Rates remain elevated | Current mortgage rates, January 3, 2025

Written by

Jan 03, 2025 / 3 min read

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Mortgage rates moved in different directions compared to last week, according to Bankrate data. Keep reading for a breakdown of how each loan type moved.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	6.95%	6.99%	-0.04
15-year fixed	6.28%	6.35%	-0.07
5/1 ARM	6.52%	6.50%	+0.02
30-year fixed jumbo	7.03%	7.00%	+0.03

Rates as of January 3, 2025.

The rates listed here are averages based on the assumptions here. Actual rates displayed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, January 3rd, 2025 at 7:30 a.m. ET.

At the conclusion of its latest meeting on Dec. 18, the Federal Reserve announced another quarter-point rate cut — the third cut in a row. Although the Fed has cut interest rates three times since September, mortgage rates have only risen, up 0.71 percentage points since September’s low, according to Bankrate data.

Thirty-year mortgage rates tend to track the 10-year Treasury yield, which shifts continuously alongside the economy and the forces that shape it. More recently, rates have been driven by factors like inflation, the election and geopolitical developments abroad.

“As expected, the Fed lowered rates again by 0.25 percent — it also lowered its expectations for rate cuts in 2025,” says Melissa Cohn, regional vice president of William Raveis Mortgage.

30-year mortgage slides, -0.04%

Today's average 30-year fixed-mortgage rate is 6.95 percent, down 4 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 6.79 percent.

At the current average rate, you'll pay principal and interest of $661.95 for every $100,000 you borrow. That's down $2.68 from what it would have been last week.

There are several benefits to choosing a fixed-rate mortgage to purchase a new home, including predictable mortgage payments.

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

15-year mortgage rate falls, -0.07%

The average 15-year fixed-mortgage rate is 6.28 percent, down 7 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost $859 per $100,000 borrowed.

5/1 adjustable rate mortgage trends upward, +0.02%

The average rate on a 5/1 ARM is 6.52 percent, up 2 basis points from a week ago.

Monthly payments on a 5/1 ARM at 6.52 percent would cost about $633 for each $100,000 borrowed over the initial five years.

Jumbo mortgage interest rate moves up, +0.03%

The current average rate you'll pay for jumbo mortgages is 7.03 percent, an increase of 3 basis points over the last seven days. This time a month ago, the average rate for jumbo mortgages was lesser at 6.88 percent.

At today's average jumbo rate, you'll pay $667.32 per month in principal and interest for every $100,000 you borrow. That's an extra $2.02 compared with last week.

30-year fixed-rate refinance moves down, -0.02%

The average 30-year fixed-refinance rate is 6.99 percent, down 2 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower at 6.79 percent.

At the current average rate, you'll pay $664.63 per month in principal and interest for every $100,000 you borrow. That's a decline of $1.34 from last week.

When will mortgage rates go down?

Mortgage rates have decreased somewhat since earlier this year, with the 30-year fixed-rate loan down from a high of 7.39 percent in May.

As for next year, expect more of the same — at least for now.

“For those expecting a dramatic drop in 30-year mortgage financing rates, 2025 is probably not the year,” says Ken Johnson, Walker Family chair of Real Estate for the University of Mississippi.

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.