A mortgage interest rate tells you how much you’ll have to pay as a fee for borrowing the funds to purchase a home. Interest rates are typically expressed as a percentage of the total amount you’ve borrowed.
Written by Rene Bermudez | Edited by Crissinda Ponder | Updated July 11, 2025The current national mortgage rates forecast indicates that rates are likely to remain high compared to recent years, and stay well above 6% for now. This week, both 30- and 15-year rates went up by less than 0.10 percentage points.
Here are the U.S. weekly average rates from Freddie Mac’s Primary Mortgage Market Survey, as of July 10, 2025:
Mortgage rates fluctuated between 6% and 7% over the last half of 2024, finally crossing the 7% threshold for the first time in over seven months in mid-January. But as of this week, they have remained under 7% for 23 weeks.
At their most recent meeting on June 17-18, the Federal Reserve chose to hold rates steady. The next meeting is scheduled for July 29-30, but a rate cut isn’t likely.
Since making three cuts in 2024, Fed regulators have become more concerned about inflationary pressures. As a result, they’ve indicated that we should expect two cuts in 2025.
 Read more about the most recent Fed meeting and how it affects interest rates.
Chief Consumer Finance Analyst at LendingTree |
“I wouldn’t hold my breath for rates to fall below 6%. Even if the Federal Reserve did start cutting interest rates again, there’s no guarantee that mortgage rates will follow suit. In fact, rates have actually gone slightly higher since the Fed started cutting rates back in September.” |
Loan Product | Interest Rate | APR |
|---|---|---|
| 30-year fixed rate | 6.83% | 7.06% |
| 20-year fixed rate | 6.10% | 6.36% |
| 15-year fixed rate | 5.85% | 6.14% |
| 10-year fixed rate | 6.74% | 7.29% |
| FHA 30-year fixed rate | 6.12% | 6.79% |
| 30-year 5/1 ARM | 6.12% | 6.84% |
| VA 30-year 5/1 ARM | 5.99% | 6.21% |
| VA 30-year fixed rate | 6.00% | 6.20% |
| VA 15-year fixed rate | 5.41% | 5.76% |
There are nine primary factors that determine your mortgage rate:
 Boost your credit score to 780 or higher. You’ll need to aim for at least a 780 credit score to qualify for the lowest conventional loan interest rates. Need help getting started? Learn how to improve your credit score.
 Make a bigger down payment or borrow less. You’ll snag the best mortgage rates with a 780 credit score and at least a 25% down payment. A lower loan-to-value (LTV) ratio (how much of your home’s value you need to borrow) means lower home loan rate offers.
 Reduce your total monthly debt load. Lenders measure your debt-to-income (DTI) ratio by dividing your total monthly debt by your before-tax income. A 43% maximum DTI ratio is a common limit. A debt consolidation calculator can estimate how much a debt consolidation loan could lower your monthly payments.
 Consider an adjustable-rate mortgage (ARM). If you plan to move in a few years, an ARM loan starts with lower mortgage interest rates for a period of time. If you sell the home before that lower rate expires, you could save a lot of money in interest compared to a fixed-rate home loan.
 Pick a shorter loan term. Lenders usually charge lower interest rates for shorter terms like 15-year loans. If you can afford a higher monthly payment, you’ll save hundreds of thousands of dollars over the life of the loan, according to LendingTree data.
 Pay mortgage points. A mortgage point is an upfront fee equal to 1% of your total loan amount. (For example, if you borrow $300,000, one point costs $3,000.) Paying for points buys you a lower mortgage rate. Each point can usually lower your rate by 0.125% to 0.25%. For the exact cost of your mortgage point, you can check Page 2, Section A of your lender loan estimate.
 Compare mortgage lenders. Comparing offers from several mortgage lenders saves you money — and not just a few dollars. A LendingTree study found that homebuyers in the nation’s largest metro areas saved an average of $76,410 over the life of their loans by comparing offers from different lenders.
When buying a home, higher mortgage interest rates will raise your monthly principal and interest payments.
For example, say you want to buy a house using a $350,000 home loan. Assuming a 30-year loan term, here’s what your monthly payment could look like at different interest rates (excluding property taxes and home insurance):
Note that if you live in an HOA community or need private mortgage insurance, your monthly payment will be higher.
Use a mortgage calculator to estimate how your interest rate will affect your monthly payment.If you are purchasing a home, there are several ways to lower your monthly home loan payment:
 Ready to estimate how much your monthly payment could be? Calculate your mortgage payment and get custom offers below.
Lender | User ratings | LendingTree rating | Min. credit score | |
|---|---|---|---|---|
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 580 to 680 | ||
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 500 to 620 | ||
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 500 | ||
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 620 | ||
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 620 | ||
 | User reviews coming soon | 580 to 620 | ||
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | 580 to 620 |
 Learn more about how we chose our list of the best mortgage lenders.The key to choosing a mortgage lender is understanding what lenders are looking for and identifying what you want from a lender. Here are some questions to consider as you shop for a lender:
 Ready to get started? Learn how to apply for a mortgage today or enter your loan amount below.This three-part strategy can help you get the best deal on a mortgage:
Once you know the type of mortgage you want, start loan shopping. Get quotes from at least three different lenders. You can do this by working with a mortgage broker who can find quotes from multiple lenders or by directly contacting banks and mortgage companies. Or, you can let LendingTree help: simply enter your information once, and we’ll connect you with offers from multiple lenders.
Gather loan estimates from three to five lenders and compare them side by side, paying special attention to the interest rate, fees and annual percentage rate (APR). This helps you identify the lender offering the best deal overall.
While the comparison process may sound like a hassle, it could potentially save you tens of thousands of dollars. LendingTree research shows that mortgage borrowers who take the time to compare rate offers have a very good chance — around 46% — of saving money.
As you comparison shop, you have two options for how to compare mortgage rates:
You can benefit from negotiating at almost every stage of the homebuying process. Many people spend a ton of energy negotiating the home’s price but miss out on the chance to negotiate a lower mortgage rate or lower fees.
A mortgage interest rate tells you how much you’ll have to pay as a fee for borrowing the funds to purchase a home. Interest rates are typically expressed as a percentage of the total amount you’ve borrowed.
Be careful not to confuse interest rates and annual percentage rates (APRs) — both are expressed as a percentage, but they’re very different. A typical interest rate accounts only for the fees you’re paying a lender for borrowing money. An APR, on the other hand, captures a broader view of the costs you’ll pay to take out a loan, including the interest rate plus closing costs and fees.
Still confused? Read our guide to better understand an APR versus interest rate.
Once you’ve selected your lender, you should ask your loan officer about the options you have to lock in a rate. Mortgage rate locks usually last between 30 and 60 days, and they exist to give you a guarantee that the rate your lender offered you will still be available when you actually close on the loan. If your loan doesn’t close before your rate lock expires, you should expect to pay a rate lock extension fee.
You’ll need to apply for mortgage preapproval to find out how much you could qualify for. Lenders use the preapproval process to review your overall financial picture — including your assets, credit history, debt and income — and calculate how much they’d be willing to lend you for a mortgage.
Use the loan amount printed on your preapproval letter as a guide for your house-hunting journey, but avoid borrowing the maximum. Our mortgage calculator can help you determine whether your mortgage payment leaves enough room in your budget to comfortably cover your other monthly bills.
The best type of mortgage loan will depend on your financial goals — while some loan types consistently offer lower rates, they may do so at the expense of higher monthly payments or complicated repayment terms. Before signing on the dotted line, weigh the pros and cons of a 15- versus 30-year loan and take time to understand ARM rates and how they differ from traditional fixed mortgage rates.
If you’re considering an FHA loan because its interest rate is lower than a conventional loan rate, make sure you understand why you should look at APRs, not just interest rates, when comparing FHA and conventional loans.
A teaser rate is a lower initial rate offered on a mortgage loan for a set time period before the actual fixed mortgage rate goes into effect. Teaser rates are often obtained through an adjustable-rate mortgage (ARM) loan that have 3-, 5- or 7-year options.
Mortgage closing costs usually range anywhere from 2% to 6% of your total home loan amount. The cost can vary depending on many factors, including your lender and how much you’re borrowing. It’s possible to get the seller or lender to pay a portion or all of these costs.
The Fed’s monetary policy directly affects adjustable-rate mortgages, since their interest rates are calculated using a number — known as an index — that fluctuates with the broader economy.
The Fed’s policy only indirectly impacts fixed-rate mortgages, which can move more independently and, in some cases, move in the opposite direction of the federal funds rate.
We may see mortgage rates as low as 3% again, but likely not anytime soon. The good news is the Federal Reserve cut interest rates three times in 2024, for the first time since 2020, which may help push mortgage rates down a bit as time goes on. Regulators have signaled that they expect to make two cuts in 2025.