Today's Mortgage Rates & Trends - February 27, 2023: Rates edge higher

Another bump up takes 30-year average to 2023 high

MR0227

Rates on 30-year loans tacked on a few more basis points Friday, ending the week at their highest point of this year. The 15-year and Jumbo 30-year averages also jumped, reaching their most expensive level since early November.

National Averages of Lenders' Best Rates
Loan Type Purchase Refinance
30-Year Fixed 7.05% 7.42%
FHA 30-Year Fixed 6.88% 7.16%
Jumbo 30-Year Fixed 6.15% 6.15%
15-Year Fixed 6.49% 6.68%
5/6 ARM 7.01% 7.06%
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.
2023.02.24

Today's National Mortgage Rate Averages

In just over two weeks, the 30-year mortgage average has climbed almost a half percentage point, and is now almost a full point above the five-month low set as recently as early February. The flagship average added four basis points Friday to reach 7.05%, its highest reading of 2023. Compared to the 20-year high of 7.58% reached in October, the current average is roughly half a point cheaper.

The 15-year mortgage average also rose Friday, gaining seven basis points to touch 6.49%, its highest reading in three and a half months. Like 30-year rates, the 15-year average is about a half percentage point under October's peak, a 15-year high of 7.03%.

Friday's Jumbo 30-year rates climbed even more markedly, jumping 13 basis points. Now at 6.15%, the current average matches its highest point since November 9, and is sitting only an eighth of a point below October's 12-year high of 6.27%.

Refinancing rates moved similarly to new purchase rates for 30-year and Jumbo 30-year loans, with the 30-year refi average adding six basis points and the Jumbo 30-year refi average, 13 points. Rates on 15-year refi loans were relatively flat, subtracting a single basis point on average. The cost to refinance for 30 years is currently 37 basis points more expensive than 30-year new purchase loans.

After a historical rate plunge in August 2021, mortgage rates skyrocketed in the first half of 2022. 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 in September and October dramatically outdid the summer high, with the 30-year average ultimately 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 7.05% +0.04
FHA 30-Year Fixed 6.88% +0.03
VA 30-Year Fixed 6.85% +0.15
Jumbo 30-Year Fixed 6.15% +0.13
20-Year Fixed 6.94% +0.03
15-Year Fixed 6.49% +0.07
Jumbo 15-Year Fixed 6.39% +0.12
10-Year Fixed 6.46% +0.05
10/6 ARM 6.93% -0.03
7/6 ARM 7.01% +0.09
Jumbo 7/6 ARM 6.08% +0.12
5/6 ARM 7.01% +0.06
Jumbo 5/6 ARM 6.06% +0.13
National Averages of Lenders' Best Rates - Refinance
Loan Type Refinance Daily Change
30-Year Fixed 7.42% +0.06
FHA 30-Year Fixed 7.16% +0.01
VA 30-Year Fixed 7.23% -0.06
Jumbo 30-Year Fixed 6.15% +0.13
20-Year Fixed 7.20% +0.06
15-Year Fixed 6.68% -0.01
Jumbo 15-Year Fixed 6.39% +0.12
10-Year Fixed 6.67% -0.02
10/6 ARM 7.40% +0.22
7/6 ARM 7.30% +0.02
Jumbo 7/6 ARM 6.19% +0.13
5/6 ARM 7.06% +0.08
Jumbo 5/6 ARM 6.06% +0.13

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 will conclude March 22.

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.