Rates on 30-year purchase mortgages fell again Friday to 7.12%, 8 basis points lower than the day prior, the fifth straight day that the flagship 30-year average has dropped. It's fallen 33 basis points since a recent peak of 7.45% on Friday, March 15. Nearly every other mortgage rate we track, for both purchase and refinance loans, also declined.

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 seek.

National Averages of Lenders' Best Mortgage Rates
Loan Type	New Purchase	Refinance
30-Year Fixed	7.12%	7.45%
FHA 30-Year Fixed	7.18%	7.51%
Jumbo 30-Year Fixed	6.82%	6.83%
15-Year Fixed	6.46%	6.73%
5/6 ARM	7.73%	7.83%

Today's Mortgage Rate Averages: New Purchase

Rates on 30-year new purchase mortgages fell another 8 basis points Friday. The flagship rate is now down 33 basis points since Friday, March 15, when it ticked up to 7.45%. The 30-year rate average is still far from its recent drop into 6% territory, which we saw at the start of February, but it's sliding closer. Nevertheless, mortgage rates are still well off the highs reached in October, when the 30-year average notched a historic 23-year peak of 8.45%. The average rate on the VA 30-year new purchase loan dipped 35 basis points on Friday, the biggest mover among the rates we track, lowering its average to 6.85%. The only rate that didn't change was for the Jumbo 5/6 ARM, which held steady at 6.55%. Jumbo 30-year rates dipped 13 basis points to 6.82%. Although daily historical jumbo rates were not available before 2009, it's estimated the 7.52% peak reached last October was the most expensive jumbo 30-year average in more than 20 years. Other new purchase averages dipped across the board Friday, with givebacks ranging from 4 to 35 basis points.

National Averages of Lenders' Best Rates - New Purchase
Loan Type	New Purchase Rates	Daily Change
30-Year Fixed	7.12%	-0.08
FHA 30-Year Fixed	7.18%	-0.24
VA 30-Year Fixed	6.85%	-0.35
Jumbo 30-Year Fixed	6.82%	-0.13
20-Year Fixed	6.95%	-0.03
15-Year Fixed	6.46%	-0.11
FHA 15-Year Fixed	6.79%	-0.03
Jumbo 15-Year Fixed	6.75%	-0.03
10-Year Fixed	6.39%	-0.07
10/6 ARM	7.47%	-0.06
7/6 ARM	7.61%	-0.13
Jumbo 7/6 ARM	6.45%	-0.13
5/6 ARM	7.73%	-0.04
Jumbo 5/6 ARM	6.55%	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 added 13 basis points to the previous average to rise to 6.87%. Back in late October, Freddie Mac's average reached a historic peak of 7.79%—its highest 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

Friday's refinancing rates were mostly down for various loan types, with a few rates inching up or holding steady. The 30-year fixed refi average settled back 11 basis points, a modest drop after giving up 21 basis points the day before. The spread between 30-year new purchase and refi rates is now 33 basis points. Just two refi rate averages rose Friday, with FHA 30-year fixed and 5/6 ARM rates both gaining 2 basis points. The jumbo 15-year and jumbo 5/6 ARM held steady. All other rates declined.

National Averages of Lenders' Best Rates - Refinance
Loan Type	Refinance Rates	Daily Change
30-Year Fixed	7.45%	-0.11
FHA 30-Year Fixed	7.51%	+0.02
VA 30-Year Fixed	7.41%	-0.09
Jumbo 30-Year Fixed	6.83%	-0.12
20-Year Fixed	7.29%	-0.03
15-Year Fixed	6.73%	-0.06
FHA 15-Year Fixed	6.92%	-0.05
Jumbo 15-Year Fixed	6.78%	No Change
10-Year Fixed	6.65%	-0.07
10/6 ARM	7.75%	-0.03
7/6 ARM	7.78%	-0.07
Jumbo 7/6 ARM	6.55%	-0.13
5/6 ARM	7.83%	+0.02
Jumbo 5/6 ARM	6.55%	No Change

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

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 on Friday were Mississippi, Louisiana, New York, Vermont, and Hawaii. The states with the highest average mortgage rates were Minnesota, Oregon, Nevada, Utah, and New Mexico.

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 been maintaining the federal funds rate at its current level since July, with a fifth consecutive rate hold announced on March 20. Although inflation has come down considerably, it is still above the Fed's target level of 2%. Until the central bank feels confident inflation is falling sufficiently and reliably, it has said it is hesitant to start cutting rates.

Still, Fed committee members do collectively expect to reduce rates in 2024. The March 20 meeting included the latest installment of the Fed's "dot plot" forecast, which showed that the median expectation among the 19 Fed members is for three rate decreases—totaling 0.75 percentage points—by year's end. The dot plot also shows similar expected rate cuts in 2025 and 2026.

The Fed will hold six more meetings this year, with the next scheduled for June 11–12.

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.