rewrite this title Mortgage Rates Today, Wednesday, March 25: Still Rising – NerdWallet

Mortgage rates continued to climb this morning as markets react to developments in Iran. On one hand, we’ve got a ceasefire proposal; on the other, U.S. troops are being deployed.

The average interest rate on a 30-year, fixed-rate mortgage rose to 6.44% APR, according to rates provided to NerdWallet by Zillow. This is six basis points higher than yesterday and 35 basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

Yesterday I noted that we’ve seen mortgage rates rise almost a third of a percentage point in a week; today rates crossed that threshold. Rates have been on an upward trajectory since the war in Iran began, but we’ve seen an especially steep climb this past week. For more on why mortgage rates are rising so rapidly, keep reading after the chart.

Mortgage rates, on the other hand, are right there with the markets (and, let’s be honest, plenty of Americans). By “right there” I mean “low-key freaking out.” Mortgage rates had hit their lowest level since September 2022 at the end of last month, with that leftmost integer finally back at five. The war in Iran promptly reversed the downward movement we’d been seeing. Could an exit from the conflict cause mortgage rates to flip right back? It could, but we aren’t going to count on that.

Not to go all Carrie Bradshaw, but … and just like that, the U.S. was at war, mortgage rates jumped, and the highest gas price I spotted while running errands Sunday was $4.68 a gallon (I’m in Connecticut, if you think that sounds especially high or low compared to where you are).

The point is, just because mortgage rates are moving one way or the other doesn’t mean you can ever, and I mean EVER, count on them to keep going that way. We can only work with the information that’s available now.

Freddie Mac estimates that home buyers who compare quotes from two mortgage lenders could save as much as $600 annually, and comparing four or more lenders doubles that. Wherever mortgage rates are, don’t spend more on interest than you have to! Take that extra time to shop around.

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you could start considering a refi if your current rate is around 6.94% or higher.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

In addition to market factors outside of your control, your customized quote depends on your:

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.

About the author

Kate Wood is a lending expert and certified financial health counselor (CHFC) who joined NerdWallet in 2019. With an educational background in sociology, Kate feels strongly about issues like inequality in homeownership and higher education, and relishes any opportunity to demystify government programs. Prior to NerdWallet, she wrote about home remodeling, decor and maintenance for This Old House.