The current average mortgage rate on a 30-year fixed mortgage is 6.58%, compared to 6.74% a week earlier, according to the Mortgage Research Center.

For borrowers who want a shorter mortgage, the average rate on a 15-year fixed mortgage is 5.60%, down 0.19 percentage point from the previous week.

If you want to lock in a lower rate by refinancing, compare your existing mortgage rate to today’s refinance rates.

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30-Year Mortgage Rates

Today’s average rate on a 30-year mortgage (fixed-rate) dropped to 6.58% from 6.59% yesterday. Last week, the 30-year fixed was 6.74%.

The APR on a 30-year fixed dropped to 6.61%. This time last week, it was 6.78%. APR is the all-in cost of your loan.

At today’s interest rate of 6.58%, borrowers will pay $637 per month in principal and interest (taxes and fees not included) for every $100,000 borrowed on their 30-year fixed-rate mortgage, the Forbes Advisor mortgage calculator shows. In total interest, you’d pay $129,323 for every $100,000 borrowed over the life of the loan.

15-Year Mortgage Rates

Today’s 15-year mortgage (fixed-rate) is 5.6%, down 0.19 percentage point from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.79%.

The APR on a 15-year fixed is 5.65%. It was 5.84% a week earlier.

A 15-year, fixed-rate mortgage with today’s interest rate of 5.6% will cost $822 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $47,994 in total interest.

Jumbo Mortgage Rates

The current average interest rate on a 30-year fixed-rate jumbo mortgage (a mortgage above 2025’s conforming loan limit of $806,500 in most areas) is 7.02%. Last week, the average rate was 7.14%.

If you lock in the latest rate on a 30-year, fixed-rate jumbo mortgage, you will pay $667 per month in principal and interest per $100,000 borrowed, which amounts to $139,944 in total interest over the life of the loan.

How Much House Can I Afford?

Everyone’s budget and financial goals vary. How much house you can afford comes down to a number of factors, including what you earn and what you owe. You’ll also want to consider how much you want to save for retirement, school and other expenses down the road.

Here are a few basic factors that go into what you can afford:

• Income
• Debt
• Debt-to-income ratio (DTI)
• Down payment
• Credit score

What’s an APR, and Why Is It Important?

The APR, or annual percentage rate, includes the mortgage interest rate and lender fees over the life of the loan. This is an important figure because it gives borrowers a better snapshot of what they will pay for a mortgage as it shows the total cost of a mortgage if you keep it for the entire term.

How Are Mortgage Rates Determined?

Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s annual percentage rate (APR).

Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.

Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.

The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases.

What Is the Best Type of Mortgage Loan?

Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%.

For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy.

For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan.

Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn’t require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan.

If you come from a qualifying military background, VA loans can be your best option. First, you don’t need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don’t pay an annual fee as the FHA and USDA loan programs require.

Frequently Asked Questions (FAQs)