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As rates go down, more people should be able to buy a home or refinance their current mortgage. See how rates are trending today and where they might go in the future.
Today's mortgage rates
Mortgage rates have been trending down for several months now. In July 2024, 30-year mortgage rates averaged around 6.45%, according to Zillow data. Average 15-year mortgage rates were 5.80%.
Today's mortgage interest rates are even lower than this. And most experts believe that mortgage rates will continue to go down throughout the remainder of 2024 and in 2025.
Compare current mortgage rates today
See how mortgage rates are trending today.
| Mortgage type | Average rate today |
This information has been provided by Zillow. See more mortgage rates on Zillow
Current mortgage rate trends
Comparison with previous years
See how mortgage rates have trended over the last five years, according to Freddie Mac data.
Throughout 2020, the average mortgage rate fell drastically due to the economic impact of the COVID-19 pandemic. Thirty-year fixed mortgage rates hit a historic 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 throughout the next few years, and they could ultimately end up somewhere in the 5% range.
Mortgage rates by state
Rates can vary depending on where you live. Check the latest rates in your state at the links below.
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowa KansasKentuckyLouisianaMaine 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 TennesseeTexas Utah Vermont Virginia Washington Washington, DC West Virginia Wisconsin Wyoming
Rates by type of mortgage
Purchase mortgage
The rates you'll get on a mortgage used to purchase a home are often better than what you'll be quoted for a refinance. They 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 mortgage rates: The most popular type of mortgage, this home loan makes for low monthly payments by spreading the amount over 30 years.
- 15-year mortgage rates: 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. However, it comes with lower rates than a 30-year loan.
Mortgage refinance
Mortgage refinance rates typically differ somewhat from purchase rates, and may be slightly higher — particularly if you're getting a cash-out refinance, since these are considered riskier.
If you're considering a refinance, be sure to shop around with the best mortgage refinance lenders and get multiple rate quotes to be sure you're getting the best deal.
- 30-year mortgage refinance rates:Refinancing into a 30-year term can lower your monthly payment since you're spreading out what you owe over a longer period of time.
- 15-year mortgage refinance rates:Refinancing into a shorter term like a 15-year mortgage will increase your monthly payment, but help you save on interest.
Home equity line of credit (HELOC) and home equity loans
HELOC rates and home equity loan rates are generally a little higher than rates on first mortgages, but they can still be worth it if you're looking to tap into your home's equity without having to take on a new rate on your main mortgage.
As with other types of mortgages, you'll want to shop around and get multiple rate quotes to find the best HELOC lenders or home equity loan lenders.
Average mortgage rate by credit score
Data from credit scoring company FICO shows that the lower your credit score, the more you'll pay in mortage interest. Here's the average interest rate by credit level for a 30-year fixed-rate mortgage of $300,000, as of August 2024:
| FICO Score | National average mortgage APR |
620 to 639 | 7.554% |
640 to 659 | 7.008% |
660 to 679 | 6.578% |
680 to 699 | 6.364% |
700 to 759 | 6.187% |
760 to 850 | 5.965% |
According to FICO, only people with credit scores above 660 will truly see interest rates around the national average.
Mortgage rate outlook
Inflation has slowed significantly in the last couple of years, and it's looking like we could soon see the Federal Reserve start cutting rates. This means mortgage rates should drop even lower in the coming months and years.
Expert forecasts and potential rate changes
Fannie Mae and the Mortgage Bankers Association are currently predicting that 30-year rates will fall to 6.2% and 6.0% by the end of 2025, respectively. But rates have dropped quite a bit in recent weeks, so those forecasts may change.
Impact of mortgage rates on homebuyers
How rates affect affordability and buying power
Your rate has a direct impact on how much house you can afford. Snagging a lower rate can enable you to borrow more money, boosting your homebuying power.
For example, say you can afford to spend $2,000 per month on your mortgage payment (not including taxes and insurance). With a rate of 7%, you could borrow around $300,000. But with a 4% rate, you could afford to borrow as much as $400,000.
Strategies for buying in varying rate environments
If you're buying when rates are high, you'll need to adjust your homebuying plans accordingly. You might need to lower your price range or make a larger down payment to achieve an affordable monthly payment.
You should also be careful about overspending in a low rate environment. Though you may be able to borrow a larger amount with a low rate, make sure you aren't stretching your budget too far. You don't necessarily need to borrow the full amount the mortgage lender approves you for.
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.
Individual factors influencing mortgage rates
Key determining factors that you do have control over include:
- Your credit score
- Debt-to-income ratio
- The amount of your down payment
- The type of mortgage you get
- The length of your term
Role of the economy and government policies
No matter how good your finances are, you won't be able to get a rate that's dramatically lower than average. Rates are determined in large part by economic trends and how those trendsaffect investor demand for mortgage-backed securities.
When there's a lot of economic growth, mortgage rates typically go up. In recent years, high inflation has pushed mortgage rates up. Whengrowth is cooler, rates often go down.
Federal Reserve policy can also influence mortgage rates. When the Fed raises or lowers the federal funds rate, mortgage rates can move up or down as well based on how investors believe Fed changes will impact the broader economy.
How to get the best mortgage rate
Tips for locking in the best rates
One of the best ways to score a good rate is to get approved with two or three different lenders and compare the rates they offer you.
If you're having trouble getting a good rate, you might want to work on improving your credit or saving for a larger down payment and reapply later.
The importance of credit scores and down payments
Your credit score can greatly affect the price you'll pay to borrow a mortgage.
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.
Current mortgage rates FAQs
What factors contribute to average mortgage rates?
Mortgage rates are influenced by economic trends and investor demand for mortgage-backed securities.
What is the average 30-year mortgage rate?
In July 2024, 30-year mortgage rates averaged 6.45%. Rates have been even lower in recent weeks.
Are 8% mortgage rates coming?
Average mortgage rates nearly reached 8% in October of 2023, but they've since come down a bit. However, rates can vary a lot depending on your finances. If you have a lower credit score, you could still get a rate that's in or near the 8% range. Rates are expected to decrease this year, so we may not see average rates reach 8%.
Are there benefits to buying a home when average mortgage rates are higher?
If you're planning to buy a house, you might not want to or be able to wait until rates drop. There can be benefits to buying when rates are high. You can often get a better deal on a home, since you won't be up against as much competition.
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 interest rates, aim to have a credit score at least in the 700s.
How do current average mortgage rates compare to last year?
Mortgage rates are currently lower than they were a year ago.
What can potential homebuyers do to get a lower mortgage rate?
To get a lower rate, you'll want to have a great credit score, a large down payment, and a low debt-to-income ratio.
How might average mortgage rates change in the near future?
Mortgage interest rates are expected to fall as the Fed starts lowering the federal funds rate, which is likely to happen before the end of the year.
Mortgage Reporter
Molly Grace is a mortgage reporter for Business Insider with over six years of experience writing about mortgages and homeownership.ExperienceIn addition to her daily mortgage rate coverage, Molly also writes mortgage lender reviews and educational articles on homebuying and analyzes data and economic trends to give readers actionable and up-to-date information about the housing market.She also tracks affordable mortgage and down payment assistance programs offered throughout the country to keep her readers informed of homebuyer programs available to them.Before Business Insider, Molly was a blog writer for Rocket Companies and helped to create Rocket Mortgage’s Shorty Award-winning podcast Home. Made.Molly is passionate about covering personal finance topics with empathy. Her goal is to make homebuying knowledge more accessible, especially for groups that may think homeownership is out of reach.ExpertiseMolly is an expert in the following topics:
- Mortgages and mortgage lenders
- Home equity
- The housing market
- The economy and the forces that impact mortgage rates
- Budgeting and saving
- Credit
- Insurance
- Retirement savings
EducationMolly earned a bachelor's degree in journalism from Indiana University.She is based in Michigan and has a dog and two cats.
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