Interest rates for refinancing see a minor increase, halting a 4-day downtrend.
Catching Up with Today's Mortgage Rates
After a brief drop, 30-year refinance rates have made a comeback, climbing 3 basis points yesterday, now standing at 7.04%. Despite this, today's rates are still lower than they were on April 11 (7.31%) - a level not seen since 2024's July. However, they're still elevated compared to early March's low of 6.71%.
The 30-year refi average, meanwhile, remains significantly higher than its two-year low in September 2021 of 6.01%. The fluctuation in rates wasn't consistent across all refi loan types; 15-year and 20-year refis showed minimal change, while the jumbo 30-year refi slipped a moderate 7 basis points.
Understanding the Game of Rates
Don't compare our published rates with the enticing teaser rates you see online, as those are hand-picked to be the most attractive. Teaser rates often involve paying points upfront or are given to borrowers with exceptional credit scores or smaller-than-average loans. Your actual rate will depend on various factors like your credit score, income, and more, so it may differ from the averages provided here.
With rates varying significantly among lenders, it's always smart to shop around for the best mortgage refinancing deal and compare rates regularly, regardless of the type of home loan you're after. For a personalized look at your potential monthly payments, check out our Mortgage Calculator.
What Moves Your Rates?
Mortgage rates are the product of numerous macroeconomic, financial, and personal factors. Here are some key elements that can cause rates to rise and fall:
Economic and Financial Factors
- Economic Health: A strong economy tends to push up mortgage rates, while a sluggish economy can lead to lower ones[2].
- Inflation: Persistent inflation frequently leads to higher mortgage rates, as investors seek higher returns to combat inflationary pressures[2].
- Federal Reserve Policies: The Fed's decisions, like adjusting the federal funds rate, can have a significant impact on mortgage rates. Anticipation of future Fed moves is also crucial[1][4].
- Treasury Yields: The yield on 10-year U.S. Treasury bonds is vital, as changes in these yields usually impact mortgage rates[1][4].
- Mortgage-Backed Securities (MBS): The demand for MBS affects mortgage rates. Increased demand usually leads to lower rates, while decreased demand pushes them up[1][5].
Personal Factors
- Credit Score: A higher credit score can help you secure lower mortgage rates[1][5].
- Debt-to-Income Ratio (DTI): Lower DTI ratios are associated with more favorable loan terms[1].
- Loan-to-Value Ratio: A smaller loan-to-value ratio, meaning a larger down payment, generally leads to better interest rates[1].
By appreciating these factors, borrowers can make informed decisions about their mortgage applications and potentially secure more attractive interest rates.
Our Rate Tracking Method
The national and state averages cited are provided through the Zillow Mortgage API, assuming an loan-to-value (LTV) ratio of 80% (meaning a down payment of at least 20%) and an applicant credit score between 680-739. These rates represent what borrowers can expect when receiving quotes from lenders based on their qualifications, which may deviate from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.
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- In the realm of personal finance, a flagship mortgage calculator can provide a personalized view of potential monthly payments, helping individuals make informed decisions.
- While the API-provided average for 30-year refinance rates is significantly higher than its two-year low in September 2021, it's also essential to consider personal factors like credit score, debt-to-income ratio, and loan-to-value ratio when assessing one's mortgage rates.
- The average for 30-year refinance rates has climbed since April 11, 2023, and while it remains lower than the level seen in July 2024, persistent inflation and fluctuations in Treasury yields could lead to further changes.
- As investors seek higher returns to combat inflationary pressures, understanding the impact of economic factors such as the Federal Reserve's policies, Treasury yields, and demand for mortgage-backed securities can help borrowers better anticipate potential changes in mortgage rates.
