After rising modestly last week, mortgage rates have fallen so far this week, with small reductions in rates among the most common types of mortgages for two consecutive days.
Macroeconomic factors have kept the mortgage market relatively stable for the past two weeks. Among these factors are the Federal Reserve’s April 28 guidelines for Fannie Mae and Freddie Mac to continue buying government-backed mortgages in their current volume. Although there was speculation about whether the Fed would recommend withdrawing from the purchase of mortgages, instead, it announced that it would continue its course.
Current rates for popular mortgage types
Average lenders’ minimum rates for 30-year fixed-rate mortgages dropped to 3.12% and to 2.38% for 15-year fixed-rate loans. Five years adjustable rate mortgages (ARMs) they are currently at 3.01%. As is typical, refinancing rates were 15 to 25 basis points higher than loans for new purchases, although the margin on ARM 5/1 refinancing loans was higher.
|National averages of the best creditors’ rates|
|Fixed 30 years||3.12%||3.28%|
|Fixed 30 years (FHA)||2.98%||3.12%|
|Fixed 30 years (VA)||3.01%||3.20%|
|15 years fixed||2.38%||2.60%|
The rates as you see here generally do not compare directly with the teaser rates that you see advertised online, as these rates are handpicked 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 by taking out a less-than-normal loan, given the value of the home. The rates you see here are the lowest that our surveyed lenders offer for a typical candidate, for the most common loan size (80% of the loan amount) and without prepaid points.
All today’s mortgage rates
Mortgage rates are determined by a complex interplay of macroeconomic and industry factors, such as the level and direction of the bond market, including 10-year Treasury yields; the current monetary policy of the Federal Reserve, especially with regard to the financing of government-backed mortgages; and competition between lenders and between types of loans. Since fluctuations can be caused by any number of them at the same time, it is often difficult to attribute the change to any factor.
|National averages of best lender rates – new purchase|
|Mortgage proceeds||New buy||Daily Change|
|Fixed 30 years||3.12%||-0.03|
|Fixed 30 years (FHA)||2.98%||-0.04|
|Fixed 30 years (VA)||3.01%||-0.02|
|20 years fixed||2.94%||-0.03|
|15 years fixed||2.38%||-0.03|
|10 fixed years||2.24%||-0.03|
|Jumbo 30 years fixed||3.39%||-0.01|
|Jumbo 15 years fixed||3.07%||No change|
|Jumbo 7/6 ARM||2.81%||No change|
|Jumbo 7/1 ARM||2.69%||-0.02|
|Jumbo 5/6 ARM||2.69%||No change|
|Jumbo 5/1 ARM||2.54%||No change|
|National averages of best lender rates – refinancing|
|Mortgage proceeds||Refinance||Daily Change|
|Fixed 30 years||3.28%||-0.03|
|Fixed 30 years (FHA)||3.12%||-0.03|
|Fixed 30 years (VA)||3.20%||-0.01|
|20 years fixed||3.16%||-0.02|
|15 years fixed||2.60%||-0.02|
|10 fixed years||2.51%||-0.02|
|Jumbo 30 years fixed||3.67%||-0.01|
|Jumbo 15 years fixed||3.26%||-0.02|
|Jumbo 7/6 ARM||3.09%||No change|
|Jumbo 7/1 ARM||3.14%||+0.10|
|Jumbo 5/6 ARM||2.96%||No change|
|Jumbo 5/1 ARM||2.87%||-0.16|
Lower mortgage rates by state
The lowest mortgage rates available vary depending on the state where the origins occur. Mortgage rates can be influenced by variations at the state level in credit score, average mortgage loan term and size, as well as the different risk management strategies of individual lenders.
These fees are researched directly by more than 200 major lenders.
The national averages mentioned above were calculated based on the lowest rate offered by more than 200 of the country’s main creditors, assuming a loan-to-value ratio (LTV) 80% and an applicant with a FICO credit score in the range of 700-760. The resulting fees are representative of what customers should expect to see when receiving actual quotes from creditors based on their qualifications, which may vary from the advertised teaser rates.
For our map of the best state rates, the lowest rate currently offered by a creditor surveyed in that state is listed, assuming the same parameters as an LTV of 80% and a credit score between 700-760.