Rates remain elevated | Today's mortgage rates, January 2, 2025

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Jan 02, 2025 / 3 min read

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Mortgage rates moved in different directions compared to last week, according to Bankrate data. See the table below for a detailed breakdown of how each loan type moved.

Loan type	Today's rate	Last week's rate	Change
30-year fixed	6.99%	7.01%	-0.02
15-year fixed	6.29%	6.30%	-0.01
5/1 ARM	6.25%	6.21%	+0.04
30-year fixed jumbo	7.02%	6.95%	+0.07

Rates accurate as of January 2, 2025.

The rates listed above are Bankrate's overnight average rates and are based on the assumptions indicated here. Actual rates listed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, January 2nd, 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 100 basis points 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 rate falls, -0.02%

Today's average rate for the benchmark 30-year fixed mortgage is 6.99 percent, a decrease of 2 basis points from a week ago. Last month on the 2nd, the average rate on a 30-year fixed mortgage was lower, at 6.78 percent.

At the current average rate, you'll pay principal and interest of $664.63 for every $100,000 you borrow. That's $1.34 lower, compared with last week.

Learn more about 30-year mortgage rates, and compare to a variety of other loan types.

15-year mortgage rate declines, -0.01%

The average rate for a 15-year fixed mortgage is 6.29 percent, down 1 basis point from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost $860 per $100,000 borrowed.

5/1 ARM rate climbs, +0.04%

The average rate on a 5/1 adjustable rate mortgage is 6.25 percent, ticking up 4 basis points over the last week.

Monthly payments on a 5/1 ARM at 6.25 percent would cost about $616 for each $100,000 borrowed over the initial five years.

Jumbo loan interest rate trends upward, +0.07%

The average rate for a jumbo mortgage is 7.02 percent, an increase of 7 basis points over the last week. This time a month ago, the average rate on a jumbo mortgage was lower at 6.87 percent.

At the average rate today for a jumbo loan, you'll pay a combined $666.65 per month in principal and interest for every $100,000 you borrow. Compared to last week, that's $4.70 higher.

30-year mortgage refinance rate eases, -0.04%

The average 30-year fixed-refinance rate is 7.01 percent, down 4 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower at 6.75 percent.

At the current average rate, you'll pay $665.97 per month in principal and interest for every $100,000 you borrow. That's lower by $2.69 than it would have been 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.