Editor's Note: Investopedia will not publish daily mortgage rate news on Wednesday, Dec. 25, in observance of Christmas Day. Our daily coverage will resume on Thursday, 26th December.
The rates for 30-year-old new mortgages increased on Monday, after retreating just one day. Average mortgage rates are now approaching five-month highs. The rate movement for other types of loans was also up.
| National Averages of Lenders' Best Mortgage Rates | |
|---|---|
| Loan Type | New Purchase |
| The 30-Year Fixed | 6.95% |
| FHA Fixed 30-Year Rate | 6.28% |
| Fixed 15 Year Term | 6.14% |
| Jumbo 30-Year Fixed | 6.87% |
| 5/6 ARM | 7.44% |
| Zillow Mortgage API provides access to the Zillow Mortgage API | |
In order to get the lowest mortgage rates, you should always shop around and compare your options, regardless of what kind of loan you want.
Compare current mortgage rates today – December 24, 2024
Today's New Purchase Mortgage Rate Averages
Triggered by last week's Federal Reserve forecast of scaled-back interest rate cuts in 2025, mortgage rates surged last week to 6.98%, then dipped slightly Friday. The benchmark average rose again on Monday. The current average, after adding 3 basis point is 6.95%.
Rates had sunk to a two-year low of 5.89% back in September, but they've soared by more than a percentage point higher over the past three months.
However, if you go back further, rates for 30-year mortgages are still below the April peak rate of 7.37 percent. And they're more than a percentage point cheaper than the historic 23-year peak of 8.01% reached in October 2023.
On Monday, rates for 15-year mortgages increased 2 basis point. This new average of 6.14% is the highest since early July. In September, the 15-year rate also fell to its lowest level in two years, falling as low as 4.97%. Though today's 15-year average is elevated, it remains almost a percentage point below last fall's historic 7.08% reading—a high since 2000.
Jumbo 30-year loan rates were flat on Monday. They remained at an average of 6.87%. In September, 30-year jumbo rates were at 6.24% – their lowest rate in over 19 months. Although daily historical jumbo rates weren't published before 2009, 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 | ||
|---|---|---|
| How to Get a Loan | Buy New Rates | Weekly Change |
| The 30-Year Fixed | 6.95% | +0.03 |
| FHA Fixed 30-Year Rate | 6.28% | No Change |
| VA 30-Year Fixed | 6.48% | +0.05 |
| Fix 20 Year | 6.89% | +0.01 |
| 15-Year Fixed | 6.14% | +0.02 |
| FHA 15 Year Fixed | 6.40% | No Change |
| 10 Year Fixed | 6.16% | +0.12 |
| 7/6 ARM | 7.38% | +0.05 |
| 5/6 ARM | 7.44% | +0.05 |
| Jumbo 30-Year Fixed | 6.87% | No Change |
| Jumbo 15-Year Fixed | 6.75% | +0.04 |
| Jumbo 7/6 ARM | 7.17% | -0.05 |
| Jumbo 5/6 ARM | 7.20% | No Change |
| Zillow Mortgage API provides access to the Zillow Mortgage API | ||
The Weekly Freddie Mac Average
Freddie Mac is a government sponsored buyer of mortgages. They publish a weekly mortgage average every Thursday. Last week's reading jumped 12 basis points to a weekly average of 6.72%. The average was as low as 6.08% as recently as September 26. 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 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?
The mortgage rate is determined by the complex interplay of macroeconomic factors and industry-specific variables, including:
- Bond market direction and level, focusing on the 10-year Treasury yield
- 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. 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.
The Fed raised its federal funds rate aggressively between July 2020 and 2023 to combat inflation that has been high for decades. 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 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 meeting last week that, due to stubborn inflation, further rate cuts may be fewer and farther between. In response to this revised 2025 forecast, 10-year Treasury rates rose. This in turn led to a rise of mortgage interest rates.
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. Rates are a guideline for what to expect from lenders in terms of quotes, and may be different from the teaser rates advertised. © Zillow, Inc., 2024. The Zillow terms of use apply.
Article sources Investopedia expects its writers to use original research to support 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. Learn more about how we produce accurate, unbiased material in our 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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