Today’s Interest Rates and Mortgage Trends

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After rising slightly last week, mortgage rates have fallen so far this week, with rate cuts among the most common mortgage types for two consecutive days.

Macroeconomic factors have kept the mortgage market relatively stable over the past two weeks. Among those factors are the Federal Reserve’s April 28 instructions to Fannie Mae and Freddie Mac to continue buying government-backed mortgages at their current volume. While there has been speculation about whether the Fed would recommend pulling back from mortgage purchases, it has said it is staying the course instead.

Current rates for popular mortgage types

The average lender minimum rates for 30-year fixed-rate mortgages fell to 3.12% and to 2.38% for 15-year fixed-rate loans. Five-year Variable Rate Mortgages (ARMs) currently stand at 3.01%. As usual, the refinancing rates were 15 to 25 basis points higher than the new purchase loans, although the margin on the ARM 5/1 refinancing loans was larger.

National Averages of Best Lender Rates
Product Buy Refinancing
30 years fixed 3.12% 3.28%
30 years fixed (FHA) 2.98% 3.12%
30 years fixed (VA) 3.01% 3.20%
15 years fixed 2.38% 2.60%
5/1 ARM 3.01% 3.49%
National average of the lowest rate offered by over 200 of the nation’s major lenders, with a loan-to-value ratio (LTV) of 80% and an applicant with a FICO credit score between 700 and 760.

Important:

The rates you see here generally don’t compare directly to the rates for the teasers you see advertised online, as these rates are selected as the most attractive. They may involve paying points up front, or may be selected based on a hypothetical borrower with an ultra-high credit score or taking a smaller than average loan given the value of the home. . The rates you see here are the lowest offered by our lenders surveyed for a typical applicant, for the most common loan size (80% loan-to-value), and with no prepaid points.

All current mortgage rates

Mortgage rates are determined by a complex interplay of macroeconomic and industrial factors, such as the level and direction of the bond market, including yields on 10-year treasury bills; the Federal Reserve’s current monetary policy, in particular with respect to the financing of government guaranteed mortgages; and competition between lenders and between types of loans. Since fluctuations can be caused by any number of these factors at once, it is usually difficult to attribute the change to a single factor.

National Averages of Best Lender Rates – New Buy
Mortgage product New purchase Daily change
30 years fixed 3.12% -0.03
30 years fixed (FHA) 2.98% -0.04
30 years fixed (VA) 3.01% -0.02
20 years fixed 2.94% -0.03
15 years fixed 2.38% -0.03
10 years fixed 2.24% -0.03
Jumbo 30 years fixed 3.39% -0.01
Jumbo 15 years fixed 3.07% No change
10/1 ARM 3.09% -0.01
ARM 10/6 4.18% -0.03
7/1 ARM 3.97% -0.02
ARM 7/6 3.19% -0.22
5/1 ARM 3.01% -0.02
ARM 5/6 3.45% +0.05
Jumbo arm 7/6 2.81% No change
Jumbo arm 7/1 2.69% -0.02
Jumbo arm 5/6 2.69% No change
Jumbo arm 5/1 2.54% No change
National Averages of Best Lender Rates – Refinancing
Mortgage product Refinancing Daily change
30 years fixed 3.28% -0.03
30 years fixed (FHA) 3.12% -0.03
30 years fixed (VA) 3.20% -0.01
20 years fixed 3.16% -0.02
15 years fixed 2.60% -0.02
10 years fixed 2.51% -0.02
Jumbo 30 years fixed 3.67% -0.01
Jumbo 15 years fixed 3.26% -0.02
10/1 ARM 3.55% -0.08
ARM 10/6 4.38% -0.04
7/1 ARM 4.21% -0.02
ARM 7/6 4.04% -0.05
5/1 ARM 3.49% -0.10
ARM 5/6 4.19% -0.06
Jumbo arm 7/6 3.09% No change
Jumbo arm 7/1 3.14% +0.10
Jumbo arm 5/6 2.96% No change
Jumbo arm 5/1 2.87% -0.16
National average of the lowest rate offered by over 200 of the nation’s major lenders, with a loan-to-value ratio (LTV) of 80% and an applicant with a FICO credit score between 700 and 760.

Lowest mortgage rates by state

The lowest mortgage rates available vary depending on the state where the initiations take place. Mortgage rates can be influenced by state-level variations in credit scores, average mortgage duration and size, as well as the different risk management strategies of individual lenders.


These rates are surveyed directly from over 200 major lenders.

Methodology

The national averages cited above were calculated based on the lowest rate offered by over 200 of the country’s major lenders, assuming a loan-to-value ratio (LTV) of 80% and an applicant with a credit score. FICO in the 700-760 interval. The resulting rates are representative of what customers should expect to see when they receive actual quotes from lenders based on their qualifications, which may differ from advertised teaser rates.

For our state’s best rate card, 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. and 760.

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The offers shown in this table are the result of partnerships for which Investopedia receives compensation.



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