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Mortgage rates deepened their downward trend Monday, after almost reaching their most expensive levels of the calendar year in mid October. The flagship 30-year rate has now dipped to its lowest average since September.
| National Averages of Lenders’ Best Rates | ||
|---|---|---|
| Loan Type | Purchase | Refinance |
| 30-Year Fixed | 3.13% | 3.21% |
| FHA 30-Year Fixed | 2.95% | 3.11% |
| Jumbo 30-Year Fixed | 3.31% | 3.47% |
| 15-Year Fixed | 2.41% | 2.51% |
| 5/1 ARM | 2.38% | 3.03% |
Today’s National Mortgage Rate Averages
It’s been just over two weeks since mortgage rates spiked to almost their highest levels of the year. Since then the trend has been markedly downward, lowering the 30-year average two-tenths of a percentage point in that time, with Monday’s average dropping three basis points to 3.13%. That brings it to the lowest level since September 23.
Still, yesterday’s average is about a quarter of a percentage point higher than in early August, when a major rate drop brought the 30-year average down to 2.89%.
The 15-year and Jumbo 30-year rate averages also dipped further Monday. The 15-year average shed four basis points to 2.41%, which is 19 basis points below its YTD high, and the Jumbo 30-year average moved two points lower, to 3.31%, or 14 points lower than its highest rate of the year. Similar to the 30-year average, these rates sit two-tenths to a quarter of a percentage point above their early-August valley.
Refinance rates showed similar downward pressure Friday, with the major fixed-rate refinance averages losing two to four basis points. Rates to refinance 30-year and 15-year loans are currently priced 8 to 16 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 | 3.13% | -0.03 |
| FHA 30-Year Fixed | 2.95% | -0.03 |
| VA 30-Year Fixed | 2.98% | -0.03 |
| Jumbo 30-Year Fixed | 3.31% | -0.02 |
| 20-Year Fixed | 2.86% | -0.03 |
| 15-Year Fixed | 2.41% | -0.04 |
| Jumbo 15-Year Fixed | 3.04% | -0.04 |
| 10-Year Fixed | 2.31% | -0.05 |
| 10/1 ARM | 2.94% | -0.19 |
| 10/6 ARM | 3.87% | -0.02 |
| 7/1 ARM | 2.67% | +0.05 |
| Jumbo 7/1 ARM | 2.24% | -0.05 |
| 7/6 ARM | 3.93% | -0.15 |
| Jumbo 7/6 ARM | 2.59% | -0.12 |
| 5/1 ARM | 2.38% | -0.20 |
| Jumbo 5/1 ARM | 2.09% | -0.05 |
| 5/6 ARM | 3.91% | -0.11 |
| Jumbo 5/6 ARM | 2.61% | -0.12 |
| National Averages of Lenders’ Best Rates – Refinancing | ||
|---|---|---|
| Loan Type | Refinance | Daily Change |
| 30-Year Fixed | 3.21% | -0.04 |
| FHA 30-Year Fixed | 3.11% | -0.04 |
| VA 30-Year Fixed | 3.25% | -0.05 |
| Jumbo 30-Year Fixed | 3.47% | -0.02 |
| 20-Year Fixed | 2.99% | -0.03 |
| 15-Year Fixed | 2.51% | -0.04 |
| Jumbo 15-Year Fixed | 3.31% | -0.06 |
| 10-Year Fixed | 2.44% | -0.04 |
| 10/1 ARM | 3.69% | -0.02 |
| 10/6 ARM | 4.30% | +0.03 |
| 7/1 ARM | 2.74% | -0.32 |
| Jumbo 7/1 ARM | 2.49% | -0.07 |
| 7/6 ARM | 4.34% | -0.03 |
| Jumbo 7/6 ARM | 2.86% | -0.12 |
| 5/1 ARM | 3.03% | +0.04 |
| Jumbo 5/1 ARM | 2.33% | -0.07 |
| 5/6 ARM | 3.90% | -0.10 |
| Jumbo 5/6 ARM | 2.79% | -0.12 |
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 November 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 November 3. Their next scheduled meeting will be held December 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.