Rates remain elevated: Is now the right time to buy? - Current mortgage and refinance rates, February 19, 2025

Mortgage interest rates moved in different directions compared to last week, according to Bankrate data. Rates for 30-year and 15-year mortgages rose, while ARM and jumbo loan rates fell.

Several factors move mortgage rates, some more impactful than others. The Federal Reserve has shifted from cutting rates to holding off for now as inflation resists slowing. One key inflation metric, the Consumer Price Index (CPI), came in higher than expected in January.

“This will delay any rate cuts by the Fed this year until there are clear signs that either inflation is trending toward 2 percent or the economy begins to face net job losses,” says Lawrence Yun, chief economist for the National Association of Realtors.

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.

“Signs that inflation is picking up again won’t be helpful to bond yields, mortgage rates or prospective borrowers," says Greg McBride, CFA, chief financial analyst for Bankrate.

Tarrifs have also played a role, with repercussions that touch all corners of the economy, including new homebuilding in an already-tight market. Builder confidence dropped in January to its lowest level in five months, according to the National Association of Home Builders, thanks in part to inflation and tariffs.

Rates as of February 19, 2025.

These rates are averages based on the assumptions here. Actual rates listed on-site may vary. All rate data is accurate as of Wednesday, February 19th, 2025 at 6:30 a.m. ET.

Today's average rate for the benchmark 30-year fixed mortgage is 6.92 percent, up 1 basis point over the last seven days. Last month on the 19th, the average rate on a 30-year fixed mortgage was higher, at 7.05 percent.

At the current average rate, you'll pay principal and interest of $659.94 for every $100,000 you borrow. That's an extra $0.67 compared with 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. Lenders charge higher interest rates for 30-year mortgages compared to 15-year loans. That's 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?

The average rate you'll pay for a 15-year fixed mortgage is 6.25 percent, up 2 basis points since the same time last week.

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

The average rate on a 5/1 ARM is 6.07 percent, sliding 5 basis points over the last 7 days.

Monthly payments on a 5/1 ARM at 6.07 percent would cost about $604 for each $100,000 borrowed over the initial five years.

The average rate for a 30-year jumbo mortgage is 6.92 percent, a decrease of 3 basis points from a week ago. This time a month ago, the average rate was greater than 6.92 at 7.02 percent.

At today's average rate, you'll pay a combined $659.94 per month in principal and interest for every $100,000 you borrow. That's lower by $2.01 than it would have been last week.

The average 30-year fixed-refinance rate is 6.91 percent, unchanged over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.12 percent.

At the current average rate, you'll pay $659.27 per month in principal and interest for every $100,000 you borrow.

Mortgage rates have started off 2025 slightly higher than the yearly averages for 2024 and 2023. The average 30-year fixed rate was 7.03 percent as of Feb. 12, according to Bankrate’s survey of lenders. This is a dip from a 7.09 percent average in January, and down from 7.11 percent this time last year.

“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. This comes as some of the nation’s largest builders report record-setting years in 2024, despite higher mortgage rates.

“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 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."

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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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