For a fourth consecutive day, fixed-rate mortgage averages have ticked steadily upwards, after previously pulling back from sharp gains triggered by the Fed's mid-September meeting. The 30-year rate average is now just a single point below the highest level seen since early summer.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||3.03%||3.20%|
|Jumbo 30-Year Fixed||3.33%||3.50%|
Today's National Mortgage Rate Averages
Mortgage rates have continued their ascent for almost a week now, with the 30-year fixed-rate average adding two more basis points Friday to reach 3.23%. That leaves it just under the 3.24% high average seen in mid-June, and 0.34 percentage points higher than the five-month low hit in early August, when the rate sank to 2.89%.
Meanwhile, the 15-year and Jumbo 30-year fixed-rate averages also gained, with 15-year rates rising one point to 2.46% and Jumbo 30-year climbing three points to 3.33%. Those averages are registering roughly a quarter of a percentage point above their August lows.
Refinance rates for 30-year and Jumbo 30-year loans continued their climb with increases of two and four basis points, respectively, while the 15-year refinance rate held steady Friday. Rates to refinance are currently priced 10 to 17 basis points more expensive than new purchase rates.
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||3.03%||-0.02|
|VA 30-Year Fixed||3.05%||-0.03|
|Jumbo 30-Year Fixed||3.33%||+0.03|
|Jumbo 15-Year Fixed||3.02%||No Change|
|10-Year Fixed||2.40%||No Change|
|Jumbo 7/1 ARM||2.36%||+0.02|
|Jumbo 7/6 ARM||2.65%||+0.12|
|Jumbo 5/1 ARM||2.21%||+0.02|
|Jumbo 5/6 ARM||2.68%||No Change|
|National Averages of Lenders' Best Rates - Refinancing|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||3.20%||-0.04|
|VA 30-Year Fixed||3.30%||-0.03|
|Jumbo 30-Year Fixed||3.50%||+0.04|
|15-Year Fixed||2.56%||No Change|
|Jumbo 15-Year Fixed||3.22%||+0.03|
|10-Year Fixed||2.52%||No Change|
|Jumbo 7/1 ARM||2.65%||+0.02|
|Jumbo 7/6 ARM||2.85%||+0.12|
|Jumbo 5/1 ARM||2.49%||+0.02|
|Jumbo 5/6 ARM||2.79%||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.
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 several 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 September 22. Though they did not yet announce a change to their bond-buying plans, a majority of Fed members indicated they favor beginning to taper the stimulus by the end of 2021.
The next scheduled FOMC event will be the October 13 release of detailed minutes from the September 22 meeting.
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.