Rates decline: Is it a good time to buy? | Today's mortgage and refinance rates for February 21, 2025
Mortgage rate trends
APRs not included. For our most recent APR information, please visit our
rate table.
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30 year fixed
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15 year fixed
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5/1 ARM
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30 year fixed jumbo
Mortgage interest rates came down across all 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 receded.
Several factors move mortgage rates, some more impactful than others. The Federal Reserve has shifted from cutting rates to holding off for now as inflation stays elevated. One key inflation metric, the Consumer Price Index (CPI), came in higher than expected in January.
Home construction, meanwhile, sharply slowed in January, and could continue to stall as long as higher inflation, mortgage rates and now tariffs stick around.
"The housing economy is currently in a holding pattern as the impact of the tariffs and persistent inflation is coming into play,” says Dr. Selma Hepp, chief economist for CoreLogic. “Even as home builders continue to offer buyer incentives, high mortgage rates keep the eligible pool of homebuyers restricted to higher-income individuals. Existing-home sales will continue to struggle with fewer homes coming to market due to tepid buying activity.”
Still, real estate is one of the most popular long-term investments, according to Bankrate’s 2025 Long-Term Investment Survey. Close to one-quarter (24 percent) of Americans cited real estate as a top long-term investment, second only to the stock market.
| Loan type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 6.90% | 6.92% | -0.02% |
| 15-year fixed | 6.19% | 6.21% | -0.02% |
| 5/1 ARM | 6.20% | 6.30% | -0.10% |
| 30-year fixed jumbo | 7.02% | 7.03% | -0.01% |
Rates accurate as of February 21, 2025.
The rates listed above are marketplace averages based on the assumptions indicated here. Actual rates listed within the site may vary. All rate data is accurate as of Friday, February 21st, 2025 at 6:30 a.m. ET.
Mortgage purchase rates
30-year fixed-rate mortgage moves lower
0.02%
The average rate you'll pay for a 30-year fixed mortgage today is 6.90 percent, down 2 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.04 percent.
At the current average rate, you'll pay $658.60 per month in principal and interest for every $100,000 you borrow. That's lower by $1.34 than it would have been last week.
15-year mortgage rate trends down
0.02%
The average rate you'll pay for a 15-year fixed mortgage is 6.19 percent, down 2 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $854 per $100,000 borrowed.
5/1 ARM moves lower
0.10%
The average rate on a 5/1 adjustable rate mortgage is 6.20 percent, falling 10 basis points over the last week.
Monthly payments on a 5/1 ARM at 6.20 percent would cost about $612 for each $100,000 borrowed over the initial five years.
Jumbo mortgage interest rate declines
0.01%
The average rate you'll pay for a jumbo mortgage is 7.02 percent, down 1 basis point over the last week. Last month on the 21st, jumbo mortgages' average rate was above that at 7.07 percent.
At the current average rate, you'll pay $666.65 per month in principal and interest for every $100,000 you borrow. That's $0.67 lower, compared with last week.
Mortgage refinance rates
30-year mortgage refinance rate flat for the week
FLAT
The average 30-year fixed-refinance rate is 6.86 percent, unchanged compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 7.06 percent.
At the current average rate, you'll pay $655.93 per month in principal and interest for every $100,000 you borrow.
Will mortgage rates go down in 2025?
Mortgage rates have started off 2025 slightly higher compared to 2024 and 2023. The average 30-year fixed rate was 7 percent as of Feb. 19, according to Bankrate’s survey of lenders. This represents a dip from a 7.09 percent average in January, and down from an average 7.11 percent this time last year.
“Prospective homebuyers should keep an eye on inflation, more so than the Fed, as a decline in inflation is a necessary precursor to Treasury yields and mortgage rates moving lower,” McBride says.
Keep in mind the Fed doesn’t delegate fixed mortgage rates. Those tend to track the 10-year Treasury yield, which moves up or down depending on investors’ tolerance for risk — a sentiment that shifts with inflation and other economic reports. The 10-year yield has remained elevated so far in 2025.
Should you refinance your mortgage this year?
It depends. There are many reasons to refinance a mortgage, chief among them obtaining a lower rate.
Eighty-four percent of collective mortgage debt is priced at 6 percent or below, according to Realtor.com. If current forecasts bear out and rates stay within the 6 percent range, most mortgage holders won’t get a lower rate by refinancing.
Still, if you’re set on refinancing to pull cash out of your equity, keep your goals in mind.
“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, principal writer at 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."
More on current mortgage rates
Methodology
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.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
