Today's Mortgage Rates & Trends - November 22, 2021: Rates retreat

After recent surge, mortgage rates pull back for a third day

Mortgage rates ended last week with three days of declines, with Friday's drop being the most significant. It's a notable change in direction after averages reached elevated levels earlier in the week.

National Averages of Lenders' Best Rates
Loan Type Purchase Refinance
30-Year Fixed 3.20% 3.30%
FHA 30-Year Fixed 3.01% 3.23%
Jumbo 30-Year Fixed 3.34% 3.52%
15-Year Fixed 2.51% 2.60%
5/1 ARM 2.43% 2.92%
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

Mortgage rates saw a sizable dip Friday, extending two previous days of inching downward. The flagship 30-year average shed a full five basis points to 3.20%, while the 15-year average dropped four points, and the Jumbo 30-year rate, a bold seven points.

Over a five-day period ending last Tuesday, rates had seen a sharp rise, with the 30-year average rising 17 basis points. But the second half of last week has erased about half of that climb.

The 30-year average is currently 14 points below its highest level of 2021, while 15-year and Jumbo 30-year rates are nine and 12 points below their YTD highs, respectively.

At the other end of the spectrum, all three averages are roughly a quarter of a percentage point higher than in early August, when a major rate dip dropped averages to five-month lows.

Refinance rates moved similarly Thursday, with the 30-year average losing seven points. Rates to refinance 30-year and 15-year loans are currently priced 9 to 18 basis points higher than new purchase rates.

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 3.20% -0.05
FHA 30-Year Fixed 3.01% -0.14
VA 30-Year Fixed 3.04% -0.15
Jumbo 30-Year Fixed 3.34% -0.07
20-Year Fixed 2.97% -0.09
15-Year Fixed 2.51% -0.04
Jumbo 15-Year Fixed 3.09% -0.06
10-Year Fixed 2.47% -0.03
10/1 ARM 2.86% +0.09
10/6 ARM 3.92% -0.20
7/1 ARM 2.56% -0.01
Jumbo 7/1 ARM 2.26% -0.04
7/6 ARM 3.96% -0.23
Jumbo 7/6 ARM 2.71% -0.12
5/1 ARM 2.43% -0.03
Jumbo 5/1 ARM 2.11% -0.04
5/6 ARM 3.70% -0.23
Jumbo 5/6 ARM 2.73% No Change
National Averages of Lenders' Best Rates - Refinancing
Loan Type Refinance Daily Change
30-Year Fixed 3.30% -0.07
FHA 30-Year Fixed 3.23% -0.17
VA 30-Year Fixed 3.37% -0.18
Jumbo 30-Year Fixed 3.52% -0.04
20-Year Fixed 3.10% -0.08
15-Year Fixed 2.60% -0.04
Jumbo 15-Year Fixed 3.32% -0.06
10-Year Fixed 2.57% -0.03
10/1 ARM 3.68% -0.08
10/6 ARM 4.30% -0.09
7/1 ARM 2.76% -0.04
Jumbo 7/1 ARM 2.52% -0.05
7/6 ARM 4.24% -0.09
Jumbo 7/6 ARM 2.98% -0.12
5/1 ARM 2.92% -0.10
Jumbo 5/1 ARM 2.37% -0.05
5/6 ARM 3.87% -0.05
Jumbo 5/6 ARM 2.91% No Change

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 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 Nov. 3, the Fed officially announced it will start gradually throttling its bond buying, reducing the amount they purchase by a steady increment each month. The taper, as it's called, will begin later this month.

The Fed's rate and policy committee, called the Federal Open Market Committee (FOMC), meets every 6-8 weeks, and concluded their latest meeting Nov. 3. Their next scheduled meeting will be held Dec. 14-15.

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.