According to the latest data from mortgage technology and data company Optimal Blue, the current average interest rate for a fixed-rate 30-year conforming mortgage in the U.S. is 6.870%. Read on to learn about the average interest rates for different types of mortgages and how current rates compare to the previous day's last reported rates.
Mortgage TypeCurrent RateLast Reported Rate30 Year Conforming6.870%6.896%30 Year Jumbo7.149%7.098%30 Year FHA6.695%6.669%30 Year VA6.380%6.339%30 Year USDA6.692%6.618%15 Year Conforming6.385%6.205%30 Year Conforming6.870%6.896%30 Year Jumbo7.149%7.098%30 Year FHA6.695%6.669%30 Year VA6.380%6.339%30 Year USDA6.692%6.618%15 Year Conforming6.385%6.205%
30-year mortgage rates
30 Years of Compliance
According to the latest data available at the time of writing, the average interest rate is 6.870%, down from the previous day's final report of 6.896%.
30 years Jumbo
What exactly is a “jumbo mortgage” or “jumbo loan”? Simply put, it is an amount that exceeds the maximum amount for a conventional (conforming) mortgage. Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency set this maximum amount.
According to the latest data available at the time of writing, the average jumbo mortgage rate is 7.149%, up from 7.098% in the last report the day before.
30 Year FHA
The Federal Housing Administration provides mortgage insurance to certain lenders, which allows the lenders to offer consumers better terms, such as easier mortgage qualification, a smaller down payment and potentially lower interest rates.
According to the latest data available at the time of writing, the average interest rate on an FHA mortgage is 6.695%, up from 6.669% in the last report the day before.
30 years of VA
VA home loans are provided by private lenders but are partially guaranteed by the Department of Veterans Affairs (reducing the lender's risk). Anyone who is a U.S. military member, veteran, or eligible surviving spouse can qualify for this loan. With such a loan, you may be able to purchase a home with no down payment at all.
According to the latest data available at the time of writing, the average interest rate on a VA mortgage is 6.380%, up from 6.339% in the last report the day before.
30 years USDA
The United States Department of Agriculture runs programs to help low-income applicants become homeowners. These loans help U.S. citizens and qualified foreign nationals buy homes with no down payment. Be aware that there are strict requirements to qualify for a USDA home loan, including income limits and the home being in an eligible rural area.
According to the latest data available at the time of writing, the average interest rate on a USDA mortgage is 6.692%, up from 6.618% in the last report the day before.
15-year mortgage rates
A 15-year mortgage typically has a higher monthly payment but pays less interest over the life of the loan. According to the latest data available as of this writing, the average interest rate for a 15-year mortgage is 6.385%. This is up from 6.205% in the last report the day before.
Why do mortgage interest rates fluctuate?
Your personal credit profile will have a significant impact on the mortgage interest rate you'll be offered, but a variety of external factors will also have an impact. The main influences are:
Federal Reserve Actions: When the Federal Reserve adjusts the federal funds rate, lenders typically raise or lower interest rates on financial instruments accordingly. Essentially, the Federal Reserve uses this tool to control the money supply, making it easier or harder for consumers and businesses to borrow. Inflation Rates: You might think that inflation and the Federal Reserve's corresponding actions are essentially the same factor, but they're not. While the Federal Reserve manipulates interest rates to manage inflation, lenders also respond in their own way. For example, they may raise interest rates to stay profitable when inflation is high. Economic Conditions: Lenders consider things like overall economic growth and the supply and demand for housing when determining mortgage rates. These are just a few examples of factors that influence lenders to adjust interest rates.
Read more: How do lenders set mortgage interest rates?
What type of mortgage should you choose?
There's no universal answer as to which type of mortgage is best. Most mortgages are conventional, but a government-guaranteed loan may be more affordable if you qualify.
Jumbo mortgages, on the other hand, are great for buying more expensive homes that exceed the conforming mortgage limit, but they can come with higher costs over the life of the loan.
Adjustable rate mortgages (ARMs) generally start out with a low, attractive interest rate that then rises, so if you're considering this option, make sure you're comfortable with the possibility.
The interest rates in this article reflect average fixed-rate mortgages.
If you're not comfortable comparing rates on your own, a mortgage broker can help you (for a fee) find the best mortgage for your situation.
How high have mortgage rates been in the past?
Recent mortgage rates may seem very high when compared to the sub-3% interest rates some home buyers have been getting in 2020 and 2021, but compared to historical data on average mortgage rates, what we're seeing now isn't so strange. Below are some charts from the Federal Reserve Economic Data (FRED for short) online database for reference:
Historical Trends for 30-Year Fixed Rate Mortgages
If you think today's 6% to 8% interest rates are scary, remember that from September to November 1981, average interest rates hovered between 18% and 19%, according to FRED.
Check out the FRED 30-year mortgage interest rate chart:
Historical Trends for 15-Year Fixed Rate Mortgages
As shown in the Optimal Blue data above, current interest rates on 15-year mortgages are roughly the same as or slightly lower than many historical periods. For example, look at FRED data from late 1994 and early 1995, when interest rates were closer to 9%.
Check out the FRED 15-year mortgage rate chart:
FAQ
What is a reasonable mortgage interest rate?
In current market conditions, those with good to excellent credit can expect interest rates of 6% to 8%, and if your credit score is in the low 600s, your interest rate will likely be above 8%.
Remember, your credit score is just one of several factors that affect your mortgage interest rate, including the size of your down payment, your state of residence, and the length of your loan term.
Read more: A simple way to check your credit score.
What is a fixed mortgage rate?
Given the potential for daily interest rate fluctuations, a mortgage rate fix (or lock-in) can help you secure a favorable interest rate. These fixes are usually for 30, 45 or 60 days, and can be extended if needed.
However, there are potential drawbacks to fixing an interest rate: if interest rates fall, you could miss out on a better rate, and if your initial fixed period isn't long enough, extending it could end up costing you money.
Finally, a fixed rate is not an absolute guarantee of an interest rate. Changes in your credit score or unexpected appraisals can cause your mortgage rate to change.
What is the difference between APR and interest rate?
While the interest rate is the obvious part of borrowing, the APR (annual percentage rate) includes additional fees that make the rate higher. While the two are different when it comes to mortgage loans, the two terms are often used interchangeably when it comes to credit card interest rates.