensive bond-buying programs in response to pandemic-related economic challenges. However, starting in late 2021, the Fed began tapering these purchases and subsequently raised the federal funds rate aggressively through 2022 and 2023 to combat inflation, indirectly pushing mortgage rates higher.

In 2024, after maintaining peak rates for over a year, the Fed initiated rate cuts but paused in early 2025, signaling potential rate stability for the near future.

How We Monitor Mortgage Rates

The mortgage rate data presented here is sourced from the Zillow Mortgage API, reflecting averages based on an 80% loan-to-value ratio and credit scores between 680 and 739. These figures provide realistic expectations for qualified borrowers but may differ from advertised rates due to individual circumstances and lender criteria. © Zillow, Inc., 2025. Usage governed by Zillow Terms of Use.

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