Mortgage rates fell moderately Thursday, a day after 30-year rates notched their most expensive average in almost three years.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||4.19%||4.36%|
|Jumbo 30-Year Fixed||3.86%||3.92%|
Today's National Mortgage Rate Averages
Rate averages for virtually every mortgage type declined Thursday, after Wednesday saw 30-year rates reach their highest average since May 2019. The flagship average dropped five points from that 4.28% peak, resting Thursday at 4.23%.
Rates on 15-year loans moved three points downward Thursday, to 3.45%. The average is sitting four points below its recent peak of 3.49%.
Jumbo 30-year rates gave up six points Thursday, falling to 3.86%. Though Jumbo rates have not gained quite as much ground this year as the 30-year and 15-year averages, today's Jumbo average is still almost four-tenths of a percentage point above its highest rate of 2021.
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 1.34 percentage points more expensive than the August trough, while the 15-year and Jumbo 30-year averages are up 1.24 and 0.80, respectively.
Refinance rates for 30-year and 15-year loans behaved similarly Thursday, both declining five points, while Jumbo 30-year refinance rates remained flat for a third consecutive day. The cost to refinance with the most popular fixed-rate loans is currently six to 17 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||4.19%||-0.15|
|VA 30-Year Fixed||4.44%||-0.15|
|Jumbo 30-Year Fixed||3.86%||-0.06|
|Jumbo 15-Year Fixed||3.44%||-0.13|
|Jumbo 7/1 ARM||3.16%||-0.10|
|Jumbo 7/6 ARM||3.15%||No Change|
|Jumbo 5/1 ARM||3.00%||-0.10|
|Jumbo 5/6 ARM||3.11%||No Change|
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||4.36%||-0.04|
|VA 30-Year Fixed||4.75%||-0.20|
|Jumbo 30-Year Fixed||3.92%||No Change|
|Jumbo 15-Year Fixed||3.62%||-0.13|
|Jumbo 7/1 ARM||3.21%||-0.10|
|Jumbo 7/6 ARM||3.42%||No Change|
|Jumbo 5/1 ARM||3.05%||-0.10|
|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.