Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type (2024)

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.

Interest rates for the most popular 30-year fixed mortgage averaged around 6.58% in June 2024, according to Zillow data. Rates for 15-year mortgages, which are also relatively popular, were 5.94%. Rates have been trending lower this month.

The average monthly mortgage payment is currently $2,883 for a 30-year fixed mortgage, based on recent home price and mortgage rate data.

Mortgage rates are always changing, and there are a lot of factors that can sway your interest rate. Some of them are personal factors you have control over and some aren't.

Most experts believe that mortgage rates will go down in 2024, though it may take a while for affordability to noticeably improve.

Average mortgage rates today

See how mortgage rates are trending today.

Mortgage type Average rate today

This information has been provided by Zillow. See more mortgage rates on Zillow

While average mortgage and refinance rates can give you an idea of where rates are currently at, remember that they're never a guarantee of the rate a lender will offer you. Mortgage interest rates vary by borrower, based on factors like your credit, loan type, and down payment.

To get the best rate for you, you'll want to get quotes from multiple lenders.

How are mortgage rates determined?

Multiple factors affect the interest rate you'll pay on a mortgage. Some are outside of your control. Others you can influence.

Individual factors influencing mortgage rates

Key determining factors that you do have control over include:

  1. Your credit score
  2. Debt-to-income ratio
  3. The amount of your down payment
  4. The type of mortgage you get
  5. The length of your term

Role of the economy and government policies

No matter how good your finances are, you won't be able to get a rate that's dramatically lower than average. Rates are determined in large part by economic trends and how those trendsaffect investor demand for mortgage-backed securities.

When there's a lot of economic growth, mortgage rates typically go up. In recent years, high inflation has pushed mortgage rates up. Whengrowth is cooler, rates often go down.

Federal Reserve policy can also influence mortgage rates. When the Fed raises or lowers the federal funds rate, mortgage rates can move up or down as well based on how investors believe Fed changes will impact the broader economy.

Average mortgage rate trends

Comparison with previous years

Here's how the average mortgage interest rate has changed over time, according todata from Freddie Mac.

YearAverage 30-year fixed mortgage rate (January)
20008.15%
20017.07%
20027.14%
20035.85%
20045.87%
20055.77%
20066.15%
20076.18%
20086.07%
20096.01%
20105.09%
20114.77%
20123.87%
20133.34%
20144.53%
20153.73%
20163.97%
20174.20%
20183.95%
20194.51%
20203.72%
20212.65%
20223.22%
20236.48%
20246.62%

Throughout 2020, the average mortgage rate fell drastically due to the economic impact of the COVID-19 pandemic. Thirty-year fixed mortgage rates hit a historic low of 2.65% in January 2021, according to Freddie Mac. Rates began to rise again in 2022.

Most major forecasts expect rates to start dropping throughout the next few years, and they could ultimately end up somewhere in the 5% range.

Mortgage rates by state

Rates can vary depending on where you live. Check the latest rates in your state at the links below.

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowa KansasKentuckyLouisianaMaine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota TennesseeTexas Utah Vermont Virginia Washington Washington, DC West Virginia Wisconsin Wyoming

Rates by type of mortgage

Purchase mortgage

The rates you'll get on a mortgage used to purchase a home are often better than what you'll be quoted for a refinance. They differ by the loan's length in years, and whether the interest rate is fixed or adjustable. Two of the most popular types include:

  • 30-year mortgage rates: The most popular type of mortgage, this home loan makes for low monthly payments by spreading the amount over 30 years.
  • 15-year mortgage rates: Interest rates and payments won't change on this type of loan, but it has higher monthly payments since payments are spread over 15 years. However, it comes with lower rates than a 30-year loan.

Mortgage refinance

Mortgage refinance rates typically differ somewhat from purchase rates, and may be slightly higher — particularly if you're getting a cash-out refinance, since these are considered riskier.

If you're considering a refinance, be sure to shop around with the best mortgage refinance lenders and get multiple rate quotes to be sure you're getting the best deal.

  • 30-year mortgage refinance rates:Refinancing into a 30-year term can lower your monthly payment since you're spreading out what you owe over a longer period of time.
  • 15-year mortgage refinance rates:Refinancing into a shorter term like a 15-year mortgage will increase your monthly payment, but help you save on interest.

Home equity line of credit (HELOC) and home equity loans

HELOC rates and home equity loan rates are generally a little higher than rates on first mortgages, but they can still be worth it if you're looking to tap into your home's equity without having to take on a new rate on your main mortgage.

As with other types of mortgages, you'll want to shop around and get multiple rate quotes to find the best HELOC lenders or home equity loan lenders.

Average rate by credit score

Data from credit scoring company FICO shows that the lower your credit score, the more you'll pay for credit. Here's the average interest rate by credit level for a 30-year fixed-rate mortgage of $300,000, as of July 2024:

FICO ScoreNational average mortgage APR

620 to 639

8.036%

640 to 659

7.490%

660 to 679

7.060%

680 to 699

6.846%

700 to 759

6.669%

760 to 850

6.447%

According to FICO, only people with credit scores above 660 will truly see interest rates around the national average.

Impact of mortgage rates on homebuyers

How rates affect affordability and buying power

Snagging a lower rate can enable you to borrow more money, boosting your homebuying power.

For example, say you can afford to spend $2,000 per month on your mortgage payment (not including taxes and insurance). With a rate of 7%, you could borrow around $300,000. But with a 4% rate, you could afford to borrow as much as $400,000.

Strategies for buying in varying rate environments

If you're buying when rates are high, you'll need to adjust your homebuying plans accordingly. You might need to lower your price range or make a larger down payment to achieve an affordable monthly payment.

You should also be careful about overspending in a low rate environment. Though you may be able to borrow a larger amount with a low rate, make sure you aren't stretching your budget too far. You don't necessarily need to borrow the full amount the mortgage lender approves you for.

How to get the best mortgage rate

Tips for locking in the best rates

One of the best ways to score a good rate is to get approved with two or three different lenders and compare the rates they offer you.

If you're having trouble getting a good rate, you might want to work on improving your credit or saving for a larger down payment and reapply later.

The importance of credit scores and down payments

Your credit score can greatly affect the price you'll pay to borrow a mortgage.

See Insider's picks for the best mortgage lenders »

The higher your score is, the less you'll pay to borrow money. Generally, 620 is the minimum credit score needed to buy a house, with some exceptions for government-backed loans.

Mortgage rate outlook

Mortgage rates are expected to trend down eventually, but they likely won't recede until inflation decelerates further.

Fannie Mae and the Mortgage Bankers Association predict that 30-year rates will end the year at 6.7% and 6.6%, respectively.

Average mortgage rates FAQs

What factors contribute to average mortgage rates?

Mortgage rates are influenced by economic trends and investor demand for mortgage-backed securities.

What is the average 30-year mortgage rate?

In June 2024, 30-year mortgage rates averaged 6.58%. Rates have been slightly lower in recent weeks.

Are 8% mortgage rates coming?

Average mortgage rates nearly reached 8% in October of 2023, but they've since come down a bit. However, rates can vary a lot depending on your finances. If you have a lower credit score, you could still get a rate that's in or near the 8% range. Rates are expected to decrease this year, so we may not see average rates reach 8%.

Are there benefits to buying a home when average mortgage rates are higher?

If you're planning to buy a house, you might not want to or be able to wait until rates drop. There can be benefits to buying when rates are high. You can often get a better deal on a home, since you won't be up against as much competition.

What credit score gets you the best mortgage rate?

The better your credit score, the better the rate you'll get on your mortgage. To access the best mortgage interest rates, aim to have a credit score at least in the 700s.

How do current average mortgage rates compare to last year?

Mortgage rates are similar to where they were a year ago.

What can potential homebuyers do to get a lower mortgage rate?

To get a lower rate, you'll want to have a great credit score, a large down payment, and a low debt-to-income ratio.

How might average mortgage rates change in the near future?

Mortgage interest rates are expected to fall soon, but when and how much depends on the path of inflation; if price growth continues to slow, rates should fall in the coming months.

Molly Grace

Mortgage Reporter

Molly Grace is a mortgage reporter for Business Insider with over six years of experience writing about mortgages and homeownership.ExperienceIn addition to her daily mortgage rate coverage, Molly also writes mortgage lender reviews and educational articles on homebuying and analyzes data and economic trends to give readers actionable and up-to-date information about the housing market.She also tracks affordable mortgage and down payment assistance programs offered throughout the country to keep her readers informed of homebuyer programs available to them.Before Business Insider, Molly was a blog writer for Rocket Companies and helped to create Rocket Mortgage’s Shorty Award-winning podcast Home. Made.Molly is passionate about covering personal finance topics with empathy. Her goal is to make homebuying knowledge more accessible, especially for groups that may think homeownership is out of reach.ExpertiseMolly is an expert in the following topics:

  • Mortgages and mortgage lenders
  • Home equity
  • The housing market
  • The economy and the forces that impact mortgage rates
  • Budgeting and saving
  • Credit
  • Insurance
  • Retirement savings

EducationMolly earned a bachelor's degree in journalism from Indiana University.She is based in Michigan and has a dog and two cats.

Top Offers From Our Partners

Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type (2)

Chime® Checking Account Set up Direct Deposit and get your paycheck up to 2 days before your coworkers.** No overdraft fees. No monthly fees.

Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. **Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type (2024)

FAQs

What kind of mortgage rate can I get with my credit score? ›

Average mortgage rate by credit score
FICO ScoreNational average mortgage APR
660 to 6796.578%
680 to 6996.364%
700 to 7596.187%
760 to 8505.965%
2 more rows
7 days ago

What interest rate can I get with an 850 credit score? ›

Mortgage rates as of August 7, 2024
FICO® scoreAPRMonthly payment *
760-8505.965%$1,792
700-7596.187%$1,835
680-6996.364%$1,869
660-6796.578%$1,912
2 more rows

What bank has the lowest interest rate for mortgages? ›

Lenders with the best mortgage rates:
  • JP Morgan Chase: 4.81%
  • DHI Mortgage Company: 5.58%
  • State Employees' Credit Union (SECU): 5.79%
  • Navy Federal Credit Union: 6.08%
  • Wells Fargo Bank: 6.12%
  • Citibank: 6.20%
  • Pennymac: 6.29%
  • Cornerstone Home Lending: 6.29%
Jun 12, 2024

What interest rate can I get with an 800 credit score? ›

A credit score of 800 will generally qualify you for a lender's best interest rates. As a real-world example, the average 30-year fixed mortgage interest rate was just over 7% as of late October 2022. However, the average rate paid by a homebuyer whose FICO credit score was 760 or higher was 6.583%.

Which bank gives the lowest interest rate for a home loan? ›

Currently, Union Bank of India and Bank of Maharashtra offer the lowest home loan interest rates, starting from 8.35% p.a. Keep reading to know the home loan interest rates offered by lenders in India in 2024.

What credit score is needed to buy a $300K house? ›

What credit score is needed to buy a $300K house? The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.

Is a 900 credit score possible? ›

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

How many people have a perfect 850 credit? ›

Retire all 27 batters without anyone reaching base and you've pitched a perfect game. And when it comes to credit, 850 is the highest the FICO Score scale goes. For more and more U.S. consumers, practice is making perfect. According to recent Experian data, 1.54% of consumers have a "perfect" FICO Score of 850.

What is the elite FICO score? ›

There are many versions of the FICO score, but in general, here's how the five FICO credit ranges shake out: Exceptional: 800 and above. Very good: 740 to 799. Good: 670 to 739.

How to get a 4% mortgage rate? ›

While the housing market odds are still generally stacked against buyers, you could save more money with a sub 4 percent mortgage rate if you know where to negotiate and how to invest in your home, experts say. The way to ensure you get a mortgage rate under 4 percent is to look out for "assumable mortgages."

How to get a lower mortgage rate? ›

9 steps to get the best mortgage rates
  1. Improve your credit score. Boosting your credit score is a great first step if you're wondering how to get a lower mortgage interest rate. ...
  2. Build a steady employment record. ...
  3. Save up for a down payment. ...
  4. Understand your debt-to-income ratio.
Jul 3, 2024

What is the average American's mortgage payment? ›

The average mortgage payment is $2,883 on 30-year fixed mortgage, and $3,759 on a 15-year fixed mortgage. But the median payment is likely a more accurate measure for many: $1,775 in 2022, according to the US Census Bureau.

How rare is an 800 credit score? ›

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

Will rates go down in 2024? ›

Still, rates might not fall as far as some homeowners hope, as forecasters previously baked in a September rate cut. In fourth quarter 2024 outlooks, Fannie Mae analysts anticipate 30-year rates at 6.7 percent, while the Mortgage Bankers Association predicts 6.6 percent.

What is an excellent credit score for a mortgage? ›

A conventional loan requires a credit score of at least 620, but it's ideal to have a score of 740 or above, which could allow you to make a lower down payment, get a more attractive interest rate and save on private mortgage insurance.

What interest rate can I get based on credit score? ›

Average personal loan interest rates by credit score
Credit scoreAverage loan interest rate
720-85010.73%-12.50%
690-71913.50%-15.50%
630-68917.80%-19.90%
300-62928.50%-32.00%
Aug 7, 2024

What kind of interest rate can I get with a 700 credit score? ›

A Higher FICO Score Saves You Money
700-7596.187 %
680-6996.364 %
660-6796.578 %
640-6597.008 %
620-6397.554 %
3 more rows

What interest rate can I get with a 760 credit score? ›

Average Mortgage Interest Rate by Credit Score
FICO scoreAverage mortgage rate
760+7.21%
700-7597.43%
680-6997.61%
660-6797.82%
2 more rows
May 28, 2024

What kind of interest rate for 750 credit score? ›

Average Mortgage Interest Rate With a 750 Credit Score
Average Mortgage Rates by FICO® Score
FICO® ScoreMortgage APR
760-8502.52%
700-7592.75%
680-6992.92%
3 more rows
Sep 4, 2020

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Msgr. Refugio Daniel

Last Updated:

Views: 5678

Rating: 4.3 / 5 (74 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Msgr. Refugio Daniel

Birthday: 1999-09-15

Address: 8416 Beatty Center, Derekfort, VA 72092-0500

Phone: +6838967160603

Job: Mining Executive

Hobby: Woodworking, Knitting, Fishing, Coffee roasting, Kayaking, Horseback riding, Kite flying

Introduction: My name is Msgr. Refugio Daniel, I am a fine, precious, encouraging, calm, glamorous, vivacious, friendly person who loves writing and wants to share my knowledge and understanding with you.