Mortgage rates today vary by lender, loan type, and your credit profile
There is no single "average" mortgage rate that applies to everyone. The rate you receive depends on whether you are borrowing for 15 years or 30 years, whether you choose a fixed or adjustable rate, your credit score, how much you are putting down, and which lender you work with. On any given day, one bank might offer 6.5% while another offers 6.8% for the same loan type.
What people usually mean by "the average rate" is the most common rate that lenders are quoting to borrowers with good credit on a 30-year fixed mortgage—the most popular loan type. That rate changes almost every day based on bond markets and Federal Reserve decisions. You can find current rates from major lenders on their websites, or from rate-tracking sites like Freddie Mac's Primary Mortgage Market Survey, which publishes weekly snapshots of what lenders are actually offering.
Your personal rate will be higher or lower than the published average depending on your financial situation. A borrower with a 750 credit score and 20% down will get a better rate than someone with a 650 score and 5% down, even at the same lender on the same day.
Key Takeaways
- Mortgage rates change daily and vary by lender, so there is no single "average" that applies to you—you need to get quotes from actual lenders.
- Your personal rate depends on your credit score, down payment size, loan type (15-year or 30-year), and whether you choose a fixed or adjustable rate.
- Published averages like the Freddie Mac survey show what lenders quote to borrowers with good credit, but your rate may be higher or lower.
- The Federal Reserve's interest rate decisions and bond market movements drive changes in mortgage rates across the entire lending industry.
- Comparing quotes from at least three lenders takes about 15 minutes per lender and can save you thousands of dollars over the life of the loan.
Why rates change almost every day
Mortgage rates are tied to the yield on 10-year U.S. Treasury bonds. When bond yields go up, mortgage rates go up. When bond yields fall, mortgage rates fall. This happens because investors can choose between lending to the government (Treasury bonds) or to homebuyers (mortgages), so the rates have to stay competitive with each other.
The Federal Reserve also influences rates indirectly. When the Fed raises its benchmark interest rate, Treasury yields typically rise, and mortgage rates follow. When the Fed cuts rates, the opposite usually happens. But the connection is not automatic—mortgage rates can move even on days when the Fed does nothing, because bond markets are reacting to economic news, inflation data, or expectations about future Fed decisions.
This is why a rate you saw quoted last week might not be available today. Lenders adjust their rates multiple times per day in response to bond market movements. If you are shopping for a mortgage, you need current quotes, not rates from a week ago.
How your credit score and down payment affect your rate
Lenders charge different rates to different borrowers based on risk. A borrower with a 780 credit score and a 30% down payment represents less risk than a borrower with a 650 score and 3% down, so the first borrower gets a lower rate. The difference can be 0.5% to 1.5% or more, which translates to tens of thousands of dollars over 30 years.
Your down payment size matters because it determines how much of the home's value you are borrowing. If you put down less than 20%, you will also be required to pay private mortgage insurance (PMI), which is an additional monthly cost. This insurance protects the lender if you default, but it increases your total monthly payment.
Your debt-to-income ratio—the percentage of your monthly income that goes to debt payments—also affects your rate. Lenders see borrowers with lower ratios as less risky. If you have student loans, car payments, or credit card balances, those count against you when a lender calculates your rate.
Fixed rates versus adjustable rates
A fixed-rate mortgage locks in the same interest rate for the entire loan term—15 years, 30 years, or whatever you choose. Your monthly payment never changes (except for property taxes and insurance, which can fluctuate). This is the most common type because it is predictable.
An adjustable-rate mortgage (ARM) starts with a lower rate for a set period—often 3, 5, 7, or 10 years—then adjusts periodically based on market conditions. After the initial period, your rate can go up or down, and so can your monthly payment. ARMs are riskier because you cannot predict what you will owe later, but they can save money if you plan to sell or refinance before the rate adjusts.
Published averages usually refer to 30-year fixed rates because that is what most borrowers choose. A 15-year fixed rate is typically lower than a 30-year rate because you are borrowing for a shorter time. An ARM starting rate is usually lower than a fixed rate, but that advantage disappears once the rate adjusts.
Where to find current rates and what to compare
Major banks, credit unions, mortgage brokers, and online lenders all publish rates on their websites. The rates you see are usually for borrowers with good credit and standard loan terms. When you request a quote, the lender will ask about your credit, income, down payment, and the property you are buying. They will then give you a Loan Estimate—a standardized form that shows your interest rate, monthly payment, closing costs, and other fees.
Get quotes from at least three lenders. The difference between the highest and lowest rate you receive might be 0.25% to 0.5%, which could mean $50 to $100 per month on a $300,000 loan. Over 30 years, that adds up to $18,000 to $36,000.
When comparing quotes, look at the interest rate, the annual percentage rate (APR), the loan term, the down payment required, and the total closing costs. The APR includes the interest rate plus fees, so it is a better measure of the true cost than the rate alone. Make sure you are comparing the same loan type across all three quotes—30-year fixed to 30-year fixed, for example.
How rate locks work
Once you have chosen a lender and locked in a rate, that rate is may provide for a set period—usually 30, 45, or 60 days. This protects you if rates rise between the time you lock and the time you close on the home. If rates fall during the lock period, you are stuck with the higher rate you locked in.
Some lenders offer a "float-down" option that lets you lock in a lower rate if rates drop before closing, but this usually costs extra. Ask your lender what options they offer. The lock period needs to be long enough to cover your closing timeline—typically 30 to 45 days is sufficient, but if your purchase is complicated or your appraisal takes longer, you may need 60 days.
Why published averages do not match what you see
When you hear that "the average mortgage rate is 6.5%," that number comes from surveys of what lenders are quoting to borrowers with excellent credit, large down payments, and no complications. If your situation is different, your rate will be different. A borrower with a 700 credit score might see rates 0.5% higher. A borrower putting down 5% instead of 20% might see rates 0.75% higher.
Rates also vary by location. Some states have higher average rates than others due to local lending practices and market conditions. And rates change so fast that a published average from yesterday may not reflect what lenders are quoting today.
This is why the only rate that matters is the one you actually receive from a lender after they review your financial situation. Published averages are useful for understanding the general direction of the market, but they should not be your only source of information when you are shopping for a mortgage.
Frequently Asked Questions
What is today's mortgage rate?
Mortgage rates change daily and vary by lender. Visit the websites of at least three lenders—a bank, a credit union, and an online lender—and request quotes based on your specific situation. The Freddie Mac Primary Mortgage Market Survey publishes weekly averages for 30-year and 15-year fixed mortgages, but those are historical snapshots, not real-time rates.
Will mortgage rates go down soon?
No one can predict where rates will go. Rates depend on bond markets and Federal Reserve decisions, both of which are influenced by economic data that changes constantly. If you need a mortgage now, lock in a rate rather than waiting for rates to drop—you cannot time the market.
Can I get a better rate if I have a larger down payment?
Yes. A larger down payment reduces the lender's risk, so you will receive a lower rate. The difference is usually 0.25% to 0.5% between a 5% down payment and a 20% down payment. You will also avoid paying private mortgage insurance if you put down 20% or more.
How much does my credit score affect my mortgage rate?
A 50-point difference in credit score can change your rate by 0.25% to 0.5%. The exact impact depends on the lender and the loan type. If your credit score is below 700, improving it before you apply for a mortgage can save you thousands of dollars.
Should I lock in my rate or let it float?
Lock in your rate if you are comfortable with the current rate and want certainty about your monthly payment. Float if you believe rates will drop and you can tolerate the risk that they might rise instead. Most borrowers lock because the cost of being wrong is high and the potential savings are small.