Rates decrease: Should you buy now? - Current mortgage and refinance rates, April 4, 2025

Mortgage interest rates dropped on all loan terms compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all fell.

Mortgage rates move for many reasons, and can be buffeted quickly as conditions in the economy shift. Amid growing uncertainty around tariffs and inflation, the Federal Reserve declined to change interest rates at its mid-March meeting. The Fed doesn’t set fixed mortgage rates outright, but its policies help drive their direction.

Meanwhile, spring homebuying season is picking up. Home sales activity increased in February as more listings came on market.

“Homebuyers are slowly entering the market,” says Lawrence Yun, chief economist of the National Association of Realtors. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”

Rates accurate as of April 4, 2025.

These rates are Bankrate's overnight average rates and are based on the assumptions shown here. Actual rates listed across the site may vary. All rate data is accurate as of Friday, April 4th, 2025 at 6:30 a.m. ET.

The average rate for a 30-year fixed mortgage for today is 6.65 percent, down 9 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 6.67 percent.

At the current average rate, you'll pay a combined $641.96 per month in principal and interest for every $100,000 you borrow. That's a decline of $5.97 from last week.

While the 30-year rate is the most popular mortgage term, the 30-year mortgage also has some downsides:

• More total interest paid. A 30-year term means you'll pay more overall in interest compared with what you'd pay with a shorter-term loan.
• Higher mortgage rates. Lenders charge higher interest rates for 30-year mortgages compared to 15-year loans. That's because they're taking on the risk of not being repaid for a longer time span.
• Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster retirement of the loan amount.
• Buying more house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.

Learn more: What is a fixed-rate mortgage and how does it work?

The average rate for a 15-year fixed mortgage is 5.89 percent, down 10 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $838 per $100,000 borrowed.

The average rate on a 5/1 ARM is 6.01 percent, falling 4 basis points from a week ago.

Monthly payments on a 5/1 ARM at 6.01 percent would cost about $600 for each $100,000 borrowed over the initial five years.

The current average rate you'll pay for jumbo mortgages is 6.71 percent, down 5 basis points from a week ago. A month ago, the average rate for jumbo mortgages was above that at 6.72 percent.

At today's average jumbo rate, you'll pay $645.94 per month in principal and interest for every $100,000 you borrow. That's $3.32 lower, compared with last week.

The average 30-year fixed-refinance rate is 6.74 percent, down 6 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower at 6.66 percent.

At the current average rate, you'll pay $647.93 per month in principal and interest for every $100,000 you borrow. That's lower by $4.00 than it would have been last week.

Today’s mortgage rates aren’t far off from 7.2 percent, more or less the average of the past 40 years, according to Bankrate data. In fact, 30-year fixed rates ran mostly lower than that average in 2024, and appear to stay on a similar path for now.

See how mortgage rates and mortgage payments have changed since the 1970s.

Mortgage rates might decline in 2025, but it’s more likely they’ll stay where they are. In a March 21 forecast, Yun of the Realtors group said he anticipates rates to average 6.4 percent in 2025 and 6.1 percent in 2026. Similarly, the Mortgage Bankers Association in its March forecast expected a 6.5 percent average rate in 2025 and 6.4 percent in 2026.

While it’s challenging to predict mortgage rates in any circumstances, it’s become especially difficult now. Most analysts and economists — even Fed policymakers — are taking a wait-and-see approach as the new administration’s objectives come into focus.

Check out Bankrate’s survey of lenders to learn more.

Whether you refinance your mortgage hinges on a few things: your rate today, how rates might move in the future and your long-term plans. Some homeowners are gravitating to cash-out refinances, which replaces your current mortgage for a new, larger loan at prevailing market rates, with the difference given to you in cash.

If you’re considering this route, make sure you’re clear on your goals.

“If your intention is to take cash out of your home to pay down credit card debt, I'd urge caution: Make sure you've got your spending under control before you tap home equity,” says Jeff Ostrowski, writer and housing market analyst for Bankrate. “The last thing you want is to use the proceeds of a refi to pay off debt, only to find yourself in the same situation in a year."

• Expert poll: Mortgage rate trend predictions this week
• Latest mortgage news this week
• Compare mortgage rates for today

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

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