30-Year Refinance Rates Dip Again: Unlock Your Savings Today!
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Note from the Editor: We paused our daily mortgage rate updates on Thursday, Nov. 28, to honor Thanksgiving. Today, we bring you the latest averages from Wednesday.
On Wednesday, the average refinance rate for 30-year loans dipped slightly, down 2 basis points to hit 7.01%. Just earlier this week, a significant 11-point drop brought rates to a two-week low. After reaching a 19-month low of 6.01% in September, these rates spiked over a percentage point in October and November, peaking at 7.13% around two weeks ago.
Other refinance loan types also experienced a downward trend on Wednesday. The 15-year and 20-year refinance averages fell by 10 and 4 basis points, respectively, while jumbo 30-year loans ticked down a solitary basis point.
| National Averages for Refinance Rates | ||
|---|---|---|
| Loan Type | Refinance Rates | Daily Change |
| 30-Year Fixed | 7.01% | -0.02 |
| FHA 30-Year Fixed | 6.29% | No Change |
| VA 30-Year Fixed | 6.19% | No Change |
| 20-Year Fixed | 6.78% | -0.04 |
| 15-Year Fixed | 5.83% | -0.10 |
| FHA 15-Year Fixed | 6.09% | No Change |
| 10-Year Fixed | 6.04% | No Change |
| 7/6 ARM | 7.31% | -0.07 |
| 5/6 ARM | 7.06% | -0.01 |
| Jumbo 30-Year Fixed | 6.85% | -0.01 |
| Jumbo 15-Year Fixed | 6.84% | -0.11 |
| Jumbo 7/6 ARM | 7.18% | No Change |
| Jumbo 5/6 ARM | 7.42% | -0.08 |
| Provided via the Zillow Mortgage API | ||
Important
Remember, the rates we share here are not the same as those flashy teaser rates you often see online. Those rates are often selective and based on ideal scenarios. Your final rate will depend on various factors such as credit score, income, and more, so take these averages as a guideline, not a guarantee.
Given the wide variance in rates across lenders, it’s crucial to shop around for your best mortgage refinance option and regularly compare rates, no matter what type of home loan you’re considering.
Use our Mortgage Calculator to estimate monthly payments for various loan scenarios and take charge of your financial decisions.
What Drives Mortgage Rates Up or Down?
Mortgage rates are influenced by a myriad of factors that interact in complex ways, including macroeconomic conditions and industry trends. Here’s what you need to know:
With so many variables at play, pinpointing a specific cause for rate changes can be quite tricky.
The mortgage market remained relatively low throughout much of 2021, particularly due to the Federal Reserve’s aggressive bond purchasing strategy in response to the pandemic’s economic impact. This bond-buying strategy has had a significant impact on mortgage rates.
However, in November 2021, the Fed started to taper its bond purchases, gradually reducing them each month until reaching zero in March 2022.
Between that point and July 2023, the Fed aggressively raised the federal funds rate to combat inflation reaching historic levels. Although the fed funds rate indirectly influences mortgage rates, they can often move in opposite directions.
Given the rapid increase and significant scale of the Fed’s 2022 and 2023 rate hikes—5.25 percentage points over just 16 months—a pronounced upward shift in mortgage rates has been observed in recent years.
From July 2023 onward, the Fed has sustained the federal funds rate at its maximum level for around 14 months. However, on September 18, they announced the first rate cut in what is expected to be a series of reductions in 2024 and likely into 2025. That initial cut was by 0.50 percentage points.
On November 7, the Fed followed up with another cut, this time by 0.25 percentage points, reducing the federal funds rate to a range of 4.5% to 4.75%. This marks the lowest level since March 2023.
Mark your calendars for the Fed’s next rate announcement on December 18.
How We Monitor Mortgage Rates
The national and state averages mentioned earlier are sourced from the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (meaning a down payment of at least 20%) and a credit score ranging from 680 to 739. These figures represent what borrowers can typically expect when receiving quotes based on their qualifications, which may differ from any advertised teaser rates. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.
