Compare Current 30-Year Mortgage Rates

Current Mortgage Rate Trends

Mortgage rates fluctuate based on economic conditions, Federal Reserve policy and market demand. Overall, mortgage rates have trended downward in 2025, which has encouraged more homebuyers and existing homeowners to move forward with purchases and refinances as affordability conditions improve.

^*Source: Curinos LLC, October 2025; assumes a 720 FICO^® Score^Θ, $350,000 mortgage
^**Source: Optimal Blue via FRED, October 2025
Notes: Rates can vary by data source; monthly payment calculation uses APR and assumes a $350,000 mortgage and 20% down; jumbo loan payment assumes a balance equal to the conforming loan limit of $806,500

Looking ahead, industry experts expect rates to remain in the mid-to-high range of the recent trend through the remainder of 2025 and into 2026. However, no major forecasters anticipate a return to the historically low rates seen in 2020 and 2021. The pace of any further rate decreases will largely depend on inflation trends, Federal Reserve target rate decisions and overall economic conditions.

Mortgage Rate Trends for the Past 5 Years

Mortgage rates have experienced significant volatility over the past five years. Rates hit historic lows during the pandemic in 2021, with 30-year fixed rates dropping below 3%. However, aggressive rate hikes by the Federal Reserve to combat inflation pushed rates dramatically higher starting in 2022.

By 2023, rates had climbed above 7%. This rapid rise cooled housing demand and slowed home price appreciation in many markets. Throughout 2024 and into 2025, rates have remained elevated compared to the ultra-low rates of the early 2020s, though they've stabilized somewhat as inflation has moderated. The Fed began to cut rates in late 2024 with a series of three cuts that totaled a full percentage point. An additional rate cut was made in September 2025 in the amount of 0.25 percentage points.

The five-year trend below, based on Freddie Mac data, shows how sensitive mortgage rates are to broader economic conditions and monetary policy decisions. Homebuyers who locked in rates below 4% just a few years ago are now seeing rates that are 3 to 4 percentage points higher.

30-Year Mortgage Rate Trends 2020 to 2025

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Check today’s rates to find the best loan offers. Staying updated on current rates helps you secure a competitive mortgage and save more over time.

What Affects 30-Year Mortgage Rates?

Several factors determine the mortgage rates lenders offer. Some are tied to the broader economy, while others depend on your personal financial situation:

• Federal Reserve policy: The Federal Reserve doesn't set mortgage rates directly, but its decisions on the federal funds rate influence borrowing costs throughout the economy. When the Fed raises rates to fight inflation, mortgage rates typically rise as well.
• Economic conditions: Inflation, employment data and economic growth all impact mortgage rates. Strong economic growth and high inflation tend to push rates higher, while economic uncertainty often drives rates lower as investors seek safer assets.
• Bond market activity: Mortgage rates closely track the yield on 10-year Treasury bonds. When bond yields rise, mortgage rates usually follow.
• Credit score: Borrowers with higher credit scores receive lower interest rates because they present less risk to lenders.
• Down payment amount: Putting down a larger down payment typically secures a better rate. A 20% down payment on a conventional loan usually qualifies you for the best rates and eliminates the need for mortgage insurance.
• Loan-to-value ratio: This factor compares your loan amount to the home's value. A lower loan-to-value ratio (LTV) means you're borrowing less relative to the home's worth, which reduces lender risk and can lower your rate.
• Location: Mortgage rates can vary by state due to local market conditions, competition among lenders and state-specific regulations.
• Loan type and term: Government-backed programs like FHA loans and VA loans typically have different rates than conventional loans. The loan term also matters, as 15-year mortgages typically have lower rates than 30-year mortgages.

30-Year Mortgage Requirements

Getting approved for a 30-year mortgage means meeting certain financial standards set by your lender or loan program. Here are some of the main things they'll look for:

• Credit score: Most conventional loans require a minimum credit score of 620, though higher scores (740 and up) can qualify you for the best rates. Government-backed FHA loans may accept scores as low as 580 with a 3.5% down payment or even 500 with a 10% down payment.
• Down payment: Conventional loans typically require a minimum of 3% down. In contrast, FHA loans accept as little as 3.5% down, while VA and USDA loans may offer zero-down options for eligible borrowers.
• Debt-to-income ratio (DTI): Lenders generally want your total monthly debt payments (including the new mortgage) to be no more than 43% of your gross monthly income. That said, some loan programs allow higher ratios with other compensating factors.
• Employment history: Most lenders look for at least two years of steady employment in the same field.
• Income verification: You'll need to provide pay stubs, W-2s, tax returns and bank statements to verify your income and assets.
• Property appraisal: The home must appraise for at least the amount of the proposed mortgage loan to ensure it provides adequate collateral for the loan.
• Reserves: Some lenders require you to have several months of mortgage payments saved in reserve after closing.

Pros and Cons of a 30-Year Mortgage

The 30-year fixed-rate mortgage is the most popular home loan in the U.S., but it's not the right choice for everyone. Consider these advantages and disadvantages to determine if it's the best fit for you.

How to Get the Best 30-Year Mortgage Rate

Even small differences in your mortgage rate can save you thousands of dollars over the life of your loan. Here are strategies to secure the lowest possible rate:

• Improve your credit score. Pay down credit card balances, make all payments on time and avoid opening new credit accounts in the months before applying. Even a modest score increase can lower your rate.
• Save a larger down payment. If possible, aim for at least 20% down to avoid PMI and qualify for better rates. If you can't reach 20%, any increase in your down payment can help.
• Shop multiple lenders. Rate quotes can vary significantly between lenders. Get preapproved with and compare offers from at least three to five lenders, including banks, credit unions and online lenders.
• Consider mortgage points. You can pay discount points upfront to lower your interest rate. One point typically costs 1% of the loan amount and reduces your rate by 0.25 percentage points. This can make sense if you plan to stay in the home long enough to recoup the upfront cost through lower monthly payments.
• Time your application strategically. Pay attention to rate trends and lock in your rate when you're comfortable. Rate locks typically last 30 to 60 days, protecting you from increases during that period.
• Reduce your DTI. Pay off or pay down existing debts before applying for a mortgage. A lower DTI can qualify you for better rates and potentially a more expensive home.
• Choose the right loan program. Compare conventional, FHA, VA and USDA loans to see which offers the best rate for your situation. Government-backed loans sometimes offer competitive rates.

Alternatives to a 30-Year Mortgage

When shopping around for mortgage financing, a 30-year loan is just one of many options to consider. Depending on your financial goals, one of these alternatives might be a better fit for your budget or long-term plans:

• 15-year fixed mortgage: This loan offers lower rates but requires monthly payments that are much higher compared to a 30-year loan. You'll pay significantly less interest and build equity much more quickly.
• 20-year fixed mortgage: This option balances the benefits of both 15-year and 30-year loans with moderate monthly payments and reduced total interest costs. Rates typically fall between the two terms.
• Adjustable-rate mortgage: Adjustable-rate mortgages (ARMs) offer lower initial rates for a fixed period (commonly five, seven or 10 years) before adjusting based on market conditions. They work best if you plan to sell or refinance before rates adjust.
• FHA loans: Backed by the Federal Housing Administration, these loans are designed for homebuyers with lower credit scores and incomes. Note, however, that FHA loans require both upfront and annual mortgage insurance premiums.
• VA loans: Available to active-duty service members, eligible veterans and eligible surviving spouses, loans guaranteed by the U.S. Department of Veterans Affairs offer zero-down financing with no mortgage insurance requirement—though there is an upfront funding fee. They often feature competitive interest rates and more flexible qualification standards.
• USDA loans: For homes in eligible rural and suburban areas, loans backed by the U.S. Department of Agriculture offer zero-down financing to moderate-income buyers. Income limits apply, and the home must be in a USDA-designated area.

The Bottom Line

Choosing the right mortgage means balancing your current budget with your long-term financial goals. While the 30-year fixed mortgage offers stability and affordability, it's worth exploring alternatives to find the best fit for your situation.

Before committing to any mortgage, review your credit report to understand where you stand. Experian offers free credit monitoring and personalized insights to help you improve your credit score and qualify for better rates. A stronger credit profile could save you thousands of dollars over the life of your loan.