On Friday, the average rate for a 30-year mortgage refinance loan fell to 6.41%, marking the lowest level since February 6, 2023. This decrease reflects a broader trend of falling refinance rates across most loan types. The 15-year and 20-year refinance averages also saw a reduction of 3 basis points each, while rates for jumbo 30-year loans remained unchanged.
Here are the current national refinance averages:
- 30-Year Fixed: 6.41% (down 0.03%)
- FHA 30-Year Fixed: 6.20% (no change)
- VA 30-Year Fixed: 5.55% (up 0.10%)
- 20-Year Fixed: 6.07% (down 0.03%)
- 15-Year Fixed: 5.25% (down 0.03%)
- FHA 15-Year Fixed: 5.73% (no change)
- 10-Year Fixed: 5.76% (up 0.54%)
- 7/6 ARM: 7.50% (down 0.03%)
- 5/6 ARM: 7.60% (down 0.02%)
- Jumbo 30-Year Fixed: 6.48% (no change)
- Jumbo 15-Year Fixed: 6.72% (up 0.09%)
- Jumbo 7/6 ARM: 7.54% (no change)
- Jumbo 5/6 ARM: 7.63% (up 0.01%)
These rates, sourced from the Zillow Mortgage API, represent averages based on a loan-to-value (LTV) ratio of 80% and an applicant credit score in the 680–739 range. It’s important to note that these averages might differ from the teaser rates often advertised online, which may involve additional fees or apply to borrowers with exceptionally high credit scores.
Mortgage rates are influenced by a range of macroeconomic factors, including bond market trends, Federal Reserve policies, and lender competition. For much of 2021, low mortgage rates were supported by the Federal Reserve’s extensive bond-buying program. However, starting in November 2021, the Fed began tapering these purchases and subsequently raised the federal funds rate to combat high inflation. This led to a significant rise in mortgage rates.
Since July 2023, the Federal Reserve has held the federal funds rate steady and is expected to announce a rate cut at its upcoming meeting on September 18, as inflation has moderated.
With rates continuing to trend downward, it’s a favorable time for homeowners considering refinancing. As always, borrowers should compare offers from different lenders to secure the best possible terms for their mortgages.
