Mortgage Rate Update: Rates Fall for 30-Year Purchase Mortgages

The latest data shows that rates on 30-year purchase mortgages dropped to 7.12% on Friday, marking a 3 basis point decrease and undoing the 7 basis points it had gained earlier in the week. While rates for other mortgage types remained mixed, the 30-year refinance rate saw a notable increase of 23 basis points.

National Averages of Lenders’ Best Mortgage Rates

It’s important to note that mortgage rates can vary widely depending on the lender. Therefore, shopping around and comparing rates regularly is recommended to secure the best mortgage option for your specific needs, regardless of the type of loan you are looking for.

Today’s Mortgage Rate Averages: New Purchase

The average rate for 30-year new purchase mortgages dipped by 3 basis points on Friday, continuing a downward trend that started earlier in the week. The current 7.12% rate is 33 basis points lower than the recent high of 7.45%.

While mortgage rates are still higher than earlier in the year, they remain significantly lower than the peak seen last October. This indicates a favorable environment for potential homebuyers.

The Weekly Freddie Mac Average

Freddie Mac’s weekly average, which blends rates from the previous days, offers a valuable insight into the market. With rates decreasing to 6.79% last week, there is a clear downward trend compared to the historic peak of 7.79% seen in late October.

It’s important to note the differences between Freddie Mac’s average and daily rates, as well as the impact of discount points on loan pricing. Our daily averages provide a more timely indication of rate movements.

Today’s Mortgage Rate Averages: Refinancing

Refinancing rates showed mixed results, with varying gains and losses compared to new purchase rates. The 30-year refi rate experienced a notable increase, while other loan types saw modest changes or remained stable.

The spread between new purchase and refi rates widened, indicating potential opportunities for refinancing to lock in favorable rates.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates are influenced by various factors such as bond market movements, Federal Reserve policies, and lender competition. These factors interact in complex ways, making it challenging to pinpoint a single cause for rate changes.

Recent changes in the Federal Reserve’s policies have had a significant impact on mortgage rates, underscoring the importance of monitoring macroeconomic developments.

Mortgage Rates by State

State-level variations in mortgage rates highlight the impact of regional factors on borrowing costs. By comparing rates across states, borrowers can identify potential opportunities for securing more favorable terms.

States like Alaska, Rhode Island, and Mississippi offer some of the lowest rates for new purchase mortgages, while others like Minnesota and Nevada have higher average rates.

How We Track Mortgage Rates

Our national averages are based on rates from top lenders and reflect what borrowers with good credit can expect. These rates provide a realistic benchmark for comparing offers and understanding market trends.

For state rates, we consider the lowest rates offered by surveyed lenders under specific criteria, ensuring a comprehensive view of regional variations in mortgage pricing.

Calculate monthly payments for different loan scenarios with our Mortgage Calculator.

The rates mentioned here are based on actual offers from lenders and provide a more accurate representation of current market conditions compared to teaser rates. Your individual mortgage rate will depend on various factors such as credit score and income, so it may differ from the averages presented above.