Recent Mortgage Rate Trends: What Borrowers Should Know
The latest data reveals a promising trend for prospective homebuyers and those looking to refinance: mortgage rates have been on a downward trajectory as of late. Just yesterday, the 30-year mortgage rate dipped below the 7% mark, reaching 6.83%, its lowest point since March. This decline marks the second consecutive day of falling rates, offering a favorable environment for borrowers.
Editor’s Note
Starting May 1, our mortgage rate averages are sourced from the Zillow Mortgage API, reflecting a shift in methodology. Readers should note that historical and future data presented here is derived from this updated source.
National Rate Averages for Top 5 Mortgage Types
Let’s take a closer look at the current rate averages for the top five most common mortgage types:
| Loan Type | New Purchase | Refinance |
|---|---|---|
| 30-Year Fixed | 6.83% | 7.23% |
| FHA 30-Year Fixed | 6.91% | 6.60% |
| 15-Year Fixed | 5.96% | 5.72% |
| 5/6 ARM | 7.71% | 7.71% |
| Jumbo 30-Year Fixed | 7.00% | 6.90% |
Note: These averages are based on a 20% down payment and a credit score range of 680 to 739.
Given the variance in rates among lenders, it’s advisable to explore multiple lenders to secure the best possible mortgage terms, regardless of the loan type.
Today’s Mortgage Rate Averages: New Purchase
Continuing the positive trend, 30-year mortgage rates decreased slightly today, reaching 6.83%, the most affordable rate since late March.
While still higher than levels in early February, today’s 30-year rates are significantly lower than the peak of 8.01% seen back in October.
Additionally, 15-year mortgage rates for new purchases dropped to 5.96%, reflecting a favorable market for those seeking shorter-term loans.
Jumbo 30-year rates saw a minor reduction, now averaging 7.00%, down from recent highs of 7.30%.
Other loan types also experienced slight rate decreases today, with the exception of FHA loans.
The Weekly Freddie Mac Average
Freddie Mac’s weekly mortgage rate report showed a drop to 7.02%, down 7 basis points from the previous week. This marks the second consecutive week of declining rates, reflecting a positive trend for borrowers.
While our daily averages differ slightly from Freddie Mac’s due to methodology variations, our data provides a more precise and real-time indicator of rate movements.
Refinancing Rate Averages
Refinancing rates exhibited mixed trends today, with notable drops in 30-year and 15-year refi averages, offering opportunities for homeowners seeking to refinance their mortgages.
Utilize our Mortgage Calculator to estimate monthly payments under various loan scenarios.
Teaser rates may deviate from the averages presented here, as they often highlight selectively attractive rates or are based on specific borrower profiles. Your final mortgage rate will be determined by factors such as credit score and financial history.
Mortgage Rates by State
State-level variations can significantly impact mortgage rates, influenced by credit score distributions, loan types, and local market dynamics.
Notable states with the lowest and highest average new purchase rates provide insights into regional rate disparities.
What Causes Mortgage Rates to Rise or Fall?
- The bond market and Treasury yields
- The Federal Reserve’s monetary policies
- Competition among lenders
The interplay of these factors contributes to the fluctuation of mortgage rates, making it challenging to attribute rate movements to any single cause.
Changes in the bond market, coupled with shifts in Federal Reserve policies, have a significant impact on mortgage rates. Recent adjustments in the Fed’s actions have notably influenced the mortgage market, contributing to the current rate environment.
How We Track Mortgage Rates
The mortgage rate averages cited here, based on the Zillow Mortgage API, offer a snapshot of prevailing rates for qualified borrowers, providing a realistic view of expected rates. Individual rates may vary based on specific lender criteria.
