Mortgage Rates Hold Steady, Not Far Above Recent Lows – July 11, 2025
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| Loan Type | New Purchase Rates | Daily Change |
|---|---|---|
| 30-Year Fixed | 6.83% | No Change |
| FHA 30-Year Fixed | 7.55% | No Change |
| VA 30-Year Fixed | 6.55% | +0.01 |
| 20-Year Fixed | 6.58% | -0.02 |
| 15-Year Fixed | 5.84% | No Change |
| FHA 15-Year Fixed | 6.76% | No Change |
| 10-Year Fixed | 5.67% | No Change |
| 7/6 ARM | 7.41% | -0.02 |
| 5/6 ARM | 7.48% | -0.02 |
| Jumbo 30-Year Fixed | 6.80% | -0.03 |
| Jumbo 15-Year Fixed | 6.76% | No Change |
| Jumbo 7/6 ARM | 7.21% | -0.03 |
| Jumbo 5/6 ARM | 7.18% | -0.07 |
| Provided via the Zillow Mortgage API |
The Weekly Freddie Mac Average
Every Thursday, Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates. Yesterday’s reading climbed 5 basis points to 6.72%, still significantly higher than September’s 6.08%. However, in October 2023, Freddie Mac’s average surged to a historic 7.79%, the highest in 23 years.
Freddie Mac’s average differs from ours because it calculates a weekly average based on the past five days of rates, while our Investopedia 30-year average reflects daily rates, providing a more precise and timely gauge of rate movement. Additionally, Freddie Mac’s methodology includes different loan criteria—such as down payment amount, credit score, and the inclusion of discount points—compared to our own.
Calculate monthly payments for different loan scenarios with our Mortgage Calculator.
Important
The rates we publish are averages and won’t directly compare to the teaser rates often advertised online. Those rates are typically cherry-picked to be the most attractive and may involve paying points upfront or be based on a hypothetical borrower with an ultra-high credit score or a smaller-than-typical loan. The rate you actually secure will depend on factors like your credit score, income, and more, so it may differ from the averages you see here.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as:
- The level and direction of the bond market, especially 10-year Treasury yields
- The Federal Reserve’s current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
- Competition between mortgage lenders and across loan types
Because any number of these can cause fluctuations simultaneously, it’s generally difficult to attribute the change to any one factor.
Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic’s economic pressures. This bond-buying policy is a major influencer of mortgage rates.
But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net zero in March 2022.
Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it doesn’t directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.
But given the historic speed and magnitude of the Fed’s 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.
The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But in September, the central bank announced a first rate cut of 0.50 percentage points, and then followed that with quarter-point reductions in November and December.
For its fourth meeting of 2025, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months. At their March 19 meeting, the Fed released its quarterly rate forecast, which showed that, at that time, the central bankers’ median expectation for the rest of the year was just two quarter-point rate cuts. With four more rate-setting meetings scheduled this year, that means we could see more rate-hold announcements in 2025.
How We Track Mortgage Rates
The national and state averages cited above are provided as is 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 in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.
