Understanding Mortgage Rate Averages and Trends
Please note: In observance of Memorial Day, Investopedia will not be publishing daily mortgage rate news on May 27. Our coverage will resume on May 28.
Overview of Current Mortgage Rate Trends
Recently, the 30-year mortgage rate average surged to 7.03%, marking a significant increase from the upper-6% range it had been lingering in. Rates for various other mortgage types also experienced upward movement.
Changes in Data Source for Mortgage Rate Averages
Starting from May 1, our daily mortgage rate averages are now sourced through the Zillow Mortgage API, utilizing a different methodology. This may cause variations from our previous rate publications. All historical data and analyses have transitions to this new data source.
National Rate Averages for Top 5 Mortgage Types
| Loan Type | New Purchase Rate | Refinance Rate |
|---|---|---|
| 30-Year Fixed | 7.03% | 7.08% |
| FHA 30-Year Fixed | 6.91% | 6.60% |
| 15-Year Fixed | 6.20% | 6.24% |
| Jumbo 30-Year Fixed | 7.17% | 6.97% |
| 5/6 ARM | 7.81% | 7.67% |
Given the wide variance in rates across lenders, it remains wise to compare mortgage options diligently to secure the best rate for your specific needs.
Today’s Mortgage Rate Averages for New Purchase
Current rates for 30-year mortgages have edged up to 7.03%, slightly lower than a recent peak in late April. Conversely, 15-year rates, though up from the previous low, remain attractive at 6.20%.
Jumbo 30-year rates also saw a modest increase to 7.17%, notably below the peak reached the previous fall.
The Weekly Freddie Mac Average
Freddie Mac’s weekly average for 30-year rates dropped to 6.94%, marking a decline below 7% after a month. In contrast to our daily average, Freddie Mac’s metric offers a weekly perspective.
Differences in calculation methodologies between Freddie Mac and Investopedia’s averages underscore the need to obtain multiple perspectives on mortgage rates.
Today’s Mortgage Rate Averages: Refinancing
While most refinancing rates remained stable, the 30-year refi average experienced a notable increase. Jumbo 30-year refi rates, on the other hand, only saw a minor adjustment.
Factors Influencing Mortgage Rate Fluctuations
Mortgage rates are intricately tied to a web of macroeconomic and industry variables, including bond market performance, Federal Reserve policies, and lender competitiveness.
For instance, the Federal Reserve’s actions in response to economic conditions greatly impact mortgage rates. Recent years have seen significant rate adjustments due to shifts in these macroeconomic factors.
Diverse Mortgage Rate Averages Across States
State-level disparities can lead to variations in mortgage rates, with some regions offering more competitive rates than others. New York, Michigan, and Alaska are among the states with lower average rates, while North Dakota and Iowa exhibit higher averages.
Monitoring and Understanding Mortgage Rate Trends
The average rates detailed above provide a snapshot based on specific criteria. It is advised to consult multiple sources and lenders to obtain tailored rate information aligned with your financial profile.