Mortgage Rates Moved Back Under 7% Last Week. Here's How Much That Could Lower Your Monthly Payment.
Key Takeaways
- Mortgage rates took a turn for the better last week, shaving off some of their post-Christmas surge.
- Rates on new 30-year fixed-rate loans are down a notable 13 basis points from the previous week, averaging 6.96% on Friday.
- 15-year loans saw their Friday-to-Friday average drop a more sizable 16 basis points, now down to 6.06%.
- Jumbo 30-year rates meanwhile subtracted 11 basis points across the week, dipping to a 6.84% average.
- On a new loan of $350,000 with a 30-year term, today's rates translate into a monthly payment of $2,319 vs. $2,350 last week. See our tables below for other loan amounts and mortgage types.
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Mortgage Rates Ease Down from a 7-Month Peak
Though new purchase mortgage rates saw welcome declines in late November and early December, they bolted higher around Christmas—and then higher still in the first half of January. But this week finally brought a little relief, sending the flagship mortgage average back below the notable 7% mark.
Rate averages fell for every new purchase loan type over the past week, with some seeing sizable drops. Below, you can see the Friday-to-Friday change for each new purchase loan average, followed by a deeper dive into 30-year, 15-year, and jumbo 30-year fixed-rate loans.
| Mortgage Type | Jan. 10 averages | Jan. 17 averages | 1-week change |
|---|---|---|---|
| 30-Year Fixed | 7.09% | 6.96% | - 0.13 |
| VA 30-Year Fixed | 6.59% | 6.46% | - 0.13 |
| 20-Year Fixed | 6.99% | 6.78% | - 0.21 |
| 15-Year Fixed | 6.22% | 6.06% | - 0.16 |
| 10-Year Fixed | 6.24% | 5.95% | - 0.29 |
| 7/6 ARM | 7.55% | 7.34% | - 0.21 |
| 5/6 ARM | 7.57% | 7.38% | - 0.19 |
| Jumbo 30-Year Fixed | 6.95% | 6.84% | - 0.11 |
| Jumbo 15-Year Fixed | 6.93% | 6.90% | - 0.03 |
| Jumbo 7/6 ARM | 7.35% | 7.02% | - 0.33 |
| Jumbo 5/6 ARM | 7.31% | 7.15% | - 0.16 |
30-Year Mortgage Rates Fell an Eighth of a Point
Rates on 30-year new purchase loans subtracted 13 basis points over the past week, lowering the average to 6.96% on Friday. That's after first notching a seven-month high of 7.13% four days earlier.
Things were better in September when the 30-year average plunged to a two-year low of 5.89% (with the cheapest Friday average being 6.03%). But rates then surged through much of October and November and then took additional steps higher around Christmas and again in early January.
What's the 30-Year Rate in Your State?
Every business day, we publish national rate averages for various loan types, and also each state's 30-year rate average. Right now, New York, California, and Florida have the lowest 30-year rates.
15-Year Mortgage Rates Saw a Bigger Decline
Rates on 15-year new purchase loans fell a bit more significantly, shedding 16 basis points across the week to average 6.06% Friday. Like 30-year loans, 15-year rates sank to a two-year low in September, dropping as far as 4.97% (though the lowest Friday weekly average was 5.07%).
Jumbo 30-Year Rates Slipped About a Tenth of a Point
Rates on jumbo 30-year new purchase loans gave up 11 basis points from Friday to Friday. The current average is 6.84%—an almost 2-week low. In September, rates on new 30-year jumbo loans fell as far as 6.24%, with the lowest weekly average registering at 6.39%.
What's a jumbo loan?
A jumbo mortgage is one that exceeds the maximum loan limits for Fannie Mae and Freddie Mac conforming loans—$806,500 for single-family homes in most parts of the U.S. in 2025, but up to $1,209,750 in certain more expensive areas.
Here's How Much Monthly Payments Are Now
To see how much this week's rate increases would impact monthly payments for new borrowers, our tables below lay out the principal-plus-interest payment for various loan amounts with a 30-year, 15-year, or jumbo 30-year fixed-rate new purchase mortgage.
| Monthly Mortgage Payments for 30-Year Loans - Week-Over-Week Change | ||||||
|---|---|---|---|---|---|---|
| National average rate | $250,000 | $350,000 | $450,000 | $550,000 | $650,000 | |
| Fri, Jan. 10 | 7.09% | $1,678 | $2,350 | $3,021 | $3,692 | $4,364 |
| Fri, Jan. 17 | 6.96% | $1,657 | $2,319 | $2,982 | $3,644 | $4,307 |
| 1-week change | - 0.13 | - $22 | - $31 | - $39 | - $48 | - $57 |
| Monthly Mortgage Payments for 15-Year Loans - Week-Over-Week Change | ||||||
|---|---|---|---|---|---|---|
| National average rate | $250,000 | $350,000 | $450,000 | $550,000 | $650,000 | |
| Fri, Jan. 10 | 6.22% | $2,139 | $2,995 | $3,851 | $4,707 | $5,563 |
| Fri, Jan. 17 | 6.06% | $2,118 | $2,965 | $3,812 | $4,659 | $5,506 |
| 1-week change | - 0.16 | - $22 | - $30 | - $39 | - $48 | - $56 |
By definition, jumbo 30-year mortgages are larger loans. So below we've run our calculations on loan amounts of $800,000 to $1.2 million.
| Monthly Mortgage Payments for Jumbo 30-Year Loans - Week-Over-Week Change | ||||||
|---|---|---|---|---|---|---|
| National average rate | $800,000 loan | $900,000 loan | $1 million loan | $1.1 million loan | $1.2 million loan | |
| Fri, Jan. 10 | 6.95% | $5,296 | $5,958 | $6,619 | $7,281 | $7,943 |
| Fri, Jan. 17 | 6.84% | $5,237 | $5,891 | $6,546 | $7,201 | $7,855 |
| 1-week change | - 0.11 | - $59 | - $66 | - $74 | - $81 | - $88 |
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., 2024. Use is subject to the Zillow Terms of Use.
Federal Housing Finance Agency. "FHFA Announces Conforming Loan Limit Values for 2025."
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