The dramatic ascent seen by mortgage rates last week took a breather Monday, with the various averages moving incrementally up, down, and sideways. Last week, the 30-year average surged almost a quarter percentage point into 4% territory, and sat steady there on Monday.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||4.12%||4.25%|
|Jumbo 30-Year Fixed||3.94%||3.92%|
Today's National Mortgage Rate Averages
Momentum paused Monday for 30-year mortgage rates, after rising 24 basis points last week. The 30-year average held steady at 4.21%, which is its highest reading in two and half years.
Rates on 15-year loans have followed a similar path this year, and they climbed two points Monday. At 3.46%, the 15-year average is now almost three-tenths of a point higher than a week ago, and is likewise in territory not seen since mid-2019.
Jumbo 30-year rates shed two points Monday, landing at 3.94%. Though they have not climbed quite as dramatically this year as the 30-year and 15-year averages, Jumbo 30-year rates are almost a half percentage point above their 2021 high-water mark.
All three averages have seen enormous increases since August, when a major dip sank most rates to five-month lows. The 30-year average is currently 1.32 percentage points more expensive than the August low, while the 15-year and Jumbo 30-year averages are up 1.25 and 0.88, respectively.
Refinance rates were mostly flat Monday, with no change in the 30-year and Jumbo 30-year refinance averages, and just a single-point rise in the 15-year average. The cost to refinance fixed-rate loans is currently up to 49 points over 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|
|30-Year Fixed||4.21%||No Change|
|FHA 30-Year Fixed||4.12%||-0.06|
|VA 30-Year Fixed||4.38%||-0.01|
|Jumbo 30-Year Fixed||3.94%||-0.02|
|20-Year Fixed||4.05%||No Change|
|Jumbo 15-Year Fixed||3.57%||+0.13|
|Jumbo 7/1 ARM||3.18%||+0.10|
|Jumbo 7/6 ARM||3.15%||No Change|
|Jumbo 5/1 ARM||3.02%||+0.10|
|Jumbo 5/6 ARM||3.11%||No Change|
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance||Daily Change|
|30-Year Fixed||4.27%||No Change|
|FHA 30-Year Fixed||4.25%||-0.09|
|VA 30-Year Fixed||4.87%||+0.25|
|Jumbo 30-Year Fixed||3.92%||No Change|
|20-Year Fixed||4.12%||No Change|
|Jumbo 15-Year Fixed||3.75%||+0.13|
|Jumbo 7/1 ARM||3.23%||+0.10|
|Jumbo 7/6 ARM||3.42%||No Change|
|Jumbo 5/1 ARM||3.07%||+0.10|
|Jumbo 5/6 ARM||3.29%||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 Jan. 26, the Fed announced that, in light of stronger and more persistent inflation pressure than originally expected, it is sticking to its plan to speed up the timeline for throttling Fed bond buying, reducing the amount they purchase by a large increment each month. 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 March 15-16.
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.