Compare Current Mortgage Rates Today - March 21, 2025

The average 30-year fixed mortgage rate was 6.77% on Thursday, March 20. The 20-year fixed mortgage rate was 6.51%, 15-year fixed mortgage rate was 5.87%, and 10-year fixed mortgage rate was 5.73%. Average rates for other loan types include 7.35% for an FHA 30-year fixed mortgage and 6.80% for a jumbo 30-year fixed mortgage.

These fixed-rate loan averages are not the teaser rates you may see advertised online. To find the average mortgage rates today, we use data from approximately 40 lenders, assuming a down payment of at least 20% and an applicant credit score in the 680–739 range. We believe this is more representative of what customers could expect to be quoted, depending on their qualifications.

Today's Mortgage Rates

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How to Use Our Mortgage Rate Tables

Our mortgage rate tables can help you see at a glance whether the rate that a particular lender is prepared to offer you on a new mortgage or refinancing is higher, lower, or in the same ballpark as other lenders. If it's higher, you might want to do some additional shopping around.

Note that these rates are for borrowers with what lenders consider good credit. If your credit isn't up to par, you may have to pay more or you may have trouble getting a mortgage at all. An alternative, if you aren't in a big hurry, would be to delay applying for a few months and see if you can raise your credit score in the meantime.

30-Year Mortgage Rates

What Is a 30-Year Mortgage?

While home buyers have many alternatives today, 30-year fixed-rate mortgages remain the most popular choice by far. Because they are fixed, your monthly payment never changes.

Many borrowers opt for 30-year mortgages because the monthly payments on them are lower than for loans with shorter terms, such as 15-year or 20-year mortgages. The downside is that you'll end up paying more interest in total over the life of the loan.

Who Should Consider a 30-Year Mortgage?

Because the monthly payments are more affordable than on loans with shorter-terms, 30-year mortgages are a good choice for first-time home buyers or anyone else whose budget is stretched to the limit. Bear in mind that you might not keep the mortgage for the full 30 years. For example, you may sell the home in the intervening years. Or, if interest rates fall, you might decide to refinance, either into a new 30-year mortgage or one with a shorter term.

20-Year Mortgage Rates

What Is a 20-Year Mortgage?

A 20-year fixed-rate mortgages works much like a 30-year mortgage. The difference is that it will be paid off 10 years earlier.

The downside of 20-year mortgages is that they have higher monthly payments. On the upside, you'll own your home sooner and you will have paid less in interest over the life of the loan.

Who Should Consider a 20-Year Mortgage?

If you can afford the larger monthly payments, a 20-year mortgage would be worth looking into. While your payments will be higher, your lender may offer you a lower interest rate than it would on a 30-year mortgage.

As mentioned, you'll also pay less interest over the 20-year life of the loan although you'll pay more interest with each monthly payment. At the same time, you'll be building equity more quickly, which might be useful if you later decide to apply for a home equity loan or home equity line of credit.

In addition, many people find it comforting to have their mortgages totally paid off, especially if they are heading into retirement. A 20-year mortgage can be one way of reaching that goal more quickly.

15-Year Mortgage Rates

What Is a 15-Year Mortgage?

Like 30- and 20-year mortgages, the 15-year mortgages covered here have fixed monthly payments. Those payments will be higher, but the loan will be paid off faster and you'll save on interest in total.

Who Should Consider a 15-Year Mortgage?

If you can afford the payments on a 15-year mortgage, it could be a good choice. It would also make sense if you want to pay off your loan on a shorter time frame than 20 or 30 years.

10-Year Mortgage Rates

What Is a 10-Year Mortgage

Finally, some lenders also offer 10-year mortgages, typically the shortest fixed-rate loan available to home buyers. The same principle applies as with the other loans described above: a shorter term means larger monthly payments but less interest in total by the time the loan is paid off.

Who Should Consider a 10-Year Mortgage?

Again, this is largely a question of how large a monthly payment you can comfortably afford. If you have the cash to spare, a 10-year loan will be a money saver in the long term. It could also make sense if you're in a hurry to own your home free and clear.

If you're in the fortunate position of being able to afford a 10-year mortgage, you might also consider simply paying cash for the home and avoiding interest and other mortgage-related costs altogether.

Compare Mortgage Payments for 30-Year, 20-Year, 15-Year, and 10-Year Mortgages

Trends in Mortgage Rates: Will They Continue Falling?

Trends in mortgage rates are influenced by complex factors, such as the Federal Reserve's interest rate policy, employment rate, the Consumer Price Index, and the yields of 10-year treasury bonds. Mortgage rates are not directly tied to any of these factors but are indirectly influenced by their current levels and consensus predictions on how they will trend in the near future.

Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as:

• The level and direction of the bond market, especially 10-year Treasury yields
• The Federal Reserve's current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
• Competition between mortgage lenders and across loan types

Because any number of these can cause fluctuations simultaneously, it's generally difficult to attribute the change to any one factor.

Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic's economic pressures. This bond-buying policy is a major influencer of mortgage rates.

But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable monthly reductions until reaching net zero in March 2022.

Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it doesn't directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.

But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.

The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But on Sept. 18, the central bank announced the first rate cut in what was expected to be a series of decreases in 2024 and into 2025. This first reduction was by 0.50 percentage points, and the second and third cuts were 0.25% each in November and December. Up to three rate cuts are expected in 2025, but the Fed held rates steady at its most recent meeting on Dec. 18.

The Fed's next rate announcement will be made on Mar. 19.

What Is a Mortgage and How Does It Work?

A mortgage is a legal contract between a borrower and a lender, such as a bank or credit union, that's typically used for the purchase or refinancing of a home or other form of real estate.

The lender makes a certain sum of money available, which the borrower agrees to pay back, along with interest, in regular monthly payments over a specified term, such as 30 years. In the meantime, the property serves as collateral for the loan, and the lender has a legal right to seize and sell it of the borrower fails to make the required payments.

In most instances, lenders will also require a borrower to make an upfront down payment, such as 10% or 20% of the home's purchase price, and the lender will provide the rest of the money. The larger the down payment the borrower can afford to make, the less they will need to borrow.

Mortgage contracts come to an end when the loan is fully paid off. If the borrower sells their home before the end of the loan term, the lender will receive the remaining balance it is owed at the real estate closing.

Without mortgages most people, except for the very wealthy, wouldn't be able to afford their own homes.

Types of Mortgages

Many types of mortgages are available to home buyers today. Two major categories are fixed-rate mortgages, the kind covered here, and adjustable-rate mortgages (ARMs). Adjustable mortgages often start with a fixed rate for a certain number of years, after which the rate will vary based on prevailing rates in the financial markets.

Among fixed-rate mortgages, the two major types are conforming loans and non-conforming loans. Many lenders offer both types.

Conforming loans "conform" to the rules set by Freddie Mac and Fannie Mae, two government-sponsored entities that purchase loans from lenders and package them into securities for sale to investors. This frees up the lenders' capital, allowing them to make more loans. It also results in loans being available to more would-be home buyers, the reason that Freddie Mac and Fannie Mae were created.

Conforming loans tend to have the most competitive interest rates. They also have dollar limits—$806,500 in most parts of the U.S. as of 2025. Borrowers who need more money can apply for non-conforming loans, often called jumbo loans, which typically carry higher interest rates.

While the U.S. government doesn't make loans itself, it does guarantee certain loans issued by private lenders. Those include Federal Housing Administration (FHA) loans for low- and moderate-income borrowers and VA loans for veterans and active service members.

Mortgage Options for First-Time Homebuyers

If you're a first-time home buyer without a lot of cash available for a down payment, or if you have a lowish credit score, an FHA or VA loan might be your best option if you qualify. FHA loans require down payments as low as 3.5%, while VA loans are available with 0% down. Both also have comparatively low interest rates.

One small downside of FHA loans is that they require borrowers to pay mortgage insurance premiums (MIPs) both upfront and on an ongoing basis, adding to their costs. VA loans don't have that requirement.

If you have a relatively good credit score and can afford a down payment of, say, 10% or more, you'll find many options in the broader market for conforming mortgages. If you can afford to put down 20% or more you won't have to pay for private mortgage insurance (PMI).

Note that many banks and credit unions offer all of these different kinds of mortgages, so a loan officer there should be able to acquaint you with your various options and point you in the right direction.

The Difference Between Interest Rate and APR

When you're shopping for a mortgage or any other type of loan, you might see two types of interest rates advertised: the nominal interest rate and the annual percentage rate (APR). The former only accounts for the interest that the lender plans to charge, The latter includes both that and any other fees associated with the loan, expressed as an annual cost.

In other words, APR more accurately reflects how much you'd have to pay on a particular mortgage. For that reason, it is the most useful number to look at when comparing two or more loans.

How Are Mortgage Rates Set?

Mortgage rates at any given time are based on the prevailing rates in the bond markets, which can rise and fall based on inflation and other factors in the wider economy.

Lenders start with a benchmark, such as the going rate on 10-year U.S. Treasury notes. On top of that they will add a spread to account for their costs and risks and to ensure themselves of a profit. For example, if 10-year Treasury notes are yielding 5%, a lender might set its interest rate on a 30-year mortgage at 7%.

In addition, lenders may change different rates to different individuals. Someone with a relatively low credit score (if they qualify at all) is likely to pay a higher rate because the lender will increase the spread to account for their higher perceived risk.

How to Get the Best Mortgage Rates

Because interest rates can vary from one lender to another, it's always worth shopping around. Even a small difference in rates can add up to real money over time. Here are the steps to take to avoid overpaying:

1. Compare multiple lenders' rates based on APRs, not nominal interest rates. This will give you a truer picture of what you'd pay with each lender.
2. Check your credit reports and credit scores before you apply. You can obtain both for free, the former at AnnualCreditReport.com and the latter from many banks and credit card companies.
3. If you find any errors in your credit reports that put you in a bad light, ask that they be corrected before you apply.
4. If your credit score is in need of improvement, consider delaying your application for a few months, while you work to raise it.
5. Check your debt-to-income ratio (DTI). A metric commonly used by lenders, DTI compares your monthly credit obligations to your monthly income. Mortgage lenders generally want to see a DTI of 43% or less to make sure you aren't getting in too deep.
6. Consider a larger down payment of you can afford it. That reduces the lender's risk, so they'll often offer you a lower interest rate in return.
7. Know that mortgage rates can be negotiable, especially in a competitive market. It never hurts to ask for a lower rate or some other financial concession from the lender.

How Do I Qualify for Better Mortgage Rates?

To recap some of the tips in the previous section:

• Shop around.
• Consider as large a down payment as you can afford.
• Know where you stand in terms of creditworthiness.
• Correct any damaging errors in your credit report.
• Take time to improve your credit score if necessary.
• Same for your debt-to-income ratio.
• Ask for a better rate—you might just get it.

How to Apply for a Mortgage

You can apply for a mortgage in person or online. Generally, a mortgage application will ask for information about both you and the property you're buying. That's likely to include:

• Basic personal information
• Your current address, marital status, and any dependents
• Your Social Security number and date of birth
• Whether you're applying as an individual or jointly, such as with a spouse or other co-borrower
• Where you currently work and how much you earn there
• Details on your personal finances
• Your financial assets, such as bank and investment accounts and any other real estate you own
• How much you currently owe on other loans, such as car, student, or personal loans and any outstanding credit card balances
• Description of the property you're planning to buy
• Where it's located and what kind of property it is (single family house, condo, etc.)
• The asking price or price you've already negotiated and how much you wish to borrow
• Whether you intend to live there or use it as an income-producing rental property

How to Refinance Your Mortgage

Refinancing a home—taking out a new mortgage to pay off and replace your old one—may be a bit easier, since you've been through the mortgage process before. But again you'll want to shop around, compare costs, and not assume that refinancing with your current lender is necessarily the best option. Here's the basic process:

First, determine if refinancing makes sense. That will depend to a large extent on whether you can get a significantly lower interest rate than you now have or if you can get a shorter-term mortgage for the amount you're currently paying each month. Bear in mind that refinancing has its own set of closing cost and other fees.

Check your credit. Just like the first time you got a mortgage, it pays to check your credit reports and credit score before you apply, correct any errors, and try to improve your score if necessary. Unless you've run into financial difficulties since you bought your home, you're likely to be a better risk now from the lender's perspective, since you'll have a substantial record of timely monthly payments on your record. Plus you've built up some equity in the home, which lenders also like to see.

Consider all your options. As with first mortgages, refinancing can take a variety of forms, from a regular mortgage to a cash-out refinancing, which allows you to tap a portion of your home equity for other purposes.

Frequently Asked Questions (FAQs)

Why You Should Trust Us

Investopedia collects the best rates on actual closed mortgages from more than 200 companies every business day to identify the most competitive rates and terms in the nation as well as in the states in which our readers reside. Investopedia launched in 1999, and has been helping readers find the best mortgage rates since 2021.

How We Track the Best Mortgage Rates

To assess mortgage rates, we first needed to create a credit profile. This profile included a credit score ranging from 700 to 760 with a property loan-to-value ratio (LTV) of 80%. With this profile, we averaged the lowest rates offered by more than 200 of the nation’s top lenders. These rates represent what real consumers will see when shopping for a mortgage. 

The same credit profile was used for the best state rates map. We then found the lowest rate currently offered by a surveyed lender in that state. 

Remember that mortgage rates may change daily, and this average rate data is intended for informational purposes only. A person’s personal credit and income profile will be the deciding factors in what loan rates and terms they can get. Loan rates do not include amounts for taxes or insurance premiums, and individual lender terms will apply. 

Your Guide to Mortgage Rates

• What Is a Mortgage?
• Mortgage Calculator
• How to Apply for a Mortgage
• How to Find the Best Mortgage Rates
• How to Choose a Mortgage
• Best Jumbo Mortgage Rates
• Best Mortgage Refinance Companies