The states with the lowest 30-year new purchase mortgage rates on Monday were Nevada, Iowa, Texas, F🤡lorida, Oregon, Ohio, and California. All seven states registered an average below 5.9%.

Meanwhile, the states with the highest Monday averages were Washington, D.C., Arkansas, Massachusetts, New Hampshire, Montan﷽a, South Dakota, and West Virginia.

Mortgage rates vary by the state where 🃏they originate. Different lenders operate in dif𒁃ferent regions, and rates can be influenced by state-level variations in credit score, average loan size, and regulations. Lenders also have varying risk management strategies that influence the rates they offer.

Since rates vary widely across lenders, it's always smart to shop around for your best mortgage option and compare rates regularly, no matter the type of home loan you seek.

National Mortgage Rate Averages

The national average for 30-year new purchase mortgages 💎declined ♒8 basis points to 5.95%. That's now the cheapest average since February 2023. Rates on 30-year mortgages are well below where they were earlier this summer when they began July above 7%.

Calculate monthly payments for different loan scenarios with our 澳洲幸运5开奖号码历史查询:Mortgage Calculator.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates a🔯re determined by a complex interacti꧅on of macroeconomic and industry factors, such as:

• The level and direction of the bond market, especially 10-year Treasury yields
• The 澳洲幸运5开奖号码历史查询: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 any number of these can cause fluctuations simultaneously, it's generally difficult to attribute any 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 澳洲幸运5开奖号码历史查询: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 monthly reductions until reaching net zero in March 2022.

Between that time and July 2023, the Fed aggressively raised the 澳洲幸运5开奖号码历史查询:federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it doesn't directly do so. In fact, the fed fund✃s rate and mortgage rates can move in opposite directions.

But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.

The Fed has been maintaining the federal funds rate at its current level since July 2023, with an 澳洲幸运5开奖号码历史查询:eighth conse🃏cuti𒈔ve rate hold announced on July 31. But now that inflation has cooled considerably, the Fed has signaled it's ready to start cutting rates. A reduction is overwhelmingly expected at its next meeting, which will conclude Sept. 18.

How We Track Mortgage Rates

The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a 澳洲幸运5开奖号码历史查询:loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser💖 rates. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.