Rates were mostly flat across mortgage products Wednesday. The flagship 30-year average dipped just a single point, keeping it elevated well above the 6% mark.
Today’s National Mortgage Rate Averages
Rates on 30-year loans showed little movement Wednesday, remaining in high territory after swinging up and down over the past several days. Shedding just a single basis point Wednesday, the 30-year average held at 6.31%. That’s not far below the 6.38% notched in mid-June, the average’s highest level since 2008.
Rates on 15-year loans meanwhile added a basis point Wednesday. Now at 5.54%, the 15-year average is also slightly under its 14-year high, though that peak of 5.62% was established only a week ago.
Jumbo 30-year rates were also flat Wednesday. Holding at 5.40%, the Jumbo 30-year average is at its most expensive level since the middle of June.
Refinancing rates moved somewhat similarly Wednesday, though the 30-year refi average saw a slightly bigger dip of six basis points. The 15-year refi average meanwhile shed two points and like Jumbo 30-year new purchase loans, the Jumbo 30-year refi average was flat. The cost to refinance with a fixed-rate loan is currently zero to 51 points more expensive than new purchase loans.
After a major rate dip last summer, mortgage rates skyrocketed in the first half of 2022, with the 30-year average peaking in mid-June by an eye-popping 3.49 percentage points above its August 2021 low of 2.89%.
Meanwhile, mid-June saw the 15-year and Jumbo 30-year averages shoot 3.21 and 2.38 percentage points higher, respectively, than their summer 2021 valleys.
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 they 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.
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, in addition to individual lenders’ varying risk management strategies.
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 it continues to do so. This bond-buying policy (and not the more publicized federal funds rate) is a major influencer on mortgage rates.
On May 4, the Fed announced that it will begin reducing its balance sheet on June 1. Identical sizable reductions will occur in June, July, and August and then be doubled beginning in September. 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 six to eight weeks. Their next scheduled meeting takes place September 20–21.
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.