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 6.757%. 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 Conforming6.757%6.881%30 Year Jumbo7.152%7.132%30 Year FHA6.573%6.694%30 Year VA6.302%6.392%30 Year USDA6.556%6.707%15 Year Conforming6.194%6.197%30 Year Conforming6.757%6.881%30 Year Jumbo7.152%7.132%30 Year FHA6.573%6.694%30 Year VA6.302%6.392%30 Year USDA6.556%6.707%15 Year Conforming6.194%6.197%
Historical mortgage interest rate chart
Here's a comparison of current average mortgage rates we're tracking versus the past month's average rates:
Please note that due to a one business day lag in data reporting, the most current rates as of today are the rates from July 11th shown on the graph.
30-year mortgage rates
30 Years of Compliance
According to the latest data available at the time of writing, the average interest rate is 6.757%, down from 6.881% in the last report the previous day.
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 7.152%, up from 7.132% 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 6.573%, down from 6.694% last reported the previous day.
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 6.302%, down from 6.392% last reported the previous day.
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 6.556%, down from 6.707% 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. Based on the latest data available as of this writing, the average interest rate for a 15-year mortgage is 6.194%, down from the 6.197% last reported the day before.
Why do mortgage interest rates change so often?
While your personal credit score plays a big role in your mortgage interest rate, external factors also play a role. The main factors include:
Federal Reserve decisions: When the Federal Reserve changes the federal funds rate, lenders typically adjust their interest rates accordingly. This process allows the Federal Reserve to control the money supply, affecting borrowing costs for consumers and businesses. Inflation trends: Inflation and Federal Reserve actions are related but separate factors. While the Federal Reserve adjusts interest rates to control inflation, lenders may raise their own rates to maintain profits during times of high inflation. Economic factors: Lenders consider things like economic growth and the supply and demand for housing when setting mortgage rates. These are just a few of the many factors that can affect interest rate changes.
Read more: How do lenders set mortgage interest rates?
Which mortgage is best for you?
There's no universal answer to what type of mortgage is best. While most mortgages are conventional, government-guaranteed loans can offer a more affordable path to homeownership for qualified individuals.
Jumbo mortgages are a good way to buy more expensive homes that exceed the conforming loan limit, but they can cost you more in the long run.
Adjustable rate mortgages (ARMs) generally start out with a lower interest rate and may increase in interest over time. Consider this option carefully based on your financial plan.
The data provided in this article reflects average fixed-rate mortgages.
If comparing interest rates seems daunting, a mortgage broker can help you (for a fee) find the best mortgage based on your needs.
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:
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FAQ
What is a fair mortgage interest rate right now?
In today's market, individuals with good to excellent credit scores can expect mortgage interest rates in the 6% to 8% range. However, if your credit score is in the low 600s instead of the ideal 850, you may be faced with an interest rate above 8%, even if your application is approved.
It's important to keep in mind that your credit score is only one factor that will affect your mortgage interest rate — other considerations include the size of your down payment, the state you live in, and the length of your desired mortgage term.
Read more: A simple way to check your credit score.
What exactly is a fixed mortgage rate?
Mortgage interest rates can change frequently, sometimes even within a single day, so you may be worried about the possibility of an increase in interest rates. A mortgage rate fix, or lock-in, can help you secure a favorable interest rate. These fixes are usually in place for 30, 45, or 60 days, with the option to extend if needed.
However, there are some drawbacks to fixing an interest rate that you should consider: if interest rates fall, you won't be able to benefit from a lower rate. Plus, extending the fix period could end up costing you money if the initial fix period isn't long enough to get the deal done.
It's also worth mentioning that locking in a mortgage rate doesn't completely guarantee your interest rate. Factors like unexpected appraisals or changes in your credit score (such as missing a payment on an existing debt) can affect your mortgage rate.
How does interest rate differ from APR?
A mortgage interest rate is the basic cost of borrowing money, while the APR (Annual Percentage Rate) is higher because it includes additional fees. In the case of mortgages, the terms are different, but in other contexts they may be used interchangeably, especially when it comes to credit card interest rates.