Average mortgage rates are on the rise as of Tuesday, April 15, 2025, with a significant increase of 30 basis points for the 30-year benchmark compared to last week. This surge comes during a busy peak homebuying season. A preliminary report from a University of Michigan poll released on Friday indicated a notable 11% drop in consumer sentiment from March to 50.8% in April. This reflects a more than 30% decrease since December 2024, signaling increasing concerns about the economy, inflation, the job market, and proposed tax and tariffs by President Trump. These proposals may lead to higher borrowing costs for potential homebuyers.
If you are in the market for a home, it is advisable to start looking for a mortgage lender now. Compare quotes and consider preapproval to stand out in the competitive market. Currently, the average rate for a 30-year fixed mortgage is 6.97% for purchase and 6.94% for refinance, showing an increase of 31 basis points for purchase and 19 basis points for refinance compared to last Tuesday’s rates. Bankrate data also shows that rates for a 15-year mortgage are at an average of 6.20% for purchase and 6.30% for refinance, up by 26 basis points for purchase and 17 basis points for refinance over the past week. Additionally, the average rate for a 30-year fixed jumbo mortgage is at 6.96%.
Mortgage rates are influenced by various factors such as inflation, economic conditions, housing market trends, and the Federal Reserve’s target interest rate. Lenders will also consider your credit score, the available down payment, the property you are interested in, and other loan terms. Since rates can change daily, it is wise to lock in a mortgage rate when you are satisfied with the loan terms and overall conditions.
According to Freddie Mac’s weekly Prime Mortgage Market Survey published on April 10, 2025, the average rate for a 30-year fixed-rate mortgage is 6.62%, down by 2 basis points from the previous week. The fixed rate for a 15-year mortgage remains at 5.82%. These rates are lower compared to a year ago.
Freddie Mac updates its Prime Mortgage Market Survey data weekly on Thursdays at noon ET. Save hundreds of dollars a month by understanding the top factors that influence your mortgage rate, as even a half-percentage point difference can make a significant impact on your payments.
Saving thousands of dollars over the life of your mortgage is possible, but the mortgage rate you’re offered depends on the specific mortgage, initial payments, and your overall financial situation. Your credit score is crucial; a good to excellent credit score, typically a FICO score of at least 670, can secure you the best rates. Even with fair credit, you may still find decent mortgage options.
The down payment you can make significantly impacts your interest rate. Putting down at least 20% of the home’s purchase price can lead to a lower rate and the avoidance of mortgage insurance costs. Loan term length is also important; shorter terms usually offer lower rates but higher monthly payments, while longer terms may result in lower monthly payments but higher overall interest costs.
When considering interest rate types, there are fixed and variable rates. Fixed-rate mortgages provide a steady rate throughout the loan, while adjustable-rate mortgages start with a lower fixed rate before transitioning to a variable rate based on market conditions. The choice between these depends on your financial strategy and risk tolerance.
Understanding prequalification versus preapproval is essential in determining your home buying budget. Prequalification offers a basic estimate based on limited information, whereas preapproval involves a detailed financial assessment to provide a more accurate loan amount.
Mortgage rates are influenced by the Federal Reserve’s benchmark federal funds target interest rate. While mortgage rates don’t directly mirror this rate, they are impacted by similar factors considered by the Fed, such as inflation. Recent Fed rate changes, including reductions in September, November, and December, have influenced mortgage rates.
In March 2025, the Federal Reserve announced its decision to pause rate cuts for the second time following a series of reductions in September, November, and December of the previous year that brought the federal funds target interest rate to a range of 4.25% to 4.50%. The Fed’s focus remains on achieving an average 2% inflation rate. The decision to maintain the current rate was attributed to the stable unemployment rate and solid labor market conditions, along with increased economic uncertainty.
Looking ahead to the next policy meeting on May 6–7, 2025, market expectations suggest an 81% probability that the Fed will keep rates within the existing range. Economists are closely monitoring inflation and labor market indicators to gauge the timing of potential future rate adjustments. Recent data shows a moderation in inflation rates and positive job growth in March.
While there are signs of cooling inflation, concerns persist over potential impacts of trade developments and tariff policies on price growth. Federal Reserve Chair Jerome Powell emphasized the need for clarity amidst heightened uncertainty, indicating a cautious approach to future monetary policy decisions. The Fed’s rate-setting panel will provide further guidance at the upcoming meeting.
Federal Reserve Meeting on Wednesday, May 7, 2025, at 2 p.m. ET: Next Meeting and Financial Impact
A judge’s ruling on April 23, 2024, approved a $418 million antitrust settlement with the National Association of Realtors, changing realtor commission practices. Effective August 17, 2024, agents must provide buyers with representation agreements before house tours, promoting transparency on fees and payment methods. While this settlement isn’t anticipated to influence mortgage rates, it allows consumers to negotiate agent fees, potentially saving money in the long term.
Other topics in our mortgage and homebuying series include shopping for mortgages, different types of loans, refinancing, the impact of rate changes, mortgage rate locks, switching from adjustable-rate mortgages to fixed-rate mortgages, and FAQs on mortgage rates. Find helpful guidance on choosing the best mortgage for your financial goals and budgets in our personal finance guides.
Mortgage Lenders vs. Loan Servicers:
Lenders provide loans to homebuyers, while loan servicers handle loan operations like payments and communication with borrowers.
Refinancing a Mortgage:
Refinancing involves swapping your current mortgage for a new one with improved terms and rates, with the new lender paying off the old mortgage.
Homebuyer Assistance:
Even if you’ve previously owned a home, you may qualify for assistance programs if you haven’t owned a principal residence in the last three years.
Adjustable-Rate Mortgages (ARMs):
ARMs have fluctuating rates, unlike fixed-rate mortgages. They start with a fixed rate for a specified period before adjusting periodically based on market conditions. Learn how to convert an ARM to a fixed-rate mortgage in our refinancing guide.
Understanding Your Adjustable-Rate Mortgage
Can I Negotiate My Mortgage Rate?
Negotiating your mortgage rate is unlikely as lenders take into account market conditions and financial factors when setting rates. However, you can inquire about reducing costs in other ways when comparing lenders. For example, some lenders offer lower rates in exchange for “mortgage points” – upfront fees paid to the lender. A mortgage point typically costs 1% of the mortgage amount, around $5,000 on a $500,000 loan, with each point potentially reducing the interest rate by about 0.25%, depending on the lender and loan terms. Find out more in our guide to securing the best rate for your next mortgage.
What Happens to My Mortgage After I Pass Away?
Unlike other debts that are usually settled through the estate before assets are distributed to heirs, mortgages are handled differently. Most mortgages are not transferable, requiring the property to be paid off entirely to transfer the title. Only those who are on the loan are responsible for the mortgage. Learn more about the implications for your mortgage after your passing.
I Already Own a Home. Can I Access Equity for Major Expenses?
Yes, you can leverage your home’s equity for significant or unexpected costs such as home improvements, high-interest debt consolidation, or emergencies. This allows you to access lower rates without refinancing or losing your existing low-rate mortgage. Typically, you need a good credit score and sufficient equity in your home. Learn how to tap into your home’s equity as rates decrease.
Editor’s Note: The rates mentioned are accurate as of Tuesday, April 15, 2025, at 6 a.m. ET. Rates for various products may vary by region and are subject to change.
Sources:
– Bankrate Mortgage Industry Insights, accessed April 15, 2025
– Freddie Mac Primary Mortgage Market Survey, accessed April 11, 2025
– U.S. Bureau of Labor Statistics Employment Situation Summary, accessed April 7, 2025
– U.S. Bureau of Labor Statistics Consumer Price Index Summary, accessed April 11, 2025
– U.S. Bureau of Labor Statistics Producer Price Index News Release Summary, accessed April 14, 2025
– CME Group CME FedWatch Tool, accessed April 15, 2025
