Mortgage Rates Have Dropped 3 Weeks in a Row. See How Much That Could Lower Your Payment.
Key Takeaways
- New purchase mortgage rates slid again this week, for a three-week decline that offers lower monthly payments to new borrowers.
- The 30-year fixed-rate average sank 15 basis points this week to 6.53%, a total drop of 39 points over the last three weeks.
- 15-year loans saw their weekly average rate fall 13 basis points to 5.71%. They also have declined 39 points in three weeks.
- Jumbo 30-year rates gave up 19 basis points. The new 6.53% average represents a 42-point drop over three weeks.
- On loans of $200,000 to $600,000, the three-week rate drop means you could save $52 to $155 per month on a 30-year loan.
- Jumbo monthly payments are down $223 to $335 vs. three weeks ago.
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Mortgage Rates Are in a 3-Week Slide Across Loan Types
Mortgage rates have continued to march lower, sinking for a third consecutive week. The latest Friday-to-Friday change reduced average rates by as much as 44 basis points, while the accumulated three-week decline is more than a half percentage point for some loan types.
Below is a look at the Friday readings for each new purchase rate average, how that changed from a week ago, and the three-week impact on each average. Then, further below, we dig deeper into three of the most common mortgage types: 30-year, 15-year, and jumbo 30-year fixed-rate loans.
| Mortgage Type | Dec. 6 national rate average | Last week's change | 3-week change |
|---|---|---|---|
| 30-Year Fixed | 6.53% | - 0.15 | - 0.39 |
| FHA 30-Year Fixed | 6.28% | - 0.44 | - 0.44 |
| VA 30-Year Fixed | 6.00% | - 0.09 | - 0.36 |
| 20-Year Fixed | 6.38% | - 0.16 | - 0.46 |
| 15-Year Fixed | 5.71% | - 0.13 | - 0.39 |
| FHA 15-Year Fixed | 6.40% | + 0.00 | + 0.00 |
| 10-Year Fixed | 5.76% | - 0.16 | - 0.35 |
| 7/6 ARM | 7.22% | - 0.02 | - 0.51 |
| 5/6 ARM | 7.24% | - 0.04 | - 0.52 |
| Jumbo 30-Year Fixed | 6.53% | - 0.19 | - 0.42 |
| Jumbo 15-Year Fixed | 6.46% | - 0.14 | - 0.47 |
| Jumbo 7/6 ARM | 7.07% | + 0.05 | - 0.18 |
| Jumbo 5/6 ARM | 7.14% | - 0.05 | - 0.29 |
30-Year Mortgage Rates Fell 15 Basis Points
After averaging 6.68% at the end of November, rates on 30-year new purchase loans fell 15 basis points last week, lowering the average to 6.53%. That builds up a three-week decline of 39 points.
Things were better in September when the 30-year average plunged to a two-year low of 5.89% (though the cheapest Friday average was 6.03%). But rates surged through much of October and November, pushing every mortgage rate average higher. Still, today's rates are at their lowest level in seven weeks, offering some relief to current home shoppers.
What's the 30-Year Rate in Your State?
Every business day, we publish national rate averages for various loan types, and also each state's 30-year rate average. Right now, New York, California, and Florida have the lowest 30-year rates.
15-Year Mortgage Rates Also Dropped 13 Basis Points
Rates on 15-year new purchase loans fell to a 5.71% average Friday, with a weekly drop of 13 basis points combining for a three-week decline of 39 points. That takes 15-year rates to their cheapest level since mid-October. Like 30-year loans, 15-year rates dropped to a two-year low in September, sinking to 4.97% (though the lowest Friday weekly average was 5.07%).
Jumbo 30-Year Rates Sank a Bold 19 Basis Points
Rates on jumbo 30-year new purchase loans dropped a bit more significantly, giving up 19 basis points across the week and 42 points over three weeks. The current average is down to 6.53%. In September, rates on new 30-year jumbo loans fell as low as 6.24%, with the lowest weekly average registering at 6.39%.
What's a jumbo loan?
A jumbo mortgage is one that exceeds the maximum loan limits for Fannie Mae and Freddie Mac conforming loans—currently $766,550 for single-family homes in most parts of the U.S., but up to $1,149,825 in certain more expensive areas.
Here's How Much Monthly Payments Have Dropped
To see how reduced interest rates over the past three weeks translate into lower monthly payments for new borrowers, you can see below what the principal-plus-interest payment would be for various loan amounts with a 30-year, 15-year, or jumbo 30-year fixed-rate new purchase mortgage.
On loan amounts of $200,000 to $600,000, principal-and-interest payments for 30-year and 15-year mortgages shaved off $42 to $155 per month over the past week.
| Monthly Mortgage Payments for 30-Year Loans - Today vs. Last Week | ||||||
|---|---|---|---|---|---|---|
| National average rate | $200,000 | $300,000 | $400,000 | $500,000 | $600,000 | |
| Fri, Nov. 15 | 6.92% | $1,320 | $1,980 | $2,640 | $3,300 | $3,960 |
| Fri, Dec. 6 | 6.53% | $1,268 | $1,902 | $2,536 | $3,170 | $3,804 |
| 3-week change in monthly payment | -$52 | -$78 | -$104 | -$129 | -$155 | |
| Monthly Mortgage Payments for 15-Year Loans - Today vs. Last Week | ||||||
|---|---|---|---|---|---|---|
| National average rate | $200,000 | $300,000 | $400,000 | $500,000 | $600,000 | |
| Fri, Nov. 15 | 6.10% | $1,699 | $2,548 | $3,397 | $4,246 | $5,096 |
| Fri, Dec. 6 | 5.71% | $1,657 | $2,485 | $3,313 | $4,141 | $4,970 |
| 3-week change in monthly payment | -$42 | -$63 | -$84 | -$105 | -$126 | |
Jumbo 30-year mortgages by definition are larger loans, so here we run our calculations on loan amounts of $800,000 to $1.2 million. The jumbo mortgage payment savings over the past three weeks range from $223 to $335 more per month depending on the loan size.
| Monthly Mortgage Payments for Jumbo 30-Year Loans - Today vs. Last Week | ||||||
|---|---|---|---|---|---|---|
| National average rate | $800,000 | $900,000 | $1,000,000 | $1,100,000 | $1,200,000 | |
| Fri, Nov. 15 | 6.95% | $5,296 | $5,958 | $6,619 | $7,281 | $7,943 |
| Fri, Dec. 6 | 6.53% | $5,072 | $5,706 | $6,340 | $6,974 | $7,609 |
| 3-week change in monthly payment | -$223 | -$251 | -$279 | -$307 | -$335 | |
How We Track Mortgage Rates
The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a 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.
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