Mortgage rates change daily and vary by lender, loan type, and your credit profile
Current mortgage rates are not a single number. On any given day, a 30-year fixed mortgage might range from 6.5% to 7.2% depending on which bank you call, whether you have a 20% down payment, and your credit score. Rates also shift based on the type of loan: a 15-year fixed rate is typically lower than a 30-year, and an adjustable-rate mortgage (ARM) starts lower but can rise after the initial period ends.
The Federal Reserve does not set mortgage rates directly. Instead, mortgage rates follow the yield on 10-year U.S. Treasury bonds, which move based on economic data, inflation, and investor demand. When the Fed raises its benchmark interest rate, Treasury yields often rise, and mortgage rates follow. When economic data weakens, Treasury yields can fall, pulling mortgage rates down with them.
To find the actual rate you would receive, you need to contact lenders directly or use rate-comparison tools. A rate quoted to you is only valid for a set period — often 24 to 48 hours — and depends on locking it in before that window closes.
Key Takeaways
- Mortgage rates vary by lender, loan term, down payment size, and credit score, so comparing at least three lenders is necessary to find your actual rate.
- A 30-year fixed mortgage carries a higher rate than a 15-year fixed, but lower monthly payments; an ARM starts lower but adjusts upward after the initial period.
- Rates are tied to the 10-year Treasury yield and change daily based on economic reports and Federal Reserve decisions, not on a fixed schedule.
- A rate quote is only locked in for 24 to 48 hours, so you must formally lock the rate with your lender before that window closes to may provide it.
Where to check rates right now
Mortgage lenders post their rates on their own websites, usually in a rates table that shows 30-year fixed, 15-year fixed, and ARM options. Major banks like Chase, Bank of America, and Wells Fargo publish rates daily. Credit unions often offer lower rates to members, so checking your own credit union first can save money.
Mortgage brokers and online lenders like Rocket Mortgage, Better.com, and LoanDepot also publish rates. These sites often let you enter your loan amount, down payment, and credit range to see a personalized estimate. The estimate is not a locked rate — it is a snapshot based on the information you provide.
Rate-comparison sites like Bankrate, NerdWallet, and LendingTree aggregate rates from multiple lenders in your area. These sites do not lend money themselves; they show you what different lenders are offering and let you request quotes from several at once. Requesting quotes triggers a hard credit inquiry, which temporarily lowers your credit score by a few points, but multiple inquiries within 14 days typically count as one inquiry for credit-scoring purposes.
How down payment and credit score affect your rate
A larger down payment lowers your rate. A borrower putting down 20% typically receives a lower rate than one putting down 5%, sometimes by 0.25% to 0.5%. This is because a larger down payment means less risk to the lender — you have more of your own money at stake.
Your credit score has an even larger effect. A borrower with a 760 credit score might receive a rate of 6.8%, while a borrower with a 620 score on the same loan could be quoted 7.5% or higher. The difference compounds over 30 years: on a $300,000 loan, that 0.7% difference adds up to tens of thousands of dollars in extra interest.
If your credit score is below 620, many conventional lenders will not work with you. FHA loans (backed by the Federal Housing Administration) accept scores as low as 580 and sometimes lower, but they require mortgage insurance, which raises your monthly payment. VA loans (for military members and veterans) and USDA loans (for rural borrowers) have their own credit and down payment rules.
Fixed-rate versus adjustable-rate mortgages
A fixed-rate mortgage locks in the same interest rate for the entire loan term — 15 years, 30 years, or another length you choose. Your monthly principal and interest payment never changes. This makes budgeting predictable and protects you if rates rise in the future.
An adjustable-rate mortgage (ARM) starts with a lower rate for an initial period — often 3, 5, 7, or 10 years — then adjusts annually or semi-annually based on a market index plus a margin set by the lender. A 5/1 ARM, for example, has a fixed rate for 5 years, then adjusts every year after that. ARMs are riskier because your payment can rise significantly when the adjustment period begins. They make sense only if you plan to sell or refinance before the rate adjusts, or if you can afford the payment at the highest possible rate.
In a low-rate environment, fixed-rate mortgages are usually the safer choice. In a high-rate environment, an ARM might lower your initial payment, but the risk of future increases is higher.
Points, fees, and the true cost of a mortgage
The interest rate is not the only cost. Lenders charge origination fees (typically 0.5% to 1% of the loan amount), appraisal fees (usually $400 to $600), title insurance, and other closing costs that add up to 2% to 5% of the loan amount. These are separate from the interest rate.
Some lenders offer the option to buy discount points: you pay a fee upfront (usually 1% of the loan amount per point) to lower your interest rate by 0.25%. If you plan to stay in the home for many years, points can pay for themselves. If you might move or refinance within 5 to 7 years, they usually do not.
Always ask for a Loan Estimate, which lenders are required to provide within three business days of your application. The Loan Estimate shows the interest rate, all fees, and the total amount you will pay over the life of the loan. Comparing Loan Estimates from multiple lenders is the only way to see the true cost, not just the headline rate.
Why rates change and what to watch
Mortgage rates move in response to economic data released throughout the month: the jobs report (first Friday), inflation data (Consumer Price Index), and housing starts. When inflation is high or job growth is strong, the Federal Reserve may signal that it will keep interest rates higher for longer, which pushes mortgage rates up. When economic growth slows, rates often fall.
The Fed's policy meetings happen eight times a year. On meeting days, mortgage rates often move sharply. Even if the Fed does not change its benchmark rate, forward guidance — what the Fed says about future rate decisions — can move mortgage rates significantly.
Geopolitical events, stock market volatility, and international economic news also affect Treasury yields and mortgage rates. Mortgage rates do not move on a predictable schedule; they respond to new information as it arrives.
Locking in a rate and what happens next
When you find a rate you want, you must formally request a rate lock with your lender. A lock period is typically 30, 45, or 60 days — the longer the lock, the higher the rate the lender may charge, because they are taking on more risk that rates will move against them. During the lock period, your rate is may provide even if market rates rise.
If you lock a rate but do not close the loan before the lock expires, the lender can offer you a new rate at the current market price. Some lenders offer a one-time "float down" option, which lets you lock in a lower rate if rates fall during your lock period, but this feature costs extra.
Locking too early can backfire if rates fall before you close. Locking too late risks rates rising and your lock expiring before closing. Most borrowers lock when they have a signed purchase agreement and a clear closing date.
Frequently Asked Questions
Do I have to use my bank's mortgage rate?
No. You can shop with any lender — banks, credit unions, mortgage brokers, or online lenders. Lenders compete on rate, fees, and service. Getting quotes from at least three lenders takes a few hours and can save thousands of dollars over the life of the loan.
What is a good mortgage rate right now?
A "good" rate depends on current market conditions, which change daily. The best way to know if a rate is competitive is to compare quotes from multiple lenders on the same day. A rate that is good for a 30-year fixed loan is not the same as a rate for a 15-year or an ARM.
Can I negotiate my mortgage rate?
Rates are set by market conditions and your profile (credit score, down payment, loan type), not by negotiation. However, you can negotiate fees and closing costs. Some lenders will waive or reduce origination fees, appraisal fees, or title insurance costs if you ask or if you have competing offers from other lenders.
What happens to my rate if I refinance later?
Refinancing means taking out a new loan to pay off your old one. Your new rate will be whatever the market offers at that time, not the rate you locked in originally. Refinancing makes sense if rates have fallen enough to offset the closing costs of a new loan, usually a drop of 0.5% to 1% or more.
How far in advance should I lock my rate?
Lock your rate once you have a signed purchase agreement and know your closing date. Locking too early risks rates falling and you paying a higher rate than necessary. Locking too late risks your lock expiring before closing. A 45-day lock is typical for most home purchases.