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While last week saw fast upward momentum in mortgage rates, taking the flagship 30-year average to within a point of its highest range of the calendar year, this week has chipped away at rates every day, with the 30-year average now down more than a tenth of a percentage point from Friday.
| National Averages of Lenders’ Best Rates | ||
|---|---|---|
| Loan Type | Purchase | Refinance |
| 30-Year Fixed | 3.22% | 3.32% |
| FHA 30-Year Fixed | 3.09% | 3.31% |
| Jumbo 30-Year Fixed | 3.39% | 3.56% |
| 15-Year Fixed | 2.51% | 2.60% |
| 5/1 ARM | 2.55% | 3.20% |
Today’s National Mortgage Rate Averages
Mortgage rates were generally flat Thursday, with averages for the most popular loan types hovering within a range of one point in either direction from the previous day. For some mortgage types, yesterday was the fourth day in a row of rates edging downwards, after last week saw averages surge to almost their highest levels of 2021.
The 30-year fixed-rate average dipped one basis point Thursday, lowering it to 3.22%. That’s now 0.11 percentage points lower than Friday’s reading of 3.33%. Compared to early August, however, when a major rate drop brought the 30-year rate down to 2.89%, today’s rate is a third of a percentage point more expensive.
Meanwhile, Jumbo 30-year loans also declined one point Thursday, while 15-year rates rose a point. The 15-year average is now at 2.51% and the Jumbo 30-year average, 3.39%. These rates are now 0.30 and 0.33 percentage points, respectively, above their early-August lows.
Refinance rates also remained relatively steady Thursday, with the 30-year refinance average losing a single point, and the 15-year and Jumbo 30-year averages showing no movement. Rates to refinance 30-year and 15-year loans are currently 9 to 17 basis points more costly 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 | 3.22% | -0.01 |
| FHA 30-Year Fixed | 3.09% | No Change |
| VA 30-Year Fixed | 3.13% | No Change |
| Jumbo 30-Year Fixed | 3.39% | -0.01 |
| 20-Year Fixed | 2.98% | -0.02 |
| 15-Year Fixed | 2.51% | +0.01 |
| Jumbo 15-Year Fixed | 3.13% | No Change |
| 10-Year Fixed | 2.42% | No Change |
| 10/1 ARM | 2.89% | -0.31 |
| 10/6 ARM | 4.27% | -0.07 |
| 7/1 ARM | 2.57% | -0.02 |
| Jumbo 7/1 ARM | 2.30% | -0.01 |
| 7/6 ARM | 3.66% | -0.02 |
| Jumbo 7/6 ARM | 2.71% | No Change |
| 5/1 ARM | 2.55% | +0.03 |
| Jumbo 5/1 ARM | 2.15% | -0.02 |
| 5/6 ARM | 4.11% | -0.16 |
| Jumbo 5/6 ARM | 2.73% | No Change |
| National Averages of Lenders’ Best Rates – Refinancing | ||
|---|---|---|
| Loan Type | Refinance | Daily Change |
| 30-Year Fixed | 3.32% | -0.01 |
| FHA 30-Year Fixed | 3.31% | +0.02 |
| VA 30-Year Fixed | 3.42% | +0.03 |
| Jumbo 30-Year Fixed | 3.56% | No Change |
| 20-Year Fixed | 3.11% | -0.02 |
| 15-Year Fixed | 2.60% | No Change |
| Jumbo 15-Year Fixed | 3.40% | No Change |
| 10-Year Fixed | 2.54% | No Change |
| 10/1 ARM | 3.74% | -0.06 |
| 10/6 ARM | 4.38% | -0.06 |
| 7/1 ARM | 3.01% | -0.12 |
| Jumbo 7/1 ARM | 2.57% | -0.02 |
| 7/6 ARM | 4.03% | -0.09 |
| Jumbo 7/6 ARM | 2.98% | No Change |
| 5/1 ARM | 3.20% | -0.02 |
| Jumbo 5/1 ARM | 2.42% | -0.01 |
| 5/6 ARM | 4.20% | -0.09 |
| Jumbo 5/6 ARM | 2.91% | 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 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 their November 2-3 rate-setting meeting.
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.