March 19, 2025: 30-Year Fixed Mortgages Reach a Peak Not Seen Since February

## March 19, 2025: 30-Year Fixed Mortgages Reach a Peak Not Seen Since February

The rate for a 30-year fixed mortgage climbed to 6.84% on Tuesday, marking a four-week high after experiencing a slight decrease of one basis point the previous day. Rates for other mortgage types also experienced gains. S&P 500 Ascends, Propelled by Boeing

Considering the notable differences in rates among lenders, it’s advisable to shop around and consistently assess rates, irrespective of the type of home loan you’re pursuing.

## Current Typical Mortgage Rates for New Homes

The rate for a 30-year new home mortgage increased by one basis point on Tuesday, following a one basis point decrease the day before. The national typical is now at 6.84%, roughly a third higher than the 2025 low of 6.50%.

In January, the typical rate for a 30-year term rose dramatically to 7.13%, the highest point since October of the prior year. Therefore, rates today still signify a considerable improvement compared to two months prior. They also remain almost 1.2 percentage points below the historical high of 8.01% recorded in October 2023.

However, rates for 30-year mortgages dropped to a two-year low of 5.89% last September. In the subsequent three months, though, the typical rate increased by almost 1.25 percentage points.

On Tuesday, the 15-year mortgage rate went up by one basis point, reaching a typical of 6.01%, which is 41 basis points greater than the recent four-month low. Similar to the 30-year rate, the 15-year typical fell to a two-year low of 4.97% last September. While the 15-year typical is higher today, it is still 1.08 percentage points less than the historical high of 7.08% in October 2023, a high unseen since 2000.

On Tuesday, the 30-year jumbo mortgage rate rose by two basis points, bringing the typical rate up to 6.91%. Last fall, the 30-year jumbo mortgage rate plunged to 6.24%, the lowest point in 19 months. At the same time, the estimated peak of 8.14% in October 2023 represented the highest typical rate for a 30-year jumbo mortgage in over 20 years.

## Weekly Averages from Freddie Mac

Each Thursday, Freddie Mac, a government-supported organization that acquires home loans, publishes the weekly average of 30-year mortgage rates. The previous week saw little change, with a modest rise of just 2 basis points, bringing the rate to 6.65%. We observed an average rate as low as 6.08% in September. However, things changed in early October 2023 when Freddie Mac announced a significant increase, reaching a 23-year peak of 7.79%.

The average rate from Freddie Mac differs somewhat from our reported 30-year rates. Freddie Mac computes a *weekly* average by combining rates from the prior five working days. Investopedia’s 30-year average, however, is a daily reading that offers a more precise and current picture of rate changes. Furthermore, the criteria for including loans (such as down payment size, credit score, and whether discount points are included) vary between Freddie Mac’s methodology and ours.

Try out our mortgage calculator to estimate your monthly payments for various loan scenarios.

Remember that the rates we publish are not immediately comparable to the appealing rates you may find online. These are frequently hand-picked to appear more appealing than the average rates you see here. These teaser rates may need upfront point payments or are predicated on the assumption of borrowers with exceptionally high credit scores or lower-than-average loan amounts. The rate you receive will be determined by factors such as your credit score and income, so it may differ from the average rates displayed here.

## What Causes Mortgage Rates to Rise or Fall?

Mortgage rates represent a complex topic, affected by several interconnected elements within the economy and the lending sector. Here’s a simple analysis:

* **Bond Market Sentiments:** Pay attention to the yields on 10-year Treasury notes. They frequently establish the trend for mortgage rates.
* **The Federal Reserve’s Actions:** What is the Federal Reserve doing? Their monetary strategy, particularly when it comes to acquiring bonds and supporting mortgages, has a considerable impact.
* **Rivalry Among Lenders:** Banks and mortgage firms are all competing for your patronage, and that rivalry can push rates higher or lower.

It’s challenging to pinpoint a single cause for rate fluctuations because all of these events are occurring at the same time.

**The Federal Reserve’s Bond-Buying Binge**

To stimulate the economy during the pandemic, the Federal Reserve embarked on a substantial bond-buying binge. This maintained mortgage rates at a favorable level for the majority of 2021.

**Tapering and Rate Increases**

Beginning in late 2021, the The Most Recent Federal Interest Rate Prediction for 2025—and Its Repercussions for Savings and CD Yields Reserve started to reduce those bond acquisitions, ultimately ceasing them entirely. Subsequently, to combat significant inflation, they commenced aggressively increasing the federal funds rate (the rate at which banks charge one another for overnight loans).

**How the Federal Funds Rate Influences Mortgages**

The federal funds rate does not directly govern mortgage rates, but it exerts an indirect influence. And when the Federal Reserve raised rates as swiftly and steeply as it did in 2022 and 2023, it undoubtedly propelled mortgage rates upward.

**A Suspension and Possible Reductions**

Following a sequence of rate increases, the Federal Reserve remained stable for a period. Indeed, the central bank even declared an initial rate reduction of 0.50 percentage points in September, followed by further reductions of 0.25 percentage points in November and December. From July 2023, the Federal Reserve sustained the federal funds rate at its highest point for almost 14 months.

However, at the inaugural gathering of the new year, the Federal Reserve opted

It is probable that the Central Bank will maintain stable interest rates over the next few months, with no additional reductions anticipated shortly. According to the Fed’s quarterly interest rate forecasts revealed at the December 18th session, authorities are only predicting two quarter-point rate decreases for the next year. Given that there are eight rate-setting sessions scheduled each year, we may expect a number of announcements of unchanged rates throughout 2025.

**Mortgage Rate Monitoring**

The state and national averages mentioned above are offered “as is” by the Zillow Mortgage API. They presume a loan-to-value ratio (LTV) of 80% (implying a down payment of at least 20%) and a credit score ranging from 680 to 739. The rates obtained are indicative of what lenders may offer borrowers depending on their credentials, which may vary from advertised initial rates. © Zillow, Inc., 2025. Use is governed by Zillow’s terms of service.