Discover Today’s Mortgage Rates by State – December 6, 2024!
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Looking to buy a home? You’ll want to pay attention to mortgage rates, and right now, some states are shining brighter than others! As of Thursday, the states offering the most budget-friendly 30-year new purchase mortgage rates include New York, California, Florida, Arizona, Massachusetts, Washington, Georgia, and Texas, with averages ranging from 6.39% to 6.57%. That’s a savings opportunity waiting to happen!
On the flip side, if you’re considering states like Wyoming, South Dakota, Maine, Washington, D.C., Vermont, Rhode Island, or North Dakota, be prepared for some slightly steeper averages. These states are currently in the 6.69% to 6.70% range. Knowledge is power—make sure you have the full picture!
Mortgage rates aren’t one-size-fits-all; they vary by state due to different lenders and regional influences. Factors such as credit score, average loan size, and local regulations can all play a part. Each lender has their own strategies for managing risk, which can affect the rates they offer you.
With rates fluctuating across lenders, it’s crucial to shop around for the best mortgage options. Don’t settle for the first offer; comparing rates could lead you to significant savings!
Important Notes About Mortgage Rates
Remember, the rates you see advertised online often don’t reflect the average rates presented here. Teaser rates are usually based on ideal conditions—like flawless credit scores or smaller loans—and may require upfront points. Your actual rate will depend on your individual circumstances, so it’s vital to understand that averages may not reflect what you can secure.
National Mortgage Rate Averages
Currently, 30-year new purchase mortgage rates have ticked down to an average of 6.60%, the lowest since October. While rates had plunged to a two-year low of 5.89% in mid-September, they’ve climbed since then. However, it’s worth noting that today’s rates are still lower than the peak of over 7% we saw earlier this summer.
| National Averages of Lenders’ Best Mortgage Rates | |
|---|---|
| Loan Type | New Purchase |
| 30-Year Fixed | 6.60% |
| FHA 30-Year Fixed | 6.28% |
| 15-Year Fixed | 5.79% |
| Jumbo 30-Year Fixed | 6.57% |
| 5/6 ARM | 7.25% |
| Data provided via Zillow Mortgage API | |
Want to crunch some numbers? Calculate your monthly payments for different loan scenarios with our Mortgage Calculator.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are influenced by a complex web of macroeconomic and industry factors, including:
With so many moving parts, understanding mortgage rate fluctuations can be tricky. So, let’s break it down!
In 2021, macroeconomic trends kept mortgage rates relatively low, largely due to the Federal Reserve’s significant bond-buying spree in response to pandemic-related economic challenges. This bond-buying policy is a key driver of mortgage rates.
However, come November 2021, the Fed started to taper its bond purchases, gradually winding down until reaching zero by March 2022.
Between that point and July 2023, the Fed took aggressive action to combat soaring inflation by hiking the federal funds rate. While the fed funds rate’s influence on mortgage rates isn’t direct, it can create significant ripples in the overall market.
The Fed’s rapid increases in the benchmark rate—5.25 percentage points over 16 months—have led to a noticeable uptick in mortgage rates over the past two years.
The Fed maintained peak rates for nearly 14 months from July 2023, but on September 18, they announced the first expected cut—0.50 percentage points—with more anticipated in 2024 and 2025.
On November 7, the Fed followed up with an additional cut of 0.25 percentage points, reducing the federal funds rate to between 4.5% and 4.75%. This is the lowest rate seen since March 2023.
Mark your calendars! The next Fed rate announcement is on December 18.
How We Track Mortgage Rates
The national and state averages mentioned above are sourced via the Zillow Mortgage API, based on a loan-to-value (LTV) ratio of 80% (a minimum 20% down payment) and a credit score ranging from 680 to 739. These averages reflect what you can realistically expect from lenders, which may differ from the eye-catching teaser rates often encountered.
