Mortgage rates edged upward Wednesday, resuming their up-and-down pattern of the past three weeks, during which they’ve risen and fallen within a narrow range of about an eighth of a point. The current average has 30-year rates sitting just slightly above the 3% threshold.
|National Averages of Lenders’ Best Rates|
|FHA 30-Year Fixed||2.86%||3.00%|
|Jumbo 30-Year Fixed||3.13%||3.32%|
Today’s National Mortgage Rate Averages
After dipping to the 3% mark Tuesday, 30-year fixed mortgage rates rose four basis points yesterday, raising the average to 3.04%. That brings it 15 basis points above the five-month low of 2.89% set on August 3.
Meanwhile, 15-year and Jumbo 30-year fixed-rate loans largely marked time Wednesday, with the 15-year average rising just a point, to 2.31%, and Jumbo 30-year rates remaining unchanged at 3.13%. Both current averages are just a tenth of a point or less above the lows seen a month ago.
Refinance rates averaged 11 to 19 basis points higher than new purchase rates on fixed-rate loans, while 5/1 ARM refinancing currently carries a premium of 41 points over new purchase ARMs. Notably, the average Jumbo 30-year refinance rate is only two points above its lowest level since February.
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||2.86%||+0.03|
|VA 30-Year Fixed||2.88%||+0.04|
|Jumbo 30-Year Fixed||3.13%||No Change|
|Jumbo 15-Year Fixed||2.83%||+0.01|
|10-Year Fixed||2.23%||No Change|
|7/1 ARM||2.41%||No Change|
|Jumbo 7/1 ARM||2.18%||No Change|
|Jumbo 7/6 ARM||2.40%||No Change|
|Jumbo 5/1 ARM||2.04%||No Change|
|Jumbo 5/6 ARM||2.44%||No Change|
|National Averages of Lenders’ Best Rates – Refinancing|
|Loan Type||Refinance||Daily Change|
|FHA 30-Year Fixed||3.00%||+0.01|
|VA 30-Year Fixed||3.06%||No Change|
|Jumbo 30-Year Fixed||3.32%||No Change|
|15-Year Fixed||2.43%||No Change|
|Jumbo 15-Year Fixed||3.02%||No Change|
|10-Year Fixed||2.37%||No Change|
|Jumbo 7/1 ARM||2.41%||No Change|
|Jumbo 7/6 ARM||2.60%||No Change|
|Jumbo 5/1 ARM||2.26%||No Change|
|Jumbo 5/6 ARM||2.54%||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 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 July 28. The detailed minutes of that meeting were released August 18, and though they are not yet announcing 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 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.