Summary of Mortgage Rate Trends
As the week wrapped up with a three-day decline, 30-year mortgage rates fell to 7.11% on Friday, marking their lowest average since early April. Rates also saw significant drops in several other mortgage types, with many experiencing double-digit decreases.
Zillow Mortgage Data Update
Editor’s Note: As of May 1, our daily mortgage rate averages are sourced via the Zillow Mortgage API. This new methodology may lead to variations compared to our previous data. All historical analyses are now based on this updated data source.
National Rate Averages for Top 5 Mortgage Types
Here is a breakdown of the latest national rate averages for the top 5 mortgage types. These averages are based on a minimum 20% down payment and a credit score range of 680 to 739.
Mortgage Rate Shopping Advice
Since rates can vary significantly among lenders, it is advisable to shop around to find the best mortgage deal for your specific needs, regardless of the type of loan you are pursuing.
Today’s Mortgage Rate Averages: New Purchase
After reaching a five-month high recently, 30-year new purchase rates dropped by 14 basis points to 7.11%, their lowest level since early April.
While rates remain higher than early February lows, they are significantly more affordable than the historic peak of 8.01% in October last year.
New purchase 15-year rates also saw a significant decrease, falling to a four-week low of 6.21%, making them notably more affordable compared to last fall’s peak.
Jumbo 30-year rates followed suit, dropping to 7.06%, nearly a quarter percentage point lower than the recent high. Previous historical data suggests last fall’s rates hit a 20-year high.
Notably, all other new purchase mortgage averages also saw reductions, with some experiencing significant drops. FHA 15-year rates, in particular, showed a substantial 39 basis points decrease.
Today’s Mortgage Rate Averages: Refinancing
While most refinancing averages declined, the 30-year refi average saw a slight increase. The gap between new purchase and refi rates widened to 52 basis points, showcasing varied trends in the market.
For a detailed comparison of mortgage rates and monthly payment scenarios, try out our Mortgage Calculator.
Mortgage Rates by State
Mortgage rates vary by state due to factors like credit scores, loan types, and lender risk strategies. States like Alaska, New York, and Texas enjoy lower rates, while states such as West Virginia and Iowa see higher averages.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are influenced by a range of factors, including bond market movements, Federal Reserve policies, and lender competition. The interplay of these factors makes it challenging to pinpoint any single driver of rate changes.
Recent shifts in the mortgage market have been shaped by the Federal Reserve’s bond-buying policies, which have fluctuated over the past year.
Tracking Mortgage Rates
The mortgage rate averages presented are based on the Zillow Mortgage API and reflect specific loan and credit score parameters. These averages provide a realistic representation of expected rates for potential borrowers.
