After surging by leaps and bounds for more than two weeks, mortgage rates finally retreated a bit Wednesday. Though off its recent peak, the 30-year average is still at its highest level since late 2018.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||4.70%||4.77%|
|Jumbo 30-Year Fixed||4.48%||4.32%|
Today's National Mortgage Rate Averages
The 30-year fixed-rate average dipped by six points Wednesday, lowering it to 4.84% after setting a new multi-year peak the previous day. The retreat was not enough, however, to materially change its historical context: 30-year rates are in their priciest territory since mid-December 2018.
Rates on 15-year loans declined a bit more Wednesday, losing a full tenth of a percentage point. Landing at 4.02%, the 15-year average is at a level last seen in April 2019.
Meanwhile, Jumbo 30-year rates marched in place Wednesday, after jumping an eighth of a percentage point, to 4.48%, the day before. The current average is still below the peak experienced at the outset of the pandemic, but is in its highest range since June 2020.
All three averages have rocketed higher 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 an eye-popping 1.95 percentage points more expensive than the August low point, while the 15-year and Jumbo 30-year averages are up 1.81 and 1.42, respectively.
Refinance rates moved similarly Tuesday, with the 30-year refi average dipping six points, the 15-year average shedding eight points, and Jumbo 30-year rates holding steady. The cost to refinance with a fixed-rate loan is currently up to 12 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||4.70%||-0.01|
|VA 30-Year Fixed||4.88%||-0.13|
|Jumbo 30-Year Fixed||4.48%||No Change|
|Jumbo 15-Year Fixed||4.07%||No Change|
|Jumbo 7/1 ARM||3.83%||-0.01|
|Jumbo 7/6 ARM||3.64%||No Change|
|Jumbo 5/1 ARM||3.67%||-0.02|
|Jumbo 5/6 ARM||3.61%||-0.12|
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||4.77%||-0.10|
|VA 30-Year Fixed||5.02%||-0.08|
|Jumbo 30-Year Fixed||4.32%||No Change|
|Jumbo 15-Year Fixed||4.14%||-0.01|
|Jumbo 7/1 ARM||3.87%||-0.02|
|Jumbo 7/6 ARM||3.82%||No Change|
|Jumbo 5/1 ARM||3.73%||-0.01|
|Jumbo 5/6 ARM||3.69%||-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 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.