On Tuesday, 30-year mortgage rates saw a slight decrease of one-tenth of a percentage point, reaching 7.20%—the most affordable level since March. Most new purchase and refinance mortgage rates experienced a decline, with only a few loan types maintaining stability. Specifically, the FHA 30-year average dropped to a two-month low on this day.

National Averages of Lenders’ Best Mortgage Rates

It’s important to note that mortgage rates can vary significantly among lenders. Hence, it’s advisable to explore different options and regularly compare rates across various loan types to secure the best mortgage deal for your specific needs.

Today’s Mortgage Rate Averages: New Purchase

The average rate for 30-year new purchase mortgages reduced by 10 basis points on Tuesday, hitting 7.20%, marking the lowest average for the current month.

While 30-year rates are slightly higher compared to earlier this year, they remain significantly lower than last year’s peak. In contrast to October’s record high of 8.45%, today’s rates are notably more affordable.

Additionally, 15-year new purchase mortgages dropped by 7 basis points to 6.66% on Tuesday, down from the previous day’s 6.73%. These rates are considerably lower than the 7.59% average recorded last fall, representing the lowest since 2000.

Jumbo 30-year loan rates also saw a decrease of 12 basis points, bringing Tuesday’s average to 6.95%. Comparatively, this rate is lower than the recent peak of 7.07%, marking the most expensive rate since mid-November.

Furthermore, rates for other new purchase mortgage types experienced downtrends on Tuesday, exemplified by the noteworthy drop of 38 basis points in the average for FHA 30-year loans, reaching a new low not seen since February.

National Averages of Lenders’ Best Rates – New Purchase

Do you want to calculate your monthly payments for different loan scenarios? Use our Mortgage Calculator today.

It’s essential to understand that the rates mentioned here represent average figures and may differ from teaser rates advertised online. Your final mortgage rate is influenced by various factors, such as credit score and income, and may vary from the averages cited here.

Mortgage Rates by State

Mortgage rates can vary by state due to factors like credit score variations and lender-specific risk management strategies. States like Mississippi, Vermont, and Hawaii offer lower rates, while Minnesota, Arizona, and Alabama have higher average rates.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates are influenced by a complex interplay of macroeconomic and industry factors, including bond market performance, Federal Reserve policies, and competition among lenders.

• The level and direction of the bond market, particularly 10-year Treasury yields
• The Federal Reserve’s monetary policy, especially regarding bond purchasing and supporting government-backed mortgages
• Competition among mortgage lenders and various loan types

The mortgage market remained relatively low in 2021 due to macroeconomic factors, including the Federal Reserve’s bond-buying efforts in response to economic challenges stemming from the pandemic.

However, the Fed started reducing its bond purchases from November 2021 onwards, reaching zero net purchases by March 2022. This reduction, coupled with significant rate increases to combat rising inflation, notably impacted mortgage rates.

The dramatic rate increases coincided with the Fed’s adjustment of the federal funds rate, contributing to a notable rise in mortgage rates over the preceding two years.

How We Track Mortgage Rates

The national average rates are calculated based on the lowest rates offered by over 200 top lenders, assuming specific criteria such as an 80% loan-to-value ratio and a credit score range of 700–760. These rates provide an indicative benchmark for customers seeking mortgage quotes.

Our state rates are derived from the lowest rates offered by surveyed lenders in each state, applying similar parameters to ensure consistency and relevance for potential borrowers.