National Averages of Lenders’ Best Mortgage Rates
Last week, 30-year mortgage rates hit a five-month high, but have since slightly declined, hovering below recent peaks. As of today, the 30-year average stands at 7.51%. Rates for various mortgage types, including new purchase and refinance, remained relatively stable on Tuesday.
Current Mortgage Rate Averages
On Tuesday, 30-year mortgage rates inched down by a single basis point, reaching an average of 7.51%. This slight decrease reflects a drop from the recent high of 7.65% recorded a week ago. While rates have increased compared to early February, they are still significantly lower than the peak in October when they hit 8.45%.
Meanwhile, 15-year mortgage rates also saw minimal movement, currently averaging 6.88%, slightly below the recent peak of 7.00%. Despite the increase from earlier in the year, these rates remain more affordable than the 7.59% recorded last fall.
Jumbo 30-year mortgage rates held steady at 7.20% on Tuesday, marking the highest level since November. It’s estimated that last fall’s peak of 7.52% was the priciest jumbo 30-year average in over 20 years.
Comparing Mortgage Rates
It’s important to shop around for the best mortgage rates as they can vary widely among lenders. Regardless of the type of home loan you are seeking, regularly comparing rates can help you secure the most favorable option.
Consider using our Mortgage Calculator to calculate monthly payments for different loan scenarios.
Understanding Mortgage Rate Fluctuations
Mortgage rates are influenced by a combination of macroeconomic and industry factors, such as bond market trends, Federal Reserve policies, and competition among lenders.
Fluctuations in mortgage rates can be difficult to attribute to a single factor due to the multifaceted nature of their determination. For instance, the Federal Reserve’s bond-buying policy plays a significant role in shaping mortgage rates.
Impact of Federal Reserve Policies
The Federal Reserve’s decisions on the federal funds rate and monetary policies have a direct impact on mortgage rates. Recent increases in the federal funds rate have caused a notable upward trend in mortgage rates over the past two years.
While the Fed is currently maintaining the federal funds rate, market analysts anticipate potential rate cuts in 2024 based on the latest forecasts. The upcoming Fed meetings will provide further insights into the future trajectory of interest rates.
Tracking Mortgage Rates
Our national averages are derived from more than 200 top lenders and reflect rates offered with specific criteria. These rates offer a realistic expectation for borrowers and may differ from advertised teaser rates, which often involve specific conditions or borrower profiles.
For a state-specific view of mortgage rates, the lowest rates offered in each state are highlighted, taking into account factors like loan-to-value ratio and credit score range. These state rates provide valuable insights into regional variations in mortgage pricing.
