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Mortgage rates inched slightly higher Wednesday, with most of the fixed-rate averages rising three to four basis points. Rates currently sit a bit below their recent peak, which took averages to their highest levels since March 2020.

National Averages of Lenders’ Best Rates
Loan TypePurchaseRefinance
30-Year Fixed3.81%3.87%
FHA 30-Year Fixed3.69%3.78%
Jumbo 30-Year Fixed3.61%3.67%
15-Year Fixed3.01%3.08%
5/1 ARM2.81%2.85%
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 last week hitting the 2022 high of 3.83% for the second time this year, the 30-year mortgage rate average has been bobbing around slightly below that level. Wednesday saw the flagship average rise four points to 3.81%, which is 42 points more expensive than the top average of 2021, and within close range of the highest level we’ve seen since early in the pandemic, .

Rates on 15-year loans have generally followed a similar path in the new year, gaining three points Wednesday to reach 3.03%, matching its highest level of the calendar year. Like 30-year rates, the current 15-year average is at a level not seen since spring 2020.

Though Jumbo 30-year rates have shown fewer dramatic surges this year, they have begun catching up. Rising four points Wednesday to 3.61%, the average is currently two points below its YTD high, yet 14 points above its 2021 peak.

Compared to early August, when a major rate dip sank most averages to five-month lows, today’s rates are substantially higher. In fact, the 30-year average is 92 basis points more expensive, while the 15-year and Jumbo 30-year averages are up 80 and 55 points, respectively.

Like new purchase rates, 30-year and 15-year refinance rates have this year moved substantially above their 2021 highs, while the Jumbo 30-year refinance average is still almost an eighth of a percentage point cheaper. Wednesday’s cost to refinance fixed-rate loans was 6 to 18 points higher 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.

National Averages of Lenders’ Best Rates – New Purchase
Loan TypeNew PurchaseDaily Change
30-Year Fixed3.81%+0.04
FHA 30-Year Fixed3.69%+0.03
VA 30-Year Fixed3.85%+0.16
Jumbo 30-Year Fixed3.61%+0.04
20-Year Fixed3.57%+0.05
15-Year Fixed3.01%+0.03
Jumbo 15-Year Fixed3.32%No Change
10-Year Fixed2.96%+0.05
10/1 ARM2.98%+0.20
10/6 ARM4.56%+0.22
7/1 ARM2.97%+0.20
Jumbo 7/1 ARM2.76%+0.20
7/6 ARM4.26%+0.24
Jumbo 7/6 ARM2.91%No Change
5/1 ARM2.81%+0.20
Jumbo 5/1 ARM2.61%+0.20
5/6 ARM4.11%+0.01
Jumbo 5/6 ARM2.84%No Change

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 Dec. 15, the Fed announced that, in light of stronger and more persistent inflation pressure than originally expected, it will speed up its timeline for throttling Fed bond buying, reducing the amount they purchase by a larger increment each month than initially planned. This so-called taper began in late 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 Jan. 25-26.

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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