Mortgage Rates
Mortgage rates for new purchases remain near their lowest level since May. The average is now 7.04%, compared to the 7.01% recorded the previous two days. The 15-year average is also close to its cheapest price since May, while the average for 30-year jumbo mortgages dropped on Thursday to its lowest level since June.
National Averages for Best Mortgage Rates for Borrowers
Rates vary significantly between mortgages offered by banks, so it’s always wise to shop for the best mortgage option and regularly compare rates, regardless of the type of mortgage you are looking for.
Daily Average Mortgage Rates for New Purchases
30-year mortgage rates decreased by nearly a point last week and dropped again earlier this week by another point to 7.01%, the lowest average since May 17. Thursday saw a slight rise in the main average, but the increase of 3 basis points still leaves the average at just 7.04%. In mid-October, 30-year mortgage rates rose to a historic peak of 8.45%, the highest in 23 years.
Daily Average Mortgage Rates for Refinancing
Refinance rates remained largely unchanged on Thursday, with most averages moving in line with their new purchase counterparts. The average 30-year refinance rose by just one basis point, keeping the gap between the new purchase 30-year rates and refinance rates at an unusually broad 59 basis points. Meanwhile, refinance rates for 15-year loans decreased by one basis point, while the average 30-year jumbo refinance dropped by 12 basis points.
Lowest Mortgage Rates by State
The lowest available mortgage rates vary depending on the state where the transactions take place. Mortgage rates can be affected by state-level differences in credit points offered, the average type of mortgage loan, size, as well as the varying risk management strategies of individual lenders.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are determined by a complex interaction between macroeconomic and industry factors, such as: the level and direction of the bond market, particularly the yields on 10-year Treasury bonds, the current Federal Reserve policy, especially regarding bond purchases and government-backed mortgage financing, and competition among mortgage lenders and between different types of loans.
How Do We Track Mortgage Rates?
The national averages mentioned above are calculated based on the lowest rate offered by over 200 of the country’s top lenders, assuming an 80% loan-to-value (LTV) ratio and a borrower with a FICO credit score between 700 and 760. The resulting rates represent what customers can expect when receiving actual offers from lenders based on their qualifications, which may differ from the advertised rates.
Lowest Mortgage Rates by State
The lowest available mortgage rates vary depending on the state where the transactions take place. Mortgage rates can be affected by state-level differences in credit points offered, the average type of mortgage loan, size, as well as the varying risk management strategies of individual lenders.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are determined by a complex interaction between macroeconomic and industry factors, such as: the level and direction of the bond market, particularly the yields on 10-year Treasury bonds, the current Federal Reserve policy, especially regarding bond purchases and government-backed mortgage financing, and competition among mortgage lenders and between different types of loans.
How
Are we tracking mortgage rates?
The national averages mentioned above were calculated based on the lowest rate offered by over 200 of the top lenders in the country, assuming a loan-to-value (LTV) ratio of 80% and a borrower with a FICO credit score between 700 and 760. The resulting rates represent what customers should expect to receive when getting actual offers from lenders based on their qualifications, which may differ from the advertised competitive rates.
Sources of the article
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Source: https://www.investopedia.com/mortgage-rates-holding-near-7-month-low-8419654
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