Mortgage refinance rates experienced a slight decline for the second day in a row, with 30-year refinance loans decreasing by another basis point on Tuesday, following a dip on Monday. This has brought the average rate down to 6.95%. In contrast, last Friday saw a quarter percentage point increase, marking the highest level since before Thanksgiving.
Recalling September, 30-year refinance rates hit a 19-month low at 6.01%, but then surged over a percentage point to reach a peak of 7.13% in mid-November. On Tuesday, rate movements were mixed for other refinance loan types, with the 15-year refi average increasing by 3 basis points and the 20-year average decreasing by 2 points. Notably, the jumbo 30-year refi average jumped by 14 basis points.
National Averages of Lenders’ Best Rates for Refinance Loans are as follows:
– 30-Year Fixed: 6.95% (-0.01)
– FHA 30-Year Fixed: 6.29% (No Change)
– VA 30-Year Fixed: 6.18% (+0.03)
– 20-Year Fixed: 6.80% (-0.02)
– 15-Year Fixed: 5.87% (+0.03)
– FHA 15-Year Fixed: 6.09% (No Change)
– 10-Year Fixed: 6.00% (No Change)
– 7/6 ARM: 7.34% (+0.02)
– 5/6 ARM: 6.99% (+0.05)
– Jumbo 30-Year Fixed: 6.93% (+0.14)
– Jumbo 15-Year Fixed: 6.73% (+0.24)
– Jumbo 7/6 ARM: 7.42% (+0.35)
– Jumbo 5/6 ARM: 7.36% (-0.09)
Provided via the Zillow Mortgage API.
Occasionally, some rate averages may show a larger than usual change due to certain loan types being less popular among mortgage shoppers, such as the 10-year fixed rate, which results in an average based on a small sample size of rate quotes.
It’s important to note that the rates published here won’t directly compare with the teaser rates advertised online, as those are the most attractive rates cherry-picked versus the averages presented here. Teaser rates may involve paying points in advance or may be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan. The rate you secure will depend on factors like your credit score, income, and more, so it can vary from the averages shown here.
Since rates can vary significantly across lenders, it’s always advisable to shop around for the best mortgage refinance option and compare rates regularly, regardless of the type of home loan you are seeking.
Use our Mortgage Calculator to calculate monthly payments for different loan scenarios. Your monthly mortgage payment will depend on factors such as home price, down payment, loan term, property taxes, homeowners insurance, and the interest rate on the loan, which is highly dependent on your credit score. Enter the home price and down payment to get an estimate of what your monthly mortgage payment could be.
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Enter APRA mortgage annual percentage rate (APR). APR includes the yearly cost of borrowing money, expressed as a percentage, and is based on the loan interest rate, mortgage points, and other homebuying costs. Credit score rate estimates are national averages based on a 30-year fixed-rate loan of $300,000. A mortgage annual percentage rate (APR) also includes the yearly cost of borrowing money, expressed as a percentage, and is based on the loan interest rate, mortgage points, and other homebuying costs. Credit score rate estimates are national averages based on a 30-year fixed-rate loan of $300,000. Or Use Credit Score For Estimate%. Or Your Credit Score: 760-850, 700-759, 680-699, 660-679, 640-659, 620-639. Property Taxes: Taxes vary by state and range from about 0.30%-2.20% of the assessed property value. Some municipalities also impose these taxes, so they might be higher in one area of a state than in another. Taxes vary by state and range from about 0.30%-2.20% of the assessed property value. Some municipalities also impose these taxes, so they might be higher in one area of a state than in another. $/year%. Most states have property tax rates below 2%. Homeowners Insurance: Homeowners insurance rates vary by location and insurer. Mortgage lenders require homebuyers to purchase a policy. Homeowners insurance rates vary by location and insurer. Mortgage lenders require homebuyers to purchase a policy. $/month. Estimate based on national average cost. Homeowners Association (HOA) Fees: If the home you buy is in a homeowners or condo association, you will have to pay a monthly fee for things like maintenance and other community amenities. Fees can range between $100-$700 a month. If the home you buy is in a homeowners or condo association, you will have to pay a monthly fee for things like maintenance and other community amenities. Fees can range between $100-$700 a month. $/month. +More Options. Monthly Payment: $1,949.63/month for 30 years. Mortgage Size $352,000.00. Mortgage Interest* $211,385.63. Total Mortgage Paid* $563,385.63. *Assuming a fixed interest rate. A variable rate could give you a lower upfront rate. To understand more click here. Monthly Payment: $1,949.63. Principal & Interest: $1,564.96. Property Taxes: $256.67. Homeowners Insurance: $128.00. Mortgage Size $352,000.00. Mortgage Interest* $211,385.63. Total Mortgage Paid* $563,385.63. *Assuming a fixed interest rate. A variable rate could give you a lower upfront rate. To understand more click here. Expand. 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, especially 10-year Treasury yields. The Federal Reserve’s current monetary policy, especially as it relates to bond buying and funding government-backed mortgages. Competition between mortgage lenders and across loan types. Because any number of these can cause fluctuations at the same time, it’s generally difficult to attribute any single change to any one factor.Macroeconomic factors have kept the mortgage market stable with relatively low rates for much of 2021. The Federal Reserve’s response to the pandemic’s economic pressures, which included buying billions of dollars in bonds, significantly influenced mortgage rates. Starting in November 2021, the Fed initiated a tapering of its bond purchases, reducing them each month until reaching net zero in March 2022. Between that period and July 2023, the Fed aggressively raised the federal funds rate to combat inflation, which had reached decades-high levels. Although the federal funds rate can influence mortgage rates, they do not directly correlate and can sometimes move in opposite directions. However, the rapid and substantial rate increases by the Fed in 2022 and 2023, which raised the benchmark rate by 5.25 percentage points over 16 months, have had a significant indirect impact on mortgage rates, causing them to rise dramatically over the last two years. The Fed maintained the federal funds rate at its peak for nearly 14 months, beginning in July 2023. On September 18, the central bank announced the first rate cut, expected to be the start of a series of decreases in 2024 and likely 2025, with the first reduction being 0.50 percentage points. On November 7, the Fed announced an additional rate cut of 0.25 percentage points, bringing the federal funds rate to a range of 4.5% to 4.75%, marking its lowest level since March 2023. The Fed’s next rate announcement is scheduled for December 18. How We Track Mortgage Rates: The national and state averages mentioned are provided by the Zillow Mortgage API. These rates assume a loan-to-value (LTV) ratio of 80%, which corresponds to a down payment of at least 20%, and an applicant credit score within the 680–739 range. These rates reflect what borrowers can expect when receiving quotes from lenders based on their qualifications, which may differ from advertised teaser rates. Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.