The current average interest rate for a fixed-rate, 30-year conforming mortgage loan in the United States is 6.749%, according to the most recent data available from mortgage technology and data company Optimal Blue. Read on to see average rates for different types of mortgages and how the current rates compare with the last reported day prior.
| Type of Mortgage | Current Rate | Rate Last Reported |
|---|---|---|
| 30-year conforming | 6.749% | 6.734% |
| 30-year jumbo | 7.111% | 7.082% |
| 30-year FHA | 6.626% | 6.558% |
| 30-year VA | 6.244% | 6.297% |
| 30-year USDA | 6.428% | 6.756% |
| 15-year conforming | 6.028% | 6.083% |
| 30-year conforming | |
|---|---|
| 6.749% | |
| 6.734% | |
| 30-year jumbo | |
| 7.111% | |
| 7.082% | |
| 30-year FHA | |
| 6.626% | |
| 6.558% | |
| 30-year VA | |
| 6.244% | |
| 6.297% | |
| 30-year USDA | |
| 6.428% | |
| 6.756% | |
| 15-year conforming | |
| 6.028% | |
| 6.083% |
Historical mortgage rates chart
Here’s how the current average mortgage rates we’re tracking compare to average rates over the past month:
Note, there’s a lag of one business day in data reporting, meaning that the most current rate as of today is what the chart shows for July 18.
30-year mortgage rates
30-year conforming
The average interest rate, per the most current data available as of this writing, is 6.749%. That’s up from 6.734% the last reported day prior.
30-year jumbo
What exactly is a “jumbo mortgage” or “jumbo loan”? Simply put, it exceeds the maximum amount for a normal (conforming) mortgage. Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency set this maximum.
The average jumbo mortgage rate, per the most current data available as of this writing, is 7.111%. That’s up from 7.082% the last reported day prior.
30-year FHA
The Federal Housing Administration provides mortgage insurance to certain lenders, and the lenders in turn can offer the consumer a better deal on aspects such as being able to qualify for a mortgage, potentially making a smaller down payment, and possibly getting a lower rate.
The average FHA mortgage rate, per the most current data available as of this writing, is 6.626%. That’s up from 6.558% the last reported day prior.
30-year VA
A VA home loan is offered by a private lender, but the Department of Veterans Affairs guarantees part of it (reducing risk for the lender). They are accessible if you’re a U.S. military servicemember, a veteran, or an eligible surviving spouse. Such loans may sometimes allow the purchase of a house with no down payment at all.
The average VA home loan rate, per the most current data available as of this writing, is 6.244%. That’s down from 6.297% the last reported day prior.
30-year USDA
The U.S. Department of Agriculture operates programs to help low-income applicants achieve homeownership. Such loans can help U.S. citizens and eligible noncitizens purchase a home with no down payment. Note that there are stringent requirements to be able to qualify for a USDA home loan, such as income limits and the home being in an eligible rural area.
The average USDA home loan rate, per the most current data available as of this writing, is 6.428%. That’s down from 6.756% the last reported day prior.
15-year mortgage rates
A 15-year mortgage will typically mean higher monthly payments but less interest paid over the life of the loan. The average rate for a 15-year conforming mortgage, per the most current data available as of this writing, is 6.028%. That’s down from 6.083% the last reported day prior.
Why do mortgage rates change so often?
Your personal credit score heavily influences your mortgage rate, but there are external factors at play as well. Key factors include:
- Federal Reserve decisions: When the Federal Reserve alters the federal funds rate, lenders typically adjust their interest rates in response. This process helps the Fed manage the money supply, impacting borrowing costs for consumers and businesses.
- Inflation trends: Though connected, inflation and the Fed’s actions are separate factors. The Fed adjusts rates to manage inflation, while lenders might independently raise rates to maintain profits during high inflation periods.
- Economic factors: Lenders consider things like economic growth and housing supply and demand when setting mortgage rates. These are just a couple of the many factors that can influence rate changes.
Learn more: How are mortgage interest rates set by lenders?
Which mortgage is best for you?
There is no universal answer to the best type of mortgage. While most mortgages are conventional, government-backed loans might offer a more affordable path to homeownership for qualified individuals.
Jumbo mortgages are suitable for buying expensive homes that exceed conforming loan limits, but they may be costlier in the long term.
Adjustable-rate mortgages (ARMs) generally start with low rates that can increase over time. Weigh this option carefully based on your financial plans.
The data provided in this piece reflect averages for fixed-rate mortgages.
If rate shopping feels overwhelming, a mortgage broker can assist (for a fee) in finding the best mortgage offer based on your needs.
How high have mortgage rates been in the past?
While mortgage rates may feel sky-high these days compared to the sub-3% rates some homebuyers scored in 2020 and 2021, what we’re seeing currently isn’t that strange when compared with historical data on mortgage rate averages. Below are a couple charts from the Federal Reserve Economic Data (FRED for short) online database for context.
30-year fixed-rate mortgage historical trends
If you think rates between 6% and 8% today are scary, consider September through November of 1981, which saw the average rate hovering between 18% and 19%, according to FRED.
Check out the FRED 30-year mortgage rate chart:
15-year fixed-rate mortgage historical trends
Rates today on 15-year mortgages, as shown in the Optimal Blue data above, are roughly on par or even slightly lower than what we see during many previous periods. For example, take a look at FRED data for the end of 1994 and beginning of 1995, when rates neared 9%.
See the FRED 15-year mortgage rate chart:
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Frequently asked questions
What’s a good mortgage rate right now?
In today’s market, individuals with good to excellent credit scores can anticipate mortgage interest rates ranging from 6% to 8%. However, if your credit score is in the low 600s rather than the ideal 850, you might face rates above 8% if your application is approved.
It’s important to note that your credit score is just one factor that affects your mortgage rate. Other considerations include the amount of your down payment, the state you’re in, and the length of the mortgage term you’re seeking.
Learn more: Easy ways to check your credit score.
What exactly is a mortgage rate lock?
Since mortgage rates can change frequently, sometimes even within a single day, you might be concerned about potential rate increases. A mortgage rate lock, or lock-in, may help you secure a favorable rate. These locks typically last for 30, 45, or 60 days, with an option to extend if needed.
However, there are some drawbacks to consider with rate locks. If interest rates drop, you won’t benefit from the lower rates. Additionally, if the initial lock period isn’t long enough for you to close, extending the lock can be expensive.
It’s also worth mentioning that a mortgage rate lock doesn’t completely guarantee your rate. Factors such as unexpected appraisal values or changes in your credit score—for instance from missing a payment on an existing debt—can still impact your mortgage rate.
How does the interest rate differ from the APR?
The interest rate on a mortgage is the basic cost of borrowing money, while the APR (annual percentage rate) is higher because it includes any additional fees. Although these terms are different for mortgages, they may be used interchangeably in other contexts, notably with credit card interest rates.
