New Jersey Mortgage Rates for July 2019

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In New Jersey, the average rate of a 30-year mortgage is currently 4.02%. The average 15-year mortgage rate is 3.48%, and 5/1 adjustable-rate mortgages (ARM) have an average rate of 3.72%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.02%–0.02%–0.30%
15-year fixed3.48%–0.03%–0.32%
5/1 ARM3.72%+0.00%–0.11%
Rates for a $200,000 loan with 20% down payment

Because interest rates move so frequently, homebuyers often find it difficult to know when it's right to lock in a mortgage rate or even what a decent rate offer should look like. We monitor the average and best rates on the most popular home loan types in New Jersey so that you'll know what to expect.

Best Mortgage Rates in New Jersey

The lowest available rate in New Jersey for a 30-year fixed-rate mortgage is 3.50%. 15-year fixed-rate loans currently go as low as 2.88%, and the best possible 5/1 ARM rate is around 2.67%.

The range of mortgage rate offers you receive as a homebuyer depend on a wide collection of factors. Personal details like income and credit score play a big role, but so do external variables like the lender's business goals and prevailing economic conditions. Getting the "best" rate for your home loan requires both improving your financial profile and choosing a good time to enter the market.

While we can't raise your income or boost your credit score, we can provide you with the information you need in order to recognize competitive lender offers and market-beating rates. To begin, let's take a look at how and why mortgage rates will change in New Jersey over the coming months.

Current Mortgage Rate Forecast for New Jersey

In early 2019, New Jersey homebuyers will probably see mortgage rates stay largely the same. The future course of interest rates is influenced by the monetary policy of the Federal Open Market Committee (FOMC), the part of the Federal Reserve which periodically votes to raise or lower national rates.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

In December 2018, the FOMC decided to raise the target federal funds rate by 25 basis points, to 2.25%-2.50%. Then in January, it followed up with an announcement that it was reverting to a policy of watching and waiting rather than raising rates again. If historical patterns hold true, any changes to the federal funds rate will eventually have an effect on the average mortgage rate.

Whether mortgage rates rise or stay the same in the next few months, it's important to note that mortgage rates remain historically low. For most borrowers, it's probably more important to focus on solving the other half of the mortgage payment equation—historically high real estate prices. Trying to close on a loan ahead of rising rates makes little sense if you aren't prepared to meet the upfront costs of buying a property.

Rates at New Jersey's Most Popular Mortgage Lenders

The best way to start looking at mortgage rate differences in New Jersey is to compare what major lenders are offering. Using a typical loan amount and credit profile, we obtained 30-year fixed-rate quotes from a handful of the most popular mortgage lenders in the Garden State.

Column graph comparing 30-year mortgage rates at major New Jersey banks

Our analysis of home loan rates revealed some variation among New Jersey's major mortgage lenders, but not as much as we've seen in a few other states. There was a spread of 37 basis points between the lowest estimated rate and the highest. For a $200,000 purchase paid back over 30 years, that means a monthly difference of about $50 spent repaying principal and interest.

These rates apply to 30-year mortgages across New Jersey, with other loan types likely to offer lower average rates. Because the popular 30-year loan has such a long repayment term, lenders are able to charge stronger rates than they would with shorter loans that require much higher monthly payments. The rates you receive as an individual applicant will also vary with your loan amount and financial details.

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Comparing Home Loan Rates by City

Besides comparing mortgage rates by lender, we also lined up average rate figures from each major city in the Garden State. For the most part, these rates remained the same across New Jersey. However, the wide contrast in property values from place to place means that mortgage costs will still be influenced by where you settle.

MSAAverage mortgage rateMedian home value
New York-Newark-Jersey City4.48%$456,446
Philadelphia-Camden-Wilmington4.52%$264,582
Trenton4.45%$295,653
Atlantic City-Hammonton4.31%$220,897
Ocean City4.41%$310,138
Average rate is for a 30-year mortgage with a 20% down payment.

The numbers we found suggest that homeowners in any one part of the state shouldn't worry too much about paying at higher rates than people elsewhere. However, property prices in New Jersey aren't nearly as consistent. It's obvious that even if you qualify for the same mortgage rate on two different purchases, your interest payment will still be larger for the more expensive home. What this means is that some borrowers may need to think of other ways to reduce their home loan interest rate.

Evaluating Your Mortgage Options: An Example in Atlantic City

The simplest solution to this question is found in a comparison of different mortgage types. While the vast majority of homebuyers are content to go along with a standard 30-year fixed-rate loan, alternate arrangements are a good way to lower your interest rate—so long as you're aware of all the consequences. To illustrate some possibilities, let's use the example of a typical homebuyer in the Atlantic City area.

Our hypothetical buyer is closing on a $200,000 home with a 20% down payment. In Atlantic City, an average 30-year mortgage rate is 4.31%. Applied to the example, this rate gives us a minimum monthly payment of $793 and a lifetime interest cost of $125,385.

There are several reasons why our buyer might not be satisfied with these numbers. One common scenario for younger families is the need to move homes in just a few years. By taking a 5/1 ARM loan, such families can secure a lower fixed rate for the first five years, with the risk of a floating rate afterwards. If we apply current New Jersey rates for a 5/1 ARM to the example, our costs change to $739 per month.

Other buyers might simply want to avoid as much interest as possible on the way to outright ownership. The 15-year mortgage option accepts higher monthly costs in exchange for a far lower lifetime cost. In the Atlantic City example, a 15-year fixed-rate loan at the state average costs $1,143 per month, but only $45,604 in overall interest payments.

In New Jersey, the average rate of a 30-year mortgage is currently 4.02%. The average 15-year mortgage rate is 3.48%, and 5/1 adjustable-rate mortgages (ARM) have an average rate of 3.72%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.02%–0.02%–0.30%
15-year fixed3.48%–0.03%–0.32%
5/1 ARM3.72%+0.00%–0.11%
Rates for a $200,000 loan with 20% down payment

Because interest rates move so frequently, homebuyers often find it difficult to know when it's right to lock in a mortgage rate or even what a decent rate offer should look like. We monitor the average and best rates on the most popular home loan types in New Jersey so that you'll know what to expect.

The lowest available rate in New Jersey for a 30-year fixed-rate mortgage is 3.50%. 15-year fixed-rate loans currently go as low as 2.88%, and the best possible 5/1 ARM rate is around 2.67%.

The range of mortgage rate offers you receive as a homebuyer depend on a wide collection of factors. Personal details like income and credit score play a big role, but so do external variables like the lender's business goals and prevailing economic conditions. Getting the "best" rate for your home loan requires both improving your financial profile and choosing a good time to enter the market.

While we can't raise your income or boost your credit score, we can provide you with the information you need in order to recognize competitive lender offers and market-beating rates. To begin, let's take a look at how and why mortgage rates will change in New Jersey over the coming months.

In early 2019, New Jersey homebuyers will probably see mortgage rates stay largely the same. The future course of interest rates is influenced by the monetary policy of the Federal Open Market Committee (FOMC), the part of the Federal Reserve which periodically votes to raise or lower national rates.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

In December 2018, the FOMC decided to raise the target federal funds rate by 25 basis points, to 2.25%-2.50%. Then in January, it followed up with an announcement that it was reverting to a policy of watching and waiting rather than raising rates again. If historical patterns hold true, any changes to the federal funds rate will eventually have an effect on the average mortgage rate.

Whether mortgage rates rise or stay the same in the next few months, it's important to note that mortgage rates remain historically low. For most borrowers, it's probably more important to focus on solving the other half of the mortgage payment equation—historically high real estate prices. Trying to close on a loan ahead of rising rates makes little sense if you aren't prepared to meet the upfront costs of buying a property.

The best way to start looking at mortgage rate differences in New Jersey is to compare what major lenders are offering. Using a typical loan amount and credit profile, we obtained 30-year fixed-rate quotes from a handful of the most popular mortgage lenders in the Garden State.

Column graph comparing 30-year mortgage rates at major New Jersey banks

Our analysis of home loan rates revealed some variation among New Jersey's major mortgage lenders, but not as much as we've seen in a few other states. There was a spread of 37 basis points between the lowest estimated rate and the highest. For a $200,000 purchase paid back over 30 years, that means a monthly difference of about $50 spent repaying principal and interest.

These rates apply to 30-year mortgages across New Jersey, with other loan types likely to offer lower average rates. Because the popular 30-year loan has such a long repayment term, lenders are able to charge stronger rates than they would with shorter loans that require much higher monthly payments. The rates you receive as an individual applicant will also vary with your loan amount and financial details.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company

Comparing Home Loan Rates by City

Besides comparing mortgage rates by lender, we also lined up average rate figures from each major city in the Garden State. For the most part, these rates remained the same across New Jersey. However, the wide contrast in property values from place to place means that mortgage costs will still be influenced by where you settle.

MSAAverage mortgage rateMedian home value
New York-Newark-Jersey City4.48%$456,446
Philadelphia-Camden-Wilmington4.52%$264,582
Trenton4.45%$295,653
Atlantic City-Hammonton4.31%$220,897
Ocean City4.41%$310,138
Average rate is for a 30-year mortgage with a 20% down payment.

The numbers we found suggest that homeowners in any one part of the state shouldn't worry too much about paying at higher rates than people elsewhere. However, property prices in New Jersey aren't nearly as consistent. It's obvious that even if you qualify for the same mortgage rate on two different purchases, your interest payment will still be larger for the more expensive home. What this means is that some borrowers may need to think of other ways to reduce their home loan interest rate.

Comments and Questions

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company
Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company