Rates down as homebuilding slows - Mortgage and refinance rates for today, February 20, 2025

National mortgage rates fell on all loan terms from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all moved lower.

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.”

Rates as of February 20, 2025.

The rates listed here are Bankrate's overnight average rates and are based on the assumptions here. Actual rates available across the site may vary. All rate data is accurate as of Thursday, February 20th, 2025 at 6:30 a.m. ET.

The average rate for a 30-year fixed mortgage for today is 6.92 percent, a decrease of 2 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 7.01 percent.

At the current average rate, you'll pay a combined $659.94 per month in principal and interest for every $100,000 you borrow. That's a decline of $1.34 from last week.

The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:

• Lower monthly payment: Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly 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. Keep in mind: 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 building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.

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

The average rate for the benchmark 15-year fixed mortgage is 6.20 percent, down 2 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $855 per $100,000 borrowed.

The average rate on a 5/1 ARM is 6.18 percent, sliding 5 basis points since the same time last week.

Monthly payments on a 5/1 ARM at 6.18 percent would cost about $611 for each $100,000 borrowed over the initial five years.

The average rate for a jumbo mortgage is 6.90 percent, down 6 basis points over the last week. This time a month ago, the average rate on a jumbo mortgage was higher at 7.07 percent.

At the average rate today for a jumbo loan, you'll pay principal and interest of $658.60 for every $100,000 you borrow. Compared with last week, that's $4.02 lower.

The average 30-year fixed-refinance rate is 6.91 percent, down 3 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 7.01 percent.

At the current average rate, you'll pay $659.27 per month in principal and interest for every $100,000 you borrow. That's a decline of $2.01 from last week.

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.

The answer depends on your current interest rate, how prevailing rates move this year and your individual goals.

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."

• Expert poll: Mortgage rate trend predictions for this week
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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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