Mortgage rates took a downward step Thursday, reversing the four-day increase they had seen earlier in the week. After a June 16 Fed announcement caused rates to spike, major mortgage averages have largely reversed course, now sitting just above their recent lows.

National Averages of Lenders' Best Rates
Loan Type Purchase Refinance
30-Year Fixed 3.04% 3.26%
FHA 30-Year Fixed 2.92% 3.12%
Jumbo 30-Year Fixed 3.22% 3.50%
15-Year Fixed 2.33% 2.57%
5/1 ARM 2.39% 2.91%
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.
Mort ranges TUE

Today's National Mortgage Rate Averages

The average on 30-year fixed-rate mortgages dropped four basis points Thursday, to 3.04% APY. That's notably below the 3.24% spike triggered by the Fed's June announcement that it was accelerating its timeline to curtail federal bond buying, and is just above the 60-day low of 3.00%..

Averages on 15-year and Jumbo 30-year fixed-rate mortgages also dipped, though more modestly. The 15-year fixed-rate average declined two basis points to 2.33%, while Jumbo 30-year rates dropped a single basis point, bringing the average to 3.22%. The 15-year and 30-year Jumbo averages are currently sitting four to six basis points above their two-month lows.

Refinance loans averaged 20 to 28 basis points higher than new purchase rates on fixed-rate loans, while 5/1 ARM refinancing currently carries a premium over new purchase rates of 52 points.

Important:

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 3.04% -0.04
FHA 30-Year Fixed 2.92% -0.04
VA 30-Year Fixed 2.94% -0.05
Jumbo 30-Year Fixed 3.22% -0.01
20-Year Fixed 2.86% -0.03
15-Year Fixed 2.33% -0.02
Jumbo 15-Year Fixed 2.84% -0.03
10-Year Fixed 2.22% -0.02
10/1 ARM 3.60% -0.06
10/6 ARM 3.23% -0.15
7/1 ARM 3.97% No Change
Jumbo 7/1 ARM 2.22% -0.01
7/6 ARM 3.32% No Change
Jumbo 7/6 ARM 2.41% No Change
5/1 ARM 2.39% -0.05
Jumbo 5/1 ARM 2.07% -0.01
5/6 ARM 3.88% -0.03
Jumbo 5/6 ARM 2.56% No Change
National Averages of Lenders' Best Rates - Refinancing
Loan Type Refinance Daily Change
30-Year Fixed 3.26% -0.03
FHA 30-Year Fixed 3.12% -0.06
VA 30-Year Fixed 3.22% -0.06
Jumbo 30-Year Fixed 3.50% -0.01
20-Year Fixed 3.12% -0.05
15-Year Fixed 2.57% -0.01
Jumbo 15-Year Fixed 3.08% +0.01
10-Year Fixed 2.51% -0.03
10/1 ARM 3.99% -0.06
10/6 ARM 4.17% -0.08
7/1 ARM 4.10% +0.06
Jumbo 7/1 ARM 2.47% -0.01
7/6 ARM 4.38% +0.04
Jumbo 7/6 ARM 2.77% No Change
5/1 ARM 2.91% -0.01
Jumbo 5/1 ARM 2.30% -0.02
5/6 ARM 4.36% +0.02
Jumbo 5/6 ARM 2.84% 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.

These rates are surveyed directly from over 200 top lenders.

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 the last two months. In particular, the Federal Reserve has been buying billions of dollars of bonds and continues to do so. This bond-buying policy (and not the more publicized federal funds rate) is a major influencer on mortgage rates.

But Fed policy could soon change. The Fed's rate and policy committee, called the Federal Open Market Committee (FOMC), meets every 6-8 weeks, and concluded their latest meeting June 16. Though they did not yet announce any changes to their bond-buying plans, they did indicate that a shift could come over the not-too-distant horizon. This forecasting language, without any actual change, is enough to move mortgage rates up.

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.