Rates decrease: Should you buy or refi? | Current mortgage and refinance rates, February 28, 2025

Average mortgage rates came down across the board compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all dropped.

Changes in mortgage rates are caused by several things, some more influential 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.

Meanwhile, the latest S&P CoreLogic’s Case-Shiller Index shows home prices increased by 3.9 percent annually in December 2024. Along with that, home construction sharply slowed last month, 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.

Rates accurate as of February 28, 2025.

These rates are averages based on the assumptions here. Actual rates displayed on-site may vary. All rate data is accurate as of Friday, February 28th, 2025 at 6:30 a.m. ET.

Today's average 30-year fixed-mortgage rate is 6.75 percent, down 15 basis points over the last seven days. Last month on the 28th, the average rate on a 30-year fixed mortgage was higher, at 6.97 percent.

At the current average rate, you'll pay $648.60 per month in principal and interest for every $100,000 you borrow. That represents a decline of $10.00 over what it would have been last week.

Traditional lending practices defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers because it allows the borrower to disperse mortgage payments out over 30 years, keeping their monthly payment lower.

The average rate for the benchmark 15-year fixed mortgage is 6.04 percent, down 15 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $846 per $100,000 borrowed.

The average rate on a 5/1 ARM is 6.17 percent, sliding 3 basis points over the last 7 days.

Monthly payments on a 5/1 ARM at 6.17 percent would cost about $611 for each $100,000 borrowed over the initial five years.

The average rate for a 30-year jumbo mortgage is 6.91 percent, down 11 basis points over the last seven days. A month ago, the average rate on a jumbo mortgage was higher at 7.00 percent.

At the average rate today for a jumbo loan, you'll pay $659.27 per month in principal and interest for every $100,000 you borrow. That's down $7.38 from what it would have been last week.

The average 30-year fixed-refinance rate is 6.75 percent, down 11 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.96 percent.

At the current average rate, you'll pay $648.60 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $7.33 lower.

Mortgage rates have started off 2025 slightly higher compared to 2024 and 2023. The average 30-year fixed rate was 6.84 percent as of Feb. 26, according to Bankrate’s survey of lenders. This represents a dip from a 7.09 percent average in January, and down from an average 7.22 percent this time last year.

"Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve," says NAR Chief Economist Lawrence Yun. "When combined with elevated home prices, housing affordability remains a major challenge."

The Fed meets next on March 18 and 19. At that time, it’ll release updated economic projections, which could offer clues as to when rate changes might happen.

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.

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 be able to refinance to a lower rate.

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."

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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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