Mortgage and Refinance Rates Hit 30-Year Low in March 2025
The 30-year fixed mortgage rate has finally dipped below 6.25%, marking its lowest point since October, according to Zillow's latest data. This decrease is a result of decreasing rates across the board, with the average 30-year rate dropping seven basis points to 6.19%. Additionally, the 20-year fixed rate has fallen by eight basis points to 5.86% and the 15-year fixed rate has declined by 10 basis points to 5.48%. These lower rates are just in time for spring home-buying season, providing potential buyers with a better opportunity to secure affordable mortgage options.
- The drop in mortgage rates is largely driven by declining inflation expectations, which have led to slower economic growth and reduced demand for loans, causing lenders to offer more competitive rates.
- Will these low rates be sustainable throughout the year, or are they expected to increase as the market recovers from the pandemic and economic uncertainty?