Current Mortgage Rates: What Will You Pay?

Average Mortgage Rates by Credit Score

Your FICO^® Score^Θ—and potentially your VantageScore^® credit score—can be a major factor in the interest rate you receive. A higher credit score will often lead to a lower rate, but you don't need a perfect 850 credit score. You may qualify for the best available rate once your score is above 780.

Source: Curinos LLC, October 2026; assumes a $350,000 mortgage and 30-day rate-lock period

Learn more: Which Credit Scores Do Mortgage Lenders Use?

How Are Mortgage Rates Trending?

Since the Federal Reserve cut the target rate by a total of 1 percentage point in late 2024, average mortgage rates have hovered around 7%. The Fed again lowered rates by an additional 0.75 percentage points in three separate cuts made in September, October and December 2025. In September 2026, the Fed raised rates for the first time in three years.

The federal funds rate can indirectly affect mortgage rates, but the condition of U.S. bond markets and the broader economy, including the unemployment rate, inflation and retail sales totals, also have an impact.

"Mortgage rates don't move in lockstep with the federal funds rate, so consumers shouldn't assume a Fed move will translate directly into a higher or lower mortgage rate," says Susan Allen, chief product officer for Experian Housing. "Instead of trying to time the market, borrowers can focus on the factors they can control: Strengthening their credit profile and comparing offers from multiple lenders."

"Even a modest rate drop can significantly improve affordability," Allen adds. "With many markets seeing price drops and increased inventory, buyers today have a real chance to find value and stretch their budgets further."

As the chart below illustrates, mortgage rates rose dramatically in 2022. Rates had been relatively stable at an elevated level for years before jumping even higher in reaction to the Fed's latest rate hike.

30-Year Mortgage Rate Trends 2020 to 2026

Current Mortgage Rates

Mortgage rates can vary depending on the type of loan you get. For example, longer-term loans and larger loans (such as jumbo loans) typically translate to higher interest rates. Fixed-rate mortgages usually have higher interest rates than adjustable-rate mortgages (ARMs), but rates for ARMs can rise, potentially surpassing those of fixed-rate loans. For qualifying borrowers, interest rates for FHA and VA loans tend to be lower than rates for conventional mortgages.

Source: Curinos LLC, October 2026; assumes a 720 FICO^® Score, $350,000 mortgage
Notes: Monthly payment calculation assumes a $350,000 mortgage and 20% down; ARM payments can change after five years

For qualifying borrowers, interest rates for FHA and VA loans tend to be lower than rates for conventional mortgages.

Source: Optimal Blue via FRED, October 2026
Note: Jumbo loan payment assumes a balance equal to the conforming loan limit of $832,750

Looking for a New Mortgage or Refinance?

Shopping around for a mortgage or refinance can help you find the best rates, but sorting through multiple lenders can be time-consuming. OwnUp, a part of Experian, can streamline the process by helping you compare personalized offers from top-rated mortgage lenders that match your needs. You can view real-time rates and explore your options with no hard credit check or impact to your credit scores.

OwnUp combines advanced technology with unbiased guidance from mortgage experts to help you evaluate your options and find the right mortgage for your unique situation. Along the way, you can connect with your personal mortgage shopping expert by phone, email or text if you have questions or need help comparing offers.

Refinance Rates

If you're hoping to refinance, make sure to check rates for refinance loans. Mortgage refinance rates may be slightly higher than the interest rate on a mortgage that you take out to purchase a home. However, that's not always the case because many factors can affect your rate.

Source: Curinos LLC, October 2026; assumes a 720 FICO^® Score and $350,000 mortgage

Current Mortgage Rates by State

National average interest rates also might vary from the averages in your state. Although location isn't a major factor in your rate, lenders might vary offers slightly based on the home's location.

Average Mortgage Rates by State, Purchase and Refinance

Source: Curinos LLC, October 2026; assumes a 30-year fixed-rate mortgage for an owner-occupied property and borrowers with a 720 FICO^® Score

Housing Market Trends

Mixed signals in the current housing market indicate a time of transition.

Housing Prices Trends

Home values typically grow by about 4% annually, according to Zillow data, but the pandemic significantly accelerated that growth. Between 2020 and 2022, median list prices for U.S. homes rose drastically, as the chart below shows.

Median Home List Price in U.S., 2018 to 2026

Home Inventory Trends

The number of homes on the market can impact housing prices. An abundant supply of homes usually indicates it's a buyer's market. The chart below reflects the number of unique listings active at any time in a given month. Active listings tend to fluctuate throughout the year, peaking in the summertime. Since 2021, the number of active listings has been on the upswing.

Active Listings in U.S., 2020 to 2026

How Long Do Homes Stay on the Market?

Homes are staying on the market longer, with median days to pending returning to 2020 levels. Pending status means a seller has accepted an offer and the listing is no longer active. The chart below illustrates how long after being shown for sale on Zillow.com it took for homes that went pending during the week being reported to go pending. Like the number of active listings fluctuates, how long a home typically stays on the market depends on the time of the year. Since 2022, the median days to pending has risen dramatically in the U.S.

Median Days to Pending in U.S., 2020 to 2026

Home Affordability Trends

Rising home prices combined with relatively high mortgage rates has made homes less affordable. The chart below estimates the annual household income a buyer would need in order to spend less than 30% of their monthly income on the total monthly mortgage payment after buying the typical home with a 20% down payment. The income needed to afford the average home has nearly doubled since 2020.

Annual Income Needed to Buy the Average U.S. Home, 2020 to 2026

Mortgage Advice

What Affects Mortgage Rates?

You can only control or affect some of the factors that will affect the rate you receive on your mortgage. Still, understanding the contributing factors could help you determine when it makes sense to buy a home or refinance your mortgage.

• Market conditions: Lenders may set rates based on different economic figures and outlooks, including inflation rates, Treasury bond rates, the federal funds rate, unemployment rates and headline-making news events that might affect equity and bond markets.
• Credit scores: Your credit scores can affect the interest rate you receive, and a higher score can usually help you qualify for a lower rate. Mortgage lenders use specific credit scoring models, but they are usually reflective of the same trends you'll see in the general purpose scores you may already have access to.
• Type of mortgage: Lenders may offer different rates depending on the type of mortgage you want or need.
• Repayment term: Mortgages with shorter repayment terms tend to have lower interest rates, but your monthly payment will be higher than if you choose a longer-term mortgage.
• Loan interest rate type: An adjustable-rate mortgage (ARM) tends to start with a lower rate than a fixed-rate mortgage. However, the ARM's rate might increase in the future.
• Loan amount: The total amount you borrow could affect your rates, particularly if you're taking out an unusually small or large loan.
• Down payment: Your down payment and the resulting loan-to-value ratio can also affect interest rates. Putting at least 20% down might lead to a lower rate, but going higher doesn't always reduce the rate.
• Home location: Lenders may also vary rates slightly depending on the home's location.
• Mortgage points and credits: You might be able to buy mortgage or discount points to reduce your interest rate, or receive credits to help with closing costs in exchange for a higher rate.
• Whether you'll live in the home: Mortgage rates may vary if you're buying a primary residence, second home or investment property.
• Your relationship with the lender: Some lenders may offer you a better rate and other perks if you have high balances in other accounts with the lender, or if you agree to move money to their savings or investment accounts.

Learn more: The Complete Guide on How to Get a Mortgage

Types of Mortgage Loans

There are several common types of mortgages:

• Conventional loans of 10 to 30 years: Mortgage lenders offer conventional mortgage loans that aren't part of government-backed loan programs. Conventional loans often have fixed interest rates and repayment terms of 10, 15, 20 or 30 years.
• Adjustable-rate loans: ARMs start with a fixed interest rate, and then the rate can periodically change during the remainder of the loan's term. For example, the rate on a 5/6 ARM is fixed for five years and can then adjust once every six months. A 7/1 ARM has a fixed rate for seven years and it can adjust every year afterward.
• VA loans: A Department of Veterans Affairs (VA) loan may offer a low interest rate and doesn't require a down payment. However, you need to be an eligible service member, veteran or surviving spouse to qualify for a VA loan.
• FHA loans: Federal Housing Administration (FHA) loans can be easier to qualify for than conventional loans, but may also require a mortgage insurance premium for the life of the loan depending on your down payment. Refinancing is the only way to have mortgage insurance removed from an FHA loan.
• USDA loans: The U.S. Department of Agriculture (USDA) backs two types of mortgages for purchasing a home: direct and guaranteed USDA loans. These loans may have low interest rates and don't require a down payment, but there are income limits and you must purchase a home in an eligible rural area.
• Jumbo loans: A jumbo loan is a mortgage that's larger than the Federal Home Finance Agency (FHFA) loan limits, which can vary based on location and year. Jumbo loans may require a higher credit score and down payment than other types of loans, and they sometimes have high rates as well.

Learn more: What Type of Mortgage Loan Is Best?

How Can I Lower My Monthly Mortgage Payment?

There are generally four parts to your mortgage payment: principal, interest, taxes and insurance (PITI). You might be able to lower your payment by focusing on one, or several, of those components:

• Borrow less money. You can decrease your principal and interest payments if you borrow less money. There are different ways to go about this, including buying a less expensive home, putting more money down or using a first-time homebuyer or down payment assistance program.
• Buy down your rate. Buying mortgage points will decrease your interest rate and lower your monthly payment. However, it might not be a good idea if you plan to refinance your mortgage soon.
• Ask for concessions from the seller. If you're purchasing a home in a buyer's market, you might be able to negotiate concessions from the sellers, such as credits that you could put toward closing costs or repairs so you can afford a larger down payment, or toward buying mortgage points.
• Shop for a mortgage. Shop around and get preapproved with multiple lenders so you can compare loan rates and terms.
• Consider an ARM. Although ARMs can be risky in the longer run, they initially offer a lower rate than comparable fixed-rate loans. It might be a good idea if you think interest rates won't increase or if you plan to move or refinance before the ARM's fixed-rate period ends.
• Delay your purchase while you improve your credit. Unless you already have a very good credit score, a higher credit score might help you qualify for a lower rate. You could pause your home search while working on your credit and saving up for a larger down payment.
• Shop for homeowners insurance. Compare homeowners insurance policies to see if you can save money by changing your policy's terms or switching providers.
• Don't use an escrow account. You might be able to pay property taxes and insurance premiums on your own rather than using an escrow account and including estimated amounts with your mortgage payment.

Learn more: Ways to Deal With High Mortgage Rates

Should You Refinance Your Mortgage?

Refinancing your mortgage involves applying for a new mortgage and using the funds to pay off your existing loan. Refinancing could lead to significant savings, especially if mortgage rates have dropped or your credit has improved since you took out your loan. But there are a few things to consider before refinancing:

• Your goal for refinancing: You may refinance for different reasons, such as lowering your interest rate, lowering your monthly payment, adding or removing a co-borrower, changing the type of mortgage, changing the loan's term or getting rid of mortgage insurance. You also might be able to refinance to get cash out of your home by borrowing more than you currently owe.
• Upfront costs: Refinancing always involves upfront costs, similar to the closing costs when you buy a home. Some lenders offer no-cost refinancing, but they're usually either adding the closing costs to your new loan amount or giving you a higher interest rate and credits to cover the costs.
• Your break-even point: You can calculate your break-even point by dividing your costs by your monthly savings. For example, if it costs you $4,000 to refinance and you save $250 a month, you break even at 16 months.
• Your plans for the mortgage: Consider how the break-even point aligns with your plans to move or refinance again soon. Going with the example above, if you plan to move in six months, it likely doesn't make sense to pay the closing costs to refinance. However, you might consider refinancing if the lender will give you credits to cover your closing costs and you can still lower your monthly payment.
• Long-term costs: Your new loan will have a new repayment term, which is often 10, 15, 20 or 30 years. Even if you lower your interest rate and monthly payment, refinancing into a longer-term loan could wind up costing you more overall.

Learn more: When Should You Refinance Your Mortgage?

Build and Maintain Your Credit for the Best Rates

Whether you're buying a home or refinancing, a good credit score can help you qualify for the best interest rates and offers. You can check your FICO^® Score for free from Experian. Mortgage lenders use a different version of the FICO^® Score than the version you'll receive, but you can also review your credit reports and get insights into what actions might increase all your credit scores.