Compare Current Mortgage Rates Today

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Average market rates for 12-02-2023 are 7.101% for 30 Year Fixed Purchase and 7.222% for 30 Year Fixed Refinance

12-02-202330 Year Fixed Purchase7.101%
12-02-202330 Year Fixed Refinance7.222%

Mortgage Rates for Conventional Purchase Loans

12-02-202330 Year Fixed Purchase7.101%
12-02-202320 Year Fixed Purchase6.861%
12-02-202315 Year Fixed Purchase6.311%

Mortgage Rates for Conventional Refinance Loans

12-02-202330 Year Fixed Refinance7.222%
12-02-202315 Year Fixed Refinance6.304%

Mortgage Rates for Non-Conforming (Jumbo) Loans

12-02-202330 Year Fixed Jumbo Purchase7.574%
12-02-202330 Year Fixed Jumbo Refinance7.601%
12-02-202315 Year fixed Jumbo Purchase6.915%
12-02-202315 Year fixed Jumbo Refinance6.904%

Mortgage Rates for Government-Backed Loans

12-02-2023FHA 30 Year Fixed Purchase6.273%
12-02-2023USDA 30 Year Fixed Purchase6.694%
12-02-2023VA 30 Year Fixed Purchase6.412%

How we source rates and rate trends

How Mortgage Rates Work

When setting out to get a home loan, getting a low mortgage rate is often the #1 thing on their list. 

Several factors affect your ability to get a low mortgage rate. Your credit score, for one. Your down payment, the property you’re buying, the loan length, how much you borrow, and even when and where you’re borrowing can all play a role in determining what sort of home loan interest rates you can obtain.

Finding the best mortgage rates is only one piece of the puzzle when shopping for a home loan. Other factors, such as closing costs and the type of mortgage, will also affect your overall costs.

The following are tips on how to get the best mortgage rate you can, followed by short explanations of the main things that affect the mortgage rate you’ll pay.

Factors that Determine Mortgage Rates

Several factors can influence the interest rate you receive on a mortgage:

  • Economic Conditions: Generally, during periods of strong economic growth, demand for credit often increases, which can drive up interest rates, including mortgage rates. Conversely, in times of economic downturn, demand for credit may decrease, and central banks may lower interest rates to stimulate borrowing and spending, leading to lower mortgage rates.
  • Federal Reserve Actions: The actions and policies of the Federal Reserve (FED), such as raising or lowering the federal funds rate, heavily influence mortgage interest rates. In the current economy, the FED’s decision to raise the federal funds rate to combat inflation is causing lenders to charge higher interest rates. 
  • Inflation: Inflation erodes the purchasing power of the dollar over time. When inflation is high, the money lenders get repaid is worth less than when it was lent out. In times of high inflation, lenders generally charge higher interest rates to compensate for the loss in purchasing power, which translates to higher mortgage rates.
  • Credit Score: Credit score plays an enormous factor in interest rates. Lenders use your credit score to gauge the risk of lending to you. A higher score usually means a lower mortgage rate.
  • Loan Type and Duration: Different types of loans, like fixed-rate or adjustable-rate, and the length of the loan can affect the rate. For example, fixed-rate mortgages tend to have higher interest rates than adjustable-rate mortgages initially, but adjustable rates can increase over time.

APR and Mortgage Rates

The Annual Percentage Rate (APR) is a more comprehensive measure of the cost of borrowing. APR encompasses the mortgage rate and other costs associated with the loan. Other costs typically include lender fees, discount points and closing costs. APR is expressed as a percentage, similar to the mortgage rate, but it will be higher than or equal to your mortgage rate due to the inclusion of these additional costs.

Comparing Lenders and Mortgage Rates

APR encompasses the interest rate and other costs associated with the loan, such as lender fees, mortgage insurance, and closing costs. It represents the true annual cost of borrowing, expressed as a percentage.

Comparing lenders using the APR rather than just the basic mortgage rate offers a clearer insight into the true cost of the loan.

Tips to Get the Best Mortgage Rate

Securing a mortgage is a significant financial commitment, and even a small difference in interest rates can result in thousands of dollars saved or spent over the life of the loan. Here are some strategies and considerations to keep in mind as you navigate the mortgage process:

  • Improve Your Credit Score: Paying bills on time, reducing debt, and checking your credit report for errors can boost your score.
  • Shop Around: Different lenders might offer different rates. Consider shopping multiple lenders to understand their rates, costs and fees.
  • Consider Different Loan Types: Different loan types may offer better rates depending on the economic environment and your circumstances. For example, VA loan rates typically land below conventional.
  • Review Closing Costs: When comparing loan offers, don’t just look at the mortgage rate. Consider the closing costs as well.

With these tips and a better understanding of the factors that influence mortgage rates, you’ll be well-equipped to secure a favorable mortgage rate and save money over the life of your loan.