As of Oct. 11, 2024, the average 30-year fixed mortgage rate is 6.52%, 20-year fixed mortgage rate is 6.43%, 15-year fixed mortgage rate is 5.63%, and 10-year fixed mortgage rate is 5.58%. Average rates for other loan types include 5.39% for an FHA 30-year fixed mortgage and 6.67% for a jumbo 30-year fixed mortgage.

These fixed-rate loan averages are not the teaser rates you may see advertised online. To find the average mortgage rates today, we use data from approximately 40 lenders, assuming a down payment of at least 20% and an applicant credit score in the 680–739 range. We believe this is more representative of what customers could expect to be quoted, depending on their qualifications.

Today's Mortgage Rates

Loan Type	Purchase	Refinance
30-Year Fixed	6.52%	6.77%
FHA 30-Year Fixed	5.39%	6.29%
VA 30-Year Fixed	5.90%	5.76%
20-Year Fixed	6.43%	6.62%
15-Year Fixed	5.63%	5.58%
FHA 15-Year Fixed	4.92%	6.09%
10-Year Fixed	5.58%	5.83%
7/6 ARM	7.59%	7.65%
5/6 ARM	7.65%	7.76%
Jumbo 30-Year Fixed	6.67%	6.83%
Jumbo 15-Year Fixed	6.94%	7.06%
Jumbo 7/6 ARM	7.62%	7.22%
Jumbo 5/6 ARM	7.46%	7.49%

Editor’s Note

Our daily mortgage rate averages are based on data from Zillow Group Marketplace. As this involves a different rate source and methodology, the averages will not directly align with those we published prior to May 1, 2024. All the historical data and analysis in this article and future articles is also based on this new data source.

Our Expert Picks for the Best Mortgage Lenders

Best Mortgage Lenders
Lender	Best For
Rocket Mortgage (Quicken Loans)	Best Overall
Rocket Mortgage (Quicken Loans)	Best for First-Time Homebuyers
Bank of America	Best Big Bank Lender
American Pacific Mortgage	Best for Bad Credit
PenFed Credit Union	Best Credit Union Mortgage Lender
Veterans United Home Loans	Best for Veterans
Rate	Best for Fast Closing, Range of Loans

How to Use Our Mortgage Rate Tables

Our mortgage rate table is designed to help you compare mortgage rates for the type of home loan you’re being offered by lenders to know if they are better or worse than the best rates available. These rates are benchmark rates for those with good credit, 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 get quoted, but you will be able to begin comparison shopping for either new purchase or refinance rates with confidence before you choose a mortgage lender.

30-Year Mortgage Rates

Loan Type	Purchase	Refinance
30-Year Fixed	6.52%	6.77%
FHA 30-Year Fixed	5.39%	6.29%
VA 30-Year Fixed	5.90%	5.76%
Jumbo 30-Year Fixed	6.67%	6.83%

What Is a 30-Year Mortgage?

A 30-year mortgage is a conventional home loan that offers a fixed rate for a 30-year term. This means that your monthly payments, consisting of the principal and interest, remain the same throughout the lifetime of the loan. Some 30-year mortgages are government-backed loans, such as the ones from the Department of Veterans Affairs (VA), the United States Department of Agriculture (USDA), and the Federal Housing Authority (FHA).

Most borrowers choose a 30-year mortgage because it has lower monthly loan balance payments compared to other terms, freeing up room for other financial goals. According to Freddie Mac, this is the most popular type of mortgage, with almost 90% of homeowners opting for a 30-year term.

Who Should Consider a 30-Year Mortgage?

People looking to buy a home who want the lowest possible mortgage payments given record-high home prices should consider a 30-year mortgage. Although it may come with a higher interest rate compared to other home loan terms, monthly mortgage payments are lower because they are extended over a long term.

In the News

Every Thursday, Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates. The latest reading is 6.08%—the lowest weekly average since September 2022. Freddie Mac's average last October reached a historic 23-year peak of 7.79%.

Freddie Mac’s average differs from what we report for 30-year rates because Freddie Mac calculates a weekly average that blends five previous days of rates. In contrast, our Investopedia 30-year average is a daily reading, offering a more precise and timely indicator of rate movement. In addition, the criteria for included loans (e.g., amount of down payment, credit score, inclusion of discount points) varies between Freddie Mac's average and our own.

20-Year Mortgage Rates

Loan Type	Purchase	Refinance
20-Year Fixed	6.43%	6.62%

What is a 20-Year Mortgage?

Like a conventional 30-year mortgage a 20-year mortgage is a home loan with a fixed rate but with a shorter 20-year term. Monthly payments, consisting of the principal and interest, remain the same throughout the term of the loan.

The main benefit of a 20-year mortgage is the savings homeowners receive from lower interest rates and paying it off sooner than 30 years.

Who Should Consider a 20-Year Mortgage?

Any homeowner who borrows money to benefit from lower interest rates and pay off their mortgage sooner than later should consider a 20-year mortgage. In general, 20-year mortgage rates are lower than 30-year ones, helping to reduce the payments of interest over the course of the loan.

However, a 20-year mortgage pays the loan off faster and thus has a higher monthly obligation. Homeowners should factor in higher costs to their monthly budget when it comes to choosing a 20-year mortgage, although it is still less than what a 15-year mortgage would require.

15-Year Mortgage Rates

Loan Type	Purchase	Refinance
15-Year Fixed	5.63%	5.58%
Jumbo 15-Year Fixed	6.94%	7.06%

What Is a 15-Year Mortgage?

A 15-year mortgage is a fixed-rate loan to pay for a home purchase. The monthly payment, which includes principal and interest, remains the same throughout the lifetime of the mortgage. It is paid off in half the time of a traditional 30-year mortgage. The shorter repayment period and the higher monthly payments result in a savings of thousands of dollars in interest over the life of the loan although monthly payments are higher compared to longer-term mortgage loans.

Who Should Consider a 15-year Mortgage?

A 15-year mortgage is a smart option for borrowers who want to save money on interest and can afford larger monthly payments without compromising their other financial goals and responsibilities.

For instance, a borrower who can't take out a 15-year mortgage without sacrificing regular contributions to a savings account and a retirement fund should probably stick to a longer-term mortgage. A 20-year term can offer a happy medium.

For borrowers who have variable or sporadic incomes, a 15-year mortgage makes sense only if there is a realistic plan to make the mortgage payment through the lean periods.

10-Year Mortgage Rates

Loan Type	Purchase	Refinance
10-Year Fixed	5.58%	5.83%

What is a 10-Year Mortgage

A 10-year mortgage is the shortest fixed-rate loan available for a home purchase. As with longer-term mortgage loans, the monthly payment remains the same throughout the lifetime of the mortgage. It is paid off in one-third of the time of a traditional 30-year mortgage. The abbreviated period results in much lower interest being paid over the life of the loan but involves higher monthly payments vs. longer-term mortgage loans.

The major benefit of taking out a 10-year fixed-rate mortgage is that homeowners can pay off their loans much faster than other loan terms. Since rates may be lower than a 20- or 30-year term and because homeowners are making fewer payments, borrowers will save the most money on interest with a 10-year term. Plus, homeowners will be able to build equity much faster. 

Who Should Consider a 10-Year Mortgage?

Homeowners who want to pay off their mortgage quickly and have the means to pay the large monthly payment should consider a 10-year mortgage. Also, since lenders may view these types of borrowers as more high-risk (since you’ll need to pay more each month), you’ll most likely need to have an excellent credit profile to qualify.

A 10-year home loan is also best for those who want to refinance their mortgage and have been paying down their existing loan for a while. For instance, those who have close to 10 years until they’re mortgage-free may not want to refinance to a loan with a longer term. That is, unless you’re looking to refinance to a longer term to lower payments—keep in mind you’ll end up paying more in interest in the long run if you go with the longer loan term. 

Trends in Mortgage Rates: Will They Continue Falling?

Trends in mortgage rates are influenced by complex factors, such as the Federal Reserve’s interest rate policy, employment rate, the Consumer Price Index, and the yields of 10-year treasury bonds. Mortgage rates are not directly tied to any of these factors but are indirectly influenced by their current levels and consensus predictions on how they will trend in the near future.

Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as:

• The level and direction of the bond market, especially 10-year Treasury yields
• The Federal Reserve’s current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
• Competition between mortgage lenders and across loan types

Because any number of these can cause fluctuations simultaneously, it's generally difficult to attribute the change to any one factor.

Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic’s economic pressures. This bond-buying policy is a major influencer of mortgage rates.

But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net zero in March 2022.

Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it doesn’t directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.

But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.

The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But on Sept. 18, the central bank announced the first rate cut in what’s expected to be a series of decreases in 2024 and likely 2025, which should exert downward pressure on mortgage rates. This first reduction was by 0.50 percentage points.

The Fed's next rate announcement will be made Nov. 7.

What Is a Mortgage and How Does It Work?

A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments divided into principal and interest. The property then serves as collateral to secure the loan.

Individuals and businesses use mortgages to buy real estate without paying the entire purchase price upfront. The borrower repays the loan plus interest over a specified number of years until they own the property free and clear. Most traditional mortgages are fully amortizing. This means that the regular payment required will stay the same, but different proportions of principal vs. interest will be paid over the life of the loan with each payment. Typical mortgage terms are for 30 or 15 years.

Types of Mortgages

There are numerous types of mortgages in the mortgage market, including those from private mortgage lenders as well as government-backed loan programs that purchase, guarantee, and securitize mortgages in the secondary mortgage market like those by the Federal Housing Administration (FHA), known as FHA loans, or the Federal National Mortgage Association (Fannie Mae).

A conventional mortgage can be fixed-rate with terms varying from 10 to 30 years or an adjustable-rate mortgage (ARM) with terms up to 10 years. Jumbo mortgage loans that exceed the Federal Housing Finance Agency’s conforming loan limit of $766,550 for 2024 cannot be purchased, guaranteed, or securitized by Fannie Mae or the Federal Home Loan Mortgage Corporation (Freddie Mac). Jumbo loans offer the same fixed and variable rate terms as conventional mortgage loans, though their interest rates are typically lower.

Mortgage Options for First-Time Homebuyers

While most mortgage originations occur in the private market, government-backed mortgages occupy an important niche and provide access to first-time homebuyers and borrowers who could not otherwise qualify or afford the terms of traditional mortgages.

Government-backed loans like FHA loans, state FHA loans, USDA loans (USDA guaranteed loans), and VA loans (backed by the Department of Veteran Affairs) can offer significant advantages to qualifying borrowers, including lower interest, longer terms, and a lower percentage of down payment (or no down payment) compared to conventional loans. For these types of loans with lower down payment options, the borrower can be required to acquire private mortgage insurance (PMI).

The Difference Between Interest Rate and APR

The advertised rate or nominal interest rate for a loan, whether for a mortgage, personal loan, or credit card, is the basic cost of borrowing the principal stated as a percentage. The annual percentage rate (APR), reflected as a percentage, is the total cost of the loan, including the fees and all other costs associated with the loan, in this case, a mortgage loan, such as the origination fee and discount points.

The APR, therefore, almost always calculates to a higher interest rate than the nominal interest rate since fees and other costs are factored into the rate, including the interest rate.

Example of the Difference Between Interest Rate and APR
Loan Amount	$500,000
Interest Rate	7.00%
Origination Fee	1% ($5,000)
Discount Points	1 ($5,000)
Total Fees	$10,000
APR	7.227%

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, currently set at a range of 5.25% – 5.50%. Fed Funds rates are typically stated in this type of range, which varies that rate by 0.25 percent.

The 10-year Treasury bond yield can also reveal market trends. If the bond yield increases, 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 fixed-rate mortgage loan. 

Factors that the borrower can control are their credit score and the home equity that will be created by the down payment amount. Since a lender sets 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.

How to Get the Best Mortgage Rates

There are several things to keep in mind when shopping for mortgage rates to ensure you get the best deal:

1. Know your credit score.
2. Estimate how much down payment you can make using our mortgage calculator.
3. Estimate how long you plan to stay in your home.
4. Determine the best type and term of mortgage, whether fixed-rate or variable-rate, that is most affordable based on the factors above.
5. Use our rate table to help you identify whether lenders are offering you a competitive rate based on your credit profile.
6. Avoid opening new types of credit accounts like credit cards or personal loans before applying for a mortgage, as these can temporarily lower your credit score.

Shopping around can save money

According to research by Freddie Mac, mortgage borrowers who shopped around for the best rate saved significant sums of money on interest and fees compared to those who did not. Specifically, those who received two quotes saved an average of $600, and those who received four or more quotes saved an average of $1,200 on the mortgage cost.Similar research by the Federal Reserve Bank of Philadelphia showed that borrowers who shopped around saved an average of 18 basis points on their mortgage loan rate.

How Do I Qualify for Better Mortgage Rates?

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

• Raise your credit score: A borrower's credit score is a major factor in determining mortgage rates. The higher the credit score, the more likely a borrower can get a lower rate. It's a good idea to check your credit score to see how you can improve it, whether that's by making on-time payments or disputing errors on your credit report. 
• Increase your down payment: Most lenders offer lower mortgage rates for those who make a larger down payment. This will depend on the type of mortgage you apply for, but sometimes, putting down at least 20% could get you more attractive rates. 
• Lower your debt-to-income ratio: Also called DTI, your debt-to-income ratio looks at the total of your monthly debt obligations and divides it by your gross income. Usually, lenders don't want a DTI of 43% or higher, as that may indicate that you may have challenges meeting your monthly obligations as a borrower, as adding a mortgage payment could potentially put you underwater. The lower your DTI, the less risky you will appear to the lender, which will be reflected in a lower interest rate. 

How to Apply for a Mortgage

A mortgage application is made through a lender such as a bank, credit union, or mortgage company and involves providing extensive information including:

• Borrower details
• Borrower’s address, marital status, and dependents
• The type of credit being applied for, meaning whether it’s a joint or individual application
• Social Security number and date of birth
• Current employer and address, as well as employment income
• Financial data
• Assets include bank accounts, retirement accounts, certificates of deposit, savings accounts, and brokerage accounts for stocks or bonds
• Liabilities include revolving credit, such as credit cards or store charge cards, and installment loans, such as student, car, and personal loans
• Any other real estate owned and its estimated value or rental income, if applicable
• Property and loan request details
• Address of the property
• The loan amount, and the type of loan, such as a purchase or refinance
• Any rental income from the property or if you are buying the home as an investment to generate rental income
• Declarations
• Whether the home be your primary residence or your second home
• Determine if there are any judgments, lawsuits, or liens against you or the home being purchased
• If the borrower has had any past foreclosures or is currently the guarantor for another loan

How to Refinance Your Mortgage

The process for refinancing a mortgage is similar to getting a purchase mortgage in that it entails shopping for rates and loan terms based on your credit score and completing an application. Instead of obtaining an appraisal on the property being initially purchased a new appraisal is required on the home you are refinancing. Also, unlike a new purchase mortgage, refinancing does not require a down payment. Mortgage refinancing does involve closing costs, so it’s important to project a breakeven point with these costs measured against your potential savings when rates drop enough to consider refinancing your mortgage to determine if it makes financial sense.

Below are the steps involved in refinancing a mortgage:

• Check your credit
• Review your credit reports to verify financial information
• You can obtain a free copy of your credit reports from the three major credit bureaus each year from AnnualCreditReport.com
• Many credit card issuers provide your current credit score on your monthly statement or upon request
• Decide the type of loan you want
• Refi mortgage loans come in the same types and terms as purchase mortgages
• Longer refinancing terms provide lower interest rates but can ultimately entail more interest costs
• If you have built up equity in your current mortgage a cash-out refi can be an option
• In a decreasing mortgage rate environment adjustable-rate mortgage refinance options can become more attractive
• Compare lender’s rates and terms
• Interest rates can vary by lender based on your credit score and property location
• Shopping around is a proven way to find the most favorable rates
• Apply for the loan
• The mortgage refinance application process is very similar to a purchase mortgage application
• Online loan applications and approval is widely available
• Survey and inspection may be required
• Finalize terms and lock in the rate
• Once a competitive rate that fits your parameters is found you can lock the rate just as with a purchase mortgage
• Pay off your old mortgage with your new loan
• Once your mortgage refinance loan is approved and funded you can have the funds transferred to the mortgage lender who originated your purchase mortgage to pay off that loan

Tip

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

Frequently Asked Questions (FAQs)

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, as in the case of a 15-year fixed rate mortgage, 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 Big of a Mortgage Can I Afford?

In general, homeowners can afford a mortgage that’s two to two-and-a-half times their annual gross income. For instance, if you earn $80,000 a year, you can afford a mortgage from $160,000 to $200,000. Keep in mind that this is a general guideline, and you need to look at additional factors when determining how much you can afford, such as your lifestyle and your attitudes and habits around personal finance. Your lender will determine what it thinks you can afford based on your income, debts, assets, and liabilities.  Using a mortgage calculator can be helpful in this situation to help you figure out how you can comfortably afford a mortgage payment.

What Are Mortgage Points?

Also known as discount points, this is a one-time fee, or prepaid interest borrowers purchase to lower the interest rate for their mortgage. Discount points equate to percentage points – so, one discount point costs 1% of your mortgage amount, or $1,000 for every $100,000, and will lower the rate by a quarter of a percent, or 0.25.

Another option for a reduced-rate mortgage is through a 2-1 buydown mortgage, which entails a low rate in the first year, a somewhat higher rate in the second year, and then the regular mortgage rate for the remaining term of the mortgage.

Will Mortgage Rates Go Down in 2024?

Mortgage rates should begin to trend downward later in 2024 if the Federal Reserve lowers the Fed funds rate at any of its remaining meetings this year, as it signaled that it may do if inflation can be sustainably moderated, i.e. moving in the direction of the 2% target level. The Fed kept rates in place at its most recent meeting on June 12, however.

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% will be able to save the most. 

What Banks Have the Best Mortgage Rates Right Now?

Bank of America has some of the lowest mortgage rates among big banks right now but many banks and credit unions have competitive rates in local markets around the country so borrowers should do their homework before committing to a mortgage. We rank Bank of America as the best big bank mortgage lender because they offer multiple loan options for low- and middle-income borrowers, have a massive branch network across all 50 states, and offer loans with down payments as low as 0% – 3%. When comparing rates on bank and mortgage lender websites it's important to note that many quote rates that involve the purchase of discount points. The rates that Investopedia tracks do not involve discount points.

What Is a Good Mortgage Rate?

A good mortgage rate, which is usually represented as the lowest available rate for a 30-year fixed mortgage, 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.

Why You Should Trust Us

Investopedia collects the best rates on actual closed mortgages through a third-party data provider from more than 200 companies every business day to identify the most competitive rates and terms in the nation as well as in the states in which our readers reside. Investopedia launched in 1999, and has been helping readers find the best mortgage rates since 2021.

How We Track the Best Mortgage Rates

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. These rates represent 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. 

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

Your Guide to Mortgage Rates

• What Is a Mortgage?
• Mortgage Calculator
• How to Apply for a Mortgage
• How to Find the Best Mortgage Rates
• How to Choose a Mortgage
• Best Jumbo Mortgage Rates
• Best Mortgage Refinance Companies

Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

1. Freddie Mac. “Finding the Right Loan.”

2. Freddie Mac. “Mortgage Rates"

3. Federal Housing Finance Agency. “FHFA Announces Conforming Loan Limit Values for 2024.”

4. Freddie Mac: "When Rates Are Higher, Borrowers Who Shop Around Save More"

5. Federal Reserve Bank of Philadelphia: "Paying Too Much? Borrower Sophistication and Overpayment in the U.S. Mortgage Market"

Part of the Series When to Buy a Home Based on Mortgage Rates How Mortgages Work

1. When to Buy a Home Based on Mortgage Rates
2. Overview
3. Shopping for Mortgage Rates
4. Pre-Approvals You Need
5. Mistakes to Avoid
6. Locking In the Rate

Rates for Different Loan Types

1. Points and Your Rate
2. How Much Do I Need to Put Down on a Mortgage?
3. Understanding Different Rates
4. Fixed vs. Adjustable Rate
5. When Adjustable Rate Rises
6. Commercial Real Estate Loans

Best Mortgage Rates

1. Best Mortgage Rates Today CURRENT ARTICLE
2. Best Jumbo Mortgage Rates

Saving on Fees

1. Closing Costs
2. Avoiding “Junk” Fees
3. Negotiating Closing Costs
4. Lowering Refinance Closing Costs

Lender vs. Broker

1. Types of Lenders
2. Applying to Lenders: How Many?
3. Broker Advantages and Disadvantages
4. How Loan Offers Make Money

Lender Options

1. Quicken Loans
2. Lending Tree