Today’s Mortgage Rates March 17, 2025: Rates Are Rising Again Slowly

Are you keeping an eye on mortgage rates today, March 17, 2025? If you're in the market to buy a home or thinking about refinancing, you're probably wondering what's happening with interest rates. Well, according to the latest data, mortgage rates are still on the higher side and have even seen a bit of an increase recently.

Today's Mortgage Rates March 17, 2025: Rates Are Rising Again Slowly

Key Takeaways:

• 30-year fixed mortgage rates are averaging around 6.59%.
• 15-year fixed mortgage rates are hovering near 5.93%.
• Adjustable-rate mortgages (ARMs), specifically the 5/1 ARM, are averaging around 6.85%.
• Refinance rates are also elevated, often slightly higher than purchase rates.
• Experts predict mortgage rates will likely remain relatively high for the next few months, possibly into the rest of 2025.

Let's dive deeper into what these numbers mean for you, whether you're buying a new home or considering refinancing your current mortgage.

Current Mortgage Rates on March 17, 2025

If you're shopping for a mortgage right now, it's crucial to know where interest rates stand. As of today, March 17, 2025, data from Zillow shows that mortgage rates have been inching upwards. This isn't exactly welcome news for homebuyers, but understanding the current situation is the first step in making informed decisions.

Here's a snapshot of the average mortgage rates you can expect today:

Loan Type	Interest Rate
30-Year Fixed	6.59%
20-Year Fixed	6.45%
15-Year Fixed	5.93%
5/1 ARM	6.85%
7/1 ARM	7.13%
30-Year VA	6.15%
15-Year VA	5.59%
5/1 VA	6.15%

Source: Zillow

It's worth noting that these are national averages. The rate you personally qualify for can vary based on factors like your credit score, down payment amount, the type of property you're buying, and even where you live. Think of these averages as a starting point to understand the general trend.

The Popular 30-Year Fixed-Rate Mortgage

The 30-year fixed-rate mortgage is still the most common choice for homebuyers, and for good reason. It offers a predictable monthly payment over a long period – 30 years, or 360 months. This predictability makes budgeting easier for many families. At today's average rate of 6.59%, it's definitely higher than what we've seen in recent years, but it's important to put it into perspective historically. While no one loves higher rates, they are still within a range that many people can work with.

The advantage of a 30-year mortgage is that it spreads your payments out, making each monthly payment lower compared to a shorter-term loan. However, this also means you'll pay significantly more interest over the life of the loan. Let's look at an example provided by Zillow: For a $300,000 mortgage at 6.59% with a 30-year term, your monthly payment for principal and interest alone would be around $1,914. Over 30 years, you'd end up paying a whopping $389,038 in interest – that's more than the original loan amount!

The Faster 15-Year Fixed-Rate Mortgage

If you're looking to pay off your mortgage faster and save on interest in the long run, a 15-year fixed-rate mortgage is an option to consider. The average rate for a 15-year fixed mortgage today is 5.93%, which is lower than the 30-year rate. This lower rate is one of the big draws of a 15-year mortgage. Plus, you’ll own your home outright in half the time!

However, the catch with a 15-year mortgage is that your monthly payments will be significantly higher. You're paying off the same amount of money in a shorter timeframe. Using the same $300,000 mortgage example, but with a 15-year term and a 5.93% rate, your monthly payment would jump to about $2,520. While your monthly outlay is higher, the interest you pay over the life of the loan is much less – around $153,643 in this case. That's a substantial savings compared to the 30-year loan.

Deciding between a 15-year and 30-year mortgage really comes down to your financial situation and priorities. Can you comfortably afford the higher monthly payments of a 15-year loan to save big on interest and own your home sooner? Or do you prefer the lower monthly payments of a 30-year loan, even though you'll pay more interest over time?

Adjustable-Rate Mortgages (ARMs)

Adjustable-rate mortgages, or ARMs, are another type of mortgage to be aware of. With an ARM, the interest rate is fixed for an initial period, and then it adjusts periodically based on market conditions. A 5/1 ARM, for instance, has a fixed rate for the first five years, and then the rate can change once a year after that.

Historically, ARMs have often started with lower interest rates than fixed-rate mortgages. The idea is that you could benefit from a lower rate in the beginning. This could be attractive if you plan to move or refinance before the fixed-rate period ends. However, the risk with an ARM is that interest rates could rise after the fixed period, leading to higher monthly payments down the road.

Interestingly, right now, we're seeing something a bit unusual. According to Zillow's data, the average 5/1 ARM rate is actually higher than both the 30-year and 15-year fixed rates, at 6.85%. This makes ARMs less appealing in the current market because you're not even getting that initial lower rate.

Refinance Rates Today: Is it a Good Time to Refinance?

Refinancing your mortgage means replacing your existing mortgage with a new one. People refinance for various reasons, such as to get a lower interest rate, shorten their loan term, or tap into their home equity.

Here are the average refinance rates as of today, March 17, 2025, according to Zillow:

Loan Type	Interest Rate
30-Year Fixed	6.61%
20-Year Fixed	6.19%
15-Year Fixed	5.90%
5/1 ARM	7.18%
7/1 ARM	7.02%
30-Year VA	6.09%
15-Year VA	5.82%
5/1 VA	6.09%
30-Year FHA	6.00%
15-Year FHA	5.75%

You'll notice that refinance rates are generally a bit higher than purchase rates. This is often the case, although it's not a hard and fast rule.

With refinance rates being at these levels, many homeowners might be wondering if it's even worth refinancing. The answer really depends on your current situation and your goals. If you already have a very low interest rate locked in, refinancing now probably doesn't make sense unless you're trying to achieve a different goal, like switching from an ARM to a fixed-rate mortgage for more payment stability, or consolidating debt.

However, if your current mortgage rate is significantly higher than today's refinance rates, or if you want to shorten your loan term, refinancing could still be beneficial. You need to carefully calculate the costs of refinancing (like closing costs) and compare them to the potential savings over time to see if it makes financial sense for you. A good mortgage calculator can be really helpful in making this decision.

Why Are Mortgage Rates Still High in March 2025?

You might be wondering why mortgage rates are still elevated in March 2025. A lot of it boils down to the overall economic environment and the actions of the Federal Reserve, often called “the Fed.” The Federal Reserve is the central bank of the United States, and one of its main jobs is to manage inflation. Inflation is when prices for goods and services rise over time, reducing the purchasing power of your money.

To combat high inflation, the Federal Reserve has been raising the federal funds rate. This is the interest rate at which banks lend money to each other overnight. While the federal funds rate isn't directly mortgage rates, it influences them. When the federal funds rate goes up, it generally becomes more expensive for banks to borrow money, and these higher costs can get passed on to consumers in the form of higher mortgage rates.

The Federal Reserve is meeting this week, but it's “extremely unlikely” they will cut the federal funds rate at this meeting. In fact, predictions suggest they might not cut rates even at their next meeting in May. There's a possibility of a rate cut in June, but nothing is certain.

This means that, for the near future, we can expect mortgage rates to remain relatively high. Fannie Mae, a major player in the mortgage market, has even revised its forecast upwards. They now predict that the average 30-year fixed-rate mortgage will be around 6.8% throughout 2025 and will end the year at 6.6%. This suggests that significant drops in mortgage rates are not expected anytime soon.

There's also some economic uncertainty in the air that can affect interest rates. For example, talk of potential tariffs (taxes on imported goods) can create concerns about inflation. Higher tariffs could lead to increased prices for goods, which could then push interest rates higher as the Fed tries to keep inflation in check. Economic factors are complex and can shift quickly, so it's something to keep an eye on.

Understanding Your Mortgage Payments at Today's Rates

Let's get down to brass tacks and look at what today's mortgage rates mean for your monthly payments. Knowing how much house you can realistically afford is crucial before you start seriously house hunting. While factors like property taxes and homeowners insurance will add to your total monthly housing cost, understanding the principal and interest payment is a great starting point.

We'll use the current average 30-year fixed mortgage rate of 6.59% for these examples. Remember, these are just estimates for principal and interest, and your actual payment will likely be higher when you include taxes, insurance, and potentially private mortgage insurance (PMI) if you put less than 20% down.

Monthly Payment on a $150,000 Mortgage

If you were to take out a $150,000 mortgage at today's average 30-year fixed rate of 6.59%, your estimated monthly payment for principal and interest would be approximately $957.

This means that each month, you'd be paying around $957 towards paying off your $150,000 loan, assuming a 30-year term and a 6.59% interest rate. Keep in mind, this is just an estimate, and your actual payment might vary slightly depending on the lender and any additional fees.

Monthly Payment on a $200,000 Mortgage

For a $200,000 mortgage at the same 6.59% interest rate and a 30-year term, your estimated monthly payment for principal and interest would be about $1,276.

As you borrow more, your monthly payment naturally increases. An extra $50,000 loan amount adds a noticeable amount to your monthly housing expenses.

Monthly Payment on a $300,000 Mortgage

Let's move up to a $300,000 mortgage. At a 6.59% interest rate over 30 years, your estimated monthly payment for principal and interest would be around $1,914. As you can see, for a $300,000 loan, you're looking at close to $2,000 per month just for the mortgage payment itself. This is why it's so important to carefully consider your budget and how much you can comfortably afford each month.

Monthly Payment on a $400,000 Mortgage

If you're considering a $400,000 mortgage, at a 6.59% interest rate and a 30-year term, your estimated monthly payment for principal and interest would be approximately $2,552.

At this loan amount, the monthly payment starts to become quite substantial for many households. It's crucial to factor in all your other monthly expenses and ensure that a mortgage payment of this size fits comfortably within your budget.

Monthly Payment on a $500,000 Mortgage

Finally, let's look at a $500,000 mortgage. With a 6.59% interest rate and a 30-year term, your estimated monthly payment for principal and interest would be around $3,190.

For a $500,000 loan, you're looking at a significant monthly housing expense. It's essential to have a solid financial plan and be confident in your ability to consistently make payments of this magnitude over the long term.

Remember, these are just examples to give you a general idea. You can use online mortgage calculators to get more personalized estimates. These calculators often allow you to include property taxes, homeowners insurance, and other costs to get a more complete picture of your potential monthly housing payment.

Factors That Influence Your Mortgage Rate

While we've been discussing average mortgage rates, it's important to understand that the rate you personally qualify for can be different. Lenders consider several factors when determining your mortgage rate, including:

• Credit Score: A higher credit score generally means you're seen as a lower-risk borrower, and you'll likely qualify for a lower interest rate. Conversely, a lower credit score might result in a higher rate, or even difficulty getting approved for a mortgage.
• Down Payment: The amount of your down payment also plays a role. A larger down payment (like 20% or more) reduces the lender's risk, and you might be rewarded with a better interest rate. Putting less than 20% down often means you'll have to pay for private mortgage insurance (PMI).
• Loan Type and Term: As we've discussed, the type of mortgage (fixed-rate, ARM, VA, FHA, etc.) and the loan term (30-year, 15-year, etc.) directly impact the interest rate. Shorter-term loans and certain loan types often come with lower rates.
• Debt-to-Income Ratio (DTI): Lenders will look at your DTI, which is the percentage of your monthly income that goes towards debt payments. A lower DTI suggests you have more room in your budget for a mortgage payment, which can be viewed favorably by lenders.
• Overall Economic Conditions: As we've seen with the Federal Reserve and inflation, the broader economic environment has a significant impact on mortgage rates. Factors like inflation, economic growth, and government policies all play a role.

If you're looking to get the lowest possible mortgage rate, there are steps you can take. Working on improving your credit score, saving for a larger down payment, and paying down existing debts can all make you a more attractive borrower to lenders and potentially help you secure a better rate. It’s also always a good idea to shop around and compare offers from different lenders to ensure you're getting the best deal available for your situation.

Understanding today's mortgage rates is a key part of the home buying or refinancing process. While rates are currently elevated, being informed and prepared can help you navigate the market with confidence.