After falling more than a quarter point over five days, 30-year new purchase mortgage rates showed little movement Monday, barely ticking up to a 7.13% average. Most other averages were also flat or roughly steady Monday—except 30-year refi rates, which spiked.

Rates vary widely across lenders, so it's always smart to shop around for your best mortgage option and compare rates regularly, no matter the type of home loan you're seeking.

National Averages of Lenders' Best Rates
Loan Type	New Purchase	Refinance
30-Year Fixed	7.13%	7.65%
FHA 30-Year Fixed	7.11%	7.65%
Jumbo 30-Year Fixed	6.70%	6.70%
15-Year Fixed	6.50%	6.74%
5/6 ARM	7.61%	7.70%

Today's Mortgage Rate Averages: New Purchase

Rates on 30-year new purchase mortgages have come down considerably since shooting up in mid-February to 7.48%. Daily declines throughout last week sank the flagship average to 7.11%, its cheapest level since Feb. 2. Then Monday saw rates rise just 2 basis points, lifting the average slightly to 7.13%. Given that 30-year rates sank into 6% territory at the start of February, the current average is still mildly elevated. But the recent trajectory has been downward. Also, rates are notably cheaper than in October, when the 30-year average notched a historic 23-year peak of 8.45%. Rates on 15-year new purchase loans also climbed just modestly Monday. Tacking on 3 basis points, the 15-year average is 6.50%. Its previous daily average of 6.47% was the lowest mark for 15-year rates since Feb. 7. Current rates are a bit pricier than the seven-month low of 6.10% we saw just before the new year. But last October, 15-year rates reached as high as 7.59%–a peak since 2000. After recently to a three-month-high of 6.95%, the jumbo 30-year average is down to 6.70%, a 3-week low that held steady for a third day Monday. Though daily historical jumbo rates were not available before 2009, it's estimated the 7.52% peak reached in October was the most expensive jumbo 30-year average in more than 20 years. Most new purchase averages were flat Monday or moved just a few basis points higher. The biggest gain was a mild 7 basis points for FHA 30-year loans, and the only new purchase average to fall was FHA 15-year loans, whose average dipped a minor 3 basis points

National Averages of Lenders' Best Rates - New Purchase
Loan Type	New Purchase Rates	Daily Change
30-Year Fixed	7.13%	+0.02
FHA 30-Year Fixed	7.11%	+0.07
VA 30-Year Fixed	6.86%	+0.05
Jumbo 30-Year Fixed	6.70%	No Change
20-Year Fixed	6.90%	+0.02
15-Year Fixed	6.50%	+0.03
FHA 15-Year Fixed	6.80%	-0.03
Jumbo 15-Year Fixed	6.66%	No Change
10-Year Fixed	6.40%	+0.01
10/6 ARM	7.41%	+0.04
7/6 ARM	7.40%	+0.05
Jumbo 7/6 ARM	6.33%	No Change
5/6 ARM	7.61%	No Change
Jumbo 5/6 ARM	6.43%	No Change

The Weekly Freddie Mac Average

Every Thursday afternoon, Freddie Mac publishes a weekly average of 30-year mortgage rates, and last week's reading subtracted 6 basis points to fall to 6.88%. Back in late October, Freddie Mac's average reached a historic peak of 7.79%—its most expensive level in 23 years. But since then, it has come down significantly, registering a recent low of 6.60% in mid-January.

Freddie Mac’s average differs from our own 30-year average for two notable reasons. First, Freddie Mac calculates a weekly average that blends five previous days of rates, while our Investopedia averages are daily, offering a more precise and timely indicator of rate movement. Second, the rates included in Freddie Mac's survey can include loans priced with discount points, while Investopedia’s averages only include zero-point loans.

Today's Mortgage Rate Averages: Refinancing

Though most of Monday's refinancing averages also held roughly steady, the 30-year refi average shot up by 21 basis points. That stretches the gap between 30-year new purchase and refi rates to a much wider 52 basis points, vs. 33 points Friday. Rates on 15-year refi loans meanwhile edged 4 basis points higher, while the jumbo 30-year refi average marked time for a third day. Aside from standard 30-year loans, the biggest refi rate gains Monday were seen for VA and FHA 30-year mortgages, whose refi averages climbed 12 and 11 basis points, respectively.

National Averages of Lenders' Best Rates - Refinance
Loan Type	Refinance Rates	Daily Change
30-Year Fixed	7.65%	+0.21
FHA 30-Year Fixed	7.65%	+0.11
VA 30-Year Fixed	7.55%	+0.12
Jumbo 30-Year Fixed	6.70%	No Change
20-Year Fixed	7.19%	+0.03
15-Year Fixed	6.74%	+0.04
FHA 15-Year Fixed	6.95%	No Change
Jumbo 15-Year Fixed	6.66%	No Change
10-Year Fixed	6.66%	+0.04
10/6 ARM	7.64%	+0.02
7/6 ARM	7.70%	-0.01
Jumbo 7/6 ARM	6.43%	No Change
5/6 ARM	7.70%	-0.01
Jumbo 5/6 ARM	6.43%	No Change

Calculate monthly payments for different loan scenarios with our Mortgage Calculator.

Lowest Mortgage Rates by State

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 type, and size, in addition to individual lenders' varying risk management strategies. The states with the cheapest 30-year new purchase rates were Mississippi, Hawaii, Louisiana, North Carolina, and Vermont, while the states with the most expensive rates were Minnesota, Oregon, Nevada, Tennessee, and Arizona.

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 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 kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic's economic pressures. This bond-buying policy is a major influencer of mortgage rates.

But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net zero in March 2022.

Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it does not directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.

But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.

The Fed has opted to hold rates steady at its last four meetings, the last of which concluded Jan. 31. Though the central bank's statement signaled that we have almost certainly reached the end of Fed rate hikes in this campaign, Fed Chair Jerome Powell stated that inflation is still too high, and they will therefore proceed cautiously on deciding when to make the first rate cut. Specifically, he indicated it's unlikely they will be ready for any rate reduction by the time of their next meeting, which is scheduled for March 19–20.

After its December meeting, the Fed released quarterly data that showed almost 80% of Fed members expect there to be two to four rate cuts in 2024, with the median expectation being three rate decreases totaling 0.75%. But when in 2024 these will begin—and ultimately how many are implemented this year—is an open question at this time.

How We Track Mortgage Rates

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.