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Current Mortgage Refinance Rates and Trends

The states featuring the lowest 30-year mortgage refinance rates as of Friday include New York, California, Florida, Colorado, Texas, Minnesota, North Carolina, New Jersey, and Tennessee. These states recorded an average refinancing rate ranging from 6.81% to 7.01%.

In contrast, the states with the highest refinance rates on Friday were West Virginia, Alaska, Hawaii, Missouri, Nebraska, Massachusetts, and Nevada, where average rates varied between 7.11% and 7.16%.

Mortgage refinance rates are not uniform across the nation; they fluctuate based on the state of origin. The diversity among lenders, including regional practices, variations in credit score requirements, average loan amounts, and regulatory differences, all contribute to these rate differences. Each lender also employs different strategies for managing risk, which can further affect the rates afforded to borrowers.

Given this variability, it is prudent for borrowers to compare offers from multiple lenders to secure the most advantageous mortgage terms.

Important Note

The rates publicized here may not directly correspond to tantalizing teaser rates marketed online. Teaser rates often showcase the most favorable options, which might require upfront fee payments or cater to hypothetical borrowers with superior credit profiles or smaller loans. Your actual rate will depend on various factors including your creditworthiness, income, and other personal details, leading to potential discrepancies from the averages presented.

National Mortgage Refinance Rate Averages

The average rates for 30-year mortgage refinance loans have decreased by 20 basis points over the last three days, signaling a notable shift following a four-day increase. The current national average is 7.05%. Earlier this month, these rates climbed sharply, ascending by 40 basis points within a week to peak at 7.31%—the highest observed since July 2024.

In the previous month, the average for 30-year refinance loans had dropped to 6.71%, marking its lowest level for 2025. Furthermore, just last September, rates fell to a two-year nadir of 6.01%.

National Averages of Lenders’ Best Mortgage Rates

Provided via the Zillow Mortgage API

For those interested in exploring different loan scenarios, utilizing a mortgage calculator can help in estimating monthly payments effectively.

What Causes Mortgage Rates to Rise or Fall?

The fluctuation of mortgage rates is influenced by a combination of macroeconomic trends and specific industry factors. Key elements include:

• The trend and status of the bond market, particularly the yields on 10-year Treasury bonds.
• The Federal Reserve’s monetary policies, particularly regarding bond acquisition and government-sponsored mortgage financing.
• Competitive dynamics among mortgage lenders and variations across loan types.

Given that multiple variables can concurrently affect these rates, pinpointing a single cause for any rate change can be challenging.

Throughout much of 2021, macroeconomic conditions resulted in relatively low mortgage rates. A significant factor was the Federal Reserve’s bond-buying efforts aimed at countering the economic impacts of the pandemic, which had a considerable influence on mortgage rates.

However, starting in November 2021, the Fed initiated a gradual reduction of its bond purchases, eventually reaching zero net increases by March 2022.

From that point until July 2023, the Federal Reserve undertook aggressive hikes to the federal funds rate as a measure against escalating inflation. Although there is an indirect relationship between the federal funds rate and mortgage rates, the swift increase—5.25 percentage points over 16 months—significantly impacted mortgage rates over the preceding two years.

For almost 14 months, the Fed maintained its peak federal funds rate, but in September, they enacted a cut of 0.50 percentage points, followed by quarter-point reductions in November and December. As the new year begins, the Fed has decided to hold rates steady, suggesting that further cuts might not occur for several months. With eight rate-setting meetings planned for the year, it is possible that many could result in continued rate holds into 2025.

How We Track Mortgage Rates

The national and state averages mentioned earlier are sourced from the Zillow Mortgage API, reflecting assumptions of an 80% loan-to-value (LTV) ratio and a borrower credit score ranging from 680 to 739. These rates outline what potential borrowers can typically expect when soliciting quotes from lenders, which may differ from advertised teaser rates.

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