Editor's Note: Investopedia will not publish daily mortgage rate news on Thursday, Nov. 28, in observance of Thanksgiving. On Friday, November 29, we will resume our coverage of daily rates.
After wavering in an elevated range for two weeks, 30-year mortgage rates fell dramatically Monday—and then remained near that lower level Tuesday. The average 30-year mortgage rate is now down to 6.79%. This is a significant drop from the recent high of 6.93%, which was reached just four months ago. Other mortgage rates fluctuated Tuesday.
| National Averages of Lenders' Best Mortgage Rates | |
|---|---|
| Loan Type | New Purchase |
| The 30-Year Fixed | 6.79% |
| FHA 30 Year Fixed | 6.72% |
| 15-Year Fixed | 5.96% |
| Jumbo 30-Year Fixed | 6.81% |
| 5/6 ARM | 7.32% |
| Zillow Mortgage API provides access to the Zillow Mortgage API | |
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 Mortgage Rates Today, Nov. 27, 2020
Today's New Purchase Mortgage Rate Averages
After a Monday drop of thirteen points, the 30-year average rate for new mortgages increased one basis point to 6.79%. Prior to this, rates were fluctuating on a tight yo-yo basis and reached a 4-month-high of 6.93%.
Mortgage rates fell to their lowest level in two years in September. They roared up in October, and are now swaying in a higher range this month. Today's average is 90 basis points above the two-year low registered on Sept. 17—when the 30-year average plummeted to 5.89%.
If you look back at the rates for 30-year mortgages, they are still far lower than their April peak rate of 7.37%. These rates are 1.2 points lower than last year’s historic high of 8.1%, which was the highest in 23 years.
Rates on 15-year mortgages slid 1 basis point lower, reducing Tuesday's average to 5.96%. The 15-year rate also dropped to its lowest point in over two years last September. It was 4.97%. Though today's 15-year rates are elevated, they remain more than 1.1 percentage points below last fall's historic 7.08% reading—a high since 2000.
The average rate for jumbo 30-year loans fell by 2 basis points on Tuesday. That's well below a recent three-month high of 6.99%. The average jumbo rate for 30-years fell to 6.24% in September. This was the lowest level seen 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 | Get New Purchase Rates | Weekly Change |
| The 30-Year Fixed | 6.79% | +0.01 |
| FHA 30 Year Fixed | 6.72% | No Change |
| VA Fixed 30-Year | 6.23% | +0.03 |
| Fix 20 Year | 6.68% | +0.02 |
| Fixed-Term 15 Years | 5.96% | -0.01 |
| FHA 15 Year Fixed | 6.40% | No Change |
| 10 Year Fixed | 6.00% | +0.19 |
| 7/6 Arm | 7.27% | -0.01 |
| 5/6 ARM | 7.32% | -0.02 |
| Jumbo 30-Year Fixed | 6.81% | -0.02 |
| Jumbo 15-Year Fixed | 6.82% | -0.10 |
| Jumbo 7/6 ARM | 7.17% | No Change |
| Jumbo 5/6 ARM | 7.31% | +0.02 |
| Zillow Mortgage API provides access to the Zillow Mortgage API | ||
The Weekly Freddie Mac Average
Every Thursday, Freddie Mac (a government-sponsored mortgage buyer) publishes a 30-year average mortgage rate. This 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 uses a different average than what we use for our 30-year rates. This is because Freddie Mac computes a week-average by combining five days’ worth of previous 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.
Why do mortgage rates rise or fall?
Rates of mortgages are determined by macroeconomic and industrial factors such as
- 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. Federal Reserve purchased billions of dollar bonds as a response to pandemic-induced economic pressures. The Federal Reserve’s bond buying policy has a significant impact on mortgage rates.
Starting in November 20, the Fed started to reduce its monthly bond purchases, reducing them by a significant amount each month.
Fed increased federal funds rates aggressively from July 20, 2023 onwards to battle inflation. 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.
Fed held the federal funds rates at their peak for 14 months starting in July 2023. On Sept. 18th, the Fed announced its first cut to the federal funds rate in a planned series of reductions that will likely occur in 2024 or 2025. This was the first cut of 0.50 percentage point.
The Fed cut the rate by 0.25 points on November 7, bringing it from 4.5% to 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. Zillow’s Terms and Conditions of Use apply.
Article sources Investopedia expects its writers to support their articles with primary sources. 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. 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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