Today's Mortgage Rates & Trends - July 7, 2022: Rates waver

After plunging almost half a point, 30-year average moves slightly back up

After last week saw 30-year rates re-establish themselves above the 6% mark, the flagship average has since slid notably. Though Wednesday's average moved up eight basis points, across the past week the average has shed four-tenths of a percentage point.

National Averages of Lenders' Best Rates
Loan Type Purchase Refinance
30-Year Fixed 5.61% 5.85%
FHA 30-Year Fixed 5.68% 5.99%
Jumbo 30-Year Fixed 4.94% 5.03%
15-Year Fixed 4.75% 5.00%
5/1 ARM 4.20% 4.46%
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.
2022.07.01 mort ranges

Today's National Mortgage Rate Averages

Wednesday's 30-year average was slightly up, though it was a small climb compared to the slide of the previous three days, when rates declined almost half a percentage point after again breaching 6% last week. Wednesday saw the average rise eight basis points to 5.61%. That's still dramatically below the 14-year peak of 6.38% registered just three weeks ago.

Rates on 15-year loans have experienced a similar trajectory over the past week, but remained almost flat Wednesday. Rising a single basis point, the 15-year average is now 4.75%. Like 30-year loans, 15-year rates reached their highest level since 2008 about three weeks ago, when they touched 5.41%.

Meanwhile, the Jumbo 30-year average marked time for a second consecutive day, holding at 4.94%. Until last Friday, Jumbo 30-year rates had been averaging above 5% since early June.

After a major rate dip last summer, mortgage rates have since skyrocketed, with the 30-year average peaking in mid-June by an eye-popping 3.49 percentage points above its August 2021 low of 2.89%.

Meanwhile, mid-June saw the 15-year and Jumbo 30-year averages shoot 3.21 and 2.38 percentage points higher, respectively, than their summer 2021 valleys.

Rates on refinancing loans moved somewhat similarly Wednesday, with the 30-year refi average climbing four basis points while the 15-year average added six points. The Jumbo 30-year refi average held steady for a second day. The cost to refinance with a fixed-rate loan is currently eight to 31 points more expensive than new purchase loans.

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 5.61% +0.08
FHA 30-Year Fixed 5.68% +0.36
VA 30-Year Fixed 5.63% +0.27
Jumbo 30-Year Fixed 4.94% No change
20-Year Fixed 5.30% +0.07
15-Year Fixed 4.75% +0.01
Jumbo 15-Year Fixed 4.82% No change
10-Year Fixed 4.70% +0.01
10/1 ARM 4.61% -0.07
10/6 ARM 5.53% +0.01
7/1 ARM 4.51% -0.04
Jumbo 7/1 ARM 4.07% -0.07
7/6 ARM 5.52% -0.04
Jumbo 7/6 ARM 4.61% No change
5/1 ARM 4.20% -0.04
Jumbo 5/1 ARM 4.00% -0.10
5/6 ARM 5.37% -0.06
Jumbo 5/6 ARM 4.48% No change
National Averages of Lenders' Best Rates - Refinance
Loan Type Refinance Daily Change
30-Year Fixed 5.85% +0.04
FHA 30-Year Fixed 5.99% +0.06
VA 30-Year Fixed 6.20% +0.13
Jumbo 30-Year Fixed 5.03% No change
20-Year Fixed 5.51% +0.07
15-Year Fixed 5.00% +0.06
Jumbo 15-Year Fixed 4.90% No change
10-Year Fixed 4.96% +0.05
10/1 ARM 4.91% -0.07
10/6 ARM 5.74% +0.03
7/1 ARM 4.80% -0.04
Jumbo 7/1 ARM 4.30% -0.04
7/6 ARM 5.72% -0.06
Jumbo 7/6 ARM 4.79% No change
5/1 ARM 4.46% -0.06
Jumbo 5/1 ARM 4.25% -0.07
5/6 ARM 5.54% -0.08
Jumbo 5/6 ARM 4.56% No change

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, 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 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 May 4, the Fed announced that it will begin reducing its balance sheet on June 1. Identical sizable reductions will occur in June, July, and August, and then be doubled beginning in September. This will be on top of its existing move to reduce new bond purchases by an increment every month, the so-called taper, which began in November.

The Fed's rate and policy committee, called the Federal Open Market Committee (FOMC), meets every 6-8 weeks. Their next scheduled meeting takes place July 26-27.

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.