The 30-year mortgage rate has moved in the opposite direction after a sharp drop to the lowest average since last October a week earlier. For the fifth straight day, Monday’s benchmark rate is now at 6.78%. Other mortgage rates were also fluctuating.
| National Averages of Lenders' Best Mortgage Rates | |
|---|---|
| Loan Type | New Purchase |
| The 30-Year Fixed | 6.78% |
| FHA 30 Year Fixed | 6.28% |
| Fixed 15 Year Term | 5.94% |
| Jumbo 30-Year Fixed | 6.72% |
| 5/6 ARM | 7.34% |
| 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 17, 2024
Today's New Purchase Mortgage Rate Averages
In a week, the average 30-year purchase mortgage rate increased by one basis point. However, after five consecutive days, it has gained a quarter of a percentage point. The benchmark average has now reached 6.78%. The 6.53% rate from early last week had been the lowest since October 16.
In September mortgage rates dropped to an all-time low of 2.9%, then soared up to 6.93% by November. Though today's average is lower, it's still nearly 90 basis points more expensive than the Sept. 17 low point of 5.89%.
However, if you look further back in time, the 30-year mortgage rate is still well below its April high of 7.37%. And they're about 1.25 percentage points cheaper than the historic 23-year peak of 8.01% last October.
The average rate for 15-year mortgages rose by 4 basis points on Monday to 5.94%. Rates on 15-year mortgages fell as low as 4.97 percent in September. This was a similar drop to 30-year rates. Though today's 15-year average is elevated, it remains about 1.15 percentage points below last fall's historic 7.08% reading—a high since 2000.
In the meantime, 30-year jumbo mortgage rates dropped by 3 basis point to reach 6.72% on Monday. The average jumbo 30-year rate in September was 6.24%. This is the lowest it has been for 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 | ||
|---|---|---|
| Get Loans | Buy New Rates | Everyday Change |
| The 30-Year Fixed | 6.78% | +0.01 |
| FHA 30 Year Fixed | 6.28% | No Change |
| VA Fixed 30-Year | 6.20% | +0.01 |
| Fix 20 Year | 6.72% | +0.02 |
| Fixed 15 Year Term | 5.94% | +0.04 |
| FHA 15 Year Fixed | 6.40% | No Change |
| 10 Year Fixed | 5.82% | +0.05 |
| 7/6 Arm | 7.26% | -0.21 |
| 5/6 ARM | 7.34% | -0.19 |
| Jumbo 30-Year Fixed | 6.72% | -0.03 |
| Jumbo 15-Year Fixed | 6.63% | -0.12 |
| Jumbo 7/6 ARM | 7.04% | -0.10 |
| Jumbo 5/6 ARM | 7.15% | -0.06 |
| Zillow Mortgage API is available. | ||
The Weekly Freddie Mac Average
Freddie Mac publishes a 30-year average mortgage rate every Thursday. Last week's reading fell 9 basis points to a weekly average of 6.60%. On Sept. 26 the average fell as low as 6.0%. But last October, Freddie Mac's average was on a historic rise, 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’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.
Why do mortgage rates 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 monetary policy as it currently exists, notably in terms of 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. Mortgage rates are heavily influenced by this bond-buying strategy.
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. The fed funds rate does not directly affect mortgage rates. Mortgage rates and the Fed funds rate may even move in opposite directions.
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. The first rate cut was 0.50 percent.
On November 7, the Fed announced a further rate reduction of 0.25 percentage point, which will bring the federal funds rates 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.
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 cite primary sources in their articles. This includes white papers, official government data, reporting original and interviews conducted with industry experts. 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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