Rates decrease - Mortgage and refinance rates for February 5, 2025

Mortgage rates came down across the board from a week ago, according to Bankrate data. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all declined.

Rates accurate as of February 5, 2025.

The rates listed above are averages based on the assumptions here. Actual rates displayed on-site may vary. All rate data is accurate as of Wednesday, February 5th, 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 set mortgage rates directly. 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 6.95 percent, a decrease of 6 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.03 percent.

At the current average rate, you'll pay a combined $661.95 per month in principal and interest for every $100,000 you borrow. That's $4.02 lower, compared with last week.

The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:

• Lower monthly payment: The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
• 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. Remember: 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 building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.

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

The average rate for the benchmark 15-year fixed mortgage is 6.24 percent, down 7 basis points over the last week.

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

The average rate on a 5/1 ARM is 6.15 percent, down 23 basis points over the last week.

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.

The average rate for the benchmark jumbo mortgage is 6.98 percent, down 5 basis points from a week ago. A month ago, the average rate on a jumbo mortgage was higher at 7.04 percent.

At the current average rate, you'll pay $663.96 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $3.36 lower.

The average 30-year fixed-refinance rate is 6.95 percent, down 7 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher at 7.06 percent.

At the current average rate, you'll pay $661.95 per month in principal and interest for every $100,000 you borrow. That represents a decline of $4.70 over 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

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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