Mortgage Rates Dip from 5-Month Peak: What You Need to Know!

Your Snapshot of Today’s Best Mortgage Rates for New Purchases!
Loan Type	Current Rates	Daily Change
30-Year Fixed	6.92%	-0.06
FHA 30-Year Fixed	6.28%	No Change
VA 30-Year Fixed	6.43%	-0.01
20-Year Fixed	6.88%	-0.05
15-Year Fixed	6.12%	No Change
FHA 15-Year Fixed	6.40%	No Change
10-Year Fixed	6.04%	-0.14
7/6 ARM	7.33%	-0.04
5/6 ARM	7.39%	-0.03
Jumbo 30-Year Fixed	6.87%	-0.03
Jumbo 15-Year Fixed	6.71%	+0.05
Jumbo 7/6 ARM	7.22%	+0.16
Jumbo 5/6 ARM	7.20%	+0.01

The Weekly Freddie Mac Roundup

Every Thursday, the mortgage market takes the spotlight with Freddie Mac revealing the latest 30-year mortgage rate averages. Just last week, we saw a notable rise of 12 basis points, landing at an average of 6.72%. This marks a significant jump from the low of 6.08% noted on September 26. Remarkably, October 2023 saw the average skyrocket to a staggering 23-year peak of 7.79%—a moment that shook the mortgage landscape!

Keep in mind, Freddie Mac compiles its average based on a week’s worth of data, while our daily readings provide a sharper insight into the ever-shifting rate environment. The criteria for loans included can also differ, making our daily figures a more accurate reflection of what’s happening right now.

Want to crunch the numbers for your potential mortgage payments? Check out our Mortgage Calculator for tailored scenarios!

What Drives Mortgage Rates Up or Down?

Mortgage rates are influenced by a whirlwind of economic and market dynamics, including:

Because of the interplay of these factors, pinpointing a singular cause for rate changes can be quite a challenge.

For a good chunk of 2021, macroeconomic factors kept mortgage rates low, largely due to the Federal Reserve’s massive bond purchases in response to pandemic pressures. This strategy played a pivotal role in shaping mortgage rates.

However, starting in November 2021, the Fed began to taper its purchasing strategy, cutting back until reaching zero in March 2022. This shift marked the beginning of a new chapter.

Between then and July 2023, the Fed aggressively raised the federal funds rate to combat soaring inflation. While these changes don’t directly affect mortgage rates, they create ripples that can lead to significant shifts.

The Fed’s rapid adjustments—raising the benchmark rate by 5.25 percentage points over just 16 months—have undeniably impacted mortgage rates, pushing them higher in recent times.

After maintaining the federal funds rate at its peak for nearly 14 months, the Fed made headlines on September 18 with its first rate cut of 0.50 percentage points, followed by quarter-point cuts in November and December.

Yet, as inflation remains stubborn, the Fed has warned that future rate cuts may not be as frequent, leading to an uptick in mortgage rates as Treasury yields respond to this cautious outlook.

How We Monitor Mortgage Rates

The averages we’ve shared are derived from reliable sources, tailored for a standard scenario with an 80% loan-to-value ratio (meaning a down payment of at least 20%) and a credit score in the 680–739 range. These figures give you a realistic expectation of what you might encounter when seeking quotes from lenders, differing from the more attractive teaser rates you may come across.