2025 Refinance Rates Rise to 6.79% After Hitting 4-Month Low – What Homeowners Need to Know

After a steady decline over the past two weeks, 30-year refinance mortgage rates increased by 8 basis points on Wednesday, reaching an average of 6.79%. This marks a slight rebound from the 6.71% low recorded the day before, which was the most affordable rate since mid-October 2023.

Despite this uptick, rates remain significantly lower than the January 2024 peak of 7.30%, though still above the two-year low of 6.01% seen in September 2023.

Other refinance loan types also saw increases: 15-year and 20-year refi rates rose by 9 and 11 basis points respectively, while jumbo 30-year refi rates edged up by 1 basis point.

Important Considerations

The refinance rates shown here reflect average market conditions and may differ from advertised teaser rates. Lenders often highlight their most attractive rates, which may require upfront points, an exceptional credit score, or apply to smaller loan amounts. Your final rate depends on factors like your creditworthiness, income, and loan specifics.

Because rates vary widely among lenders, it’s crucial to shop around and compare offers regularly to secure the best mortgage refinance deal available.

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

What Drives Mortgage Rate Fluctuations?

Mortgage rates fluctuate due to a complex mix of macroeconomic and industry factors, including:

• Trends in the bond market, especially 10-year Treasury yields
• The Federal Reserve’s monetary policies, such as bond purchases and interest rate adjustments
• Competition among mortgage lenders and varying loan products

Because multiple factors often act simultaneously, pinpointing a single cause for rate changes is challenging.

In 2021, mortgage rates remained relatively low due to the Federal Reserve’s aggressive bond-buying programs aimed at mitigating pandemic-related economic challenges. However, starting in November 2021, the Fed began tapering these purchases, concluding them by March 2022.

Between March 2022 and July 2023, the Fed raised the federal funds rate multiple times to combat high inflation, indirectly pushing mortgage rates higher. Although the fed funds rate doesn’t directly set mortgage rates, these hikes have contributed to their upward trend.

After maintaining peak interest rates for nearly 14 months, the Fed initiated rate cuts in late 2023. The central bank’s forecast for 2024 suggests only a few additional reductions, with multiple periods of steady rates expected throughout the year.

How We Monitor Mortgage Rates

The national and state refinance rate averages provided here are sourced from the Zillow Mortgage API, based on an 80% loan-to-value ratio and a credit score range of 680–739. These averages reflect realistic borrower scenarios and may differ from promotional rates advertised by lenders. © Zillow, Inc., 2025. Use subject to Zillow Terms of Use.

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