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After climbing dramatically much of this new year, mortgage rates bolted still higher Friday, taking averages to their highest levels in over two years.

National Averages of Lenders’ Best Rates
Loan TypePurchaseRefinance
30-Year Fixed3.97%4.04%
FHA 30-Year Fixed3.92%4.01%
Jumbo 30-Year Fixed3.74%3.80%
15-Year Fixed3.17%3.24%
5/1 ARM2.89%2.94%
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

With Treasury yields surging late last week, 30-year mortgage rates also leaped higher Friday, taking the average up another tenth of a percentage point to 3.97%. It’s the first time rates have come this close to 4% since January 2020, and represents an ascent of more than 60 basis points since the start of this year.

Rates on 15-year loans have followed a similar path in 2022 and also gained ten points Friday. At 3.17%, the 15-year average is likewise in territory not seen since early 2020.

Though Jumbo 30-year rates had shown fewer dramatic surges this year, they’ve largely caught up. An increase of seven points Friday takes the average to 3.74%, which is now more than a quarter percentage point more expensive than their highest rate of 2021.

Compared to early August, when a major rate dip sank most averages to five-month lows, today’s rates are dramatically higher. In fact, the 30-year average is 1.08 percentage points more expensive, while the 15-year and Jumbo 30-year averages are up 96 and 68 basis points, respectively.

Refinance rates for 30-year and 15-year loans behaved similarly Friday, with each rising 10-11 basis points. The Jumbo 30-year refinance average remained flat, however. Friday’s cost to refinance fixed-rate loans was 6 to 10 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 Fixed3.97%+0.10
FHA 30-Year Fixed3.92%+0.18
VA 30-Year Fixed4.10%+0.17
Jumbo 30-Year Fixed3.74%+0.07
20-Year Fixed3.83%+0.13
15-Year Fixed3.17%+0.10
Jumbo 15-Year Fixed3.44%+0.12
10-Year Fixed3.10%+0.08
10/1 ARM3.06%+0.07
10/6 ARM4.76%+0.07
7/1 ARM3.05%+0.07
Jumbo 7/1 ARM2.84%+0.06
7/6 ARM4.51%+0.32
Jumbo 7/6 ARM3.03%+0.12
5/1 ARM2.89%+0.07
Jumbo 5/1 ARM2.69%+0.07
5/6 ARM4.29%+0.02
Jumbo 5/6 ARM2.96%No Change
National Averages of Lenders’ Best Rates – Refinance
Loan TypeNew PurchaseDaily Change
30-Year Fixed4.04%+0.11
FHA 30-Year Fixed4.01%+0.16
VA 30-Year Fixed4.20%+0.13
Jumbo 30-Year Fixed3.80%No Change
20-Year Fixed3.89%+0.11
15-Year Fixed3.24%+0.10
Jumbo 15-Year Fixed3.62%+0.12
10-Year Fixed3.15%+0.09
10/1 ARM3.10%+0.06
10/6 ARM4.83%+0.16
7/1 ARM3.10%+0.07
Jumbo 7/1 ARM2.89%+0.06
7/6 ARM4.50%+0.03
Jumbo 7/6 ARM3.30%+0.12
5/1 ARM2.94%+0.07
Jumbo 5/1 ARM2.74%+0.07
5/6 ARM4.28%-0.02
Jumbo 5/6 ARM2.98%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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