Rates increase - Current mortgage and refinance rates for January 20, 2025

National mortgage rates moved higher for all types of loans compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans edged higher.

Rates as of January 20, 2025.

These rates are marketplace averages based on the assumptions shown here. Actual rates displayed across the site may vary. All rate data is accurate as of Monday, January 20th, 2025 at 6:30 a.m. ET.

Several factors move mortgage rates, some more impactful than others. In December, the Federal Reserve cut its key benchmark rate for a third time, yet mortgage rates have only risen since policymakers began cutting rates in the fall. The next Fed announcement comes Jan. 29.

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, a changing White House and geopolitical developments abroad. According to Greg McBride, CFA, chief financial analyst for Bankrate, the latest core inflation readings could damper rising bond yields and mortgage rates in the short term.

Today's average 30-year fixed-mortgage rate is 7.11 percent, an increase of 5 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 7.00 percent.

At the current average rate, you'll pay principal and interest of $672.71 for every $100,000 you borrow. That's an additional $3.37 per $100,000 compared to last week.

The popular 30-year mortgage has a number of advantages:

• Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower, more affordable payments spread over time.
• Stability: With a 30-year fixed mortgage, you lock in a set principal and interest payment, making it easier to plan your housing expenses for the long term. Remember: Your monthly housing payment can still change if your homeowners insurance premiums and property taxes go up or, less likely, down.
• Buying power: With lower payments, you might qualify for a larger loan amountor a more expensive home.
• Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.

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

The average 15-year fixed-mortgage rate is 6.39 percent, up 4 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $865 per $100,000 borrowed.

The average rate on a 5/1 adjustable rate mortgage is 6.56 percent, climbing 7 basis points over the last 7 days.

Monthly payments on a 5/1 ARM at 6.56 percent would cost about $636 for each $100,000 borrowed over the initial five years.

The current average rate you'll pay for jumbo mortgages is 7.14 percent, up 4 basis points over the last seven days. This time a month ago, the average rate on a jumbo mortgage was lower at 7.02 percent.

At today's average jumbo rate, you'll pay $674.73 per month in principal and interest for every $100,000 you borrow. That's an additional $2.70 per $100,000 compared to last week.

The average 30-year fixed-refinance rate is 7.12 percent, up 3 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower at 7.05 percent.

At the current average rate, you'll pay $673.38 per month in principal and interest for every $100,000 you borrow. That's up $2.02 from what it would have been last week.

Mortgage rates aren’t as high now as they were earlier in 2024, but they’re nowhere near as low as they were in the pandemic years. The average 30-year fixed rate was 7.19 percent as of Jan. 15, according to Bankrate’s survey of lenders.

For now, experts anticipate more of the same in 2025.

“The average 30-year fixed mortgage rate will spend most of the year in the 6s, with a short-lived spike above 7 percent, but never getting below 6 percent,” said Greg McBride in his 2025 forecast.

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.

Eighty-four percent of collective mortgage debt is priced at 6 percent or below, according to a recent report from 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, even a little rate movement to the downside could prompt you to swap your loan. When 30-year rates dipped into the low 6s in the fall, over 300,000 borrowers refinanced, with nearly 150,000 of those being rate-and-term refinances, according to data from ICE Mortgage Technology.

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

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.