Today's Mortgage Rates & Trends - September 13, 2022: Rates waver

30-year average is hovering in lower 6% territory

The 30-year mortgage average registered just minor movement for a second day Monday. Though still in 6% territory, the average has declined from last week, when it neared its highest level since 2008.

National Averages of Lenders' Best Rates
Loan Type Purchase Refinance
30-Year Fixed 6.18% 6.42%
FHA 30-Year Fixed 5.90% 6.32%
Jumbo 30-Year Fixed 5.40% 5.40%
15-Year Fixed 5.44% 5.70%
5/6 ARM 6.02% 6.22%
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.
2022.09.02

Today's National Mortgage Rate Averages

Thirty-year mortgage rates have wavered the last couple of days, holding in the lower 6% range. Adding three basis points Tuesday, the flagship average is now 6.18%. Last week, rates had jumped to flirt with the 14-year high of 6.38% notched in June.

The 15-year average was almost flat Monday, subtracting a single basis points to rest at 5.44%. Earlier this month, the 15-year average surged to 5.62%, its highest level since 2008.

Jumbo 30-year rates meanwhile jumped an eighth of a point higher Monday, rising to 5.40%. That matches its most expensive level registered since mid-June.

The major refinancing averages moved identically to new purchase averages Monday, with the 30-year refi average climbing three basis points, the 15-year refi average dipping one point, and Jumbo 30-year refi rates moving an eighth of a point higher. The cost to refinance with a fixed-rate loan is currently zero to 44 points more expensive than new purchase loans.

After a major rate dip last summer, mortgage rates skyrocketed in the first half of 2022, with the 30-year average peaking in mid-June by an eye-popping 3.49 percentage points above its August 2021 low of 2.89%.

Meanwhile, mid-June saw the 15-year and Jumbo 30-year averages shoot 3.21 and 2.38 percentage points higher, respectively, than their summer 2021 valleys.

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
30-Year Fixed 6.18% +0.03
FHA 30-Year Fixed 5.90% +0.01
VA 30-Year Fixed 6.14% +0.03
Jumbo 30-Year Fixed 5.40% +0.13
20-Year Fixed 5.99% +0.03
15-Year Fixed 5.44% -0.01
Jumbo 15-Year Fixed 5.27% No change
10-Year Fixed 5.41% -0.11
10/6 ARM 6.15% +0.04
7/6 ARM 6.14% No change
Jumbo 7/6 ARM 5.10% No change
5/6 ARM 6.02% +0.01
Jumbo 5/6 ARM 5.06% No change
National Averages of Lenders' Best Rates - Refinance
Loan Type Refinance Daily Change
30-Year Fixed 6.42% +0.03
FHA 30-Year Fixed 6.32% +0.09
VA 30-Year Fixed 6.58% -0.01
Jumbo 30-Year Fixed 5.40% +0.13
20-Year Fixed 6.25% +0.06
15-Year Fixed 5.70% -0.01
Jumbo 15-Year Fixed 5.28% No change
10-Year Fixed 5.65% No change
10/6 ARM 6.43% +0.04
7/6 ARM 6.27% No change
Jumbo 7/6 ARM 5.19% No change
5/6 ARM 6.22% -0.01
Jumbo 5/6 ARM 5.07% No change

Calculate monthly payments for different loan scenarios with our Mortgage Calculator.

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.

On May 4, the Fed announced that it will begin reducing its balance sheet on June 1. Identical sizable reductions will occur in June, July, and August and then be doubled beginning in September. 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 six to eight weeks. Their next scheduled meeting takes place September 20–21.

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.