Investopedia announced that it will not publish daily mortgage rate updates on December 25 due to Christmas, resuming coverage on December 26. On a recent Monday, states with the lowest 30-year mortgage refinance rates included New York, California, and Florida, with averages ranging from 6.86% to 7.08%. In contrast, states with the highest rates, such as Hawaii and Massachusetts, saw averages between 7.16% and 7.20%.
Mortgage refinance rates can differ significantly depending on the state, influenced by factors like credit scores, loan amounts, and different regulations. Lenders’ varying risk management strategies further contribute to rate discrepancies. Consequently, it remains crucial for borrowers to compare interest rates across different institutions to find optimal mortgage options.
The national average for 30-year refinance mortgages recently rose to 7.12%, increasing two basis points and marking the highest level in nearly a month. This average shows a notable increase of approximately 1.1 percentage points since mid-September, when rates reached a 19-month low of 6.01%.
Mortgage interest rates fluctuate due to numerous macroeconomic and industry-related factors, including federal policies. The Federal Reserve’s adjustments to bond purchases and federal funds rates have historically impacted mortgage rates. After a series of rate hikes in 2022 and 2023, the Fed’s recent decision to lower rates for the first time in over a year has affected overall market conditions. However, persistent inflation has led to cautious projections regarding future rate cuts, influencing the rise of mortgage rates.
To track mortgage rates effectively, the national and state averages are based on data from the Zillow Mortgage API, considering factors like a loan-to-value ratio of 80% and a credit score range of 680 to 739. These averages may differ from advertised teaser rates, providing a more realistic expectation for prospective borrowers.