Mortgage Rates Update May 10, 2023: 30-Year Fixed Nears 7% - Latest Trends & Prices
Explore today’s mortgage rate trends as 30-year fixed rates approach 7%, with jumbo loans holding steady at 12-year highs. Get insights on refinancing rates, state-by-state comparisons, and factors driving rate changes in May 2023.
Mortgage rates continue their upward trend, with the 30-year fixed-rate mortgage inching closer to 7% and refinancing rates experiencing notable increases.
On May 10, 2023, the average rate for a 30-year fixed mortgage rose by six basis points, reaching 6.99%, marking its highest level in nearly three weeks. This follows a four-day streak of rising rates, accumulating a total increase of 16 basis points. Although this is significantly above February’s five-month low of 6.11%, it remains below the October 2022 peak of 7.58%.
Current National Mortgage Rate Averages
The 15-year fixed mortgage rate also climbed by six basis points to 6.22%, reaching a three-week high. This is about one percentage point higher than its February low of 5.23%, yet still below the October 2022 peak of 7.03%.
Jumbo 30-year mortgage rates have stabilized at a 12-year high, holding steady at 6.27%. Other jumbo loan products similarly maintained their rates on Tuesday.
Refinance rates for 30-year loans saw a sharper increase, jumping 20 basis points to 7.48%. The 15-year refinance rate rose by four basis points, while jumbo 30-year refinance rates remained unchanged. The spread between 30-year purchase and refinance rates widened to 49 basis points.
Mortgage rates have experienced significant volatility since the historic decline in August 2021. After a rapid rise in early 2022, rates peaked mid-June at 6.38%, nearly 3.5 percentage points above the 2021 low of 2.89%. The surge continued into September and October 2022, surpassing the mid-year peak by over a percentage point.
Important Considerations
Displayed rates reflect averages from top lenders and may differ from advertised teaser rates, which often require upfront points or are based on ideal borrower profiles with excellent credit and smaller loan amounts.
Use our Mortgage Calculator to estimate monthly payments for various loan scenarios.
Lowest Mortgage Rates by State
Mortgage rates vary by state due to differences in credit profiles, loan terms, and lender risk strategies. Below is a state-by-state overview of the lowest available mortgage rates based on current lender offers.
What Influences Mortgage Rate Changes?
Mortgage rates are influenced by a complex interplay of factors, including 10-year Treasury yields, Federal Reserve monetary policies, and competitive dynamics among lenders. These elements collectively impact rate fluctuations, making it challenging to pinpoint a single cause.
Throughout 2021, mortgage rates remained relatively low due to the Federal Reserve’s bond-buying programs designed to mitigate pandemic-related economic challenges. However, starting November 2021, the Fed began tapering bond purchases, reaching zero net purchases by March 2022.
The Federal Open Market Committee (FOMC), responsible for key monetary policy decisions, meets approximately every six to eight weeks, with the next meeting scheduled to conclude on June 14, 2023.
Methodology
The national mortgage rate averages are calculated from offers by over 200 leading lenders, assuming an 80% loan-to-value (LTV) ratio and borrower credit scores between 700 and 760. These averages represent realistic expectations for qualified borrowers, differing from promotional teaser rates.
State-level lowest rates reflect the minimum rates offered under similar assumptions, providing a localized snapshot of available mortgage pricing.
For news tips or inquiries, please contact Investopedia at tips@investopedia.com.
Explore useful articles in Personal Finance News as of 15-05-2023. The article titled " Mortgage Rates Update May 10, 2023: 30-Year Fixed Nears 7% - Latest Trends & Prices " offers in-depth analysis and practical advice in the Personal Finance News field. Each article is carefully crafted by experts to provide maximum value to readers.
The " Mortgage Rates Update May 10, 2023: 30-Year Fixed Nears 7% - Latest Trends & Prices " article expands your knowledge in Personal Finance News, keeps you informed about the latest developments, and helps you make well-informed decisions. Each article is based on unique content, ensuring originality and quality.