After starting the week quietly, most mortgage rates moved moderately higher Tuesday, including the flagship 30-year average. But this week's movements have been much milder than the wild swings seen last week.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||5.55%||6.05%|
|Jumbo 30-Year Fixed||4.94%||5.03%|
Today's National Mortgage Rate Averages
Rates on 30-year loans were back on the rise Tuesday, after taking a relative breather Monday. The 30-year fixed-rate average rose eight basis points to 5.63%, but that still leaves it within the range of 5.26% to 5.82% registered since August 3. The current average is three-quarters of a percentage point below mid-June's 14-year peak of 6.38%.
The 15-year average also rose Tuesday. Though its four-basis-point climb was more modest, it was enough to take the average back above the 5% mark, resting at 5.01%. Like 30-year loans, 15-year rates reached their highest level since 2008 two months ago, when they touched 5.41%.
Jumbo 30-year rates meanwhile held steady Tuesday, remaining flat for a seventh day at 4.94%. The Jumbo 30-year average has been sitting below the 5% threshold for three weeks.
Refinancing rates for 30-year loans moved more dramatically up Tuesday, jumping 16 basis points. The 15-year refi average only moved a modest four points higher while Jumbo 30-year refi rates remained flat for another day. The cost to refinance with a fixed-rate loan is currently nine to 52 points more expensive than a new purchase loan.
After a major rate dip last summer, mortgage rates skyrocketed in the first half of 2022, with the 30-year average peaking in mid-June by an eye-popping 3.49 percentage points above its August 2021 low of 2.89%.
Meanwhile, mid-June saw the 15-year and Jumbo 30-year averages shoot 3.21 and 2.38 percentage points higher, respectively, than their summer 2021 valleys.
The rates you see here generally won’t compare directly with teaser rates you see advertised online, since those rates are cherry-picked as the most attractive. They may involve paying points in advance, or they may be selected based on a hypothetical borrower with an ultra-high credit score or taking a smaller-than-typical loan given the value of the home.
|National Averages of Lenders' Best Rates - New Purchase|
|New Purchase||Daily Change|
|FHA 30-Year Fixed||5.55%||+0.12|
|VA 30-Year Fixed||5.82%||+0.22|
|Jumbo 30-Year Fixed||4.94%||No change|
|Jumbo 15-Year Fixed||4.94%||No change|
|Jumbo 7/6 ARM||4.61%||-0.01|
|Jumbo 5/6 ARM||4.73%||No change|
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||6.05%||+0.14|
|VA 30-Year Fixed||6.20%||+0.05|
|Jumbo 30-Year Fixed||5.03%||No change|
|Jumbo 15-Year Fixed||5.04%||No change|
|Jumbo 7/6 ARM||4.80%||No change|
|Jumbo 5/6 ARM||4.81%||No change|
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Lowest Mortgage Rates by State
The lowest mortgage rates available vary depending on the state where originations occur. Mortgage rates can be influenced by state-level variations in credit score, average mortgage loan term, and size, in addition to individual lenders' varying risk management strategies.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as the level and direction of the bond market, including 10-year Treasury yields; the Federal Reserve's current monetary policy, especially as it relates to funding government-backed mortgages; and competition between lenders and across loan types. Because fluctuations can be caused by any number of these at once, it's generally difficult to attribute the change to any one factor.
Macroeconomic factors have kept the mortgage market relatively low for much of this year. In particular, the Federal Reserve has been buying billions of dollars of bonds in response to the pandemic's economic pressures, and it continues to do so. This bond-buying policy (and not the more publicized federal funds rate) is a major influencer on mortgage rates.
On May 4, the Fed announced that it will begin reducing its balance sheet on June 1. Identical sizable reductions will occur in June, July, and August and then be doubled beginning in September. This will be on top of its existing move to reduce new bond purchases by an increment every month, the so-called taper, which began in November.
The Fed's rate and policy committee, called the Federal Open Market Committee (FOMC), meets every six to eight weeks. Their next scheduled meeting takes place September 20–21.
The national averages cited above were calculated based on the lowest rate offered by more than 200 of the country's top lenders, assuming a loan-to-value ratio (LTV) of 80% and an applicant with a FICO credit score in the 700–760 range. The resulting rates are representative of what customers should expect to see when receiving actual quotes from lenders based on their qualifications, which may vary from advertised teaser rates.
For our map of the best state rates, the lowest rate currently offered by a surveyed lender in that state is listed, assuming the same parameters of an 80% LTV and a credit score between 700–760.