As of Friday, mortgage rates are showing notable regional variations, with states such as New York, California, Florida, Texas, Washington, North Carolina, Oregon, and Tennessee reporting some of the lowest 30-year new purchase mortgage rates. New York, in particular, has achieved a historic milestone by registering an average mortgage rate below 6% for the first time in recent memory.
Conversely, states including West Virginia, Washington, D.C., North Dakota, Wyoming, Vermont, Maryland, and Mississippi are experiencing some of the highest average mortgage rates.
Mortgage rates can differ significantly by state due to factors such as regional credit score averages, loan sizes, and local regulations. Additionally, lenders apply varying risk management strategies that can affect the rates they offer. Given this variability, it is advisable for prospective borrowers to shop around and compare mortgage rates regularly, as the rates available can differ from promotional or teaser rates advertised online.
Nationally, the average rate for a 30-year new purchase mortgage fell to 6.16% on Friday, marking the lowest average since April 2023. This decline represents a significant drop from the rates observed earlier this summer, which exceeded 7%.
Here are the latest national mortgage rate averages:
30-Year Fixed: 6.16% (new purchase), 6.41% (refinance)
FHA 30-Year Fixed: 5.81% (new purchase), 6.20% (refinance)
15-Year Fixed: 5.19% (new purchase), 5.25% (refinance)
Jumbo 30-Year Fixed: 6.41% (new purchase), 6.48% (refinance)
5/6 ARM: 7.49% (new purchase), 7.60% (refinance)
These rates, provided by the Zillow Mortgage API, reflect typical quotes based on a loan-to-value (LTV) ratio of 80% and a credit score between 680 and 739. It’s important to note that these averages may not directly compare to teaser rates, which often involve additional costs or ideal borrower conditions.
The movement in mortgage rates is influenced by a range of macroeconomic factors, including bond market trends, Federal Reserve policies, and competition among lenders. The Federal Reserve’s recent decision to hold the federal funds rate steady since July 2023 has contributed to the current rate environment. With inflation showing signs of easing, the Fed is expected to announce a rate cut at its next meeting on September 18.
Understanding the factors driving mortgage rates and regularly comparing offers can help borrowers secure the most favorable terms for their home loans.
