Current Mortgage Rates: What Will You Pay?

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 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.

"Persistent inflation and cautious investor sentiment have kept mortgage rates elevated," says Susan Allen, chief product officer for Experian Housing.

Concerns about regulatory changes and market volatility have also made lenders more cautious. Allen said she sees reason for cautious optimism, however.

"If inflation continues to cool and the Fed signals a steady hand, we could see mortgage rates gradually decline in the second half of the year," she says. "That would be welcome news for homebuyers and refinancers alike."

30-Year Mortgage Rate Trends 2020 to 2025

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, July 2025; assumes a 720 FICO^® Score^Θ, $350,000 mortgage
^**Source: Optimal Blue via FRED, July 2025
Notes: Rates can vary by data source; monthly payment calculation uses APR and assumes a $350,000 mortgage and 20% down

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, July 7, 2025; assumes a 720 FICO^® Score and $350,000 mortgage

Mortgage Calculator

You can use the Experian mortgage calculator to see how different interest rates and other expenses will impact your monthly payment.

At a minimum, you'll need to know your approximate loan amount, down payment, repayment term and an estimated interest rate (not the APR) based on your creditworthiness and the rates above.

Mortgage calculator

To get a more precise estimate of your monthly costs, you can also include the following expenses in our calculator's advanced options:

• Property taxes: You may be able to estimate your annual property taxes based on your offer amount and the local tax rates.
• Home insurance premiums: Estimate your homeowners insurance premium and input the annual amount.
• Mortgage insurance: You may need to pay mortgage insurance if you have a government-backed mortgage or you put less than 20% down on a conventional mortgage.
• Homeowners association (HOA) dues: Budget for HOA fees if you plan to purchase a home or condo that's in an HOA.

Monthly mortgage payments often include money that goes into an escrow account for property tax and insurance premium payments. All together, these are commonly referred to as your principal, interest, taxes and insurance (PITI) payment.

HOA dues often won't be included in your mortgage payments, but including them in your calculations could give you a more realistic budget. Property taxes may also be paid separately, depending on your arrangement with your lender.

The mortgage calculator's results will include a summary of your monthly payment and how much you'll repay overall. You can see a month-by-month breakdown of the amortization table if you click on the payment schedule tab.

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, July 7, 2025; assumes a 30-year fixed-rate mortgage for an owner-occupied property and borrowers with a 720 FICO^® Score

Average Mortgage Rates by Credit Score

Your FICO^® Score—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, July 7, 2025; assumes a $350,000 mortgage and 30-day rate-lock period

Learn more: Which Credit Scores Do Mortgage Lenders Use?

Housing Market Trends

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

"At first glance, it looks like a buyer's market is taking shape—more homes are hitting the market, and properties are sitting longer before they sell. But dig a little deeper, and the picture gets more complex," Allen notes. "In many areas, home prices are still edging upward, which exacerbates affordability challenges."

Allen believes we're seeing the early stages of a rebalancing. In this slower, more deliberate market, patience and preparation can really pay off, she says.

"Focus on what you can control: Get preapproved, understand your budget and work with a knowledgeable agent who can help you spot opportunities," Allen says. "The market may not be easy, but it is opening up—and for prepared buyers, that's a welcome shift."

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 2025

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 in U.S., 2020 to 2025

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.

Median Days to Pending in U.S., 2020 to 2025

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 2025

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.