The 30-year mortgage rates have fluctuated in the past two weeks, but are still below their peak level of July. Rates on 30-year mortgages rose slightly Friday, to 6.95%. Other types of mortgages saw mixed rate movements.
| National Averages of Lenders' Best Mortgage Rates | |
|---|---|
| Loan Type | New Purchase |
| 30 Year Fixed | 6.95% |
| FHA Fixed 30-Year Rate | 6.28% |
| Fixed 15 Year Term | 6.14% |
| Jumbo 30-Year Fixed | 6.85% |
| 5/6 ARM | 7.30% |
| Zillow Mortgage API is available. | |
Regardless of the type or amount you want to borrow, compare mortgage rates and rates from different lenders.
Compare current mortgage rates today – January 6, 2025
Today's New Purchase Mortgage Rate Averages
The 30-year mortgage rates have increased by one basis point, bringing the average to 6.95%. The previous week, rates had surged to 7.02%, triggered by the Federal Reserve's December forecast of scaled-back interest rate cuts in 2025. The flagship average, though slightly lower than it was last week, is still close to its highest point since July 2
In September rates fell to their lowest level in two years, reaching as low as 5,89%. But they've soared by more than a percentage point over the past three months.
Looking further back, 30-year mortgage rates hit a high 7.37% in April, so today's rates are still improved versus last spring. They're also about a percentage point cheaper than the historic 23-year peak of 8.01% reached in October 2023.
The average rate for 15-year mortgages dropped by one basis point on Friday, to 6.14%. In September, like its 30-year counterpart, the average 15-year rate fell below the 5-percent mark, to 4.97%. Though today's 15-year average is elevated, it remains significantly below October 2023's historic 7.08% reading—a high since 2000.
Jumbo 30-year rates dropped 2 basis point Friday. This lowered the average down to 6.85%. In September, rates for jumbo 30 year mortgages fell to their lowest average since 19 months, at 6.24%. Meanwhile, it's estimated that the 8.14% peak we saw in October 2023 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 | Weekly Change |
| 30 Year Fixed | 6.95% | +0.01 |
| FHA Fixed 30-Year Rate | 6.28% | No Change |
| VA 30-Year Fixed | 6.48% | No Change |
| The 20-Year Fixed Rate | 6.91% | +0.03 |
| 15-Year Fixed | 6.14% | -0.01 |
| FHA Fixed 15-Year Rate | 6.40% | No Change |
| 10 Year Fixed | 6.19% | +0.01 |
| 7/6 ARM | 7.24% | -0.05 |
| 5/6 ARM | 7.30% | -0.05 |
| Jumbo 30-Year Fixed | 6.85% | -0.02 |
| Jumbo 15-Year Fixed | 6.71% | -0.09 |
| Jumbo 7/6 ARM | 7.10% | +0.13 |
| Jumbo 5/6 ARM | 7.17% | +0.01 |
| Zillow Mortgage API is available. | ||
The Weekly Freddie Mac Average
Every Thursday, Freddie Mac publishes a 30-year average mortgage rate. The reading for last week increased by 6 basis points, to 6.91%. This follows a 25-basis point increase in the two previous weeks. On Sept. 26 the average reading had fallen as low as 6.08 percent. Back in October 2023, however, Freddie Mac's average saw a historic rise, surging to a 23-year peak of 7.79%.
Freddie Mac's average differs from what we report for 30-year rates because Freddie Mac calculates a weekly average that blends five previous days of rates. Investopedia’s 30-year average, on the other hand, is a reading taken daily, which provides a better and more timely indication of 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?
The mortgage rate is determined by the complex interplay of macroeconomic factors and industry-specific variables, including:
- This is the level and direction in which bond yields, particularly those on 10-year Treasury bonds, are moving.
- Federal Reserve’s current policy on monetary affairs, including bond purchasing and government-backed loans.
- 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.
Fed held the Federal Funds Rate at its highest level, starting July 2023. On Sept. 18, however, the Fed announced its first cut in interest rates of 0.50 percent points. This was followed by a quarter-point decrease on Nov. 7, and December 18.
However, the Fed's policy committee cautioned at its December meeting that further rate cuts may be fewer and farther between—with just two 2025 rate cuts projected instead of the previously predicted four reductions. In response to this revised estimate for 2018, 10-year Treasury rates have risen, which has in turn led mortgage rates to rise.
The Mortgage Rate Tracker
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 use original research to support their articles. White papers, data from the government, interviews with experts, and original reporting are all examples. When appropriate, we reference the original research of other publishers. Our website contains more information about our standards for producing unbiased, accurate content. The editorial Policy.
Freddie Mac. “Mortgage Rates."
Congressional Research Service. "Federal Reserve: Tapering of Asset Purchases," Page 1.
Department of The Treasury of The United States. "Daily Treasury Par Yield Curve Rates."
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