Mortgage rates mostly moved higher Thursday, with the 30-year new purchase and refinance averages both notably climbing to within a point of their 2021 high-water marks.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||3.23%||3.50%|
|Jumbo 30-Year Fixed||3.28%||3.48%|
Today's National Mortgage Rate Averages
After gaining two basis points Wednesday, the 30-year fixed-rate mortgage average added another five points Thursday, elevating it to 3.38%. That brings it almost to its year-to-date high of 3.39%, which was clocked just before Thanksgiving.
The 15-year average also rose Wednesday, by three basis points to 2.55%. That's eight points below its high for the year. Meanwhile, the Jumbo 30-year average dipped a point. At 3.28%, the Jumbo average is almost two-tenths below its 2021 high of 3.47%.
Compared to early August, however, when a major rate dip took most averages to five-month lows, the 30-year average is now almost half a percentage point more expensive, while the 15-year and Jumbo 30-year averages are up 34 and 22 points, respectively.
Refinance rates were also mostly up Thursday, with the 30-year refinance average bolting seven points to 3.52%. Like the 30-year new purchase average, the refinance rate hit its highest level just before Thanksgiving, registering 3.53%. The cost to refinance fixed-rate loans is currently 9 to 20 points higher than new purchase loans.
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 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|
|Loan Type||New Purchase||Daily Change|
|FHA 30-Year Fixed||3.23%||+0.10|
|VA 30-Year Fixed||3.33%||+0.14|
|Jumbo 30-Year Fixed||3.28%||-0.01|
|Jumbo 15-Year Fixed||3.38%||+0.23|
|Jumbo 7/1 ARM||2.26%||+0.02|
|Jumbo 7/6 ARM||2.70%||No Change|
|Jumbo 5/1 ARM||2.12%||+0.03|
|Jumbo 5/6 ARM||2.73%||No Change|
|National Averages of Lenders' Best Rates - Refinancing|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||3.50%||+0.10|
|VA 30-Year Fixed||3.67%||+0.13|
|Jumbo 30-Year Fixed||3.48%||+0.01|
|Jumbo 15-Year Fixed||3.53%||-0.11|
|Jumbo 7/1 ARM||2.52%||+0.03|
|Jumbo 7/6 ARM||2.98%||No Change|
|Jumbo 5/1 ARM||2.37%||+0.03|
|Jumbo 5/6 ARM||2.91%||No Change|
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, as well as 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 continues to do so. This bond-buying policy (and not the more publicized federal funds rate) is a major influencer on mortgage rates.
On Dec. 15, the Fed announced that, in light of stronger and more persistent inflation pressure than originally expected, it will speed up its timeline for throttling Fed bond buying, reducing the amount they purchase by a larger increment each month than initially planned. This so-called taper began in late November.
The Fed's rate and policy committee, called the Federal Open Market Committee (FOMC), meets every 6-8 weeks. Their next scheduled meeting will be held Jan. 25-26.
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.