Mortgage Interest Rates Slightly Increase, Still Close to 3-Week Minimum Level
Let's Get Down to Business:
Oh, hey there! Let's cut straight to the chase, shall we? Mortgage rates are moving, and that's what we're here to discuss! On a Wednesday recently, following a small slump, 30-year mortgage rates gave a little bump, settling at an average of 6.90%. Comparing to the previous week, this is a tiny increase, but it's still a notch lower than the rates two weeks ago.
Now, don't get too comfortable, as the ride for other mortgage types can be a bit turbulent. For example, some types saw an increase, while others stayed steady or even managed a slight decrease. Keep in mind that rates vary from lender to lender, so it's always smart to shop around and compare your options.
Compare Mortgage Rates Today - May 1, 2025
Today's New Purchase Mortgage Rate Averages
You might have already noticed that the past month has seen its share of wild swings. Last week, we observed a four-day decline, but sadly, progress doesn't always last. Moving forward, always remember that it's vital to compare your mortgage rates periodically, no matter your preferred loan type.
Now, let's dive into some details:
- 30-year mortgage rates experienced a modest 3 basis points increase, now standing at 6.90%. Two weeks ago, this average was a whopping 7.14%, which marked its most expensive reading since May 2024. But if we go back to September, these rates saw a historic plunge, falling to a two-year low of 5.89%. Still, even today's rates have improved by over 1.1 percentage points compared to late 2023, when rates reached an astounding 23-year peak of 8.01%.
- 15-year mortgage rates picked up one basis point, nudging the average to 5.93%. In comparison, two weeks back, the average was 6.31%, which hadn't been seen in close to a year. Like 30-year rates, the 15-year average fell to its cheapest level in two years last September, sinking to 4.97%. Although today's rate seems elevated, it's 1.15 percentage points less than the historic 7.08% reading in October 2023.
- Jumbo 30-year mortgage rates crept up a modest 2 basis points, hitting 6.83%. This contrasts with a 7.15% reading roughly two weeks ago, which was a 10-month high. Looking at last fall, jumbo 30-year rates spiraled down to 6.24%, marking their cheapest level in 19 months. Alas, it's estimated that their 8.14% peak in October 2023 was the most expensive jumbo 30-year average in over 20 years.
The Weekly Freddie Mac Average
Curious about what happens each Thursday? That's when the government-sponsored entity, Freddie Mac, shares its weekly average of 30-year mortgage rates. Last week, the reading came in 2 basis points lower, settling at 6.81%. Now, travel back to September, and this average dipped as far as 6.08%. But back in October 2023, things took a dramatic turn, as the average skyrocketed to a 23-year peak of 7.79%.
Remember, the Freddie Mac average differs from what we report for 30-year rates because it's a weekly average, incorporating five prior days of rate data. Additionally, Freddie Mac's methodology may differ from ours when it comes to the criteria for included loans (e.g., amount of down payment, credit score, inclusion of discount points).
So now you're up-to-date on the current mortgage rate landscape. If you're still unsure about where to head next with your mortgage search, InsightfulRealty's mortgage experts are here to help you make the best choice for your specific situation.
Want more details? Gimme a shout!
Macroeconomic factors, such as the Federal Reserve's bond-buying policy, monetary policy, and competition between mortgage lenders, play a significant role in the fluctuations of mortgage rates. It's a complex dance with many players, and keeping tabs on these factors can help predict the direction rates might head in the future.
These factors can quickly steer the mortgage market in one direction or another. For instance, during 2021, macroeconomic factors managed to keep the market relatively low. However, starting in November 2021, the Fed began tapering its bond purchases, causing significant upward pressure on mortgage rates. Then, the Fed ignited another round of rate increases in an attempt to combat rising inflation. With a total of 5.25 percentage points worth of rate hikes over 16 months, mortgage rates experienced a dramatic increase over the last two years.
Fortunately, the Fed announced its first rate cut since 2019 in September, reducing the federal funds rate by 0.50 percentage points. Additional quarter-point reductions followed in November and December. However, the Fed may not make another rate cut for months, and many analysts predict only modest rate cuts throughout the rest of the year.
In conclusion, digest this information and make the best choice for your next mortgage move! And hey, if you need more details, I'm here to help!
Remember, my friend, knowledge is power, and information is key!
P.S.
In the spirit of transparency, want to know more about how we calculate the mortgage rate averages we report? It's information isn't everything, right? Well, we gather our data from the Zillow Mortgage API under certain assumptions: an applicant credit score within the 680-739 range, an LTV ratio of 80% (a down payment of at least 20%), and standard market conditions. The resulting rates that lenders offer relate directly to most borrowers' qualifications, so they're a fantastic representation of the rates the typical homebuyer will see.
- The ico of my personal-finance strategy involves keeping a close eye on mortgage rates, especially those for a 30-year mortgage, considering its recent increase to 6.90% on Wednesday.
- Comparing the current 6.90% average for 30-year mortgages with the historic low of 5.89% in September is a useful benchmark for assessing the ratio of today's rates to their lowest levels in the past two years.
- Taking advantage of the lower mortgage rates in September might have been a better financial decision for those planning to buy a home or refinance their existing mortgage, based on the current rates that are much higher.
- The mortgage experts at InsightfulRealty can be especially helpful in navigating the complex mortgage landscape, as they can provide guidance tailored to a specific individual's mortgage needs.
- Apart from directly influencing mortgage rates, Macroeconomic factors like the competition between mortgage lenders and the Federal Reserve's monetary policy also play a significant role in the finance world, especially in the field of personal-finance.
