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Mortgage rates have broken into new 2021 territory this holiday week, with the 30-year fixed-rate average bolting 19 basis points higher in just three days. That brings the average five points above its previous highest level of the calendar year, registered in mid-March.

National Averages of Lenders’ Best Rates
Loan TypePurchaseRefinance
30-Year Fixed3.39%3.53%
FHA 30-Year Fixed3.38%3.68%
Jumbo 30-Year Fixed3.45%3.64%
15-Year Fixed2.63%2.73%
5/1 ARM2.53%3.34%
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

Mortgage rates have seen a dramatic three-day ascent, with the 30-year average bumping up another five basis points Wednesday to reach 3.39%. Previously, the highest 30-year average of this year was 3.34%, registered on March 19.

The 15-year and Jumbo 30-year fixed rates have also seen a bold rise this week, taking the 15-year average to a new 2021 high as well, at 2.63%. The Jumbo 30-year average remained flat Wednesday and sits two points below its YTD high.

At the other end of the rate spectrum, the 30-year average is currently a full half of a percentage point more expensive than it was in early August, when a major rate dip dropped averages to five-month lows.

Refinance rates moved similarly upwards Tuesday, with the 30-year average elevating another six points. Refinance rates, though somewhat high for the year, still sit five to 14 basis points below their 2021 highs. Rates to refinance 30-year and 15-year loans are currently priced 10 to 19 points more expensive than their new purchase counterparts.

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 Fixed3.39%+0.05
FHA 30-Year Fixed3.38%+0.13
VA 30-Year Fixed3.42%+0.11
Jumbo 30-Year Fixed3.45%No Change
20-Year Fixed3.20%+0.04
15-Year Fixed2.63%+0.02
Jumbo 15-Year Fixed3.23%+0.01
10-Year Fixed2.60%+0.02
10/1 ARM2.73%-0.02
10/6 ARM4.29%+0.04
7/1 ARM2.56%-0.01
Jumbo 7/1 ARM2.32%+0.02
7/6 ARM4.17%+0.05
Jumbo 7/6 ARM2.83%No Change
5/1 ARM2.53%+0.02
Jumbo 5/1 ARM2.18%+0.03
5/6 ARM3.87%No Change
Jumbo 5/6 ARM2.73%No Change
National Averages of Lenders’ Best Rates – Refinancing
Loan TypeRefinanceDaily Change
30-Year Fixed3.53%+0.06
FHA 30-Year Fixed3.68%+0.11
VA 30-Year Fixed3.72%+0.08
Jumbo 30-Year Fixed3.64%+0.02
20-Year Fixed3.32%+0.04
15-Year Fixed2.73%+0.02
Jumbo 15-Year Fixed3.50%+0.02
10-Year Fixed2.71%+0.02
10/1 ARM3.92%+0.15
10/6 ARM4.55%+0.03
7/1 ARM2.76%-0.01
Jumbo 7/1 ARM2.61%+0.04
7/6 ARM4.38%No Change
Jumbo 7/6 ARM3.10%No Change
5/1 ARM3.34%+0.25
Jumbo 5/1 ARM2.45%+0.04
5/6 ARM4.07%No Change
Jumbo 5/6 ARM2.91%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 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 Nov. 3, the Fed officially announced it will start gradually throttling its bond buying, reducing the amount they purchase by a steady increment each month. The taper, as it’s called, will begin later this month.

The Fed’s rate and policy committee, called the Federal Open Market Committee (FOMC), meets every 6-8 weeks, and concluded their latest meeting Nov. 3. Their next scheduled meeting will be held Dec. 14-15.

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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