Editor's Note: Investopedia did not publish daily mortgage rate news on Thursday, Nov. 28, in observance of Thanksgiving. Today, we are reporting on the Wednesday average rates.
The 30-year mortgage rate fell further on Wednesday after falling sharply Monday, and then holding at that same level for two days. It is now 6.75 percent on average, which represents a marked decline from a four-month peak of 6.93%. Most other types of mortgage rates moved down on Wednesday.
| National Averages of Lenders' Best Mortgage Rates | |
|---|---|
| Loan Type | New Purchase |
| 30 Year Fixed | 6.75% |
| FHA 30 Year Fixed | 6.72% |
| Fixed-Term 15 Year | 5.88% |
| Jumbo 30-Year Fixed | 6.71% |
| 5/6 AR | 7.25% |
| 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 Mortgage Rates Today, Nov. 29, 2020
Today's New Purchase Mortgage Rate Averages
After a net decline of 12 basis points between Monday and Tuesday, the 30-year average rate for new mortgages fell by 4 basis points to 6.75% on Wednesday. Rates had previously been fluctuating on a tight yo-yo basis, reaching a 4-month high at 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 86 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 high of 7.37%. The 30-year mortgage rates are 1.26 points lower than their historic peak last October of 8.01%, which was the highest in 23 years.
Rates on 15-year mortgages declined 8 basis points, reducing Wednesday's average to 5.88%. In September, the 15-year rate also fell to its lowest level in two years, dipping as low as 4.97%. Though today's 15-year rates are elevated, they remain 1.2 percentage points below last fall's historic 7.08% reading—a high since 2000.
The average rate for jumbo 30-year loans dropped by 10 basis points on Wednesday. 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 |
| 30 Year Fixed | 6.75% | -0.04 |
| FHA 30 Year Fixed | 6.72% | No Change |
| VA 30-Year Fixed | 6.17% | -0.06 |
| The 20-Year Fixed Rate | 6.64% | -0.04 |
| 15-Year Fixed | 5.88% | -0.08 |
| FHA 15 Year Fixed | 6.40% | No Change |
| 10 Year Fixed | 6.00% | No Change |
| 7/6 ARM | 7.21% | -0.06 |
| 5/6 AR | 7.25% | -0.07 |
| Jumbo 30-Year Fixed | 6.71% | -0.10 |
| Jumbo 15-Year Fixed | 6.65% | -0.17 |
| Jumbo 7/6 ARM | 7.05% | -0.12 |
| Jumbo 5/6 ARM | 7.25% | -0.06 |
| Zillow Mortgage API is available. | ||
The Weekly Freddie Mac Average
Every Thursday Freddie Mac (a government-sponsored mortgage buyer) publishes a week’s average 30-year mortgage interest rates. 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.
What causes mortgage rates to rise or fall?
Rates of mortgages are determined by macroeconomic and industrial factors such as
- 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. Federal Reserve purchased billions of dollar bonds as a response to pandemic-induced economic pressures. 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. Although the Fed Funds Rate can affect mortgage rates indirectly, it does so indirectly. Mortgage rates and the Fed funds rate may even move in opposite direction.
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%. The fed funds rate has now reached its lowest level in 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. Rates are based upon the qualifications of the borrower and may be different from those advertised in teaser offers. © Zillow, Inc., 2024. Zillow’s Terms and Conditions of Use apply.
Investopedia’s Article Sources requires that writers use primary sources in order to back up their writing. 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 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)."
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
