High mortgage rates make it more difficult for prospective buyers to afford to purchase a house.
Average mortgage rates are constantly changing in response to a variety of different economic conditions and market expectations. Your personal mortgage rate will be determined by more specific factors, like your credit score, as well as the loan type and lender.
If you’re looking to buy a home, make sure to compare loan offers from multiple lenders to find the best rate for you.
Read more: Mortgage Forecast: 6% Rates Still on the Horizon, but Not in Time for Spring
What are today’s mortgage rates?
| Product | Interest rate | APR |
|---|---|---|
| 30-year fixed-rate | ||
| 15-year fixed-rate | ||
| 30-year fixed-rate jumbo | ||
| 30-year fixed-rate FHA | ||
| 5/1 ARM | ||
| 5/1 ARM jumbo | ||
| 7/1 ARM | ||
| 10/1 ARM | ||
| 15-year fixed-rate jumbo | ||
| 20-year fixed-rate | ||
| 30-year fixed-rate VA | ||
| 7/1 ARM jumbo | ||
| 15-year fixed-rate refinance | ||
| 30-year fixed-rate refinance | ||
| 5/1 ARM refinance | ||
| 7/1 ARM refinance | ||
| 10/1 ARM refinance | ||
| 30-year fixed-rate jumbo refinance | ||
| 15-year fixed-rate jumbo refinance | ||
| 5/1 ARM jumbo refinance | ||
| 30-year fixed-rate FHA refinance | ||
| 20-year fixed-rate refinance | ||
| 30-year fixed-rate VA refinance | ||
| 7/1 ARM jumbo refinance |
Updated on March 06, 2024.
We use information collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. The above table summarizes the average rates offered by lenders across the country.
Toward the end of 2023, mortgage rates saw their first significant decline in months. Evidence of slowing inflation sent yields on the 10-year Treasury (the key benchmark for 30-year fixed mortgage rates) lower. The Federal Reserve’s announcement of projected rate cuts in 2024 seemed to be a positive signal for the housing market. Though the Fed doesn’t directly set mortgage rates, adjustments to the federal funds rate influence consumer borrowing rates, including for home loans.
But mortgage rates are volatile. In February, inflation appeared sticky again, and strong labor data sent mortgage rates back up. Now, market watchers are betting that interest rate cuts won’t come until early summer.
Mortgage rates are still expected to ease throughout the year, but the timing will depend on economic data and the Fed’s future policy moves.
“If all goes well, by the time 2025 comes around, we could see mortgage rates closer to 6%, or maybe even lower,” said Jacob Channel, senior economist at online lending marketplace LendingTree.
Your mortgage rate is the percentage of interest a lender charges for providing the loan you need to buy a home. Multiple factors determine the rate you’re offered. Some are specific to you and your financial situation, and others are influenced by macro market conditions, such as inflation, the Fed’s monetary policy and the overall demand for loans.
While the broader economy plays a key role in mortgage rates, some key factors under your control affect your rate:
Your credit score: Lenders offer the lowest available rates to borrowers with excellent credit scores of 740 and above. Because lower credit scores are deemed riskier, lenders charge higher interest rates to compensate. The size of your loan: The size of your loan can impact the interest rate you qualify for. The loan term: The most common mortgage is a 30-year fixed-rate loan, which spreads your payments over three decades. Shorter loans, such as 15-year mortgages, typically have lower rates but larger monthly payments. The loan type: The type of mortgage you choose impacts your interest rate. Some loans have a fixed rate for the entire life of the loan. Others have an adjustable rate that have lower rates at the start of the loan but could result in higher payments down the road.The annual percentage rate, or APR, is usually higher than your loan’s interest rate and represents the true cost of your loan. It includes the interest rate and other costs such as lender fees or prepaid points. So, while you might be tempted with an offer for “interest rates as low as 6.5%,” look at the APR instead to see how much you’re really paying.
Pros
You’ll build equity in the property instead of paying rent with no ownership stake.
You’ll build your credit by making on-time payments.
You’ll be able to deduct the interest on the mortgage on your annual tax bill.
Cons
You’ll take on a sizable chunk of debt.
You’ll pay more than the list price -- potentially a lot more over the course of a 30-year loan -- due to interest charges.
You’ll have to budget for closing costs to close the mortgage, which add up to tens of thousands of dollars in some states.
Most mortgage loans are based on an amortization schedule: You’ll pay the same amount each month for the life of the loan, but the generated interest will be highest at the beginning and will taper as the principal (the amount you borrowed) decreases. Your amortization schedule will show how much of your monthly payment goes to interest and how much pays down the principal. Most borrowers find a fixed, predictable monthly payment more convenient.
Mortgage lenders often publish their rates for different mortgage types, which can help you research and narrow down where you’ll apply for preapproval. But an advertised rate isn’t always the rate you’ll get. When shopping for a new mortgage, it’s important to compare not just mortgage rates but also closing costs and any other fees associated with the loan. Experts recommend shopping around and reaching out to multiple lenders for quotes and not rushing the process.
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