The states with the lowest 30-year mortgage refinance rates on Wednesday were California, New Jersey, Pennsylvania, Louisiana, Alabama, Colorado, Mississippi and Virginia. The average 30-year mortgage refinance rate in the eight states was between 6.11% and 6.20%.
Meanwhile, the states with the highest refinance rates on Wednesday were Kentucky, New York, South Carolina, Indiana, Hawaii, Maryland, New Hampshire, North Dakota and Wyoming. The average 30-year refinance rates in those states ranged from 6.38% to 6.44%.
Mortgage refinance rates vary depending on the state in which the refinance takes place. There are different lenders in different regions, and rates can be affected by state-level credit scores, average loan-to-value and regulatory differences. Lenders have different risk management strategies that affect loan rates.
Interest rates vary widely between lenders, so regardless of the type of mortgage you want, it’s always wise to shop around for the best mortgage options and compare rates regularly.
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Our published rates are not directly comparable to teaser rates advertised online, as these rates are carefully selected to be more attractive than the average rates displayed here. Teaser rates may include paying points up front or may assume a hypothetical borrower with a very high credit score or a smaller loan amount than usual. The rate you ultimately secure will be based on your credit score, income and other factors and may differ from the average rate displayed here.
National average mortgage refinancing interest rate
The national average refinance rate for a 30-year mortgage fell 3 basis points on Wednesday to 6.29 percent. This follows a drop to 6.01 percent last week, the lowest average in 19 months. Refinance rates for 30-year mortgages remain well below levels seen in the mid-7 percent range in early July and earlier this summer.
National averages of lenders’ best mortgage rates Loan Type Refinance Rate Average 30-year fixed 6.29% FHA 30-year fixed 6.20% 15-year fixed 5.00% Jumbo 30-year fixed 6.56% 5/6 ARM 7.57% Powered via Zillow Mortgage API
Use our mortgage calculator to calculate monthly payments for various loan scenarios.
What causes mortgage rates to rise or fall?
Mortgage interest rates are determined by a complex interplay of macroeconomic and industry factors, including:
Any number of these can cause fluctuations at the same time, so it is usually difficult to attribute change to a single factor.
Macroeconomic factors have kept the mortgage market at relatively low levels for much of 2021. In particular, the Federal Reserve has purchased billions of dollars in bonds in response to economic pressures caused by the pandemic. This bond-buying policy has had a significant impact on mortgage interest rates.
However, starting in November 2021, the Fed began tapering its bond purchases, making larger cuts each month until it reached net zero in March 2022.
From then until July 2023, the Fed has aggressively raised the federal funds rate to combat the highest inflation in decades. The federal funds rate can affect mortgage rates, but it does not directly affect them. In fact, the federal funds rate and mortgage rates sometimes move in opposite directions.
But given the historic speed and magnitude of the Fed’s rate hikes in 2022 and 2023 (raising its benchmark interest rate by 5.25 percentage points over 16 months), even the indirect impact of the federal funds rate has led to a dramatic increase in mortgage rates over the past two years.
The Federal Reserve has kept the federal funds rate at its highest level for about 14 months, starting in July 2023. But the central bank on Wednesday announced the first in a series of rate cuts through 2024 and possibly 2025. The first cut was by 0.50 percentage point.
The Fed’s next interest rate announcement is scheduled for November 7th.
How to Track Mortgage Interest Rates
The national and state averages listed above are provided as is through the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., at least a 20% down payment) and an applicant’s credit score of 80%. Range: 680-739. Resulting interest rates represent what borrowers can expect when receiving quotes from lenders based on their qualifications and may differ from the advertised teaser rate. © Zillow, Inc., 2024. Use subject to Zillow Terms of Use.
