Rates decline - Current mortgage and refinance rates for February 4, 2025

Mortgage rates sunk across the board compared to a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all moved lower.

Rates accurate as of February 4, 2025.

The rates listed here are marketplace averages based on the assumptions here. Actual rates displayed within the site may vary. All rate data is accurate as of Tuesday, February 4th, 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 delegate mortgage rates. 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.”

Today's average 30-year fixed-mortgage rate is 6.99 percent, a decrease of 6 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 7.02 percent.

At the current average rate, you'll pay a combined $664.63 per month in principal and interest for every $100,000 you borrow. That's lower by $4.03 than it would have been last week.

While the 30-year rate is the most popular mortgage term, as with any financial product, the 30-year mortgage does have some negatives, including:

• More total interest paid. A 30-year term means you'll pay more overall in interest compared with what you'd pay with a shorter-term loan.
• Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
• Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster retirement of the loan amount.
• Buying a more expensive house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.

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

The average rate you'll pay for a 15-year fixed mortgage is 6.25 percent, down 9 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $857 per $100,000 borrowed.

The average rate on a 5/1 ARM is 6.36 percent, sliding 19 basis points over the last 7 days.

Monthly payments on a 5/1 ARM at 6.36 percent would cost about $623 for each $100,000 borrowed over the initial five years.

The average jumbo mortgage rate is 7.10 percent, down 7 basis points over the last week. This time a month ago, the average rate for jumbo mortgages was lower at 7.04 percent.

At today's average jumbo rate, you'll pay principal and interest of $672.03 for every $100,000 you borrow. That's lower by $4.73 than it would have been last week.

The average 30-year fixed-refinance rate is 6.95 percent, down 9 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.05 percent.

At the current average rate, you'll pay $661.95 per month in principal and interest for every $100,000 you borrow. That's down $6.04 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.

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.

• Mortgage rate trend predictions for this week
• The latest mortgage news for this week
• Compare current mortgage rates for today

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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