As of March 23, 2025, mortgage rates are around the mid-6% range. Zillow reports an average 30-year fixed mortgage rate of 6.40%, slightly down from February. Forecasts suggest a small decrease of 10 to 20 basis points this year, but a significant drop seems unlikely. Rising home prices and limited housing supply mean competition could increase, affecting affordability.
Refinance rates closely mirror purchase rates. In February, 30-year refinance rates averaged 6.53%, and 15-year rates were about 5.87%. Homeowners must assess personal finances to decide on refinancing, factoring in monthly savings against closing costs.
Current 30-year mortgage rates are about 6.40%, slightly lower than February’s. Meanwhile, 15-year mortgage rates hover around 5.80%. Longer terms mean lower monthly payments but higher overall interest, while shorter terms offer lower rates and less total interest.
Five-year trends reveal volatility in mortgage rates, with historically low rates during 2020-2021. Economic trends, Federal Reserve policies, and individual financial profiles mainly influence mortgage rates. Higher personal credit scores, reduced debts, and larger down payments can secure favorable rates.
While mortgage rates don’t directly tie to federal funds rates, there is often a correlation. Federal Reserve policy shifts, like those in 2022-2023, aimed to control inflation, influencing mortgage rate trends. Projections suggest slight declines through 2025, but rates are likely to settle around 6%, with significant affordability improvements unlikely due to rising home prices.
