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The average rate on a 30-year fixed home loan jumped sharply, marking an eight day rising streak
By
Ben Woolsey
:max_bytes(150000):strip_icc()/ben_woolsey-a17d6ba8454045d9807bf04350bb5978.png "Today's Mortgage Rates & Trends - May 24, 2023: Rates Surge (1)")
Updated May 24, 2023
:max_bytes(150000):strip_icc()/March23MortageRatesNews-241-045e3d3cb4d74561a9e0dfc7929684d5.jpg "Today's Mortgage Rates & Trends - May 24, 2023: Rates Surge (2)")
The average mortgage rate on 30-year home loans spiked by over a fifth of a percentage point on Tuesday, continuing its upward movement for an eighth straight day. It's now at a 6-month high.
The 15-year average also rose, but only modestly. However, this is also its eighth consecutive day of increases and it's at a level not seen since March. Fixed rate refinance loan rates were mixed.
| National Averages of Lenders' Best Rates | ||
|---|---|---|
| Loan Type | Purchase | Refinance |
| 30-Year Fixed | 7.45% | 7.69% |
| FHA 30-Year Fixed | 7.31% | 7.72% |
| Jumbo 30-Year Fixed | 6.27% | 6.27% |
| 15-Year Fixed | 6.46% | 6.63% |
| 5/6 ARM | 7.08% | 7.06% |
Today's National Mortgage Rate Averages
Rates on 30-year fixed mortgages continued their upward march Tuesday, punctuated by a jump of 21 basis points to reach 7.45%. That's its highest point since November 3, when it hit 7.40%.
Since the 30-year rate began to climb on May 12, it has tacked on 63 basis points. Rates on 30-year home loans continue to move in a range well above the five-month low of 6.11% enjoyed in February but are now just a little more than an eighth of a percentage point below the 20-year high of 7.58% seen in October.
Monday's average 15-year rate also moved higher, though by just 5 basis points. Still, the 15-year average rate is its highest reading since March 9. Now at 6.46%, the 15-year mortgage rate average continues to move in a space between a February valley of 5.23% and an October 15-year peak of 7.03%.
The 30-year jumbo mortgage rate didn't change for the seventh day in a row, still holding at 6.27%. Rates for the jumbo 15-year increased by 13 basis points while the 7/6 ARM and 5/6 ARM rose in unison by 12 basis points.
Refinancing rates saw only modest up and down movements, with the 30-year average refinance rate falling by 2 basis points to a rate of 7.69%, and the 15-year rate adding 3 basis points from the prior day's rate, bringing it up to 6.63%. The gap between the 30-year new purchase and refinance mortgage rate averages is now 24 basis points. The jumbo 30-year refi average remained steady, matching its jumbo 30-year new purchase rate of 6.27% again.
After a historical rate plunge in August 2021, mortgage rates skyrocketed in the first half of 2022. The 30-year average shot to 6.38% by June 2022, which was more than double the rate of 2.89% seen just 10 months earlier. Then an even more dramatic surge in September and October 2022 outdid the June peak, with the 30-year average ultimately climbing another 1.2 percentage points and recording a 20-year high.
The rates you see here generally won’t compare directly with teaser rates you see advertised online, since those rates are cherry-picked as the most attractive. They may involve paying points in advance, or they may be selected based on a hypothetical borrower with an ultra-high credit score or taking a smaller-than-typical loan given the value of the home.
| National Averages of Lenders' Best Rates - New Purchase | ||
|---|---|---|
| New Purchase | Daily Change | |
| 30-Year Fixed | 7.45% | +0.21 |
| FHA 30-Year Fixed | 7.31% | -0.04 |
| VA 30-Year Fixed | 7.24% | -0.13 |
| Jumbo 30-Year Fixed | 6.27% | No Change |
| 20-Year Fixed | 7.26% | -0.01 |
| 15-Year Fixed | 6.46% | +0.05 |
| Jumbo 15-Year Fixed | 6.52% | +0.13 |
| 10-Year Fixed | 6.43% | +0.06 |
| 10/6 ARM | 7.27% | -0.02 |
| 7/6 ARM | 7.18% | -0.10 |
| Jumbo 7/6 ARM | 6.33% | +0.12 |
| 5/6 ARM | 7.08% | -0.01 |
| Jumbo 5/6 ARM | 6.43% | +0.12 |
| National Averages of Lenders' Best Rates - Refinance | ||
|---|---|---|
| Loan Type | Refinance | Daily Change |
| 30-Year Fixed | 7.69% | -0.02 |
| FHA 30-Year Fixed | 7.72% | +0.05 |
| VA 30-Year Fixed | 7.54% | +0.06 |
| Jumbo 30-Year Fixed | 6.27% | No Change |
| 20-Year Fixed | 7.57% | +0.03 |
| 15-Year Fixed | 6.63% | +0.03 |
| Jumbo 15-Year Fixed | 6.52% | +0.13 |
| 10-Year Fixed | 6.61% | +0.06 |
| 10/6 ARM | 7.34% | +0.1 |
| 7/6 ARM | 7.38% | -0.01 |
| Jumbo 7/6 ARM | 6.43% | +0.12 |
| 5/6 ARM | 7.06% | -0.05 |
| Jumbo 5/6 ARM | 6.43% | +0.12 |
Calculate monthly payments for different loan scenarios with our Mortgage Calculator.
Lowest Mortgage Rates by State
The lowest mortgage rates available vary depending on the state where originations occur. Mortgage rates can be influenced by state-level variations in credit score, average mortgage loan type, and size, in addition to individual lenders' varying risk management strategies.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as the level and direction of the bond market, including 10-year Treasury yields; the Federal Reserve's current monetary policy, especially as it relates to funding government-backed mortgages; and competition between mortgage lenders and across loan types. Because fluctuations can be caused by any number of these at once, it's generally difficult to attribute the change to any one factor.
Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic's economic pressures. This bond-buying policy (and not the more publicized federal funds rate) is a major influencer on mortgage rates.
But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net-zero in March 2022.
The Fed's rate and policy committee—the Federal Open Market Committee (FOMC)—meets every six to eight weeks. The next scheduled meeting will conclude on June 14.
Methodology
The national averages cited above were calculated based on the lowest rate offered by more than 200 of the country's top lenders, assuming a loan-to-value ratio (LTV) of 80% and an applicant with a FICO credit score in the 700–760 range. The resulting rates are representative of what customers should expect to see when receiving actual quotes from lenders based on their qualifications, which may vary from advertised teaser rates.
For our map of the best state rates, the lowest rate currently offered by a surveyed lender in that state is listed, assuming the same parameters of an 80% LTV and a credit score between 700–760.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Congressional Research Service. "Federal Reserve: Tapering of Asset Purchases," Page 1.
Board of Governors of the Federal Reserve System. "FOMC Meeting Calendar."
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