The yo-yo pattern continues for 30-year mortgage rates. After setting a new high-water mark on Friday, the flagship average sank more than an eighth of a percentage point Monday.
|National Averages of Lenders' Best Rates|
|FHA 30-Year Fixed||7.33%||7.49%|
|Jumbo 30-Year Fixed||6.27%||6.27%|
Today's National Mortgage Rate Averages
Over the past month, 30-year rates have seesawed dramatically, including hitting four peaks that each represented the average's highest mark since 2002. Friday saw the most expensive of those when the average rose to 7.58%. But this week is starting with rates back on the retreat. The 30-year average dropped 16 basis points Monday, lowering to 7.42%.
The 15-year average also dipped Monday, but by a more modest six basis points. Now at 6.93%, the 15-year average is sitting a tenth of a point below its 15-year high of 7.03%, which was registered Thursday.
Jumbo 30-year rates meanwhile remained flat for a second day. But their current 6.27% average is their highest mark in more than 12 years.
Monday's refinancing rates moved similar to their new purchase counterparts for 30-year and Jumbo 30-year loans, with the 30-year average shedding a bold 19 basis points while the Jumbo 30-year refi average held relatively steady. The 15-year refi average, however, dropped almost two-tenths of a point Monday. The current cost to refinance with a fixed-rate loan is up to 37 basis points higher than new purchase rates.
After a historical rate plunge in August 2021, mortgage rates skyrocketed in the first half of this year. Indeed, the 30-year average's mid-June peak of 6.38% had taken the average almost 3.5 percentage points above its summer 2021 floor of 2.89%. But the surge this fall is dramatically outdoing this summer's high, with the 30-year average having reached 1.2 percentage points above the June peak.
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 they 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|
|New Purchase||Daily Change|
|FHA 30-Year Fixed||7.33%||-0.15|
|VA 30-Year Fixed||7.41%||-0.26|
|Jumbo 30-Year Fixed||6.27%||No change|
|Jumbo 15-Year Fixed||6.27%||No change|
|Jumbo 7/6 ARM||5.98%||-0.12|
|Jumbo 5/6 ARM||6.06%||No change|
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||7.49%||-0.18|
|VA 30-Year Fixed||7.72%||+0.08|
|Jumbo 30-Year Fixed||6.27%||-0.01|
|Jumbo 15-Year Fixed||6.28%||No change|
|Jumbo 7/6 ARM||6.06%||-0.13|
|Jumbo 5/6 ARM||6.07%||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, in addition to 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 it continues to do so. This bond-buying policy (and not the more publicized federal funds rate) is a major influencer on mortgage rates.
Since June, the Fed has been reducing its balance sheet. Identical sizable reductions occurred monthly through the summer and are being accelerated in September. This is on top of its plan 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 six to eight weeks. Their next scheduled meeting takes place November 1-2.
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.