A third day of increases has the 30-year mortgage average back above 6%, after a big dip last week dropped it well below that threshold. The flagship average had occupied the notable 6% range from June 13 through June 22, a high-water mark not seen in almost 14 years.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||6.00%||6.20%|
|Jumbo 30-Year Fixed||5.19%||5.28%|
Today's National Mortgage Rate Averages
The 30-year mortgage average moved up seven basis points Tuesday, with a three-day climb taking it to 6.01%. Two weeks ago, the average spiked to a peak of 6.38%, after not previously breaching 6% since 2008. But last week it dropped as low as 5.84%.
The 15-year average also rose seven points, registering at 5.28%. Like 30-year loans, 15-year rates reached their highest level since 2008 two weeks ago, when they averaged 5.41%.
Jumbo 30-year rates climbed a bit more boldly Tuesday, adding an eighth of a percentage point to average 5.19%. Jumbo 30-year rates sitting anywhere above 5% is notable, as the average hadn't previously exceed that threshold since 2011.
After a major rate dip last summer, mortgage averages had skyrocketed through early May, but then eased lower for the remainder of the month. Now June has spiked the 30-year average an eye-popping 3.12 percentage points above its August 2021 low point of 2.89%.
Meanwhile, the 15-year and Jumbo 30-year averages are currently 3.07 and 2.13 percentage points higher, respectively, than their summer 2021 valleys.
Refinancing averages moved similarly Tuesday, with the 30-year refi average rising nine basis points and the 15-year average adding eight points, while Jumbo 30-year refi rates jumped 13 points. The cost to refinance with a fixed-rate loan is currently eight to 29 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||6.00%||+0.12|
|VA 30-Year Fixed||6.05%||+0.06|
|Jumbo 30-Year Fixed||5.19%||+0.12|
|Jumbo 15-Year Fixed||5.19%||+0.12|
|Jumbo 7/1 ARM||4.47%||+0.04|
|Jumbo 7/6 ARM||4.86%||No change|
|Jumbo 5/1 ARM||4.44%||+0.04|
|Jumbo 5/6 ARM||4.85%||+0.12|
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||6.20%||-0.11|
|VA 30-Year Fixed||6.27%||+0.03|
|Jumbo 30-Year Fixed||5.28%||+0.13|
|Jumbo 15-Year Fixed||5.27%||+0.12|
|Jumbo 7/1 ARM||4.71%||+0.04|
|Jumbo 7/6 ARM||5.04%||No change|
|Jumbo 5/1 ARM||4.70%||+0.05|
|Jumbo 5/6 ARM||4.93%||+0.12|
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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 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.
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.