Rates go down: Should you buy or refi? | Mortgage and refinance rates for today, March 4, 2025
Mortgage interest rates sunk across all terms from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all fell.
Several factors move mortgage rates, some more impactful than others. The Federal Reserve has put the brakes on cutting rates as inflation stays elevated. One key inflation metric, the Consumer Price Index (CPI), came in higher than expected in January.
Meanwhile, the latest S&P CoreLogic’s Case-Shiller Index shows home prices increased by 3.9 percent annually in December 2024. Along with that, home construction sharply slowed last month, and could continue to stall as long as higher inflation, mortgage rates and now tariffs stick around.
"The housing economy is currently in a holding pattern as the impact of the tariffs and persistent inflation is coming into play,” says Dr. Selma Hepp, chief economist for CoreLogic. “Even as home builders continue to offer buyer incentives, high mortgage rates keep the eligible pool of homebuyers restricted to higher-income individuals. Existing-home sales will continue to struggle with fewer homes coming to market due to tepid buying activity.”
Still, real estate is one of the most popular long-term investments, according to Bankrate’s 2025 Long-Term Investment Survey. Close to one-quarter (24 percent) of Americans cited real estate as a top long-term investment, second only to the stock market.
| Loan type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 6.75% | 6.93% | -0.18% |
| 15-year fixed | 6.04% | 6.27% | -0.23% |
| 5/1 ARM | 6.15% | 6.23% | -0.08% |
| 30-year fixed jumbo | 6.89% | 7.06% | -0.17% |
Rates as of March 4, 2025.
The rates listed above are marketplace averages based on the assumptions shown here. Actual rates listed within the site may vary. All rate data is accurate as of Tuesday, March 4th, 2025 at 6:30 a.m. ET.
Mortgage purchase rates
30-year mortgage slides
0.18%
Today's average 30-year fixed-mortgage rate is 6.75 percent, down 18 basis points since the same time last week. Last month on the 4th, the average rate on a 30-year fixed mortgage was higher, at 6.95 percent.
At the current average rate, you'll pay $648.60 per month in principal and interest for every $100,000 you borrow. That's a decline of $12.01 from 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. Stretching out repayment to a 30-year term means you pay more overall in interest than you would 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 payoff of the loan amount.
- Buying a pricier 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.
Read more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate moves lower
0.23%
The average rate for a 15-year fixed mortgage is 6.04 percent, down 23 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $846 per $100,000 borrowed.
5/1 ARM retreats
0.08%
The average rate on a 5/1 adjustable rate mortgage is 6.15 percent, ticking down 8 basis points over the last 7 days.
Monthly payments on a 5/1 ARM at 6.15 percent would cost about $609 for each $100,000 borrowed over the initial five years.
Jumbo mortgage moves lower
0.17%
The average rate for a 30-year jumbo mortgage is 6.89 percent, a decrease of 17 basis points over the last week. This time a month ago, the average rate on a jumbo mortgage was higher at 6.98 percent.
At today's average jumbo rate, you'll pay principal and interest of $657.93 for every $100,000 you borrow. That's down $11.41 from what it would have been last week.
Mortgage refinance rates
Today's 30-year mortgage refinance rate declines
0.22%
The average 30-year fixed-refinance rate is 6.72 percent, down 22 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 6.95 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 lower by $14.67 than it would have been last week.
When will mortgage rates go down?
Mortgage rates have started off 2025 slightly higher compared to 2024 and 2023. The average 30-year fixed rate was 6.84 percent as of Feb. 26, according to Bankrate’s survey of lenders. This represents a dip from a 7.09 percent average in January, and down from an average 7.22 percent this time last year.
"Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve," says NAR Chief Economist Lawrence Yun. "When combined with elevated home prices, housing affordability remains a major challenge."
The Fed meets next on March 18 and 19. At that time, it’ll release updated economic projections, which could offer clues as to when rate changes might happen.
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. The 10-year yield has remained elevated so far in 2025.
Should you refinance your mortgage in 2025?
The answer depends on your current interest rate, how prevailing rates move this year and your individual goals.
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 get a lower rate by 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."
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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