The Latest Mortgage Rate Trends
The current mortgage market continues to show promising signs for homebuyers and refinancers alike, with rates on 30-year mortgages hitting a new five-week low on Tuesday. The flagship average rate now stands at a competitive 7.00% and is inching closer to the 6% mark, making it an opportune time to explore mortgage options. Most other mortgage types also experienced declines on the same day.
Editor’s Update
Effective May 1, the daily mortgage rate averages provided in this article are sourced through the Zillow Mortgage API. This change brings a new rate source and methodology, impacting the alignment of current averages compared to data published before May 1, 2024. All historical data and future analysis will be based on this updated information.
National Rate Averages for Top 5 Mortgage Types
| Loan Type | New Purchase | Refinance |
|---|---|---|
| 30-Year Fixed | 7.00% | 7.41% |
| FHA 30-Year Fixed | 6.91% | 6.60% |
| 15-Year Fixed | 6.18% | 6.25% |
| 5/6 ARM | 7.96% | 8.30% |
| Jumbo 30-Year Fixed | 7.13% | 7.12% |
Given the wide variance in rates across lenders, it’s recommended to explore multiple options and regularly compare rates regardless of the mortgage type you are considering.
Today’s Mortgage Rate Averages for New Purchases
Following a peak of 7.37% in late April, 30-year mortgage rates for new purchases have seen a consistent decline in the past two weeks, reaching a new low of 7.00% on Tuesday.
Comparatively, 30-year rates remain higher than earlier this year but are significantly lower than the historic high of 8.01% in October.
The average for 15-year new purchase mortgages also dropped slightly to 6.18% on Tuesday, making them more affordable compared to recent highs.
Jumbo 30-year rates remained steady at 7.13% after reaching a recent peak, indicating a favorable outlook for jumbo mortgage seekers.
Most other new purchase loan types saw subtle rate adjustments on Tuesday, with one exception being a 7-point increase in 10-year fixed-rate mortgages.
Weekly Freddie Mac Average
Freddie Mac’s weekly average for 30-year mortgage rates witnessed a decrease to 7.09%, a positive shift from previous trends.
Freddie Mac’s methodology differs from other rate providers, offering a weekly average derived from previous daily rates for a nuanced perspective on rate movements.
Today’s Mortgage Rate Averages for Refinancing
Refinancing rates exhibited varied changes on Tuesday, with minor increases in some areas and decreases in others, emphasizing the need for personalized rate comparison.
Mortgage Rates by State
State-level variations influence mortgage rates, with states like New York and Florida offering lower rates compared to regions with higher averages such as West Virginia and Maryland.
Factors Influencing Mortgage Rate Fluctuations
Mortgage rates are subject to complex market dynamics influenced by factors like bond market performance, Federal Reserve policies, and lender competition.
- The bond market’s behavior, especially 10-year Treasury yields
- Federal Reserve’s monetary policies and bond buying activities
- Competition among lenders offering various loan products
A wide array of interconnected factors impacts mortgage rate changes, making it challenging to attribute fluctuations to a single cause.
Tracking Mortgage Rates
The national and state mortgage rate averages are sourced from the Zillow Mortgage API, providing a snapshot of expected rates for qualified borrowers under specified conditions, with rates varying based on individual circumstances.
