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Mortgage rates moved lower Monday, with the 30-year average losing a tenth of a percentage point. But on the heels of Friday’s surge, and a dramatic ascent this entire calendar year, rates still remain in their highest territory since late 2018.

National averages of the lowest rates offered by more than 200 of the country’s top lenders, with a loan-to-value ratio (LTV) of 80%, an applicant with a FICO credit score of 700-760, and no mortgage points.

Today’s National Mortgage Rate Averages

After adding another three basis points last week to push the 30-year mortgage average to 5.16%, its priciest level since November 2018, rates came down slightly Monday. The 30-year average saw a 10-point drop to 5.06%.

Meanwhile, 15-year rates dipped only slightly Monday, shedding two basis points to 4.27%. Still, like 30-year rates, the 15-year average is in its highest range in more than three years.

Jumbo 30-year rates also registered a modest dip Monday, declining three points to 4.57%. The Jumbo 30-year average is still below the peak experienced at the outset of the pandemic, but is in territory not seen since summer 2020.

All three averages have skyrocketed over the last eight months, taking them far above the lows notched last summer when a major dip dramatically sank rates. The 30-year average is currently an eye-popping 2.17 percentage points more expensive than the August valley, while the 15-year and Jumbo 30-year averages are up 2.06 and 1.51, respectively.

Refinance rates moved similarly Friday, with the 30-year refi average showing the most movement, with a seven-point drop, while the 15-year average lost only a point and Jumbo 30-year rates remained flat. The cost to refinance with a fixed-rate loan is currently up to 20 points more expensive than new purchase loans.

Important:

The rates you see here generally won’t compare directly with teaser rates you see advertised online, since those rates are cherry-picked as the most attractive. They may involve paying points in advance, or may be selected based on a hypothetical borrower with an ultra-high credit score or taking a smaller-than-typical loan given the value of the home.

Calculate monthly payments for different loan scenarios with our Mortgage Calculator.

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Lowest Mortgage Rates by State

The lowest mortgage rates available vary depending on the state where originations occur. Mortgage rates can be influenced by state-level variations in credit score, average mortgage loan term, and size, as well as individual lenders’ varying risk management strategies.


These rates are surveyed directly from over 200 top lenders.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as the level and direction of the bond market, including 10-year Treasury yields; the Federal Reserve’s current monetary policy, especially as it relates to funding government-backed mortgages; and competition between lenders and across loan types. Because fluctuations can be caused by any number of these at once, it’s generally difficult to attribute the change to any one factor.

Macroeconomic factors have kept the mortgage market relatively low for much of this year. In particular, the Federal Reserve has been buying billions of dollars of bonds in response to the pandemic’s economic pressures, and continues to do so. This bond-buying policy (and not the more publicized federal funds rate) is a major influencer on mortgage rates.

On March 16, the Fed announced that it expects to begin reducing its balance sheet in May, meaning it will start reducing the overall amount of bonds it owns. This will be on top of its existing move to reduce new bond purchases by an increment every month, the so-called taper, which began in November.

The Fed’s rate and policy committee, called the Federal Open Market Committee (FOMC), meets every 6-8 weeks. Their next scheduled meeting will be held May 3-4.

Methodology

The national averages cited above were calculated based on the lowest rate offered by more than 200 of the country’s top lenders, assuming a loan-to-value ratio (LTV) of 80% and an applicant with a FICO credit score in the 700-760 range. The resulting rates are representative of what customers should expect to see when receiving actual quotes from lenders based on their qualifications, which may vary from advertised teaser rates.

For our map of the best state rates, the lowest rate currently offered by a surveyed lender in that state is listed, assuming the same parameters of an 80% LTV and a credit score between 700-760.

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