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Thinking about getting a mortgage soon and want to know how rates are trending? See where 30-year mortgage rates are today and if a 30-year mortgage makes sense for you.
What are 30-year mortgage rates?
The 30-year fixed-rate mortgage is by far the most popular type of home loan. Because the terms on these mortgages are so long, borrowers who get a 30-year mortgage enjoy low monthly payments — though they'll ultimately pay a lot in interest over the life of the loan.
Your mortgage rate has a direct impact on how much you'll pay each month for your home. Average rates change from day to day and even hour to hour based on larger economic trends. The rate you pay depends on both those larger economic factors as well as your individual financial circumstances.
Current 30-year mortgage rate trends
In December, 30-year mortgage rates averaged 6.42%, according to Zillow data — down 14 basis points from the month before. But rates have gone up recently and have been hovering in the high 6% range this month.
Mortgage rates are expected to go down this year, but they've been elevated recently thanks to stubborn inflation.
30-year mortgage rates today
Check out the latest new mortgage and mortgage refinance rates to see how today's 30-year mortgage rates compare.
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Factors influencing 30-year mortgage rates
Federal Reserve policies
The Fed can have a big, if indirect, impact on mortgage rates.
The Fed makes changes to the federal funds rate to either encourage or slow economic growth. When the Fed lowers this rate, the price to borrow money generally goes down, boosting economic activity. When the Fed raises this rate, the price to borrow goes up, curbing economic activity.
Mortgage rates aren't directly linked to the federal funds rate, but they're often pushed up or down based on how investors expect Fed moves to impact the broader economy.
Inflation
When inflation is high, the Fed tries to control it by increasing interest rates. That puts upward pressure on borrowing costs across the board. Everything from mortgages to credit cards and auto loans ends up costing more.
Bond market movements
Mortgage rates are heavily influenced by investor demand for mortgage-backed securities. MBSs and bonds are generally considered to be safer investments and thus attract similar investors, so you can get an idea of where mortgage rates might be headed based on how the bond market is trending.
Mortgage rates typically follow the yield on a popular government bond called the 10-year Treasury.
Property location and type
Mortgage rates vary by state, so depending on where you live, you could end up with a higher or lower rate.
Rates also vary depending on how you plan to use the property you're buying. Rates for primary residences are lower compared to rates for second homes or vacation properties.
Your own finances
If your finances indicate you're a risky borrower, you'll likely be charged more to get a mortgage. Lenders will look at your credit score, debt-to-income ratio, and down payment when determining your rate.
Comparing 30-year mortgage rates
30-year vs. 15-year mortgage rates
The 15-year fixed-rate mortgage is another popular loan term, and it's a good choice if you want to pay your mortgage off faster and spend less on interest over the life of your loan. Average 15-year mortgage rates are lower than rates on mortgages with longer terms.
To see the difference between what you'd pay on a 30-year mortgage compared to a 15-year mortgage, take a look at this example for a $250,000 loan, using average interest rates for the week of January 2, according to Freddie Mac data:
| Type of mortgage | 30-year fixed-rate | 15-year fixed-rate |
| Interest rate | 6.91% | 6.13% |
| Monthly payment | $1,648 | $2,127 |
| Total interest paid | $343,342 | $132,903 |
As you can see, the 30-year fixed-rate mortgage has a significantly lower monthly payment. However, you'll pay a lot more in interest over the life of the loan than you would with a 15-year fixed-rate mortgage.
Should you get a shorter mortgage term?
If you're unsure of whether you should get a 30-year mortgage or a 15-year mortgage, think about how much you can realistically afford each month and how different term lengths fit into that.
"The monthly payment on a 15-year fixed is quite a bit higher than a 30-year one as you are paying off the mortgage in half the time," says Melissa Cohn, regional vice president at William Raveis Mortgage. "If you can comfortably afford a 15-year mortgage, then you should consider it."
But the low monthly payment and flexibility of a 30-year mortgage can be hugely beneficial for borrowers.
"Many people get hung up on paying off their mortgage faster," says Paul Gabrail, host and founder of the YouTube channel Everything Money. "Yes, your rate will be lower on a 15-year, however, the 30-year gives you more flexibility if you are ever tight on cash."
By keeping your mortgage payment low, you'll also have more cash to save for retirement, Gabrail says. And you can make extra payments if paying off your mortgage early is important to you.
"Remember, you can always pay down extra on a 30-year mortgage if you choose," he says.
Another big benefit of a 30-year mortgage is that you'll be able to afford more house. If you're having trouble finding homes in your price range with a 15-year mortgage, you might want to consider going with a 30-year instead.
This chart shows how 30-year and 15-year rates have trended over the last year, according to Freddie Mac data.
30-year conventional rates vs. government-backed mortgage rates
Most borrowers get a conventional loan, which means the mortgage isn't backed by a federal agency. But government-backed mortgages are also very popular, and they may be a good choice for first-time or low-income borrowers.
Government-backed mortgages, which include FHA, VA, and USDA loans, typically come with lower mortgage rates compared to conventional loans since their government backing makes them less risky for lenders.
If you need to borrow a large amount of money, you can get a type of conventional loan called a jumbo loan. These are mortgages that exceed the conforming loan limit ($806,500 in 2025). Jumbo loan rates can be comparable to rates on conforming loans, but it depends on the details of your loan.
30-year fixed rates vs. adjustable mortgage rates
An adjustable-rate mortgage (ARM) keeps your rate steady for a certain number of years and then adjusts periodically. For example, with a 7/1 ARM, your rate will stay the same for the first seven years you have the loan. Then, it will adjust once every year, going up or down depending on where current mortgage rates are.
ARMs sometimes have better rates than 30-year fixed-rate mortgages. But the trade-off is that your rate (and your monthly payment) can go up over time.
The pros and cons of 30-year fixed mortgages
Pros
- If mortgage rates increase, then you keep your low rate. Unlike an adjustable mortgage, a fixed mortgage locks in your rate for the entire life of your loan.
- Make low monthly payments. Payments on 30-year mortgages are low compared to shorter terms, because you're spreading payments out over a longer period of time.
- Predictable payments can make it easier to plan a budget. Your interest rate will stay the same from year to year, which could make it easier for you to plan out your monthly expenses overall.
- You may be able to borrow more. With a longer term, you could be approved for a larger loan compared to a shorter term.
Cons
- If mortgage rates decrease, then you're stuck with the higher rate. Locking in your rate for 30 years means you don't benefit should rates go down later.
- Shorter terms offer lower rates. You may prefer a 20-year or 15-year fixed term if you can afford higher monthly payments, because you'll land a lower rate.
- You'll pay more in interest in the long term. A higher rate isn't the only reason you'll pay more with a 30-year term than with a shorter term. Your interest has more time to accumulate, so interest payments add up over time.
How to secure the best 30-year mortgage rate
Improve your credit
Lenders take your financial profile into consideration when determining an interest rate. The better your finances are, the lower your rate will be.
- Credit score: Most mortgages require a minimum 620 credit score, and an FHA loan lets you get a mortgage with a 580 score. But the higher your score is, the better. To improve your score, make debt payments on time, pay down debts, and let your credit age.
- Down payment: Depending on which type of mortgage you take out, a lender might require anywhere from 0% to 20% for a down payment. But the higher your down payment is, the lower your rate will likely be.
- Debt-to-income ratio: Your DTI is the amount you pay toward debts each month in relation to your monthly income. You generally can't get a mortgage with a DTI above 50%, and you can land a lower rate with a lower DTI ratio. To decrease your DTI ratio, you either need to pay down debts or earn more money.
Shop around to compare rates
Some lenders have higher average rates, while others have lower rates. The only way to find out which lender can offer you the best rate is to get preapproved with a few different lenders.
As you compare rates, make sure you're looking at similar offers. Ask if your rate includes points. Mortgage points, or discount points, enable you to lower your rate by paying a fee at closing. But if you're comparing rates with points to rates with no points, you're not going to get an accurate idea of which one is more affordable.
Be aware of other loan costs, too. The APR tells you the cost of both the interest rate and any fees you'll pay. You can also look at your loan estimate for a breakdown of your anticipated closing costs.
Look at rate forecasts
Having a strong financial profile can make a big difference in the mortgage rate you'll pay, but so will the larger economic factors that impact average rates.
If you're flexible on when you get your mortgage, check out the latest mortgage rate forecasts to see if rates are likely to rise or fall soon. You can also get an idea of where rates might go in the near future by keeping an eye on the latest economic data and seeing whether the Fed is expected to raise or lower rates at its coming meetings.
Consider buying mortgage points
Buying mortgage points to lower your rate could be worth it, depending on how long you plan to stay in the home. Though they'll increase your upfront costs, you'll save money every month with a lower mortgage payment.
Whether you should buy points or not depends on how long it will take you to recoup your upfront costs.
Lock your rate
When you're approved for a mortgage, you may have the opportunity to lock your rate. Locking your mortgage rate keeps it from changing before closing. Because mortgage rates fluctuate every day, locking your rate can help you secure a low rate while you're going through the homebuying or refinancing process.
You may need to pay a fee to lock your rate, and they typically only last between 30 and 60 days, depending on the details of your rate lock. If you lock your rate and average rates go down, you may have the option to "float down" your rate, but you'll likely need to pay to do so.
If you're not sure whether you should lock your rate, talk with your loan officer and see what they think makes the most sense. You can also keep an eye on rate trends and where experts think mortgage rates could go in the near term.
Is a 30-year fixed mortgage a good fit for you?
You'll probably like a 30-year fixed mortgage if you want relatively low monthly payments.
You might prefer a shorter term if you want to be aggressive about paying off your mortgage faster, and if you can afford higher monthly payments. If you're refinancing, you might consider a 15-year mortgage refinance to lower your interest costs.
You don't necessarily need to stay in a home for 30 years to benefit from a 30-year mortgage. Even if you plan to move in a few years, you can benefit from the low monthly payments.
You may prefer an ARM if you can get a significant discount compared to current fixed rates, but be sure to understand how much your monthly payment could increase down the road when the rate adjusts.
Planning to get a mortgage soon? Here's how to prepare
If you're thinking about starting the homebuying process, here are some things you can do to get yourself ready and make sure you're financially prepared.
Use a mortgage calculator to figure out how much house you can afford
Don't go into the process without understanding what a realistic homebuying budget looks like for you. A mortgage calculator can help with this.
Mortgage Calculator
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
You want to make sure your monthly mortgage payment fits into your current budget without stretching it.
Check out first-time homebuyer programs and down payment assistance
See what first-time homebuyer mortgages and assistance programs are available to you.
Your state's housing finance agency may offer a type of mortgage called an HFA loan that comes with competitive interest rates and down payment assistance in the form of a grant or loan.
Many lenders now offer various forms of assistance for new homebuyers, too. You may be able to get a mortgage with just 1% down, lender credits to lower your closing costs, and more.
Learn about your loan options
In addition to deciding whether you want a 30-year fixed-rate mortgage or another term length, you'll also need to choose what type of mortgage you want. The most popular mortgages are:
- Conventional loans: These require just 3% down, but you'll need a credit score of at least 620 to qualify.
- FHA loans: FHA loan requirements are less stringent compared to other types of mortgages, so you could qualify for one of these loans even if you have a lower credit score. They also allow 3.5% down payments.
- VA loans: If you're eligible for a VA loan, you could get into a home with 0% down. But they're only available to veterans and military members. Credit score requirements vary by lender.
- USDA loans: These mortgages also allow 0% down payments and are available to borrowers in rural and suburban areas. Credit score requirements vary by lender.
- Jumbo loans: If you need a larger loan that exceeds the conforming loan limit, you'll get a jumbo loan. You'll need a good credit score and a large down payment to qualify.
Find a real-estate agent near you
A good real-estate agent will guide you through the process, help you find a home that works for you, and ensure things go smoothly as you prepare to close. Ask friends or neighbors for recommendations, or search online to find highly-rated agents near you.
Explore the best mortgage lenders
The best mortgage lenders rank high in customer satisfaction, offer affordable rates and fees, and have beneficial features like down payment assistance or an easy-to-use online application.
If you know what type of mortgage you want, make sure the lenders you're considering offer it. If you aren't sure what mortgage is best for you, you might want to reach out to a lender that offers many different types of loans to better understand what your options are.
Refinancing a 30-year mortgage
Homeowners can refinance their mortgages to get a lower rate, shrink their monthly payments, pay off their loans more quickly, or borrow from their equity.
Refinancing replaces your current mortgage with a new loan. You'll get a new rate and, if you want, you can refinance into a different term length (from a 30-year mortgage into a 15-year mortgage, for example).
The benefit of refinancing into a 30-year mortgage is that it spreads out your loan balance over 30 years, potentially lowering your monthly payment. However, you could end up paying a lot more in interest as a result.
Refinancing into a fixed-rate loan can be a good move if you have an ARM and your rate is about to adjust.
The process of refinancing is very similar to getting a mortgage to purchase a home. The funds from your refinance will be used to pay off your existing mortgage, and you'll make payments on the new mortgage going forward.
Check out the latest 30-year refinance rates to see how these interest rates are currently trending.
30-year mortgage rates FAQs
Average 30-year mortgage rates are higher today than they've been in recent months, but they're expected to trend down this year.
A good 30-year mortgage rate varies over time, depending on current economic conditions. Check out the latest average rates and compare that to any rate quotes you're given from lenders to see if you're getting a good rate.
If you want to work with a specific lender but you're able to get a better rate elsewhere, you may be able to convince that lender to match the lower rate in order to keep your business.
Mortgage rates can change daily or even hourly based on movements in the bond market, expectations around Federal Reserve policy moves, and how the overall economy is trending.
A lower rate typically results in less interest paid over the life of the loan, but you should also consider the overall cost of the mortgage. Sometimes, lenders may offer low rates but compensate with high fees.
Generally speaking, the larger your down payment, the lower your rate. Large down payments decrease your loan-to-value ratio and reduce the amount of risk the lender is taking on, meaning it may be able to offer you a lower rate as a result.
What's a Zestimate?
