Mortgage rates on 30-year terms continued to fall Monday. A third decline in a row brought the benchmark average down to 6.66%. It’s the lowest level in more than six weeks. The rate movement was down for nearly every type of mortgage on Monday.
| National Averages of Lenders' Best Mortgage Rates | |
|---|---|
| Loan Type | New Purchase |
| The 30-Year Fixed | 6.66% |
| FHA 30 Year Fixed | 6.72% |
| Fixed 15 Year Term | 5.83% |
| Jumbo 30-Year Fixed | 6.63% |
| 5/6 AR | 7.27% |
| Zillow Mortgage API is available. | |
It’s important to compare mortgage rates and shop around regularly for the best rate, regardless of what type of loan you are seeking.
Compare current mortgage rates today – December 3, 2024
Today's New Purchase Mortgage Rate Averages
The 30-year mortgage rates fell another 2 basis point Monday. This brings the average national rate down to 6.66%. That's an eighth of a point drop over three days, and takes the average to its cheapest level since Oct. 21.
In September mortgage rates dropped to an all-time low of 2.9%, then soared again in October. They reached their highest level for four months in November at 6.93%. Though today's average is lower, it's still 77 basis points above the Sept. 17 low point of 5.89%.
If you look back further, the 30-year mortgage rate is still well below its April high of 7.37 percent. The 30-year mortgage rates are 1.35 percentage point lower than their historic peak last October of 8.01%, which was the highest in 23 years.
Rates on 15-year mortgages dipped a single basis point Monday, but it was the fifth consecutive daily decline—lowering the average to 5.83% after touching 6.09% just over a week ago. The 15-year mortgage rates also fell in September to their lowest level for two years, falling as low as 4.97 percent. Though today's 15-year rates are elevated, they remain 1.25 percentage points below last fall's historic 7.08% reading—a high since 2000.
The average rate for jumbo 30-year mortgages fell by 9 basis points on Monday. That's the lowest level in six weeks and is well below a recent three-month high of 6.99%. In September, the average rate for jumbo 30 year rates was 6.24%. It was their lowest level in over 19 months. Although daily historical jumbo rates weren't published before 2009, it's estimated that the 8.14% peak we saw last fall was the most expensive jumbo 30-year average in 20-plus years.
| National Averages of Lenders' Best Rates – New Purchase | ||
|---|---|---|
| Loan Type | Buy New Rates | Everyday Change |
| The 30-Year Fixed | 6.66% | -0.02 |
| FHA 30 Year Fixed | 6.72% | No Change |
| VA Fixed 30-Year | 6.05% | -0.04 |
| The 20-Year Fixed Rate | 6.51% | -0.03 |
| Fixed-Term 15 Year | 5.83% | -0.01 |
| FHA Fixed 15-Year Rate | 6.40% | No Change |
| Ten-Year Fixed | 5.84% | -0.08 |
| 7/6 ARM | 7.23% | -0.01 |
| 5/6 AR | 7.27% | -0.01 |
| Jumbo 30-Year Fixed | 6.63% | -0.09 |
| Jumbo 15-Year Fixed | 6.52% | -0.08 |
| Jumbo 7/6 ARM | 7.01% | -0.01 |
| Jumbo 5/6 ARM | 7.18% | -0.01 |
| Zillow Mortgage API is available. | ||
The Weekly Freddie Mac Average
The weekly average 30-year mortgage rates are published by Freddie Mac every Thursday. Last week's reading fell 3 basis points to a weekly average of 6.81%, while as recently as Sept. 26, the average sank to a two-year low of 6.08%. Last October, Freddie Mac's average moved the other way, surging to a historic 23-year peak of 7.79%.
Freddie Mac average is different from ours for the 30-year rate because Freddie Mac creates a five-day average based on a blend of past rates. Investopedia 30 year averages are daily and provide a much more accurate indication of changes in rates. In addition, the criteria for included loans (e.g., amount of down payment, credit score, inclusion of discount points) varies between Freddie Mac's methodology and our own.
Calculate the monthly payment for various loan scenarios using our Mortgage Calculator.
The rates we publish won’t compare directly with teaser rates you see advertised online since those rates are cherry-picked as the most attractive vs. the averages you see here. Teaser rates may involve paying points in advance or may be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan. Your rate will depend on your income and credit rating, as well as other factors.
What causes mortgage rates to rise or fall?
Rates of mortgages are determined by macroeconomic factors as well as industry factors.
- Bond market direction and level, especially the 10-year Treasury yields
- Current monetary policies of the Federal Reserve, particularly in relation to government bond purchases and mortgage funding.
- Mortgage lenders compete with each other for different loan types.
Because any number of these can cause fluctuations simultaneously, it's generally difficult to attribute the change to any one factor.
The mortgage market remained relatively flat for most of the year 2021 due to macroeconomic conditions. The Federal Reserve bought billions in bonds to respond to economic pressures caused by the pandemic. The Federal Reserve’s bond buying policy has a significant impact on mortgage rates.
The Fed will begin to taper its purchases of bonds in November 2021. Each month, it will make significant reductions until the net is zero by March 2022.
The Fed raised its federal funds rate aggressively between July 2020 and 2023 to combat inflation that has been high for decades. Although the Fed Funds Rate can affect mortgage rates indirectly, it does so indirectly. The fed funds rate can actually move the opposite direction of mortgage rates.
But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.
In July 2023, the Fed kept its federal funds rate near its highest level for nearly 14 months. The Fed’s first rate reduction was announced on September 18th. This is the beginning of a downward trend that should continue through 2024, and possibly 2025. This was the first cut of 0.50 percentage point.
The Fed announced on Nov. 7 that it would be cutting the Federal Funds Rate by an additional 0.25 percentage point, which will bring the rate down to 4.5% – 4.75%. This cut brings the federal funds rate to its lowest point since March 2023.
The Fed's next rate announcement will be made Dec. 18.
What We Do to Track Mortgage Rates
The national and state averages cited above are provided as is via 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 in the 680–739 range. These rates are what you can expect to receive from lenders when they give quotes based on your qualifications. They may differ from teaser rate advertisements. © Zillow, Inc., 2024. The Zillow terms of use apply.
Investopedia’s Article Sources requires that writers use primary sources as a basis for their writing. White papers, data from the government, interviews with experts, original reports, and whitepapers are all examples. Where appropriate, we also refer to original research by other respected publishers. Our website contains more information about our standards for producing accurate and unbiased content. The editorial Policy.
Freddie Mac. “Mortgage Rates."
Congressional Research Service. "Federal Reserve: Tapering of Asset Purchases," Page 1.
Federal Reserve. "Federal Open Market Committee: Meeting Calendars, Statements, and Minutes (2019-2026)."
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