Mortgage Rate Trends in 2025 Signal Refinancing Opportunities

Recent Federal Reserve rate cuts in 2025 have brought the Federal Funds Rate significantly lower than at the start of the year, marking the largest annual decline since 2020. Although the Federal Funds Rate does not directly control mortgage rates, which follow the 10-year Treasury yield, mortgage rates have nonetheless decreased notably this year. As of early January 2025, the average 30-year fixed mortgage rate had fallen to approximately 6.19%, down from 6.91% at the start of the year, presenting refinancing opportunities for homeowners.