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The current mortgage rate on a 30-year fixed mortgage rose by 0.38 percentage point in the last week to 6.98%, according to the Mortgage Research Center.

Meanwhile, the APR on a 15-year fixed mortgage climbed 0.41 percentage point during the same period to 6.01%.

For existing homeowners, compare your current mortgage rates with today’s refinance rates.

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30-Year Mortgage Rates

Borrowers will pay more in interest this week as the average rate on a 30-year mortgage is 6.98% compared to a rate of 6.6% a week ago.

The annual percentage rate (APR), which includes the interest and all of the lender fees, on a 30-year, fixed-rate mortgage is 7.01%. The APR was 6.64% last week.

To borrow a $100,000 in a 30-year, fixed-rate mortgage with the current rate of 6.98%, you will pay about $664 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay around $139,847 in total interest over the life of the loan.

15-Year Mortgage Rates

Today, the 15-year mortgage rate increased to 6.01%, higher than it was yesterday. Last week, it was 5.6%.

On a 15-year fixed, the APR is 6.07%. Last week it was 5.65%.

With an interest rate of 6.01%, you would pay $844 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $52,547 in total interest.

Jumbo Mortgage Rates

The current average interest rate on a 30-year fixed-rate jumbo mortgage (a mortgage above 2025’s conforming loan limit of $806,500 in most areas) is 7.51%. Last week, the average rate was 7.07%.

If you lock in the latest rate on a 30-year, fixed-rate jumbo mortgage, you will pay $700 per month in principal and interest per $100,000 borrowed, which amounts to $152,432 in total interest over the life of the loan.

What Affects Mortgage Rates?

The Federal Reserve’s restrictive monetary policy – including its interest rate hikes, which it’s using to restrain inflation – is the primary factor that’s pushing long-term mortgage rates higher. The state of the economy and housing market also affects mortgage rates. As for what interest rate the lender might offer you, this depends on your debt-to-income (DTI) ratio and credit score, both of which indicate your risk as a borrower.

Related: Mortgage Rates Forecast And Trends

Is This a Good Time To Buy a House?

Mortgage rates remain elevated, and the nation’s housing supply remains limited. The low inventory is preventing house prices from dropping. Meanwhile, the combination of high mortgage rates and appreciated home values will continue to present an obstacle for many prospective homebuyers seeking affordable housing.

How Are Mortgage Rates Determined?

Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s annual percentage rate (APR).

Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.

Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.

The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases.

What Is the Best Type of Mortgage Loan?

Many home buyers are eligible for several mortgage loan types. Each program can have its own advantages:

• Conventional mortgage. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums.
• FHA loan. An FHA home loan is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579.
• VA loan. Borrowers with a qualifying military background may prefer a VA loan for its flexibility. A down payment may not be required. While you pay a one-time funding fee, there are no ongoing mortgage insurance premiums or service fees.
• USDA loan. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower.
• Jumbo loan. Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency’s conforming loan limits. The limit in most municipalities is $806,500 in 2025.

Frequently Asked Questions (FAQs)