MORTGAGE RATES
Understanding Today's Mortgage Rates
Mortgage rates change daily and vary based on your credit, down payment, loan type, and the broader economy. Our AI advisor explains what's driving rates right now and helps you figure out the best strategy for your situation.
Ask About Current Rates →No credit pull · No sign-up · NMLS #1598577
Fixed vs. Adjustable Rates
🔒 Fixed Rate
Rate never changes. Same payment for the life of the loan. Higher starting rate but total predictability.
Best for: staying 7+ years
📊 Adjustable Rate
Lower starting rate, then adjusts periodically. Risk: rate can rise. Reward: lower initial payment.
Best for: selling or refi within 5–7 yrs
What Drives Mortgage Rates
📈
Federal Reserve Policy
The Fed doesn't set mortgage rates directly, but its benchmark rate influences borrowing costs across the economy. When the Fed raises rates, mortgage rates tend to follow.
🏦
10-Year Treasury Yield
30-year fixed mortgage rates closely track the 10-year Treasury yield. When investors buy more Treasuries (flight to safety), yields drop and mortgage rates often fall too.
💳
Your Credit Score
Credit score is one of the biggest personal factors. A 740+ score typically unlocks the best rates. Each tier down can add 0.25–0.75% to your rate.
🏠
Loan-to-Value Ratio
The more equity you have (or the larger your down payment), the lower the risk for lenders — and the better your rate. 20%+ down avoids PMI and gets better pricing.
📋
Loan Type & Term
30-year fixed rates are higher than 15-year rates. ARMs start lower but can adjust. FHA, VA, and USDA loans have their own rate structures.
🌍
Economic Conditions
Inflation, employment data, and GDP growth all move mortgage rates. High inflation typically pushes rates up as lenders demand more return.
Rate FAQs
What determines mortgage interest rates?
Rates are driven by macro factors (Fed policy, Treasury yields, inflation) and your personal profile (credit score, LTV, loan type). Lenders price risk — the less risky you look on paper, the better your rate.
Should I lock my mortgage rate?
If you're happy with your rate and expect rates to stay flat or rise, lock it. Rate locks typically last 30–60 days. Some lenders offer float-down options if rates drop after you lock — worth asking about.
What's the difference between APR and interest rate?
The interest rate is what you pay on the principal. APR (Annual Percentage Rate) includes the interest rate plus lender fees, giving a fuller picture of the loan's true cost. Always compare APRs when shopping lenders.
Should I pay points to lower my rate?
One point = 1% of the loan amount and typically lowers your rate by 0.25%. It makes sense if you plan to stay long enough to recoup the upfront cost through lower monthly payments. Ask our AI to run your break-even.
Get personalized rate guidance
Ask our AI anything about rates, strategy, and what to expect — free, instant.
Ask the AI Advisor →Explore more mortgage topics:
NMLS #1598577 · For informational purposes only · Not financial advice