Mortgage rates for 30-year loans lower yet again, marking the fourth consecutive daily decrease.
🏠 Get the Inside Scoop on Today's Mortgage Rates - April 29, 2025
Let's break down the latest happenings in the mortgage world!
Today, it's all about lower borrowing costs as 30-year loans sneak in a fourth successive day of decline, bringing the average down to a punchy 6.87%. Not too shabby! If you're in the market for other mortgage types, rest easy knowing they're getting in on the action too.
You know the drill – rates vary wildly between lenders, so it pays to shop around for the best deal. And don't forget to compare regularly, regardless of the type of home loan you're eyeing.
Today's Fresh Purchase Mortgage Average Breakdown
After a rocky month, 30-year rates have dropped again. After subtracting 5 points on Monday, the average has slipped by an impressive 20 points over the last four days.
Last week, the average had shot up by a substantial 44 basis points, hitting an eye-popping 7.14% on April 11 – its priciest point since May 2024. But back in September, 30-year rates enjoyed a historic plunge, sinking to a two-year low of 5.89%. Despite the recent improvements, the current average is about a percentage point more expensive.
Meanwhile, the 15-year average has shaved off 6 basis points too, registering a healthy 5.94%. Compared to the April 11 reading of 6.31%, this is a welcome relief. Just like the 30-year average, last September marked the cheapest level in two years, with the 15-year average dipping to 4.97%. Although today's rate is higher, it's about a percentage point less than the historic 7.08% reading from October 2023.
Jumbo 30-year mortgage rates also experienced a 5-basis-point decline, bringing the average to 6.86%. Just two weeks ago, it was 7.15% – a quite expensive 10-month high. Last September, jumbo 30-year rates hit a more pleasant 6.24%, their most economical level in 19 months, while it's estimated their 8.14% peak in October 2023 was the most eye-watering average in over 20 years.
The Weekly Freddie Mac Average Report
Every Thursday, the government-sponsored buyer of mortgage loans, Freddie Mac, releases a weekly average of 30-year mortgage rates. Last week's reading saw a slight dip of 2 basis points to 6.81%. In September, the average sank as far as 6.08%, but in October 2023, Freddie Mac's average soared to a grueling 23-year peak of 7.79%.
Freddie Mac's average differs from what we report for 30-year rates because Freddie Mac calculates a weekly average that mixes the averages of the five previous days. In contrast, our Investopedia 30-year average is a daily reading, offering a more precise and timely indicator of rate movement. Additionally, Freddie Mac's criteria for included loans (e.g., down payment size, credit score, inclusion of discount points) is different from our own.
Calculate your potential monthly payments by using our Mortgage Calculator.
Important
The rates we share won't line up directly with the teaser rates you see online since they cleverly show the most attractive numbers. These teaser rates often come with specific stipulations, such as charges for points or ultra-high credit scores or smaller-than-usual loan sizes. You'll secure a rate based on factors like your credit score, income, and more – so it'll differ from the averages shared here.
Your monthly mortgage payment will be tied to your home's price, down payment, loan term, property taxes, homeowners insurance, and interest rate. Use the inputs below to get a rough idea of your potential monthly payments.
Let's do this!## Why Do Mortgage Rates Rise and Fall?
They ain't no simple dance! Mortgage rates are a result of a complex mix of macroeconomic and industry factors, including:
- The ups and downs of the bond market, especially 10-year Treasury yields
- The Federal Reserve's current monetary policy, focusing on bond buying and funding government-backed mortgages
- Competition among mortgage lenders and various loan types
It can be tricky to pinpoint the cause as any number of these factors can bounce around simultaneously.
Macroeconomic factors kept the mortgage market comparably calm for most of 2021. In particular, the Federal Reserve was buying billions of dollars worth of bonds in response to the pandemic's economic pressures. This bond-buying policy played a significant role in keeping mortgage rates low.
However, the Fed started scaling back its bond purchases downward in November 2021, making substantial reductions each month until reaching net zero in March 2022. This marked the start of a chain reaction causing mortgage rates to embark on an upward journey.
Between November 2021 and July 2023, the Fed fiercely raised the federal funds rate to combat decades-high inflation. While the fed funds rate has an indirect impact on mortgage rates, it doesn't influence them directly. Instead, increases in the fed funds rate boost borrowing costs, causing mortgage rates to rise.
The Fed kept the federal funds rate at its peak level for almost 14 months, starting in July 2023. But in September, the central bank announced a first rate cut of 0.50 percentage points, followed by quarter-point reductions in November and December.
As we move forward, however, the Fed may choose to hold rates steady. According to their forecast released in March, the central bankers' median expectation for the rest of the year is just two quarter-point rate cuts. With eight rate-setting meetings scheduled per year, this means we could be in for multiple rate-hold announcements in 2025.
How We Track Mortgage Rates
We gather the national and state averages via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score falling in the comfortable 680-739 range. These rates represent what borrowers should expect when seeking quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © 2025, Zillow, Inc. Usage subject to the Zillow Terms of Use.
- The flagship 30-year mortgage has experienced a fourth consecutive day of decline, lowering the average to 6.87%, making Mondays potentially advantageous for mortgage shoppers.
- In comparison to last week's 7.14%, the current average mortgage rate is about a percentage point less expensive, but still higher than the historic two-year low of 5.89% recorded in September 2024.
- Personal-finance investors should keep an eye on technology advances, as innovations in artificial intelligence and blockchain could serve as benchmarks for future mortgage rates and borrowing practices.
- On Thursdays, finance enthusiasts can refer to the general-news Freddie Mac weekly average for a broader perspective on 30-year mortgage rates, providing a benchmark for comparison to the Investopedia's daily reading.
- In order to stay informed about the factors influencing mortgage rates, such as the bond market, Federal Reserve policy, and competition among lenders, those interested in personal-finance and investing should follow general-news sources to understand how these dynamics affect borrowing costs.
