With a minor increase Friday, rates on 30-year new purchase mortgages continue bobbing around below the 8% threshold—after dipping into 7% territory more than a week ago. Averages for most loan types were slightly up Friday, though a handful of averages were flat, and rates on 5/6 ARMs dropped.
Rates vary widely across lenders, so it's always smart to shop around for your best mortgage option and compare rates regularly, no matter what type of loan you're seeking.
|National Averages of Lenders' Best Rates|
|Loan Type||New Purchase||Refinance|
|FHA 30-Year Fixed||7.72%||8.07%|
|Jumbo 30-Year Fixed||7.06%||7.07%|
Today's Mortgage Rate Averages: New Purchase
Friday's rates on 30-year new purchase loans clawed back the 3 basis points they gave up Thursday, returning the average to 7.91%. For the last nine market days, the flagship average has been moving in a mild yo-yo pattern below 8%, its lowest range since late September. The current average is also notably below the historic peak of 8.45%, which was recorded on Oct. 17 and was estimated to be the highest 30-year average in 23 years.
The Freddie Mac mortgage average released on Oct. 26 revealed that 30-year rates had climbed for a seventh straight week to average 7.79%—their highest level since 2000. The Freddie Mac average has since slid to 7.50%, the lowest average since early October.
Freddie Mac’s averages differ from those we publish here due to Freddie Mac calculating a weekly average that blends five previous days of rates, and which may include loans priced with discount points. In contrast, Investopedia’s averages indicate daily rate movement and only include zero-point loans.
Friday's 15-year rate average also added 3 basis points, inching up to 7.25%. That's about a third of a percentage point lower than Oct. 23's record peak of 7.59%, which was the highest level seen for 15-year rates since 2000.
Jumbo 30-year rates meanwhile marked time Friday. Holding at a 7.06% average, jumbo 30-year rates are at their lowest point since Sept. 22. Though daily jumbo rates are not available before 2009, it's estimated that the 7.52% peak on Oct. 19 was the most expensive average for jumbo 30-year loans in more than 20 years.
The only new purchase average to decline Friday was for 5/6 adjustable-rate mortgages, which shed 8 basis points to land at 7.86%. The previous day's average of 7.94% was the highest 5/6 ARM average we've seen since we began gathering home loan interest rate data in 2021.
|National Averages of Lenders' Best Rates - New Purchase|
|Loan Type||New Purchase Rates||Daily Change|
|FHA 30-Year Fixed||7.72%||+0.08|
|VA 30-Year Fixed||7.58%||+0.06|
|Jumbo 30-Year Fixed||7.06%||No Change|
|FHA 15-Year Fixed||7.35%||+0.01|
|Jumbo 15-Year Fixed||7.02%||No Change|
|Jumbo 7/6 ARM||6.83%||No Change|
|Jumbo 5/6 ARM||6.94%||+0.13|
Today's Mortgage Rate Averages: Refinancing
Most refinancing rate averages were flat or nearly flat Friday, but the 30-year refi average saw a notable jump. Rising 11 basis points to reach 8.34%, the gap between refi and new purchase 30-year rates has spread to 43 basis points.
Other notable movers among refi rates Friday were the jumbo 5/6 ARM average, which shot up 13 basis points, and the FHA 30-year average, which climbed 8 basis points.
|National Averages of Lenders' Best Rates - Refinance|
|Loan Type||Refinance Rates||Daily Change|
|FHA 30-Year Fixed||8.07%||+0.08|
|VA 30-Year Fixed||8.04%||+0.02|
|Jumbo 30-Year Fixed||7.07%||No Change|
|FHA 15-Year Fixed||7.38%||No Change|
|Jumbo 15-Year Fixed||7.02%||No Change|
|10-Year Fixed||7.40%||No Change|
|Jumbo 7/6 ARM||6.94%||No Change|
|Jumbo 5/6 ARM||6.94%||+0.13|
Calculate monthly payments for different loan scenarios with our Mortgage Calculator.
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,?while these rates are averages. Teaser rates?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.?The mortgage rate you ultimately secure will be based on factors like your credit score, income, and more, so it may be higher or lower than the averages you see here.
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 type, and size, in addition to individual lenders' varying risk management strategies.
The states with the lowest 30-year new purchase averages were Vermont, Delaware, Louisiana, Mississippi, North Carolina, North Dakota, Wisconsin, and Wyoming, while the states with the highest averages were Arizona, Minnesota, Georgia, Oregon, Nevada, Idaho, Washington, and Texas.
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, especially 10-year Treasury yields
- The Federal Reserve's current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
- Competition between mortgage 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 kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic's economic pressures. This bond-buying policy is a major influencer of mortgage rates.
But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net zero in March 2022.
Since that time, the Fed has been aggressively raising the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it does not directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.
However, given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over the last 18 months—even the indirect influence of the fed funds rate has resulted in an upward impact on mortgage rates over the last two years.
The Fed has opted to hold rates steady at its last two meetings, which concluded Sept. 20 and Nov. 1. But Fed Chair Jerome Powell has made it clear that another rate increase is still possible at a future meeting. The Fed’s next rate announcement will be made Dec. 13.
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.