The current average interest rate for a fixed-rate, 30-year conforming mortgage loan in the United States is 6.869%, according to the most recent data available from mortgage technology and data company Optimal Blue. Read on to see average rates for different types of mortgages and how the current rates compare with the last reported day prior.
30-year mortgage rates
30-year conforming
The average interest rate, per the most current data available as of this writing, is 6.869%. That’s up from 6.834% the last reported day prior.
30-year jumbo
What exactly is a “jumbo mortgage” or “jumbo loan”? Simply put, it exceeds the maximum amount for a normal (conforming) mortgage. Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency set this maximum.
The average jumbo mortgage rate, per the most current data available as of this writing, is 7.042%. That’s up from 7.025% the last reported day prior.
30-year FHA
The Federal Housing Administration provides mortgage insurance to certain lenders, and the lenders in turn can offer the consumer a better deal on aspects such as being able to qualify for a mortgage, potentially making a smaller down payment, and possibly getting a lower rate.
The average FHA mortgage rate, per the most current data available as of this writing, is 6.661%. That’s up from 6.640% the last reported day prior.
30-year VA
A VA home loan is offered by a private lender, but the Department of Veterans Affairs guarantees part of it (reducing risk for the lender). They are accessible if you’re a U.S. military servicemember, a veteran, or an eligible surviving spouse. Such loans may sometimes allow the purchase of a house with no down payment at all.
The average VA home loan rate, per the most current data available as of this writing, is 6.432%. That’s up from 6.334% the last reported day prior.
30-year USDA
The U.S. Department of Agriculture operates programs to help low-income applicants achieve homeownership. Such loans can help U.S. citizens and eligible noncitizens purchase a home with no down payment. Note that there are stringent requirements to be able to qualify for a USDA home loan, such as income limits and the home being in an eligible rural area.
The average USDA home loan rate, per the most current data available as of this writing, is 6.709%. That’s up from 6.589% the last reported day prior.
15-year mortgage rates
A 15-year mortgage will typically mean higher monthly payments but less interest paid over the life of the loan. The average rate for a 15-year conforming mortgage, per the most current data available as of this writing, is 6.215%. That’s up from 6.039% the last reported day prior.
Why do mortgage rates fluctuate?
While your personal credit profile significantly influences the mortgage rate you're offered, various external factors also play a role. Key influences include:
- Federal Reserve actions: When the Federal Reserve adjusts the federal funds rate, lenders typically follow suit by raising or lowering the interest rates on their financial products. Essentially, the Fed uses this tool to control the money supply, making it easier or harder for consumers and businesses to borrow.
- Inflation levels: You might wonder if inflation and the Fed’s actions in responding to it are essentially the same factor, but they’re not. The Fed manipulates rates to manage inflation, but lenders also respond independently. For instance, they might hike rates to maintain profitability when inflation is high.
- Economic conditions: Lenders consider things like overall economic growth as well as housing supply and demand when determining mortgage rates. These are just a few examples of the factors that can influence lenders to make rate adjustments.
Learn more: How are mortgage interest rates set by lenders?
Which type of mortgage should you choose?
There's no universal answer as to which is the best type of mortgage. Most mortgages are conventional, but government-backed loans can be more affordable if you qualify.
Meanwhile, jumbo mortgages are suitable for purchasing more expensive homes that exceed the limits of conforming mortgages, though they may cost more over the loan's duration.
Adjustable-rate mortgages (ARMs) generally start with low, attractive rates that later increase. If you’re considering this option, make sure you’re comfortable with that possibility.
The rates in this article reflect averages for fixed-rate mortgages.
If you’re uncomfortable shopping for rates independently, a mortgage broker can help (for a fee) find the best mortgage deal for your situation.
How high have mortgage rates been in the past?
While mortgage rates may feel sky-high these days compared to the sub-3% rates some homebuyers scored in 2020 and 2021, what we're seeing currently isn't that strange when compared with historical data on mortgage rate averages. Below are a couple charts from the Federal Reserve Economic Data (FRED for short) online database for context.
30-year fixed-rate mortgage historical trends
If you think rates between 6% and 8% today are scary, consider September through November of 1981, which saw the average rate hovering between 18% and 19%, according to FRED.
Check out the FRED 30-year mortgage rate chart:
15-year fixed-rate mortgage historical trends
Rates today on 15-year mortgages, as shown in the Optimal Blue data above, are roughly on par or even slightly lower than what we see during many previous periods. For example, take a look at FRED data for the end of 1994 and beginning of 1995, when rates neared 9%.
See the FRED 15-year mortgage rate chart:
Frequently asked questions
What’s a good mortgage rate?
With current market conditions, those with good to excellent credit can expect interest rates between 6% and 8%. If your credit score is in the low 600s, rates above 8% might be more likely.
Remember, credit score is just one of several factors affecting your mortgage rate, including your down payment amount, state of residence, and loan term length.
Learn more: Easy ways to check your credit score.
What is a mortgage rate lock?
Given the potential for daily rate fluctuations, a mortgage rate lock (or lock-in) can secure a favorable rate for you. These locks typically last 30, 45, or 60 days, with options to extend if necessary.
However, rate locks have potential drawbacks. If rates drop, you could miss out on an even better rate. Additionally, if your initial lock period is insufficient, extending it could be costly.
Finally, rate locks don't absolutely guarantee your rate. Changes in your credit score or unexpected appraisal values can still alter your mortgage rate.
What’s an APR vs. an interest rate?
The interest rate is a pretty self-explanatory part of borrowing, while the APR (annual percentage rate) includes any additional fees, making it higher. Although they’re distinct for mortgages, the terms are often used interchangeably for credit card rates.
