Today's Mortgage Rates & Trends - December 12, 2022: Rates inch up

30-year rates have edged a little higher after a week of bobbing near 6.5%

MR1212

The 30-year mortgage average saw a second day of gains Friday, after alternating between up and down days for the past week. Taking on almost a tenth of a point to end the week, the flagship average is now in the upper mid-6% range.

National Averages of Lenders' Best Rates
Loan Type Purchase Refinance
30-Year Fixed 6.69% 6.98%
FHA 30-Year Fixed 7.05% 7.61%
Jumbo 30-Year Fixed 5.77% 5.77%
15-Year Fixed 5.93% 6.24%
5/6 ARM 6.78% 6.85%
National averages of the lowest rates offered by more than 200 of the country's top lenders, with a loan-to-value ratio (LTV) of 80%, an applicant with a FICO credit score of 700–760, and no mortgage points.
2022.11.29

Today's National Mortgage Rate Averages

Rates on 30-year mortgages ended Friday with an increase of nine basis points, boosting the average to 6.69%. For about a week beforehand, the 30-year average had been alternately moving up and down near 6.50%, after briefly breaching 7% the week before. The current average is reading almost nine-tenths of a percentage point cheaper than last month's 20-year high of 7.58%.

Rates on 15-year loans meanwhile moved the other way, shedding four basis points to rest at 5.93%. The current average is 1.10% cheaper than its October peak of 7.03%, which was its highest mark in more than 15 years.

The Jumbo 30-year average was quiet Friday, holding steady at 5.77%. The average is currently a half percentage point below the 12-year high of 6.27% it registered last month.

Friday's 30-year refinancing rates moved the opposite direction from new purchase rates, subtracting more than a tenth of a point. But the 15-year and Jumbo 30-year refi averages moved in lockstep with new purchase loans, with the 15-year average shedding four basis points and the Jumbo 30-year refi average remaining flat. The cost to refinance for 30 years is currently 29 basis points more expensive than a new purchase 30-year loan.

After a historical rate plunge in August 2021, mortgage rates skyrocketed in the first half of this year. Indeed, the 30-year average's mid-June peak of 6.38% was almost 3.5 percentage points above its summer 2021 trough of 2.89%. But the surge this fall dramatically outdid the summer high, with late October's 30-year average reaching 1.2 percentage points higher than the June peak.

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
30-Year Fixed 6.69% +0.09
FHA 30-Year Fixed 7.05% +0.05
VA 30-Year Fixed 7.04% No change
Jumbo 30-Year Fixed 5.77% No change
20-Year Fixed 6.30% +0.09
15-Year Fixed 5.93% -0.04
Jumbo 15-Year Fixed 5.89% -0.01
10-Year Fixed 5.92% -0.03
10/6 ARM 6.70% -0.02
7/6 ARM 6.71% -0.01
Jumbo 7/6 ARM 5.61% No change
5/6 ARM 6.78% -0.12
Jumbo 5/6 ARM 5.69% No change
National Averages of Lenders' Best Rates - Refinance
Loan Type Refinance Daily Change
30-Year Fixed 6.98% -0.11
FHA 30-Year Fixed 7.61% +0.04
VA 30-Year Fixed 7.58% +0.07
Jumbo 30-Year Fixed 5.77% No change
20-Year Fixed 6.59% +0.09
15-Year Fixed 6.24% -0.04
Jumbo 15-Year Fixed 5.90% +0.01
10-Year Fixed 6.35% +0.03
10/6 ARM 6.90% +0.04
7/6 ARM 6.91% +0.06
Jumbo 7/6 ARM 5.69% No change
5/6 ARM 6.85% -0.16
Jumbo 5/6 ARM 5.69% No change

Calculate monthly payments for different loan scenarios with our Mortgage Calculator.

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 had kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic's economic pressures. This bond-buying policy (and not the more publicized federal funds rate) is a major influencer on mortgage rates.

But starting last November, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net-zero in March 2022.

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 December 13-14.

Methodology

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.