Rates go down as Fed keeps rates unchanged - Mortgage and refinance rates for today, Jan. 29, 2025

National mortgage rates were mostly down compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed and jumbo mortgages receded, while rates for adjustable rate mortgages increased.

Rates as of January 30, 2025.

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

Several factors move mortgage rates, some more impactful than others. The Federal Reserve capped off 2024 with a third rate cut, yet mortgage rates have only climbed. At its most recent meeting ending Jan. 29, Fed policymakers opted to keep its target rate where it is.

Keep in mind that the Fed doesn’t set mortgage rates directly. Thirty-year mortgage rates tend to track the 10-year Treasury yield, which shifts continuously alongside the economy and the forces that shape it.

“After jumping more than a full percentage point since September, long-term Treasury yields have eased a bit over the last 10 days,” says Greg McBride, CFA, chief financial analyst for Bankrate. “But mortgage rates remain above 7 percent, a further headwind to affordability and keeping home sales on ice.”

The average rate for a 30-year fixed mortgage for today is 6.99 percent, down 6 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 6.95 percent.

At the current average rate, you'll pay principal and interest of $664.63 for every $100,000 you borrow. That represents a decline of $4.03 over what it would have been last week.

The average rate for the benchmark 15-year fixed mortgage is 6.26 percent, down 10 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $858 per $100,000 borrowed.

The average rate on a 5/1 ARM is 6.30 percent, up 1 basis point over the last week.

Monthly payments on a 5/1 ARM at 6.30 percent would cost about $619 for each $100,000 borrowed over the initial five years.

The average rate for a 30-year jumbo mortgage is 6.96 percent, down 6 basis points from a week ago. Last month on the 30th, the average rate for jumbo mortgages was above that at 7.03 percent.

At today's average rate, you'll pay a combined $662.62 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $4.03 lower.

The average 30-year fixed-refinance rate is 7.02 percent, down 10 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 6.99 percent.

At the current average rate, you'll pay $666.65 per month in principal and interest for every $100,000 you borrow. That's down $6.73 from what it would have been last week.

Mortgage rates aren’t as high now as they were for much of 2024 and 2023, but they’re still nowhere near as low as they were in the pandemic years. The average 30-year fixed rate was 7.03 percent as of Jan. 29, according to Bankrate’s survey of lenders.

“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.

While rates this year might not go down as much as hoped, there is at least one lower-rate trend sticking around: rate buydowns, particularly on newly-built homes.

“Home builders have added more new homes last year and continue to offer rate buydowns on new construction,” says Dr. Selma Hepp, chief economist for CoreLogic.

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 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.

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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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