It's been a week since mortgage rates hit their highest point in more than two and a half years, and after edging lower for three days, a slight climb Tuesday has them again flirting with that elevated level.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||4.10%||4.15%|
|Jumbo 30-Year Fixed||3.86%||3.92%|
Today's National Mortgage Rate Averages
After declining most of last week, the 30-year mortgage average rose three basis points Tuesday to 4.20%, bringing it again near the 4.22% peak reach a week ago, which is the highest we've seen since mid-2019.
Rates on 15-year loans also climbed Tuesday, gaining five points to reach 3.42%. The 15-year average's highest point since before the pandemic, registered one week ago, was 3.49%.
Jumbo 30-year rates were more steady Tuesday, edging up a single point to 3.86%. Jumbo rates have not gained as much ground this year as the 30-year and 15-year averages, though today's average is almost four-tenths of a percentage point above its 2021 high-water mark of 3.47%.
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 1.31 percentage points more expensive than the August trough, while the 15-year and Jumbo 30-year averages are up 1.21 and 0.80, respectively.
Refinance averages behaved similarly Tuesday, with the 30-year refinance average rising three points, the 15-year average gaining seven, and Jumbo 30-year rates remaining flat. The cost to refinance the most common fixed-rate loans is currently five to eight points more expensive 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||4.10%||+0.06|
|VA 30-Year Fixed||4.27%||+0.03|
|Jumbo 30-Year Fixed||3.86%||+0.01|
|Jumbo 15-Year Fixed||3.44%||No Change|
|Jumbo 7/1 ARM||3.22%||+0.08|
|Jumbo 7/6 ARM||3.15%||No Change|
|Jumbo 5/1 ARM||3.07%||+0.08|
|Jumbo 5/6 ARM||3.11%||No Change|
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||4.15%||+0.01|
|VA 30-Year Fixed||4.46%||No Change|
|Jumbo 30-Year Fixed||3.92%||No Change|
|Jumbo 15-Year Fixed||3.62%||No Change|
|Jumbo 7/1 ARM||3.28%||+0.09|
|Jumbo 7/6 ARM||3.42%||-0.01|
|Jumbo 5/1 ARM||3.12%||+0.08|
|Jumbo 5/6 ARM||3.29%||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, 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.