Mortgage Rates Decline, With 30-Year Averages Returning to 7%

Refinance and new purchase mortgage rates saw notable drops, reversing recent increases and offering relief to borrowers.

The average 30-year refinance mortgage rate fell by 8 basis points on Thursday, settling at 7.00%, a key threshold not seen consistently since last year.
New purchase 30-year fixed mortgage rates also declined, dropping to an average of 6.87%, marking a 6 basis point decrease from the previous day.
Rates for other loan types, including 15-year and jumbo 30-year mortgages, also saw reductions, with the national 15-year fixed refinance rate now at 5.97%.
State-level mortgage refinance rates ranged from 6.78% to 7.11%, with New York, California, and Florida offering the lowest averages, while Kentucky and Alaska were among the highest.
The Federal Reserve's decision to hold the federal funds rate steady in early 2025, following rate cuts in late 2024, continues to influence mortgage rate trends indirectly.