After taking a single day off in their dramatic incline of the past two weeks, mortgage rates were back on the rise Monday, taking 30-year rates to a new peak. The flagship average is now at a level not seen since late 2018.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||4.57%||4.63%|
|Jumbo 30-Year Fixed||4.35%||4.20%|
Today's National Mortgage Rate Averages
The 30-year average has ascended 67 basis points in the past two weeks and set a new multi-year record Monday. Rising seven points yesterday to elevate the average to 4.72%, this is the priciest 30-year level since mid-December 2018.
Rates on 15-year loans also jumped Monday, by eight points to 3.92%. Having similarly experienced a massive surge in 2022, the 15-year average has now surpassed its early-pandemic spike in April 2020 and has reached a level last registered in May 2019.
Jumbo 30-year rates surged even more boldly Monday, adding 12 points to 4.35%. The current average is still below the peak experienced at the outset of the pandemic, but is in its highest territory since June 2020.
All three averages have surged over the last seven months, taking them far above the lows notched last summer, when a major dip dramatically sank rates. The 30-year average is currently 1.83 percentage points more expensive than the August low point, while the 15-year and Jumbo 30-year averages are up 1.71 and 1.29, respectively.
Refinance rates moved similarly Monday, with the 30-year refi average climbing five points, the 15-year adding a tenth of a percentage point, and the Jumbo 30-year rocketing 13 points up. The cost to refinance with a fixed-rate loan is currently up to nine 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||4.57%||+0.08|
|VA 30-Year Fixed||4.71%||+0.01|
|Jumbo 30-Year Fixed||4.35%||+0.12|
|Jumbo 15-Year Fixed||3.94%||+0.12|
|10/1 ARM||3.90%||No Change|
|7/1 ARM||3.88%||No Change|
|Jumbo 7/1 ARM||3.68%||No Change|
|Jumbo 7/6 ARM||3.52%||+0.13|
|5/1 ARM||3.72%||No Change|
|Jumbo 5/1 ARM||3.52%||No Change|
|Jumbo 5/6 ARM||3.48%||No Change|
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||4.63%||+0.05|
|VA 30-Year Fixed||4.78%||+0.14|
|Jumbo 30-Year Fixed||4.20%||+0.13|
|Jumbo 15-Year Fixed||4.02%||+0.12|
|10/1 ARM||3.94%||No Change|
|7/1 ARM||3.92%||No Change|
|Jumbo 7/1 ARM||3.72%||No Change|
|Jumbo 7/6 ARM||3.70%||+0.13|
|5/1 ARM||3.78%||No Change|
|Jumbo 5/1 ARM||3.58%||No Change|
|Jumbo 5/6 ARM||3.56%||No Change|
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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 March 16, the Fed announced that it expects to begin reducing its balance sheet in May, meaning it will start reducing the overall amount of bonds it owns. 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 will be held May 3-4.
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.