Average mortgage rates sank further Wednesday, accelerating what has been a relatively steady downward march since June 17, when rates spiked after the Federal Reserve announced a shorter timeline to eventually trim government bond purchases.

National Averages of Lenders' Best Rates
Loan Type Purchase Refinance
30-Year Fixed 3.04% 3.27%
FHA 30-Year Fixed 2.93% 3.15%
Jumbo 30-Year Fixed 3.21% 3.46%
15-Year Fixed 2.30% 2.56%
5/1 ARM 2.19% 2.51%
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.
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Today's National Mortgage Rate Averages

The average on 30-year fixed-rate mortgages saw its largest decline yet since Fed news triggered a spike to 3.24% three weeks ago. Dropping another five basis points Wednesday to 3.04%, the average 30-year rate is now at its lowest point of the last 60 days.

The 15-year fixed-rate average declined similarly, shedding five basis points to end the day at 2.30%, and the average Jumbo 30-year rate dropped three points to 3.21%. Averages for the most popular mortgage types all currently sit at or just slightly above their two-month low.

Refinance loans averaged 22 to 26 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 32 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% -0.05
FHA 30-Year Fixed 2.93% -0.01
VA 30-Year Fixed 2.95% -0.01
Jumbo 30-Year Fixed 3.21% -0.03
20-Year Fixed 2.84% -0.05
15-Year Fixed 2.30% -0.05
Jumbo 15-Year Fixed 2.84% -0.05
10-Year Fixed 2.17% -0.04
10/1 ARM 3.19% -0.27
10/6 ARM 3.42% +0.20
7/1 ARM 3.36% -0.63
Jumbo 7/1 ARM 2.17% -0.04
7/6 ARM 3.46% +0.09
Jumbo 7/6 ARM 2.41% -0.13
5/1 ARM 2.19% -0.17
Jumbo 5/1 ARM 2.02% -0.04
5/6 ARM 3.64% -0.13
Jumbo 5/6 ARM 2.44% -0.12
National Averages of Lenders' Best Rates - Refinancing
Loan Type Refinance Daily Change
30-Year Fixed 3.27% -0.03
FHA 30-Year Fixed 3.15% +0.01
VA 30-Year Fixed 3.25% No Change
Jumbo 30-Year Fixed 3.46% -0.05
20-Year Fixed 3.11% -0.05
15-Year Fixed 2.56% -0.03
Jumbo 15-Year Fixed 3.07% -0.01
10-Year Fixed 2.46% -0.04
10/1 ARM 3.68% -0.09
10/6 ARM 3.99% +0.08
7/1 ARM 3.88% -0.03
Jumbo 7/1 ARM 2.40% -0.05
7/6 ARM 4.35% -0.01
Jumbo 7/6 ARM 2.77% -0.13
5/1 ARM 2.51% -0.40
Jumbo 5/1 ARM 2.24% -0.05
5/6 ARM 4.37% -0.04
Jumbo 5/6 ARM 2.71% -0.13

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.