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New York, Florida New Jersey California Washington Pennsylvania North Carolina and New Jersey had the lowest 30-year refinance rate on Tuesday. These nine states have averaged 30-year refi rates between 6.45% to 6.68%.
Hawaii, Washington D.C. West Virginia Virginia Arizona Oregon Colorado were the top five states for refinancing on Tuesday. This range was from 6.76 to 6.80 percent for the 30-year averages.
Rates for mortgage refinancing vary depending on the state they originated in. The rates of different lenders can differ by the region they operate in. Also, state variations such as credit scores, loan averages, and laws may influence them. The rates that lenders offer are also influenced by their risk management strategies.
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.
You can also read about the importance of this in
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.
National Mortgage Refinance Average Rates
Over the past nine days, the national average of 30-year mortgage refinances dropped by 27 basis points to 6.71 percent. It’s the lowest 30-year mortgage average since October.
Still, today's rates are 70 basis points higher than in September, when 30-year refi rates plunged to a two-year low of 6.01%.
| National Averages of Lenders' Best Mortgage Rates | |
|---|---|
| What is a Loan? | Average Rate of Refinance |
| 30 Year Fixed | 6.71% |
| FHA 30 Year Fixed | 6.70% |
| Fixed 15 Year Term | 5.55% |
| Jumbo 30-Year Fixed | 6.80% |
| 5/6 ARM | 7.00% |
| Zillow Mortgage API provides access to the Zillow Mortgage API | |
Compare Mortgage Rates Today, March 5, 2025
Calculate the monthly payment for various loan scenarios using our Mortgage Calculator.
Why do mortgage rates 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, including 10-year Treasury yields
- Federal Reserve’s current policy on monetary affairs, including bond purchasing and government-backed loans.
- There is fierce competition between lenders of mortgages and loan types.
Because any number of these can cause fluctuations simultaneously, it's generally difficult to attribute any change to any one factor.
For most of 2021, macroeconomic factors held the mortgage market at a relatively low level. 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.
Starting in November 20, the Fed started to reduce its monthly bond purchases, resulting in a net reduction of 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. Mortgage rates and the Fed funds rate may even move in opposite directions.
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.
Fed held the Federal Funds Rate at its maximum level for 14 months starting in July 2023. In September, however, the Fed announced its first cut in interest rates of 0.50 percent, followed by a quarter-point decreases for 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. In 2025, we may see several rate freezes announced. There are eight meetings per year scheduled for rate-setting.
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. Rates are based upon the qualifications of the borrower and may be different from those advertised in teaser ads. © Zillow, Inc., 2025. The Zillow terms of use apply.
Article sources Investopedia expects its writers to use original research to support their articles. 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. Our website contains more information about our standards for producing accurate and unbiased content. Editorial policy
Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve Board. “Summary of Economic Projections, December 18, 2024,” Page 4.
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