National Mortgage Rate Update
On Thursday, rates on 30-year new purchase mortgages experienced a slight dip, falling to an average of 7.08%. This rate is close to its lowest level since early April, marking a positive trend for potential homebuyers. Similar modest movements were observed in averages for other mortgage types.
Editor’s Note
Effective May 1, we have transitioned to providing daily mortgage rate averages through the Zillow Mortgage API. This change introduces a new rate source and methodology, impacting the alignment of our current averages with those published before May 1, 2024. Our historical data and analysis going forward will be based on this updated data source.
National Rate Averages for Top 5 Mortgage Types
Due to the wide variation in rates among lenders, it is advisable to compare mortgage options diligently across different providers to secure the most favorable terms, regardless of the type of home loan you are pursuing.
Today’s Mortgage Rate Averages: New Purchase
Following a surge in late April to a five-month high, 30-year new purchase loan rates have since decreased. The 30-year average dropped by 2 basis points to 7.08%, remaining close to the recent low. Compared to earlier rates, current mortgage rates offer more affordability to prospective buyers.
Although slightly higher compared to early February figures, the current 30-year mortgage rates are notably more cost-effective than the historical peak observed in October.
In contrast, 15-year new purchase mortgage rates experienced a minor uptick, reaching an average of 6.24%. Despite the increase, these rates remain significantly lower than levels seen in previous months.
Jumbo 30-year rates also saw a slight rise, settling at 7.16%. This rate is still below the recent peak noted over the past five months, presenting a potential opportunity for buyers considering larger loan amounts.
Most other new purchase average rates remained steady or experienced minimal fluctuations, with the exception of jumbo 7/6 adjustable-rate loans, which saw a slight increase.
National Mortgage Rate Averages – New Purchase Loans
The table below highlights the latest average rates for new purchase loans across various mortgage types, offering valuable insights into current market trends:
| Loan Type | New Purchase Average | Daily Change |
|---|---|---|
| 30-Year Fixed | 7.08% | -0.02% |
The Weekly Freddie Mac Average
Freddie Mac’s latest weekly average for 30-year mortgage rates declined by 13 basis points to 7.09%. This shift reflects the first decrease since late March, indicating a potential shift in the market.
It’s important to note that Freddie Mac’s methodology for calculating rates differs from other sources, such as our daily average, providing unique insights into rate movements over time.
Today’s Mortgage Rate Averages: Refinancing
While several refinancing averages remained stable on Thursday, some recorded notable upward movements. Understanding these shifts can help refinancing applicants make informed decisions based on the latest rate adjustments.
National Mortgage Rate Averages – Refinance Loans
The following table showcases the latest average rates for refinancing options, presenting a comprehensive view of refinancing market dynamics:
| Loan Type | Refinance Average | Daily Change |
|---|---|---|
| 30-Year Fixed | 7.41% | +0.09% |
Utilize our Mortgage Calculator to estimate monthly payments based on different loan scenarios, aiding in your financial planning and decision-making process.
Mortgage Rates by State
Mortgage rates vary across states due to regional factors like credit scores, loan types, and market conditions. Understanding these variations can help borrowers leverage the most competitive rates available in their area.
Certain states offer more favorable rates for new purchase loans, providing opportunities for buyers to secure cost-effective financing options. Conversely, other states may present different challenges in terms of loan affordability.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are influenced by various factors, including the bond market, Federal Reserve policies, and competitive dynamics within the lending industry. Understanding these drivers can help borrowers navigate rate fluctuations effectively.
Macro events, such as the Federal Reserve’s bond-buying activities, have a significant impact on mortgage rates, shaping the overall lending landscape and influencing borrowing costs.
How We Track Mortgage Rates
Our mortgage rate averages provided through the Zillow Mortgage API incorporate key borrower criteria, offering a realistic representation of rates individuals may encounter when exploring loan options. These averages serve as a valuable benchmark for evaluating lender quotes and making informed decisions.
