As of Wednesday, mortgage rates for 30-year new purchase loans saw a notable increase, with the average climbing to 7.39%, marking a near 4-week high. This surge was fueled by the release of a higher-than-expected inflation report the prior day, causing all new purchase and refinance loan averages to rise substantially.

National Averages of Lenders’ Best Mortgage Rates

When it comes to mortgage rates, they can vary significantly from one lender to another. Hence, it’s highly advisable to explore your options and compare rates regularly to secure the best mortgage deal, regardless of the type of loan you are seeking.

Today’s Mortgage Rate Averages: New Purchase

On Wednesday, 30-year new purchase mortgage rates experienced a notable uptick of 19 basis points, reaching 7.39%, the highest level seen since March. This sudden increase was driven by the latest Consumer Price Index report, which unexpectedly showed a 0.3% rise in inflation to 3.5% for March.

Compared to the start of February, 30-year mortgage rates remain elevated but are notably lower than the peak seen in October at 8.45%.

Similarly, 15-year new purchase mortgage rates spiked by 20 basis points on Wednesday, hitting 6.86%, the highest level in four months, though still more affordable than last fall’s peak of 7.59%.

Jumbo 30-year loans observed an even larger surge of 25 basis points, leading to a 7.20% average. This marks the highest point since last Halloween, with historical data suggesting last fall’s 7.52% peak was the most expensive average in over 20 years.

Other new purchase loan types also experienced significant rate increases on Wednesday. FHA and VA 30-year averages climbed by 59 and 47 basis points respectively, while the 10-year and 20-year averages rose nearly 30 points each, with no averages declining.

The Weekly Freddie Mac Average

Released every Thursday, Freddie Mac’s weekly average for 30-year mortgage rates increased by 6 basis points to 6.88%. Notably, this average differs from our own daily rate calculations, as Freddie Mac blends rates over five days and may include discount points in their survey.

Freddie Mac’s rate movements are based on a broader timeframe than our daily averages, providing a more comprehensive view of rate trends. It’s important to note these distinctions when evaluating mortgage rate data.

Today’s Mortgage Rate Averages: Refinancing

Refinancing rates also saw an increase across the board on Wednesday. 30-year refinance rates ticked up by two-tenths of a percentage point, narrowing the spread between new purchase and refinance rates to 25 basis points.

Meanwhile, 15-year refinance rates rose by 28 basis points, with VA 30-year refinance rates experiencing a significant 40-point increase on average.

Mortgage Rates by State

The availability of the lowest mortgage rates varies by state, influenced by factors like credit score distribution, prevailing mortgage types, and lender risk management strategies.

States with the most favorable 30-year purchase rates on Wednesday included Mississippi, Vermont, Louisiana, New York, and Rhode Island, while Minnesota, Arizona, Idaho, Washington, and Oregon had the highest average rates.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates are influenced by a range of factors such as bond market trends, Federal Reserve policies, and competition among lenders and loan types.

• The bond market’s performance, particularly 10-year Treasury yields
• Federal Reserve’s monetary policies, particularly related to bond purchases and government-backed mortgages
• Competition dynamics among mortgage lenders and loan categories

Given the multifaceted nature of rate fluctuations, it can be challenging to attribute changes to a single factor. For instance, Federal Reserve actions, especially bond-buying programs, can exert significant influence on mortgage rates.

Throughout 2021, the Fed’s bond-buying efforts were instrumental in keeping mortgage rates low in response to economic uncertainties stemming from the pandemic.

Starting November 2021, the Fed gradually reduced its bond purchases, reaching a halt by March 2022—a move that impacted mortgage rates significantly.

Subsequently, the Fed embarked on a series of rate hikes from late 2022 to combat high inflation levels, providing a backdrop for mortgage rate increases driven by market expectations.

The Fed’s rate adjustments play a significant role in shaping mortgage rate trajectories, with the central bank signaling potential rate cuts in 2024 as inflation moderates.

Despite recent rate stability, the Fed remains watchful of inflation trends, with potential rate reductions on the horizon to support economic stability.

How We Track Mortgage Rates

The national averages referenced here are derived from the best rates offered by over 200 leading lenders, assuming specific borrower qualifications like credit score and loan-to-value ratio for accurate rate comparisons.

While these averages provide valuable insights into prevailing mortgage rates, individual rates may vary based on borrower-specific factors. Utilize these averages as a reference point in your mortgage rate comparison process.