The Latest Mortgage Rate Update

On Tuesday, mortgage rates remained relatively stable, with a slight increase observed. The 30-year fixed-rate average inched up by 4 basis points to 7.93%. This small uptick follows a significant drop last week, with rates now showing a slight uptrend to begin the current week.

Why Shopping Around for Mortgage Rates is Crucial

As mortgage rates can vary widely among lenders, it is essential to compare rates regularly to ensure you secure the best possible mortgage option, regardless of the loan type you are seeking.

National Averages of Lenders’ Best Rates

Here are the national averages of the lowest rates offered by more than 200 top lenders, based on loan-to-value ratio (LTV) of 80%, a FICO credit score of 700–760, and no mortgage points:

Today’s Mortgage Rate Averages for New Purchases

The 30-year rates increased by 4 basis points on Tuesday, reaching 7.93%. This rate is still near the lowest range seen since the end of September, significantly below the recent peak of 8.45% recorded three weeks ago.

Freddie Mac’s latest data revealed a rise in 30-year rates to 7.79%, the highest level since 2000, demonstrating a consistent upward trend.

Understanding Mortgage Rate Fluctuations

Mortgage rates are influenced by various macroeconomic and industry factors, including bond market trends, Federal Reserve policies, and competition among lenders.

Throughout 2021, the Federal Reserve’s bond-buying activities played a crucial role in keeping mortgage rates low. However, recent adjustments in the Fed’s policies have led to gradual increases in rates.

Methodology for Analyzing Mortgage Rates

The national averages provided are based on the lowest rates offered by over 200 lenders, considering an 80% loan-to-value ratio and a FICO credit score between 700–760.

State-specific rates are determined by the lowest rate available from surveyed lenders in each state, maintaining the same eligibility criteria.

Investopedia / Alice Morgan