Mortgage Rates Today, Mar. 20, 2025: What Yesterday's Fed Actions Might Mean to Rates
The average 30-year fixed rate mortgage is 6.62% today, a decrease of 0.1% since yesterday. The 15-year fixed mortgage rate stands at 5.7%, down by 0.1%. The 30-year FHA mortgage now averages 5.98%, having dropped by 0.07. Meanwhile, the 30-year jumbo mortgage rate is 7.08%, reflecting a decrease of 0.04%.
The bigger picture
Were yesterday's Federal Reserve activities a bit of a damp squib? Well, maybe, at least a bit. They didn't move mortgage rates far.
But we suspect they might have shifted market sentiment in a way that may help mortgage rates stay low for some time to come. That's because the summary of economic projections showed the Fed is now expecting slower growth and slightly higher unemployment than it thought likely in December.
In other words, the central bank is recognizing the same red flags that have sapped so much confidence from markets, consumers and businesses over the last couple of months. Rising unemployment and slowing growth very often feed lower mortgage rates.
So, why was yesterday's reaction to the projections so muted? Because they contained other bad news that often pushes mortgage rates upward. Namely, the Fed is anticipating an uptick in inflation.
Yesterday's other Fed announcement was neutral: It expects general interest rates to fall this year at the same glacial pace it did in December.
The Wall Street Journal quoted Fed Chair Jerome Powell at the news conference he hosted yesterday afternoon. "We think it’s a good time for us to await for further clarity,” he said. That's been his message consistently for months now. It has a limited shelf life but still smells fresh enough for now.
Mortgage Rate Trends: Past 90 Days
Purchase Rates
| Loan Type | Rate | APR | Daily Change | Monthly Change |
|---|---|---|---|---|
| 30-Year Fixed | 6.62% | 6.65% | -0.1% | -0.25% |
| 15-Year Fixed | 5.7% | 5.75% | -0.1% | -0.27% |
| 30-Year Fixed FHA | 5.98% | 7.18% | -0.07% | -0.18% |
| 30-Year Fixed VA | 6.01% | 6.16% | -0.09% | -0.3% |
| 30-Year Fixed USDA | 6.1% | 6.24% | -0.1% | -0.08% |
| 30-Year Fixed Jumbo | 7.08% | 7.1% | -0.04% | -0.09% |
| 5/6 Year ARM | 6.66% | 6.7% | -0.14% | -0.12% |
Refinance Rates
| Loan Type | Rate | APR | Daily Change | Monthly Change |
|---|---|---|---|---|
| 30-Year Fixed | 6.73% | 6.76% | -0.09% | -0.22% |
| 15-Year Fixed | 5.69% | 5.74% | -0.09% | -0.27% |
| 30-Year Fixed FHA | 5.98% | 7.18% | -0.06% | -0.17% |
| 30-Year Fixed VA | 6.06% | 6.21% | -0.09% | -0.28% |
| 5/6 Year ARM | 6.86% | 6.9% | -0.1% | +0.13% |
Coming up
Although economic reports are the main drivers of changes to mortgage rates, they're not the only ones. The general mood in markets and economically consequential news can also affect those rates — as we've seen frequently recently.
Mortgage rates today
None of today's four economic reports is likely to affect mortgage rates much. Indeed, they frequently pass by unnoticed by markets. According to MarketWatch, they are:
- Initial jobless claims for the week ending March 15 — Markets expect 225,000 new applications, up from 220,000 the week before
- Philadelphia Fed manufacturing survey for March — Markets expect this to slump to 10.0 from 18.1 the previous month
- February existing home sales — Markets expect a fall to 3.95 million, down from the previous month's 4.08 million
- February leading economic indicators — Markets expect -0.2%, worse than January's +0.3%
These are all in line with a gloomier economic outlook. Absent truly shocking data, we'll be surprised if mortgage rates move in response to these reports.
Tomorrow
No economic reports are scheduled for tomorrow.
