Most rates fall | Mortgage rates for January 7, 2025

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Jan 07, 2025 / 3 min read

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Mortgage rates were mostly down compared to a week ago, according to Bankrate data. Rates for 15-year fixed, 5/1 ARMs and jumbo loans decreased, while rates for 30-year home loans stayed the same.

Mortgage type	Today's rate	Last week's rate	Change
30-year fixed	7.04%	7.04%	N/C
15-year fixed	6.35%	6.37%	-0.02
5/1 ARM	6.51%	6.62%	-0.11
30-year fixed jumbo	7.16%	7.19%	-0.03

Rates as of January 7, 2025.

The rates listed above are marketplace averages based on the assumptions here. Actual rates available within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, January 7th, 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 a full percentage point 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 holds firm

The average rate for a 30-year fixed mortgage for today is 7.04 percent, unchanged from a week ago. Last month on the 7th, the average rate on a 30-year fixed mortgage was lower, at 6.73 percent.

At the current average rate, you'll pay $667.99 per month in principal and interest for every $100,000 you borrow.

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

15-year mortgage rate eases, -0.02%

The average rate for a 15-year fixed mortgage is 6.35 percent, down 2 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $863 per $100,000 borrowed.

5/1 adjustable rate mortgage dips, -0.11%

The average rate on a 5/1 ARM is 6.51 percent, down 11 basis points over the last 7 days.

Monthly payments on a 5/1 ARM at 6.51 percent would cost about $633 for each $100,000 borrowed over the initial five years.

Jumbo mortgage interest rate falls, -0.03%

The average jumbo mortgage rate today is 7.16 percent, down 3 basis points over the last seven days. Last month on the 7th, the average rate on a jumbo mortgage was lesser at 6.78 percent.

At the current average rate, you'll pay principal and interest of $676.08 for every $100,000 you borrow. That's lower by $2.03 than it would have been last week.

Current 30 year mortgage refinance rate goes up, +0.05%

The average 30-year fixed-refinance rate is 7.07 percent, up 5 basis points since the same time 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 $670.01 per month in principal and interest for every $100,000 you borrow. That's an increase of $3.36 over what you would have paid 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.