What are the current mortgage rates

Mortgage Rates Today

Compare current mortgage and refinance rates

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As of today, August 15, 2022, the benchmark 30-Year Fixed mortgage rate is 5.58%, FHA 30-Year Fixed is 5.41%, Jumbo 30-Year Fixed is 4.94%, and 15-Year Fixed is 5.00%. These rates are not the teaser rates you may see advertised online and based on our methodology should be more representative of what customers could expect to be quoted depending on their qualifications. You can learn more about what makes our rates different in the Methodology section of this page.

Because mortgage rates can differ, it’s important to compare rates before taking out a home loan. We’ve compiled the best rates for the various types of mortgages, and common questions you may have to help you understand what might affect the final rate you’ll receive.

Today’s Mortgage Rates

National averages of the lowest rates offered by more than 200 of the country’s top lenders, with a loan-to-value ratio (LTV) of 80%, an applicant with a FICO credit score of 700-760, and no mortgage points.

If you’re ready to pursue a mortgage, you can use our ranking of the best mortgage lenders to assess your options.

How to Use Our Mortgage Rate Table

Our mortgage rate table is designed to help you compare the rates you’re being offered by lenders to know if it is better or worse. These rates are benchmark rates for those with good credit and not the teaser rates that make everyone think they will get the lowest rate available. Of course, your personal credit profile will be a significant factor in what rate you actually get quoted from a lender, but you will be able to shop for either new purchase or refinance rates with confidence.

How to Shop for Mortgage Rates

There are a few things to keep in mind when shopping for mortgage rates:

What Is a Good Mortgage Rate?

A good mortgage rate will depend on the borrower. Lenders will advertise the lowest rate offered but yours will depend on factors like your credit history, income, other debts, and your down payment. For instance, a good mortgage rate for someone who has a low credit score tends to be higher than for someone who has a higher credit score.

It’s important to understand what will affect your individual rate and work towards optimizing your finances so you can receive the most competitive rate based on your financial situation.

How Do I Qualify for Better Mortgage Rates?

Qualifying for better mortgage rates can help you save tens of thousands of dollars over the lifetime of the loan. Here are a few ways you can ensure you find the most competitive rate possible:

How Big a Mortgage Can I Afford?

First, your lender will determine what it thinks you can afford based on your income, debts, assets, and liabilities. However, you need to determine how much you’re willing to spend, your current expenses—most experts recommend not spending more than 28 percent of your gross income on housing costs. Lenders will also look at your DTI, meaning that the higher your DTI, the less likely you’ll be able to afford a bigger mortgage.

Don’t forget to include other costs aside from your mortgage, which includes any applicable HOA fees, homeowners’ insurance, property taxes, and home maintenance costs. Using a mortgage calculator can be helpful in this situation to help you figure out how you can comfortably afford a mortgage payment.

What Is a Mortgage Rate?

A mortgage rate is the amount of interest determined by a lender to be charged on a mortgage. These rates can be fixed—meaning the rate is set based on a benchmark rate—for the duration of the borrower’s mortgage term or variable based on the mortgage terms and current rates. The rate is one of the key factors for borrowers when seeking home financing options since it’ll affect their monthly payments and how much they’ll pay throughout the lifetime of the loan.

How Are Mortgage Rates Set?

Mortgage rates are set based on a few factors, economic forces being one of them. For instance, lenders look at the prime rate—the lowest rate banks offer for loans—which typically follows trends set by the Federal Reserve’s federal funds rate. It’s usually a few percentage points.

The 10-year Treasury bond yield can also reveal market trends. If the bond yield goes up, mortgage rates tend to go up, and vice versa. The 10-year Treasury yield is usually the best standard to judge mortgage rates. That’s because many mortgages are refinanced or paid off after 10 years even if the norm is a 30-year loan.

Factors that the borrower can control is their credit score and down payment amount. Since lenders determine rates based on the risk they may take, borrowers who are less creditworthy or have a lower down payment amount may be quoted higher rates. In other words, the lower the risk, the lower the rate for the borrower.

Does the Federal Reserve Decide Mortgage Rates?

While the Federal Reserve doesn’t decide mortgage rates, it does influence the rate indirectly. The Federal Reserve helps to guide the economy by keeping inflation under control and encouraging growth. That means the decisions the Federal Open Market Committee makes in raising or lowering short-term interest rates may influence lenders to raise or lower theirs.

Do Different Mortgage Types Have Different Rates?

Mortgage rates can be different depending on the type. For instance, fixed-rate mortgages tend to be higher than adjustable-rate ones. However, adjustable-rate mortgages tend to have lower rates during a predetermined time, then fluctuates as it adjusts to current market conditions.

Are Interest Rates and APR The Same?

Interest rates and APR are not the same. An annual percentage rate (APR) reflects additional charges associated with your mortgage, which includes the interest. The interest rate reflects the cost homeowners pay to borrow money. These fees include charges such as origination fees and discount points, which is why the APR is typically higher than the interest rate.

What Are Mortgage Points?

How Much Will I Need for a Down Payment?

The minimum you’ll need to put down will depend on the type of mortgage. Many lenders require a minimum of 5% to 20%, whereas others like government-backed ones require at least 3.5%. The VA loan is the exception with no down payment requirements.

Generally, the higher your down payment, the lower your rate may be. Homeowners who put down at least 20 percent will be able to save the most.

Methodology

In order to assess mortgage rates, we first needed to create a credit profile. This profile included a credit score ranging from 700 to 760 with a property loan-to-value ratio (LTV) of 80%. With this profile, we averaged the lowest rates offered by more than 200 of the nation’s top lenders. As such, these rates are representative of what real consumers will see when shopping for a mortgage.

The same credit profile was used for the best state rates map. We then found the lowest rate currently offered by a surveyed lender in that state.

Keep in mind that mortgage rates may change daily and this data is intended to be for informational purposes only. A person’s personal credit and income profile will be the deciding factors in what loan rates and terms they are able to get. Loan rates do not include amounts for taxes or insurance premiums and individual lender terms will apply.

Today’s Mortgage Rates

The following table shows current local 30-year mortgage refinance rates. You can use the menus to select other loan durations, alter the loan amount, set your home value, select purchase loans, or change your location.

Who determines interest rates?

Interest rates are typically determined by a central bank in most countries. In the United States, a forum is held once per month for eight months out of the year to determine interest rates. At this time, the economic status of the country is assessed, and interest rates are adjusted according to the needs of the country. The panel that determines interest rates consists of representatives of the Federal Reserve Board and the Federal Reserve Bank. Together, the representatives from both form the Federal Open Market Committee.

What is the Federal Reserve?

The Federal Reserve monitors and sets standards for monetary policy in the United States. There are 12 Federal Reserve Banks located in major cities around the country. Although the Federal Reserve undergoes reviews by Congress, the organization is an independent entity. Therefore, they do not need the President’s approval or any other branch of government before making decisions about the economy.

There are seven members of the board. Each member is appointed by the President to the Board of Governors and serves up to 14 years per term. They can be reelected. The board is headed by a President and Vice President. Each can hold office for 4 years and can be reappointed by the Senate. Ben Bernake currently serves this role and is the successor to Alan Greenspan.

The Federal Reserve monitors and generates income from several entities. They earn dividends on foreign currency, loan interest collected, services, and interest from government securities. If the Federal Reserve posts a profit above and beyond its operating costs, then those funds are redirected to the U.S. Treasury.

How do they determine interest rates?

The goal of each monthly meeting is to determine the liquidity of funds within the country and establish prices that will keep the economy stable. If the circulation of money within the country is abundant, the prices will increase. If the circulation of money within the country is minimal, the prices will decrease. The goal is to find a balance that will keep the economy stable and achieve full employment.

The central bank lends money to retail banks at a discount interest rate. The consumer in turn borrows from the retail banks. The interest rates or Prime Interest Rates are determined by the rates assigned by the central bank to the retail bank. The central bank will raise interest rates when they want to discourage consumer borrowing and encourage more deposits. The deposits contribute to the overall worth of the bank. When the consumer deposits money, the bank can lend this money to another party to generate income from interest collected. The central bank will lower interest rates when they want to encourage consumer borrowing and increase spending.

Inflation is also another factor driving interest rates. When the Federal Reserve predicts inflation, the interest rates are typically high. If the currency is losing purchase power, the banks must compensate for what the currency will be worth when the full amount of interest is collected.

Where the market is predicted to go?

Ever since 2010 experts have predicted the economy would rebounded. However, each year such predictions get moved back as financial asset prices increase while the regular economy lags behind. The Federal Reserve stopped their 3rd round of quantitative easing in 2014 and have slowly lifted rates since while winding down their balance sheet. They raised rates 4 times in 2018 to counteract the stimulative impacts of the 2017 Tax Cuts and Jobs Act, though they are likely to move slowly with rate increases going forward in order to not disrupt the financial markets.

National Average Mortgage Rates

The mortgage rates vary depending upon the type of loan that will be acquired by the consumer. For instance, in February, 2010, the national average mortgage rate for a 30 year fixed rate loan was at 4.750 percent (5.016 APR). The 15 year fixed is currently at 4.125 percent (4.312 APR) and the 5/1 ARM is at 3.875 percent (3.122 APR). These prices are just a snapshot of the average and will change. Therefore, it is best to research the average and know what the rates are prior to selecting a loan. The follow chart shows trends over the past 20 years.

Where is the Market Headed?

Expert economists predicted the economy would rebound in 2010. However, the economy was sluggish with slow growth rates for many years beyond that. The economy contracted in the first quarter of 2014, but in the second half of 2014 economic growth picked up. The Federal Reserve tapered their quantitative easing asset purchase program & the price of oil fell sharply. Consumer perception of inflation and inflation expectations are set largely by the price they pay at the pump when they refill their gas. With growth picking up the consensus view is interest rates will continue to head higher for the next couple years into 2020, or until a recession happens. The following table highlights 2019 rate predictions from influential organizations in the real estate & mortgage markets.

2019 30-year Fixed Mortgage Rate Predictions

The NAHB saw 30-year fixed rates rising to 5.08% in 2020, when they anticipated ARMs to jump from 2019 estimates of 4.46% to 4.63%.

Despite being old data, the above predictions remain published on this page to show how significantly off major industry associations and leading experts at companies worth billions of dollars can be even in relatively benign environments. The average rate predicted for 2019 was 5.13% while the actual average rate throughout the year was 3.94%.

Industry experts can be that far off in relatively benign conditions. A true crisis can make accurate predictions nearly impossible.

Covid-19 Impact on Mortgage Rates

As the COVID-19 healthcare crisis swept the globe governments pushed lockdowns which contracted many economies at record rates. In the second quarter of 2020 the United States economy contracted at a record annualized rate of 31.4%.

As the global economy crashed the Federal Reserve’s FOMC cut interest rates twice, announced they would conduct unlimited quantitative easing, and gave forward guidance suggesting they were unlikely to lift rates through 2023.

2021 & 2022 Mortgage & Housing Market Predictions

Mortgage Rates

Loan Origination Volume

Real Estate Deal Volume & Appreciation

Fixed Rate Mortgages

Fixed rate mortgages are based upon the national average, but vary from state to state. These mortgages possess the same interest rate throughout the duration of the loan. Consumers desire these loans if they plan to remain in their homes for the duration of the loan. For example, the consumer obtains a mortgage when interest rates are at their lowest and then interest rates rise. The consumer does not have to worry about their mortgage rates increasing because the interest rate is “fixed”. If the interest rates decrease, the consumer may have the option of refinancing, if the costs of refinancing are less than the overall savings.

These loans are typically available in 15 year and 30 year loan options. The rates are higher than variable rate loans. The longer the term, the higher the rate, because banks will lose money as purchasing power decreases over time due to inflation.

Adjustable Rate Mortgage (ARM)

Adjustable rates typically start off lower than fixed rates when the loan is initially established. ARMs may adjust on a monthly, bi-annual, or annual basis in keeping with the Federal Reserve or be indexed against other rates like LIBOR. The consumer should be aware that as interest rates increase, so will the monthly mortgage. While ARMs may be appealing because the rates are lower, ARMs can also be a gamble that rates will not rise. If rates rise, then the monthly payments also increase. ARMs may be beneficial to investors or consumers who only plan to keep the loan for a short period of time. During this time, the consumer can enjoy low interest rates. You can calculate the impact of different rate changes using this free tool.

Hybrid Adjustable Rate Mortgage (ARM)

Hybrid Adjustable Rate Mortgages offer the consumer a low interest rate for a certain period of time. Then, they increase or adjust to the current rate after fixed rate period has elapsed. These rates can be an entire point lower than 30 year fixed rates. Therefore, there may be significant savings in terms of interest paid to the lender. Some common hybrid ARMs are 1 year fixed, 1 year adjustable rates (1/1); 5 years fixed, 1 year adjustable (5/1); and 7 years fixed, 1 year adjustable (7/1). The adjustable rates will be based upon the federal rate when the fixed term elapses. These loans are also appealing to investors or home buyers who plan to sell in a short period of time.

FHA Loans

The FHA secures loans made by private lenders. These loans are provided to Americans who have a low to middle income. This loan is available to those people who cannot afford a large down payment or higher interest rates. Interest rates for these loans are lower than the National Average for a Fixed Rate Loan. Individual banks determine the interest rates; therefore, the consumer should do research prior to accepting a loan at a particular bank. The consumer can receive a loan for as little as 3 percent down and also receive as much as 6 percent on closing costs. This means that the consumer can borrow up to 97 percent of the cost of the home. We offer an FHA qualifier tool here.

VA Loans

VA loans are offered to veterans. The loans assist veterans in obtaining 100 percent financing. The United States Department of Veterans Affairs is the governing body that establishes the rules for the recipients of the VA loans. They also insure the VA loans and establish the terms of the loans offered to veterans.

Comparison of Mortgage Rates

Quickly Calculate Mutliple Loan Scenarios

Fixed rate mortgages are best for individuals who intend to remain in their homes for the duration of the loan. The interest rate may be higher than an ARM; however, there will be no hidden mortgage increases over the duration of the loan.

During the fixed rate period of a hybrid ARM, the consumer can enjoy the low interest rates and low mortgage payments. However, individuals who are not prepared may see an increase in their mortgage premiums that they cannot afford.

ARM mortgage interest rates change each month with the Federal Reserve. This loan is typically recommended for a short term investor who will sell quickly.

Fixed rate loans are by far the safest loans for consumers over a period of time.

When is the best time to obtain a mortgage?

As stated above, the rates change based upon the Federal Reserve and the desire to keep the economy stable. Read the reports from the office and inquire with lenders to get a fair prediction of the direction of the Federal Reserve. If the Federal Reserve decides that consumers need to spend and borrow, interest rates will remain low. However, if the Federal Reserve decides that it needs consumers to save, invest, and deposit money, the interest rates will remain high.

Hidden Mortgage Costs

Beware of Adjustable Rate Mortgages (ARMs). The rates will increase after the introductory period and may cause a home buyer financial stress when the mortgage rates increase. Some individuals even foreclose when this happens, because they cannot handle the increase in the mortgage costs.

Other hidden costs may be associated with refinancing. For instance, an individual with a fixed interest rate may decide to refinance the loan if the interest rates decrease during the duration of the loan. However, the consumer must incur costs to have the loan refinanced. The consumer should make certain that the cost of refinancing is less than the savings from a lower interest rate. Otherwise, refinancing may not be in the best interest of the consumer.

Homeowners May Want to Refinance While Rates Are Low

The Federal Reserve has started to taper their bond buying program. Lock in today’s low rates and save on your loan.

Are you paying too much for your mortgage?

Find Out What You Qualify For

Check your refinance options with a trusted local lender.

Answer a few questions below and connect with a lender who can help you refinance and save today!

What are the current mortgage rates

Most people don’t have the cash to simply buy a house. Instead, they use a mortgage, which is a loan to buy a home. After making a down payment of anywhere from 3% to 25%, they get a mortgage to cover the remaining costs of purchasing the home.

A mortgage is set up so you pay off the loan over a specified period called the term. The most popular term is 30 years. Each payment includes a combination of principal and interest, as well as property taxes, and, if needed, mortgage insurance. (Homeowners insurance may be included, or the homeowner may pay the insurer directly.) Principal is the original amount of money you borrowed while interest is what you’re being charged to borrow the money.

How do mortgage rates work?

The mortgage rate a lender offers you is determined by a mix of factors that are specific to you and larger forces that are beyond your control.

Lenders will have a base rate that takes the big stuff into account and gives them some profit. They adjust that base rate up or down for individual borrowers depending on perceived risk. If you seem like a safe bet to a lender, you’re more likely to be offered a lower interest rate.

Factors you can change:

How you’re using the home. Mortgages for primary residences — a place you’re actually going to live — generally get lower interest rates than home loans for vacation properties, second homes or investment properties.

Forces you can’t control:

The U.S. economy. Sure, this means Wall Street, but non-market forces (for example, elections) can also influence mortgage rates. Changes in inflation and unemployment rates tend to put pressure on interest rates.

The global economy. What’s happening around the world will influence U.S. markets. Global political worries can move mortgage rates lower. Good news may push rates higher.

How (and why) to compare mortgage rates

Mortgage rates like the ones you see on this page are sample rates. In this case, they’re the averages of rates from multiple lenders, which are provided to NerdWallet by Zillow. They let you know about where mortgage rates stand today, but they might not reflect the rate you’ll be offered.

To see more personalized rates, you’ll need to provide some information about you and about the home you want to buy. For example, at the top of this page, you can enter your ZIP code to start comparing rates. On the next page, you can adjust your approximate credit score, the amount you’re looking to spend, your down payment amount and the loan term to see rate quotes that better reflect your individual situation.

Whether you’re looking at sample rates on lenders’ websites or comparing personalized rates here, you’ll notice that interest rates vary. This is one reason why it’s important to shop around when you’re looking for a mortgage lender. Fractions of a percentage might not seem like they’d make a big difference, but you aren’t just shaving a few bucks off your monthly mortgage payment, you’re also lowering the total amount of interest you’ll pay over the life of the loan.

What are the current mortgage rates

Adjust the graph below to see historical mortgage rates tailored to your loan program, credit score, down payment and location.

Compare current mortgage rates by loan type

The table below is updated daily with current mortgage rates for the most common types of home loans. Compare week-over-week changes to mortgage rates and APRs.

Conforming loans

Government loans

Jumbo loans

What is a good mortgage interest rate?

The best mortgage rate for you will depend on your financial situation. A home loan with a shorter term may have a lower interest rate but a higher monthly payment, while a home loan with an adjustable interest rate may have a lower interest rate at first but then change annually after a set period of time. For example, a 7-year ARM (adjustable-rate mortgage) has a set rate for the initial 7 years then adjusts annually for the remaining life of the loan (loan term), while a 30-year fixed-rate mortgage has a rate that stays the same over the loan term.

How to get the best mortgage rate

Mortgage rates change daily and can vary widely depending on a variety of factors, including the borrower’s personal situation. The difference in mortgage rates can mean spending tens of thousands of dollars more (or less) in interest over the life of the loan. Here are some tactics to help you find the best mortgage rate for your new home loan:

Shop around for a lender

Using the lender your real estate agent typically works with doesn’t guarantee you’ll get the best mortgage rate for your home loan. Ask around for recommendations or use an online tool to find a lender who can provide you with a loan that is best for your situation.

Compare lender fees

Along with mortgage interest rates, each lender has fees and closing costs that factor into the overall cost of the home loan. When choosing a lender, compare official Loan Estimates from at least three different lenders and specifically pay attention to which have the lowest rate and lowest APR. This will help you feel confident you are getting the best deal.

Increase your down payment

Did you know that your down payment amount can have an impact on your mortgage rate? That’s because mortgage rates are generally tiered, and typically lower rates are available for those with a down payment of 20% or more. If possible, check with your lender to see if increasing your down payment will lower your mortgage interest rate.

Improve your credit score

Your credit score may affect the mortgage rate that the lender offers you. Generally, the higher your credit score, the lower the interest rate will be on your home loan. Before applying for a mortgage, review your credit score and get it in the best shape possible. Learn more about how to improve your credit score.

Consider different types of home loans

The 30-year fixed rate mortgage is the most common type of home loan, but there are additional mortgage options that may be more beneficial depending on your situation. For example, if you require a lower interest rate, adjustable-rate mortgages (ARM) offer a variable rate that may be initially lower than a 30-year fixed rate option but adjusts after a set period of time (usually 3, 5, 7 or 10 years). Given that ARM loans are variable, the interest rate could end up being higher than with a 30-year fixed rate mortgage that has a locked-in mortgage rate. A 15-year fixed rate mortgage, on the other hand, may offer a lower interest rate that won’t fluctuate like an ARM loan but requires a higher monthly payment compared to a 30-year fixed rate mortgage. Consider all your options and choose the home loan that is most comfortable for you.

Frequently asked questions about mortgages

What is a mortgage rate?

A mortgage rate is a percentage of the total loan amount (i.e. the rate of interest) paid by the borrower to the lender for the term of the loan. Fixed mortgage rates stay the same for the term of the mortgage, while variable mortgage rates fluctuate with a benchmark interest rate that is updated publicly to reflect the cost of borrowing money in different markets.

How are mortgage rates determined?

Mortgage rates are set by the lender. The lender will consider a number of factors in determining a borrower’s mortgage rate, such as the borrower’s credit history, down payment amount or the home’s value. Inflation, job growth and other economic factors outside the borrower’s control that can increase risk also play a part in how the lender sets their rates. There is no exact formula, which is why mortgage rates typically vary from lender to lender.

How to compare mortgage rates?

While online tools, such as our mortgage rate comparison tool above, allow you to compare current average mortgage rates by answering a few questions, you’ll still want to compare official Loan Estimates from at least three different lenders to ensure you are getting the best mortgage rate with the lowest monthly payment.

After applying for a mortgage, the lender will provide a Loan Estimate with details about the loan. Pay specific attention to which lender has the lowest mortgage rate, APR, and projected principal and interest payment. Then review the Origination Charges located on the Loan Estimate under Loan Costs to see how much the lender is charging in fees (also reflected in the APR). The higher the fees and APR, the more the lender is charging to procure the loan. The remaining costs are generally applicable to all lenders, as they are determined by services and policies the borrower chooses, in addition to local taxes and government charges.

What is the difference between interest rate and APR?

Interest rate is a percentage of the total loan balance paid to the lender on a monthly basis (i.e. the cost of borrowing money from the lender). The annual percentage rate, or APR, is the total borrowing cost as a percentage of the loan amount, which includes the interest rate plus any additional fees like discount points and other costs associated with procuring the loan.

What is a mortgage point?

Some lenders may use the word «points» to refer to any upfront fee that is calculated as a percentage of your loan amount. Point is a term that mortgage lenders have used for many years and while some points may lower your interest rate, not all points impact your rate. Mortgage points can be found on the Loan Estimate that the lender provides after you apply for a mortgage.

What are origination fees?

An origination fee is what the lender charges the borrower for making the mortgage loan. The fee may include processing the application, underwriting and funding the loan as well as other administrative services. Origination fees generally do not increase unless under certain circumstances, such as if you decide to go with a different type of loan. For example, moving from a conventional to a VA loan. You can find origination fees on the Loan Estimate.

What is a discount point?

Discount points are optional fees paid at closing that lower your interest rate. Essentially, discount points let you make a tradeoff between your closing cost fees and your monthly payment. By paying discount points, you pay more in fees upfront but receive a lower interest rate, which lowers your monthly payment so you pay less over time. Any discount points purchased will be listed on the Loan Estimate.

How much is a mortgage point?

How much does 1 point lower your interest rate?

What is a lender credit?

A lender credit is when a lender gives you money to offset your closing costs. Sometimes this is an exchange for a higher interest rate. When you receive lender credits in exchange for a higher interest rate, you pay less upfront but pay more over time because of the higher interest.

What is a mortgage rate lock?

When should I lock in my mortgage rate?

When you feel like you’re receiving the best mortgage rate possible and you’re worried the rate may increase, it may be a good idea to lock in your rate. Mortgage rates change daily, sometimes even hourly, which is why it’s ideal to lock-in the mortgage rate when interest rates are at their lowest.

How does the Federal Reserve affect mortgage rates?

Home loans with variable rates like adjustable-rate mortgages (ARM) and home equity line of credit loans (HELOC) are indirectly tied to the federal funds rate. When the federal funds rates increase, it becomes more expensive for banks to borrow from other banks. The higher costs for the bank can mean a higher interest rate on your mortgage. ARM loans that are in their fixed period (non-variable state) are not impacted by this increase. However if you suspect a federal increase is about to happen or it has just happened, you’ll want to move fast if you’re looking to make changes or have yet to lock in a fixed-rate mortgage.

Current Mortgage Interest Rates | August 2022

The average mortgage interest rates increased for all three loan types week over week — 30-year fixed rates went up (4.99% to 5.22%), as did 15-year fixed rates (4.26% to 4.59%) and 5/1 ARM rates (4.25% to 4.42%).

Mortgage Rates Today

The interest rates reported below are from a weekly survey of 100+ lenders by Freddie Mac PMMS. These average rates are intended to give you a snapshot of overall market trends and may not reflect specific rates available for you.

Copyright 2022 Freddie Mac. Averages are based on conforming mortgages with 20% down.

How do I get the best mortgage rate?

To get the best mortgage interest rate for your situation, it’s best to shop around with multiple lenders.

According to research from the Consumer Financial Protection Bureau (CFPB), almost half of consumers do not compare quotes when shopping for a home loan, which means losing out on substantial savings.

Interest rates help determine your monthly mortgage payment as well as the total amount of interest you’ll pay over the life of the loan. While it may not seem like much, even a half of a percentage point increase can amount to a significant amount of money.

Comparing quotes from three to four lenders ensures that you’re getting the most competitive mortgage rate for you. And, if lenders know you’re shopping around, they may even be more willing to waive certain fees or offer better terms for some buyers. Either way, you reap the benefits.

What determines my mortgage interest rate?

Your mortgage rate is influenced by a variety of factors that fit into two categories:

While you can’t control the federal funds rate or other economic conditions, you can do things to improve your personal finances before applying for a mortgage loan.

Any change to one of the following seven things can directly impact the specific interest rate you’ll qualify for.

Credit Score

Your credit score has one of the biggest impacts on your mortgage rate as it’s a measure of how likely you’ll repay the loan on time. The higher your score, the lower your rates.

If you haven’t pulled your credit score and addressed any issues, then start there before reaching out to lenders.

A better credit score opens up more loan options and lower interest rates in any housing market.

Down Payment

In general, the higher your down payment the lower your interest rate, because you’re viewed as a less risky borrower than someone who finances the entire purchase.

If you’re unable to put at least 20 percent down, then most lenders require Private Mortgage Insurance (PMI), which will be added to the cost of your overall monthly mortgage payment.

A lot of first-time homebuyer programs — such as statewide and local down payment assistance — can help you come up with a bigger down payment.

Loan Type

There are different types of mortgage loans on the market with different eligibility requirements. Not all lenders offer all loan types, and rates can vary significantly depending on the loan type you choose.

Some common mortgage loan products are conventional, FHA, USDA, and VA loans.

Within most of these loan types, you can choose a fixed-rate mortgage (FRM) or an adjustable-rate loan (ARM). ARM rates are often substantially lower than fixed rates, but keep in mind you’ll only hold that low rate for a few years (typically 5, 7, or 10) before it has the potential to increase.

Loan Terms

Your loan term indicates how long you have to repay the loan. Shorter-term loans tend to have lower interest rates, but higher monthly payments when compared to the standard 30-year mortgage term.

Exactly how much lower your interest rate and how much higher the monthly payment will be depends a lot on the specific loan term and interest rate type you choose.

Interest Rate Type

Some home buyers take advantage of the low intro rate on an ARM if they know they’ll move or refinance before the initial rate expires. For many buyers, though, a fixed-rate loan is preferable as it offers predictability and stability over the life of the loan.

Loan Amount

The loan amount will differ from the price of the home. It’s the total amount you are borrowing, including any closing costs your roll into the price of the home, less than down payment.

If you roll the closing costs and other borrowing fees into your loan, you may pay a higher interest rate than someone who pays those fees upfront. Loans that are smaller or larger than the limits for conforming loans may pay higher interest rates too.

Location

Why does my mortgage interest rate matter?

Your mortgage interest rate impacts the amount you’ll pay monthly as well as the total interest costs you’ll pay over the life of your loan. While it may not seem like a lot, a lower interest rate even by half of a percent can add up to significant savings for you.

*Interest rates assume a good credit rating and 20% down payment.
**Amount doesn’t include property taxes, homeowners insurance, or HOA dues (if applicable).

Current mortgage interest rates

Freddie Mac’s weekly report covers mortgage rates from the previous week, but interest rates change daily — mortgage rates today may be different than reported.

To find out what rates are currently available, compare quotes from multiple lenders.

Mortgage interest rate FAQs

Will interest rates rise in 2022?

Interest rates change daily. They have trended upward in 2022, bouncing back from the record lows of the pandemic era.

What are interest rates based on?

Fixed mortgage interest rates operate in their own market. They’re not directly tied to the Federal Reserve’s fed funds rate, although this benchmark rate can help influence the direction mortgage rates are headed. Other factors that influence mortgage rates include the health of the economy, the inflation rate, and how much demand lenders are seeing for home buying and refinancing. Only adjustable-rate mortgages are directly tied to market indices and therefore to the Fed’s benchmark rate.

How does your credit score affect your rate?

Your credit score measures your likelihood of making continuous, on-time mortgage payments. Homebuyers with higher credit scores seem less risky to lenders. So, in general, the higher your credit score, the lower your mortgage rate. But other factors such as your personal debt, down payment size, and loan program also influence your rate.

What is an APR?

APR stands for annual percentage rate. Your mortgage interest rate is part of your APR, but APR also includes additional borrowing costs such as mortgage insurance premiums or other fees that make your loan possible. Your APR will be higher than your interest rate.

How many times will the Fed raise rates in 2022?

The Federal Open Market Committee (FOMC) meets every six weeks and could change the Fed’s benchmark rate at any meeting. With inflation at levels not seen in 40 years, most economists expect multiple rate hikes this year.

What are today’s interest rates?

Rates change every day. To see weekly average rates, check out Freddie Mac’s Primary Mortgage Market Survey. These rates show the overall climate of the mortgage market, but your individual rate will depend on your personal finances.

Is a 3.5% interest rate good?

In today’s climate, 3.5 percent interest on a mortgage is below average. In 2020 and 2021, during the record low rates of the pandemic, 3.5 percent was above average for a new 30-year mortgage.

Are mortgage rates high right now?

Rates have been higher — a lot higher — than they are today. In October of 1981, for example, average rates topped 18 percent. Forty years later, in October of 2021, average rates on 30-year mortgages were below 3 percent. So, most homebuyers today are paying rates much closer to record lows than to record highs.