The states with the lowest 30-year mortgage refinance rates on Friday were New York, California, Oregon, Colorado, Connecticut, Washington and Florida. These seven states had a 30-year refi average of 6.90% to 7.02%.
Meanwhile, the states with the highest refinance rates on Friday were Massachusetts, Illinois, West Virginia, South Carolina, Hawaii and Nevada. The 30-year Refi average range for these states was 7.14% to 7.19%.
Mortgage refinance interest rates vary depending on the state where you refinance. Different lenders operate in different regions, and interest rates can be affected by state-level variations in credit scores, average loan amounts, and regulations. Lenders also have different risk management strategies that affect the interest rates they offer.
Interest rates vary widely between financial institutions, so no matter what type of mortgage you're looking for, it's always wise to search for the best mortgage option and compare interest rates regularly.
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The rates we publish are not directly comparable to teaser rates advertised online. Because these rates have been hand-picked to be the most attractive compared to the average values shown here. Teaser interest rates may include paying points upfront, or may be based on a hypothetical borrower with a very high credit score, or on a smaller-than-usual loan. The interest rate you ultimately secure is determined based on your credit score, income, and other factors, so it may differ from the average you see here.
Average national mortgage refinance interest rate
On Friday, the national average for a 30-year refinance mortgage rose another 3 basis points to 7.08%, its highest level since early August. The current average is more than one percentage point higher than the 6.01% recorded in mid-September, when the average hit a 19-month low. Still, refinance rates for 30-year mortgages are in the mid-7% range, below where they were at the start of this summer in July.
Lenders' Best Mortgage Rates Nationwide Average Loan Type Refinance Rate Average 30-year fixed 7.08% FHA 30-year fixed 6.29% 15-year fixed 5.93% Jumbo 30-year fixed 6.94% 5/6 ARM 7.67% API provided via Zillow Mortgage
Use our mortgage calculator to calculate your monthly payments for different loan scenarios.
What causes mortgage rates to rise or fall?
Mortgage interest rates are determined by a complex interplay of macroeconomic and industry factors, including:
Because they can vary simultaneously, it is generally difficult to attribute a change to a single factor.
Due to macroeconomic factors, the mortgage market remained relatively low for most of 2021. In particular, the Federal Reserve was buying billions of dollars in bonds in response to economic pressures from the pandemic. This bond purchasing policy has a significant impact on mortgage interest rates.
However, the Fed began reducing its bond purchases in November 2021, and continued to make significant monthly cuts until they reached virtually zero in March 2022.
From then until July 2023, the Fed aggressively raised the federal funds rate to combat the highest inflation in decades. The federal funds rate may affect mortgage interest rates, but it does not directly affect them. In fact, the federal funds rate and mortgage rates can move in opposite directions.
However, given the historic speed and magnitude of the Fed's rate hikes in 2022 and 2023 (raising the base rate by 5.25 percentage points in 16 months), even the indirect impact of the federal funds rate has not increased over the past two years. This had a dramatic effect on mortgage interest rates. year.
The Fed kept the federal funds rate at its highest level for nearly 14 months starting in July 2023. But at its latest meeting, the central bank announced the first rate cut in what is expected to be a series of cuts in 2024 and possibly 2025. The first reduction was 0.50 percentage points.
The Fed's next interest rate announcement will be made on November 7th.
How to track your mortgage interest rate
The national and state averages listed above are based on the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score of 80%. Provided as is via. Range 680-739. The resulting interest rate represents what a borrower should expect when receiving a quote from a lender based on their qualifications and may differ from the advertised teaser rate. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.
