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For a second straight day, mortgage rates on 30-year-loans rose slightly Wednesday. They reached a new average of 6.83%. The benchmark average is still near the lowest level of 2025. The rate movements for the other types of mortgages were mixed.
| National Averages of Lenders' Best Mortgage Rates | |
|---|---|
| The Loan Type | New Purchase |
| 30 Year Fixed | 6.83% |
| FHA 30 Year Fixed | 7.07% |
| Fixed-Term 15 Year | 6.02% |
| Jumbo 30-Year Fixed | 6.82% |
| 5/6 ARM | 7.18% |
| Zillow Mortgage API is available. | |
No matter what type of mortgage you are looking for, rates can vary greatly between lenders. It is wise to compare them regularly and shop around to find the best rate.
Compare Mortgage Rates Today, February 20, 2025
Today's New Purchase Mortgage Rate Averages
After adding 3 basis points to 30-year purchase mortgage rates the day before, Wednesday’s rate hike was only one basis point. This brings the average up to 6,83%. The lowest reading we've seen this year is 6.79%, reached both last Friday and once the week prior. Rates were last cheaper a week prior to Christmas.
Back in September, however, 30-year rates plunged—sinking as far as a two-year low of 5.89%. In the ensuing three months, however, the average surged almost 1.25 percentage points—before recently moving lower.
Rewinding further, the 30-year average notched a high 7.37% last spring, so today's rates are significantly improved vs. 10 months ago. They're also about 1.2 percentage points cheaper than the historic 23-year peak of 8.01% reached in October 2023.
The average rate for 15-year mortgages was flat on Wednesday, at 6.02%. In September, 15-year rates fell as far as 4.97 percent, a drop of two years. Though today's 15-year average is elevated, it remains more than a percentage point below October 2023's historic 7.08% reading—a high since 2000.
The average rate for jumbo 30-year loans increased by 5 basis points on Wednesday. That's slightly above the last week of January's seven-week low of 6.75%. Rates for jumbo 30 year mortgages plummeted in September to their lowest average since 19 months, falling as low as 6.24%. Meanwhile, it's estimated that the 8.14% peak of October 2023 was the most expensive jumbo 30-year average in 20-plus years.
| National Averages of Lenders' Best Rates – New Purchase | ||
|---|---|---|
| Type of Loan | Get New Purchase Rates | Weekly Change |
| 30 Year Fixed | 6.83% | +0.01 |
| FHA 30 Year Fixed | 7.07% | -0.01 |
| VA 30-Year Fixed | 6.38% | +0.02 |
| Fix 20 Year | 6.63% | No Change |
| Fixed-Term 15 Years | 6.02% | No Change |
| FHA Fixed 15-Year Rate | 6.77% | -0.03 |
| Ten-Year Fixed | 6.08% | -0.03 |
| 7/6 ARM | 7.05% | +0.01 |
| 5/6 ARM | 7.18% | +0.02 |
| Jumbo 30-Year Fixed | 6.82% | +0.05 |
| Jumbo 15-Year Fixed | 6.70% | +0.03 |
| Jumbo 7/6 ARM | 6.88% | -0.07 |
| Jumbo 5/6 ARM | 7.01% | No Change |
| Zillow Mortgage API is available. | ||
The Weekly Freddie Mac Average
Every Thursday, Freddie Mac publishes a 30-year average mortgage rate. Today's reading edged down 2 basis points, lowering the average to 6.85%. The average was as low as 6.08% as recently as September 26. Back in October 2023, however, Freddie Mac's average saw a historic rise, surging to a 23-year peak of 7.79%.
Freddie Mac's average differs from what we report for 30-year rates because Freddie Mac calculates a weekly average that blends five previous days of rates. Investopedia 30 year averages are daily and provide a much more accurate indication of changes in rates. In addition, the criteria for included loans (e.g., amount of down payment, credit score, inclusion of discount points) varies between Freddie Mac's methodology and our own.
Calculate your monthly mortgage payments using the Mortgage Calculator.
The rates we publish won’t compare directly with teaser rates you see advertised online since those rates are cherry-picked as the most attractive vs. the averages you see here. Teaser rates may involve paying points in advance or may be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan. Your rate will depend on your income and credit rating, as well as other factors.
What causes mortgage rates to rise or fall?
The mortgage rate is determined by the complex interplay of macroeconomic factors and industry-specific variables, including:
- Bond market direction and level, especially the 10-year Treasury yield
- Federal Reserve’s current policy on monetary affairs, including bond purchasing and government-backed loans.
- Mortgage lenders compete with each other for different loan types.
Because any number of these can cause fluctuations simultaneously, it's generally difficult to attribute the change to any one factor.
The mortgage market remained relatively flat for most of the year 2021 due to macroeconomic conditions. The Federal Reserve bought billions in bonds to respond to economic pressures caused by the pandemic. Mortgage rates are heavily influenced by this bond-buying strategy.
The Fed will begin to taper its purchases of bonds in November 2021. Each month, it will make significant reductions until the net is zero by March 2022.
Fed increased federal funds rates aggressively from July 20, 2023 onwards to battle inflation. Although the Fed Funds Rate can affect mortgage rates indirectly, it does so indirectly. The fed funds rate can actually move the opposite direction of mortgage rates.
But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.
In July 2023, the Fed kept its federal funds rate near its highest level for nearly 14 months. In September, however, the Fed announced its first cut in interest rates of 0.50 percent, followed by a quarter-point decrease in both November and December.
For its first meeting of the new year, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months. The Fed’s quarterly forecast was released at their meeting on December 18, and showed the median expectations of central bankers for the year ahead as just two quarter point rate cuts. Eight rate setting meetings are scheduled each year. This means that multiple rate holds could be announced in 2025.
The Mortgage Rate Tracker
The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. These rates are what you can expect to receive from lenders when they give quotes based on your qualifications. They may differ from teaser rate advertisements. © Zillow, Inc., 2024. Zillow’s Terms and Conditions of Use apply.
Article Sources Investopedia asks writers to use primary resources to back up their writing. This includes white papers, official government data, reporting original and interviews conducted with industry experts. When appropriate, we reference the original research of other publishers. Learn more about how we produce accurate, unbiased material in our The editorial Policy.
Freddie Mac. “Mortgage Rates."
Congressional Research Service. "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve Board. “Summary of Economic Projections for December 18, 2024”, Page 4.
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