National Average of Lender's Best Rates – Refinance Loan Type Refinance Rate Daily Change 30-Year Fixed 6.98% +0.06 FHA 30-Year Fixed 6.60% No Change VA 30-Year Fixed 6.16% No Change 20-Year Fixed 6.88% +0.04 15-Year Fixed 6.14% -0.01 FHA 15-Year Fixed 6.33% No Change 10-Year Fixed 7.22% No Change 7/6 ARM 7.60% +0.01 5/6 ARM 7.71% +0.13 Jumbo 30-Year Fixed 7.21% +0.20 Jumbo 15-Year Fixed 6.57% -0.19 Jumbo 7/6 ARM 7.45% -0.12 Jumbo 5/6 ARM 7.55% +0.02Provided via the Zillow Mortgage API
Use our mortgage calculator to calculate monthly payments for various loan scenarios.
The rates you see here usually aren't directly comparable to teaser rates advertised online, because those rates are handpicked as the most attractive, whereas the rates you see here are averages. Teaser rates may include paying points up front or may assume a hypothetical borrower with a very high credit score or a smaller-than-usual loan amount. The mortgage rate you ultimately secure will be based on your credit score, income and other factors and may differ from the average you see here.
Mortgage rates by state
The minimum mortgage interest rates available vary depending on the state the loan is in. Mortgage rates can be affected by state-level credit scores, differences in the average mortgage type and size, as well as differences in individual lenders' risk management strategies.
The states with the lowest interest rates on new purchases of 30-year loans on Friday were New York, Florida, Hawaii, Alaska, New Jersey and Texas, while the states with the highest average rates were Iowa, North Dakota, Washington, D.C. and South Dakota.
What causes mortgage rates to rise or fall?
Mortgage interest rates are determined by a complex interplay of macroeconomic and industry factors, including:
Fluctuations can be caused by several factors at once, so it is usually difficult to attribute change to a single factor.
Macroeconomic factors have kept the mortgage market at relatively low levels for much of 2021. In particular, the Federal Reserve has purchased billions of dollars in bonds in response to economic pressures caused by the pandemic. This bond-buying policy has had a significant impact on mortgage interest rates.
However, starting in November 2021, the Fed began tapering its bond purchases, making larger cuts each month until it reached net zero in March 2022.
From then until July 2023, the Fed has aggressively raised the federal funds rate to combat the highest inflation in decades. The federal funds rate can affect mortgage rates, but it does not directly affect them. In fact, the federal funds rate and mortgage rates sometimes move in opposite directions.
But given the historic speed and magnitude of the Fed's rate hikes in 2022 and 2023 (raising its benchmark interest rate by 5.25 percentage points over 16 months), even the indirect impact of the federal funds rate has led to a dramatic increase in mortgage rates over the past two years.
The Federal Reserve has kept the federal funds rate at its current level since July, and earlier this month announced it would keep rates unchanged for the seventh consecutive year. Inflation has fallen significantly but remains above the Fed's 2% target level. The central bank has said it will be cautious about starting to cut interest rates until it is confident that inflation has fallen sufficiently and sustainably.
The Fed has four more meetings this year, with its next one scheduled to end on July 31.
How to Track Mortgage Interest Rates
The national and state averages shown above are provided as is through the Zillow Mortgage API, assuming an LTV (loan-to-value ratio) of 80% (i.e. at least a 20% down payment) and an applicant's credit score in the 680-739 range. Resulting interest rates represent the rate a customer can expect when receiving an actual quote from a lender based on qualifications, and may differ from the advertised teaser rate. © Zillow, Inc., 2024. Use subject to Zillow Terms of Use.