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 6.960%. 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 Conforming6.960%6.992%30 Year Jumbo7.160%7.269%30 Year FHA6.737%6.743%30 Year VA6.500%6.532%30 Year USDA6.795%6.696%15 Year Conforming6.431%6.553%30 Year Conforming6.960%6.992%30 Year Jumbo7.160%7.269%30 Year FHA6.737%6.743%30 Year VA6.500%6.532%30 Year USDA6.795%6.696%15 Year Conforming6.431%6.553%
30-year mortgage rates
30 Years of Compliance
According to the latest data available at the time of writing, the average interest rate is 6.960%, down from the previous day's final report of 6.992%.
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 7.160%, down from 7.269% last reported the previous day.
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 6.737%, down from 6.743% 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 6.500%, down from 6.532% 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. Note 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 6.795%, up from 6.696% 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 6.431%, down from the 6.553% last reported the day before.
Why do mortgage interest rates fluctuate?
Mortgage interest rates are determined primarily by your personal credit score, but several external factors also play a role. Some important considerations include:
Federal Reserve actions: When the Federal Reserve raises or lowers the federal funds rate, lenders typically adjust their interest rates accordingly. This strategy allows the Federal Reserve to control the money supply and influence borrowing costs for both consumers and businesses. Inflation: Inflation and Federal Reserve actions are related but different factors. The Federal Reserve raises or lowers interest rates to control inflation, but lenders may also adjust their own rates to protect their profits when inflation is high. General economic conditions: Lenders consider factors such as economic growth and the supply and demand for housing when setting mortgage rates. These are just a few of the many pieces of the puzzle that can affect changes in mortgage rates.
Read more: How do lenders set mortgage interest rates?
Choose the mortgage that's right for you
There's no one-size-fits-all mortgage, and while most mortgages are conventional, a government-insured loan (FHA, VA, USDA mortgage) may be a more affordable option if you qualify.
Here are some other terms you may encounter while researching mortgage loans.
Jumbo Mortgages: Aptly named, these loans are great for buying a home that exceeds the conforming mortgage limit, but they can mean higher interest payments over the long term. Adjustable Rate Mortgages (ARMs): ARMs typically have a lower initial interest rate with the potential for interest rates to increase over time. Consider this option carefully.
The interest rate data provided in this article reflects 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 are good mortgage rates for 2024?
In current market conditions, applicants with excellent credit can expect interest rates of 6% to 8%. Those with lower credit scores, especially those in the low 600s, may see rates above 8%.
Keep in mind that your credit score is only one factor that will affect your mortgage interest rate — others include down payment, location, and loan term.
Read more: A simple way to check your credit score.
How does a mortgage rate lock work?
Since mortgage rates can fluctuate daily, you can secure a favorable interest rate by fixing (or locking in) your mortgage rate. These fixes are usually in place 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 won't be able to benefit from a lower rate, and extending the fixed period could be costly if the initial term isn't long enough.
Additionally, fixing your rate doesn't guarantee that your interest rate will stay the same. Factors like changes in your credit score or unexpected appraisals can affect your mortgage interest rate.
Why do interest rates and APRs vary?
While interest rates are the cost of borrowing, APRs (Annual Percentage Rates) include additional fees, which makes the rate higher. While these terms are different when it comes to mortgages, they are often used interchangeably with credit card interest rates.