Mortgage Rates in 2025: What Homebuyers and Homeowners Should Know

Current Mortgage Rates as of April 2025

As of mid-April, 30-year fixed mortgage rates are generally sitting between 6.8% and 7.1%, depending on the lender. Rates for 15-year fixed mortgages tend to be lower, averaging around 6.2%. If you’re considering an adjustable-rate mortgage (ARM), like a 5/1 ARM, you might find starting rates in the high 5% range.

Compared to the same period last year, rates have slightly declined but remain historically elevated. And while they’ve stabilized somewhat, daily fluctuations tied to inflation data and bond yields are still common.

Freddie Mac’s latest survey confirms a narrow rate range, a reflection of broader economic uncertainty and investor caution. For context on how today’s rates compare to past decades, explore our analysis of historical mortgage rate trends

What’s Influencing Today’s Mortgage Rates?

A mix of economic factors continues to shape the mortgage landscape:

Federal Reserve policy: The Fed hasn’t raised rates recently, but it’s also not cutting them. Its “higher-for-longer” stance to fight inflation is keeping mortgage rates elevated.
Persistent inflation: Though improving, inflation remains above the Fed’s 2% target—another reason rates haven’t dropped significantly.
Labor market strength: With job numbers holding steady, consumer spending remains strong, giving the Fed little urgency to lower rates.
10-year Treasury yields: Mortgage rates tend to move in step with this benchmark, which is still hovering above 4%.

Picking the Right Mortgage in 2025

Selecting the right mortgage depends on your financial goals and timeline. Here’s how the main options stack up:

30-Year Fixed Mortgage: Offers predictability and long-term stability, but at a higher overall interest cost.
15-Year Fixed Mortgage: Lower total interest, but higher monthly payments—great for borrowers with strong, steady income.
5/1 ARM: Attractive for buyers who plan to move, sell, or refinance within five years and want to save on initial monthly costs.

Each loan type carries trade-offs. If you’re planning to stay in the home long-term, a fixed-rate mortgage protects against future rate hikes. If you’re flexible, an ARM could offer upfront savings.

Should You Lock in a Mortgage Rate Now?

With mortgage rates still relatively high but showing signs of softening, timing is key. If you're nearing a home purchase or refinance, locking a mortgage rate today could shield you from a sudden spike. But if you have flexibility and believe rates might drift lower, it may be worth keeping an eye on market trends a little longer.

Some borrowers are opting for float-down options—locking in a rate now with the ability to adjust downward if rates improve before closing. Others are exploring hybrid ARMs to take advantage of shorter-term savings.

What Industry Experts Are Watching

Analysts from Freddie Mac and U.S. News suggest mortgage rates are likely to stay in the 6.5%–7% range through the first half of 2025. For a deeper dive into competing expert forecasts on where rates are heading, see our detailed analysis.There’s potential for gradual easing later in the year if inflation cools, but don’t expect a return to pandemic-era lows. For expert insights on the timeline for potential rate relief, see our latest forecast analysis.

According to Bankrate, any future drops will likely be modest. Meanwhile, Fortune notes that even modest rate declines haven’t resolved ongoing housing affordability challenges as home prices hold firm in many markets.

Bottom Line

Buying soon? Consider locking in a mortgage rate if your timeline is fixed and the numbers make sense.
Need flexibility? Ask your lender about float-down options or short-term ARM products.

Even a small change in mortgage rate—say, 0.25%—can mean thousands of dollars over the life of a loan, so comparing offers is always worth the time.