New Jersey Mortgage Rates

Thinking of buying a home in New Jersey? You’re in luck. New Jersey mortgage rates have reached near-historic lows this year thanks to the economic hit the nation took from the COVID-19 pandemic.

Rates remained low through the end of the year, falling even more in December after small spikes earlier in the fall. That makes this a great time to buy a home in New Jersey.

Though housing prices in New Jersey are higher than the nation overall, homeowners can still find affordable homes at competitive mortgage rates. It just takes a bit of work and some research to pull it off. Here’s what you need to know about buying a home in New Jersey right now.

Mortgage rates in 2020 have reached historical lows due, in part, to actions the Federal Reserve has taken in response to the COVID-19 outbreak. Rates have fluctuated slightly, with spikes in September, October, and November. As of the first week in December, rates in New Jersey have reached their lowest levels yet.

During the first week of December, the average rate on a 30-year fixed-rate mortgage in New Jersey was 2.96%, down from 2.98% the week before. Rates on 15-year mortgages were even more attractive, going as low as 2.50%. During the same time frame, adjustable-rate mortgages and 30-year refinance loans had average rates of 3.19% and 3.02%, respectively.

Keep in mind that the lowest rate isn’t necessarily the one you’ll end up with. Your credit score, income, down payment and other factors will impact the rate you’re eligible for.

Mortgage Rates in New Jersey

The mortgage interest rate table below is updated daily to reflect the most current mortgage rates available in the market. According to Bankrate’s latest survey of the nation’s largest mortgage lenders, these are the current average rates for a 30-year fixed, 15-year fixed, FHA and VA mortgage rates.

Product Rate Rate Last Week
30-Year Fixed Rate2.980%3.030%
20-Year Fixed Rate2.820%2.870%
15-Year Fixed Rate2.370%2.410%
10-Year Fixed Rate2.340%2.360%
30-Year FHA Rate2.530%2.580%
30-Year VA Rate2.710%2.760%

Rates data based on Elizabeth, New Jersey as of 7/21/2021

New Jersey mortgage rates overview

New Jersey currently has a booming housing market. In response to the pandemic, many families have decided to leave urban areas and buy homes in nearby suburban areas. As a result, people moving from Philadelphia and New York have caused a huge spike in New Jersey’s housing market and housing prices.

Despite the high demand, mortgage rates in New Jersey are only slightly higher than the national average. Average rates nationwide start at 2.92% as of the first week of December, while New Jersey’s rates start at 2.98%.

Homebuyers in New Jersey have many loan options available to them. Most people opt for a conventional 30-year fixed-rate mortgage. A small number of home buyers opt for 15-year or adjustable-rate mortgages. There are also a variety of government-backed loans available to New Jersey buyers.

Mortgage loan options in New Jersey include:

  • FHA loan: Targeted at low- and moderate-income borrowers, FHA loans are a great way to get funding with a less-than-ideal financial profile. Borrowers may be able for a mortgage that’s backed by the Federal Housing Administration with lower credit scores or smaller down payments.
  • VA loan: Current and former military members may be eligible for a mortgage that’s backed by the U.S. Department of Veterans Affairs. VA loans are limited to qualifying military members, though.
  • USDA loan: Homebuyers in rural New Jersey may be eligible for a USDA loan, which the U.S. Department of Agriculture backs. These mortgage loans are limited by income and location restrictions, though — so they won’t fit every borrower.
  • NJHMFA loan: The New Jersey Housing and Mortgage Finance Agency has several loan programs available, including those for first-time buyers or down payment assistance.

Mortgage Rates Trends

In this graph: On , the APR was for the 30-year fixed rate, for the 15-year fixed rate, and for the 5/1 adjustable-rate mortgage rate. These rates are updated almost every day based on Bankrate’s national survey of mortgage lenders.
Toggle between the three rates on the graph and compare today’s rates to what they looked like in the past days.

First time home buyer programs in the state of New Jersey

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) has a first-time homebuyer mortgage program. It allows individuals who haven’t owned a home within the last three years to qualify for a competitive 30-year fixed-rate mortgage through a partner lender. Eligible borrowers must have income that doesn’t exceed 140% of the area’s median income.

The agency also offers a down payment and closing cost assistance program. Eligible borrowers may qualify for $10,000 as an interest-free, five-year loan with no monthly payment that can be forgiven later.

Most and least expensive places to live in New Jersey

New Jersey has the ninth most expensive home prices in the nation, with a median home price of about $335,607. Housing prices have increased in 2020 due to the uptick in housing demand. However, homebuyers in the state still have the opportunity to find a home for an affordable price.

Least expensive places to buy real estate in New Jersey

The most affordable places to buy a home in New Jersey are:

  • Trenton, NJ: In Trenton, NJ, the typical home price averages about $84,200 — low for any area in the nation.
  • Camden, NJ: In Camden, the average home price is just $73,700.
  • Vineland, NJ: The average home price in Vineland is just $155,700.
  • East Orange, NJ: East Orange is another affordable area to buy in, with an average home price of $193,000.
  • Paterson, NJ: Paterson has an average home price of $195,200, making it one of the more affordable places to buy a home in New Jersey.

Most expensive places to buy real estate in New Jersey

The most expensive places to buy a home in New Jersey are:

  • Jersey City, NJ: One of the more expensive areas to buy a home, Jersey City has an average home price of $380,000.
  • North Bergen Township, NJ: North Bergen Township is another pricey place to buy in New Jersey. This city has an average home price of $366,400.
  • Union City, NJ: Union City has an average home price of $358,500, much higher than areas like Camden or Trenton.
  • Bayonne, NJ: If you want to buy a home in Bayonne, you’ll have to come up with a hefty sum of money. This city has an average home price of $339,300.
  • Edison, NJ: Buying in Edison also requires more of an investment than some other New Jersey areas. The average home price in Edison is about $335,600.

New Jersey mortgage rates compared to the national average 

New Jersey’s average rate on a 30-year fixed-rate mortgage was 2.96% as of the first week of December. This number is slightly higher than the national average of 2.91%.

In general, mortgage rates tend to be higher in places where mortgages and homes are in higher demand or are more expensive. With New Jersey’s rising mortgage prices and rapidly increasing population, it’s no surprise that rates in the state are a bit higher than other areas. That said, rates in New Jersey are still at an all-time low in 2020 and have declined further in December.

Already own a home and want to refinance?

This year has been a great time to refinance a home, with refinance rates reaching historical lows at certain points. For New Jersey home buyers considering a refinance, you can also get a competitive rate. The 30-year fixed refinance rate averaged just 3.02% in the first week in December.

Rates will increase as the economy recovers, so you may want to start the process now while rates are low. Rates can vary from one lender to the next, so homeowners should make sure to shop around for the best refinance rates.

Mortgage rates in other states

New Jersey
New York
North Carolina

Reviewed by

  • Angelica Leicht
    Angelica Leicht
    Mortgage Editor

    Angelica Leicht is an editor at The Simple Dollar who specializes in mortgages, mortgage refinancing, home equity loans, and HELOCs. She is a former contributing editor to and