Rates decrease: Should you buy or refi? - Today's mortgage and refinance rates, March 5, 2025
Mortgage rates fell on all loan terms compared to 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 paused its rate-cutting cycle 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 | 6.69% | 6.88% | -0.19% |
| 15-year fixed | 6.00% | 6.22% | -0.22% |
| 5/1 ARM | 5.90% | 6.04% | -0.14% |
| 30-year fixed jumbo | 6.73% | 6.95% | -0.22% |
Rates accurate as of March 5, 2025.
These rates are Bankrate's overnight average rates and are based on the assumptions shown here. Actual rates available across the site may vary. All rate data is accurate as of Wednesday, March 5th, 2025 at 6:30 a.m. ET.
Mortgage purchase rates
30-year mortgage rate drops
0.19%
Today's average 30-year fixed-mortgage rate is 6.69 percent, a decrease of 19 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 6.96 percent.
At the current average rate, you'll pay a combined $644.61 per month in principal and interest for every $100,000 you borrow. That's down $12.65 from what it would have been last week.
The popular 30-year mortgage has a number of advantages:
- 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 saving for emergencies, retirement, college tuition or home repairs and maintenance.
Learn more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate falls
0.22%
The average rate for a 15-year fixed mortgage is 6.00 percent, down 22 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost $844 per $100,000 borrowed.
5/1 adjustable rate mortgage drops
0.14%
The average rate on a 5/1 ARM is 5.90 percent, sliding 14 basis points over the last week.
Monthly payments on a 5/1 ARM at 5.90 percent would cost about $593 for each $100,000 borrowed over the initial five years.
Jumbo loan interest rate dips
0.22%
The average rate for the benchmark jumbo mortgage is 6.73 percent, a decrease of 22 basis points over the last seven days. This time a month ago, the average rate on a jumbo mortgage was higher at 6.95 percent.
At the average rate today for a jumbo loan, you'll pay principal and interest of $647.27 for every $100,000 you borrow. That's $14.68 lower, compared with last week.
Mortgage refinance rates
30-year mortgage refinance dips
0.21%
The average 30-year fixed-refinance rate is 6.70 percent, down 21 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was higher at 6.96 percent.
At the current average rate, you'll pay $645.28 per month in principal and interest for every $100,000 you borrow. That represents a decline of $13.99 over what it would have been last week.
Will mortgage rates stay the same in 2025?
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.
When will it make sense to refinance?
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.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
