After surging to a new historic high early this week, 30-year mortgage rates retreated Wednesday. The rate average for 30-year new purchase loans is now 8.40%, which is 5 basis points below the 23-year peak registered Tuesday. Most other loan types meanwhile saw th𓃲eir rates rise or hold steady Wednesday, with the 5/6 ARM average rising to a new high of 7.79%.

Because rates vary widely across lenders, it's always smart to shop around for your best mortgage option and c🎐ompare rates regularly, no matter what type of loan you're seeking.

Today's Mortgage Rate Averages: New Purchase

Rates on 30-year mortgages dipped a bit Wednesday, subtracting 🅰5 basis points to lower the average to 8.40%. That comes on the heels of bolting 37 basis poiꦜnts higher across Monday and Tuesday to set a new 23-year high of 8.45%.

The 15-year rate average held steady Wednesday at 7.57%. That's the highest level for 15-year new purchase rates since 2000.

Jumbo 30-year rates were also flat Wednesday, remaining at 7.40%. Daily jumbo rate history is not available before 2009, but it's estimated that this 7.40% peak is the most expensive average for jumbo 30-year loans in more than 20 years.

Wednesday's biggest new purchase rate mover was the 5/6 ARM average, which jumped 13 basis points. The new average of 7.79% is the highest level we've seen since Investopedia began tracking rates in 2021, eclipsing the Oct. 6 high of 7.67%.

Today's Mortgage Rate Averages: Refinancing

The majority of refinancing rates roughly marked time Wednesday, including a single basis point gain for the 3🌌0-year refi average. The gap between 30🍸-year new purchase and refi rates is now 25 basis points.

The 15-year refi average also gaine𒁏d just 1 basis point, and the jumbo 30-year refi average held steady🦩. The biggest mover for refi rates was the 5/6 ARM average, which spiked 23 basis points higher, while the 20-year refi average declined 11 basis points.

Calculate monthly payments for different loan scenarios with our 澳洲幸运5官方开奖结果体彩网: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.

The states with the lowest 30-year new purchase averages Fr♉iday were Vermont, Louisiana, Mississippi, Iowa, and Rhode Island, while the states with the highest averages were Georgia, Arizona, Nevada, Minnesota, and Washington.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates are determined by a complex interaction of macroeconomic and industry𒁃 factors, such as:

• The level and direction of the bond market, especially 10-year Treasury yields
• The Federal Reserve's current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
• 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 is a major influencer of 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.

Since that time, the Fed has been aggressively raising the 澳洲幸运5官方开奖结果体彩网:federal funds rate to fight decades-high inflation. While the fed fund𒁃s rate can influence mortgage rates, it do💜es not directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.

However, given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over the last 18 months—even the indirect influence of the fed funds rate has resulted in an upward impact on mortgage rates over the last two years.

The Fed has two more rate-setting meetings scheduled in 2023, concluding Nov. 1 and Dec. 13. Though it's widely expected the Fed will hold rates steady at its November meeting, Fed Chair Jerome Powell has made it clear that 澳洲幸运5官方开奖结果体彩网:another𓂃 rate increase is certainly possible at a future meeting.

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 澳洲幸运5官方开奖结果体彩网: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 qualificatওions, 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.