How mortgage rates are measured
The rates on this page come from Freddie Mac's Primary Mortgage Market Survey® (PMMS), the most widely quoted weekly measure of U.S. mortgage rates. Freddie Mac publishes new averages every week, usually on Thursday. They describe a typical borrower with strong credit who puts 20% down on a conventional loan to buy a home.
Why your rate may be different
- Credit score – borrowers with lower scores usually pay higher rates.
- Down payment – putting less than 20% down can mean a higher rate plus mortgage insurance.
- Loan type and size – FHA, VA, jumbo and adjustable-rate loans are priced differently.
- Points and fees – paying discount points lowers the rate. Compare offers by APR, which includes fees.
- Lender – rates vary between lenders on the same day, so get several quotes.
What moves mortgage rates
Thirty-year mortgage rates tend to follow the 10-year Treasury yield, which reacts to inflation, economic growth and Federal Reserve policy. When investors expect higher inflation or stronger growth, yields and mortgage rates usually rise. When they expect the economy to slow, rates usually fall.
Frequently asked questions
What is a good mortgage rate right now?
A rate at or below this week's national average is generally competitive for a borrower with strong credit. Compare at least three lender quotes on the same day and look at the APR, which includes fees.
How much does a 1% lower rate save?
On a $300,000, 30-year fixed loan, the monthly principal and interest payment is about $1,996 at 7% and about $1,799 at 6%. That is roughly $197 a month, or about $71,000 over the life of the loan.
When are mortgage rates updated?
Freddie Mac usually publishes new averages on Thursdays. This page updates automatically after they are released.