Most rates rise as Fed holds firm - Today's mortgage and refinance rates, March 20, 2025
Average mortgage rates were mostly up compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed and jumbo loans ticked up, while 5/1 ARM rates fell.
Mortgage rates are impacted by multiple factors, some carrying more weight than others. The Federal Reserve shifted from cutting rates to holding off as inflation stays elevated — though the latest inflation report from the Labor Department showed an unexpectedly cooler reading, up just 0.2 percent in February compared to January.
Also in the picture: employment. The latest jobs report for February revealed the labor market softened somewhat, with unemployment rising to 4.1 percent.
Those factors didn’t translate into a rate cut at the Fed meeting this week, however.
“We aren't in a hurry to adjust our policy stance and are well-positioned to wait for greater clarity,” said Fed Chair Jerome Powell in a press conference following the meeting.
According to Powell, the job market is in a low-firing and low-hiring place. Policymakers are focused on "separating the signal from the noise,” Powell said, and they’ll likely hold rates steady until they see a significant change in employment or inflation.
Learn more: FOMC meeting recap March 2025
| Loan type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 6.72% | 6.68% | +0.04% |
| 15-year fixed | 5.97% | 5.95% | +0.02% |
| 5/1 ARM | 5.94% | 6.03% | -0.09% |
| 30-year fixed jumbo | 6.76% | 6.70% | +0.06% |
Rates accurate as of March 20, 2025.
These rates are Bankrate's overnight average rates and are based on the assumptions indicated here. Actual rates available within the site may vary. All rate data is accurate as of Thursday, March 20th, 2025 at 6:30 a.m. ET.
Mortgage purchase rates
30-year mortgage climbs
0.04%
Today's average 30-year fixed-mortgage rate is 6.72 percent, an increase of 4 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 6.90 percent.
At the current average rate, you'll pay a combined $646.61 per month in principal and interest for every $100,000 you borrow. That's an additional $2.66 per $100,000 compared to last week.
The 30-year mortgage is the most popular option for homeowners, and this type of loan 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. 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 saving for emergencies, retirement, college tuition or home repairs and maintenance.
Learn more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate moves up
0.02%
The average rate you'll pay for a 15-year fixed mortgage is 5.97 percent, up 2 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $842 per $100,000 borrowed.
5/1 adjustable rate mortgage trends down
0.09%
The average rate on a 5/1 adjustable rate mortgage is 5.94 percent, sliding 9 basis points over the last 7 days.
Monthly payments on a 5/1 ARM at 5.94 percent would cost about $596 for each $100,000 borrowed over the initial five years.
Jumbo mortgage rate trends higher
0.06%
The average jumbo mortgage rate today is 6.76 percent, up 6 basis points over the last week. A month ago, the average rate for jumbo mortgages was greater than 6.76 at 7.02 percent.
At today's average rate, you'll pay $649.26 per month in principal and interest for every $100,000 you borrow. That's an additional $3.98 per $100,000 compared to last week.
Mortgage refinance rates
30-year fixed-rate refinance goes up
0.03%
The average 30-year fixed-refinance rate is 6.72 percent, up 3 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 6.86 percent.
At the current average rate, you'll pay $646.61 per month in principal and interest for every $100,000 you borrow. That's an additional $2.00 per $100,000 compared with last week.
When will mortgage rates go down?
Mortgage rates in 2025 have been slightly higher compared to 2024 and 2023. The average 30-year fixed rate was 6.76 percent as of March 19, according to Bankrate’s survey of lenders — a dip from a 6.97 percent average in February and down from an average 7.07 percent this time last year.
“In the near term, we expect mortgage rates to remain in a fairly narrow range, between 6.5 and 7 percent, which should support the spring housing market,” says Mike Fratantoni, senior vice president and chief economist for the Mortgage Bankers Association (MBA).
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. While the 10-year Treasury yield has been elevated for much of 2025 so far, it’s been about 25 basis points lower in March than it was for most of February.
When will it make sense to refinance?
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 Realtor.com. If current forecasts bear out and rates stay within the 6 percent range, most mortgage holders won’t achieve a lower rate with 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."
When should you lock your mortgage rate?
Given how unpredictable the economy and mortgage market is, locking in your mortgage rate provides some degree of certainty. Many homebuyers choose to lock their rates after their offer on a home has been accepted, but you can lock sooner than that if you think rates will rise before you find a home. Before you lock your mortgage rate, ask your lender:
- How much does it cost to lock a rate? Many lenders offer free rate locks, but only for a certain time frame. Ask about any rate lock fees or lock extension fees.
- How long does the rate lock last? The typical initial rate lock lasts 30 to 60 days, though some lenders do 90-day initial locks. Beyond that, you’ll need to ask for an extension.
- If rates drop, will I be able to take a lower rate? Some lenders allow you to take a lower rate after you lock in, known as a float-down lock. If your lender offers this, be sure you understand the details, including if there’s an additional fee or rate change threshold.
More on current mortgage rates
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.
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