Mortgage Rates See Broad Decline Across Loan Types – Latest Trends Unveiled

Mortgage interest rates for new 30-year fixed loans have experienced slight decreases over the past two days, now averaging 6.81%. This decline extends across nearly all mortgage categories as of Monday, continuing a subtle trend of rate fluctuations within the 6% range over recent weeks.

Given the wide variation in mortgage rates among lenders, it's essential to compare offers regularly to secure the best possible rate, regardless of the loan type you pursue.

Current Average Rates for New Home Purchase Loans

On Monday, rates for 30-year new purchase mortgages decreased by one basis point, following a decline on Friday, bringing the average down to 6.81%. Despite this improvement, rates remain nearly 0.3% above the 2025 low of 6.50%.

Earlier this year in January, the 30-year average peaked at 7.13%, marking the highest point since October. Today’s rates are more favorable compared to that spike and are 1.2 percentage points below the historic high of 8.01% recorded in October 2023.

Last September, 30-year mortgage rates briefly fell to a two-year low of 5.89%, though this relief was temporary as rates climbed approximately 1.25 percentage points over the subsequent three months.

Rates for 15-year mortgages also declined by four basis points on Monday, averaging 5.84%. While this remains 24 basis points above their recent four-month low of 5.60%, it is still significantly lower than October 2023’s historic high of 7.08%, the highest in over two decades.

Jumbo 30-year mortgage rates dropped three basis points to an average of 6.74% on Monday. These rates had previously reached a 19-month low of 6.24% last fall. The peak jumbo rate of 8.14% in October 2023 represents the highest level in over 20 years for this loan category.

Freddie Mac’s Weekly Mortgage Rate Averages

Freddie Mac, a government-sponsored enterprise, releases weekly averages for 30-year mortgage rates every Thursday. The latest report showed a slight 2 basis point decrease to 6.65%. Last September, Freddie Mac’s average dipped as low as 6.08%, while the October 2023 average hit a 23-year high of 7.79%.

It’s important to note that Freddie Mac’s weekly averages differ from daily averages reported elsewhere due to the aggregation of rates over five days and varying loan qualification criteria.

Use our Mortgage Calculator to estimate monthly payments across various loan scenarios and make informed decisions.

Important Considerations

Published mortgage rates differ from the teaser rates often advertised online, which highlight the most attractive offers and may require upfront points or assume ideal borrower profiles. Actual rates depend on individual factors such as credit score, income, and loan specifics, so your rate may vary from published averages.

Key Drivers Behind Mortgage Rate Fluctuations

Mortgage rates are influenced by a complex mix of macroeconomic and industry factors, including:

• Movements in the bond market, particularly 10-year Treasury yields
• The Federal Reserve’s monetary policies, especially regarding bond purchases and government-backed mortgage funding
• Competition among lenders and loan product types

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

Throughout much of 2021, mortgage rates remained relatively low due to the Federal Reserve’s substantial bond-buying programs aimed at mitigating pandemic-related economic impacts. However, starting in November 2021, the Fed began tapering these purchases, completing the process by March 2022.

Between then and mid-2023, the Fed implemented aggressive federal funds rate hikes to combat inflation, indirectly driving mortgage rates upward despite the fed funds rate not directly setting mortgage costs.

After maintaining peak rates for over a year, the Fed initiated rate cuts starting in September 2024 but held steady in early 2025. Forecasts suggest limited further reductions, with multiple rate-hold periods anticipated throughout 2025.

How Mortgage Rates Are Monitored

The national and state mortgage rate averages referenced here are sourced from the Zillow Mortgage API, assuming an 80% loan-to-value ratio and a credit score between 680 and 739. These figures represent realistic borrower expectations rather than promotional rates. © Zillow, Inc., 2025. Use subject to Zillow Terms of Use.

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