Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Interest rates for the most popular 30-year fixed mortgage averaged around 6.84% in the month of July. The average monthly mortgage payment is currently $2,823 for a 30-year fixed mortgage.
Mortgage interest rates are always changing, and there are a lot of factors that can sway your interest rate. While some of them are personal factors you have control over, and some aren’t, it’s important to know what your interest rate could look like as you start the process of getting a home loan.
What are today’s mortgage rates?
While average mortgage and refinance rates can give you an idea of where rates are currently at, remember that they’re never a guarantee of the rate a lender will offer you. Mortgage rates vary by borrower, based on factors like your credit, loan type, and down payment. To get the best rate for you, you’ll want to get quotes from multiple lenders.
Average mortgage interest rate by mortgage type
There are several different types of mortgages available, and they generally differ by the loan’s length in years, and whether the interest rate is fixed or adjustable. Two of the most popular types include:
30-year fixed rate mortgage: The most popular type of mortgage, this home loan makes for low monthly payments by spreading the amount over 30 years. 15-year fixed rate mortgage: Interest rates and payments won’t change on this type of loan, but it has higher monthly payments since payments are spread over 15 years.
Here’s how these two types of mortgage interest rates compare for the month of July, according to Freddie Mac:
Mortgage typeAverage rate30-year fixed mortgage6.84%15-year fixed mortgage6.18%
Average mortgage interest rate by credit score
National rates aren’t the only thing that can sway your mortgage rates — personal information like your credit history also can affect the price you’ll pay to borrow.
See Insider’s picks for the best mortgage lenders »
Your credit score is a number calculated based on your borrowing, credit use, and repayment history, and the score you receive between 300 and 850 acts like a grade point average for how you use credit. You can check your credit score online for free. The higher your score is, the less you’ll pay to borrow money. Generally, 620 is the minimum credit score needed to buy a house, with some exceptions for government-backed loans.
Data from credit scoring company FICO shows that the lower your credit score, the more you’ll pay for credit. Here’s the average interest rate by credit level for a 30-year fixed-rate mortgage of $300,000:
FICO ScoreNational average mortgage APR
620 to 639
8.150%
640 to 659
7.604%
660 to 679
7.174%
680 to 699
6.960%
700 to 759
6.783%
760 to 850
6.561%
According to FICO, only people with credit scores above 660 will truly see interest rates around the national average.
Average mortgage interest rate by year
Mortgage rates are constantly in flux, largely affected by what’s happening in the greater economy. Things like inflation, the bond market, Federal Reserve policy, and overall housing market conditions can affect the rate you’ll see.
Here’s how the average mortgage interest rate has changed over time, according to data from Freddie Mac.
YearAverage 30-year fixed mortgage rate (January)20008.15%20017.07%20027.14%20035.85%20045.87%20055.77%20066.15%20076.18%20086.07%20096.01%20105.09%20114.77%20123.87%20133.34%20144.53%20153.73%20163.97%20174.20%20183.95%20194.51%20203.72%20212.65%20223.22%20236.48%
Throughout 2020, the average mortgage rate fell drastically due to the economic impact of the coronavirus crisis. Rates throughout 2020 and into 2021 were lower than rates at the depths of the Great Recession. Thirty-year fixed mortgage interest rates hit a low of 2.65% in January 2021, according to Freddie Mac. Rates began to rise again in 2022.
Most major forecasts expect rates to start dropping again in the second half of 2023.
Average mortgage interest rate by state
Check the latest rates in your state at the links below.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
How are mortgage rates determined?
Multiple factors affect the interest rate you’ll pay on a mortgage. Some are outside of your control. Others you can influence.
For instance, the federal funds rate — the interest rate banks charge when they lend to each other — has an influence on all sorts of other interest rates, including those on mortgages. The Federal Reserve adjusts the federal funds rate as part of its effort to control inflation. Therefore, it’s a factor that is beyond your control.
Key determining factors that you do have control over include:
Your credit scoreDebt-to-income ratioThe amount of your down paymentThe type of mortgage you getThe amount of time you take to pay off the loan
What to know before getting a mortgage
A mortgage is a type of secured loan used to purchase a home. You pay back the lender over an agreed-upon amount of time, including an additional interest payment, which you can consider the price of borrowing money. (You can also pay off your mortgage early, but there are both pros and cons to be aware of.)
Because a mortgage is a secured loan, it means you put your property up as collateral. Should you fail to make your payments over time, the lender can foreclose on, or repossess, your property. Learn more about how a mortgage works here.
Frequently asked questions about average mortgage rates
What is a mortgage rate?
A mortgage rate, also known as a mortgage interest rate, is the fee charged by your lender for loaning you money. Your principal (payments on the amount of money you borrowed) and interest are rolled into one payment each month.
What is the average 30-year mortgage rate right now?
Average 30-year mortgage rates were 6.84% in July 2023, and they’ve been in a similar spot in August. But mortgage rates fluctuate throughout the day. Scroll up to the “what are today’s mortgage rates” section to see the latest rates.
Is a 6% mortgage rate high?
Compared to where rates were just a couple of years ago, a 6% mortgage rate is extremely high. But now, with rates in the 6% to 7% range, a 6% mortgage rate would probably be considered pretty good for most borrowers.
What is a 30-year fixed-rate mortgage?
A 30-year fixed-rate mortgage is the most popular type of home loan. It’s a mortgage that you’ll pay off over 30 years, and because the rate is fixed, you’ll pay the same rate the entire time.
What credit score gets you the best mortgage rate?
The better your credit score, the better the rate you’ll get on your mortgage. To access the best mortgage rates, aim to have a credit score at least in the 700s.
What is the difference between APR and interest rate?
The mortgage APR is the interest rate plus the costs of things like discount points and fees. This number is higher than the interest rate and is a more accurate representation of what you’ll actually pay on your mortgage annually.
What is a good mortgage interest rate?
In general, you can consider a good mortgage rate to be the average rate in your state or below. This will vary depending on your credit score — better scores tend to get better mortgage rates. Overall, a good mortgage rate will vary from person to person, depending on their financial situation.
What is a discount point?
A discount point is a fee you can choose to pay at closing for a lower interest rate on your mortgage. One discount point usually costs 1% of your mortgage, and it reduces your rate by 0.25%. So if your rate on a $200,000 mortgage is 6.5% and you pay $4,000 for two discount points, your new interest rate is 6%.
How do I compare current mortgage rates?
Because mortgage rates are so individual to the borrower, the best way to find the rates available to you is to get quotes from multiple lenders. If you’re early in the homebuying process, apply for prequalification and/or preapproval with several lenders to compare and contrast what they’re offering.