Compare current mortgage rates for today

Mortgage rates retreat from 6.5% level

The average rate on a 30-year mortgage fell to 6.40% last week, according to Bankrate's national survey of lenders. That’s down from the previous week’s 6.46%, which weighed in as the highest reading since September 2025.

Mortgage rates are below the 7% levels seen in early 2025, but they’ve jumped from their 2026 low of 6.09%. The culprit: War in Iran boosted oil prices, which spurred a new round of inflation and renewed the possibility of Federal Reserve rate increases rather than rate cuts.

Higher rates come as the mortgage market grapples with conflicting dynamics. Economic growth slowed more than expected in the fourth quarter, but inflation is on the rise, driven in large part by rising oil prices. March inflation came in at 3.3%, the highest reading in more than two years and well above the Fed’s 2% target.

In an unfortunate bit of timing, mortgage rates rose just as the spring homebuying season was about to kick off. The housing market has been sluggish ever since 2022, when a sharp rise in mortgage rates narrowed the pool of potential buyers. In March, home sales fell below an annual pace of 4 million, the National Association of Realtors said Monday. It was the slowest pace of March sales since March 2009, when the economy was in the grips of a devastating recession.

“The spring housing market is currently caught in a crosscurrent of conflicting signals,” says Lisa Sturtevant, chief economist at Bright MLS, a large listing service in the mid-Atlantic region. “Although inventory is rising seasonally, a tug-of-war has emerged between increased choice and decreased confidence. Both buyers and sellers are acting with extreme caution, waiting for lower rates, more stable inflation and more certainty.” 

It’s possible that mortgage rates are headed back toward the 6% level, industry insiders say.

A couple of pieces of advice for consumers: First, don’t sweat these rate movements too much. Yes, mortgage rates are a quarter-point higher than they were a couple of months ago, but this rise hasn’t been strong enough to kill your homebuying plans. Also, depending on where you live in the country, you might have a lot of bargaining power when you’re shopping for a home. Florida and Texas, in particular, have swung to buyer’s markets.

Learn more: Weekly mortgage rate trend predictions

The rates you see advertised here might not match the rate you're offered. That’s because mortgage rates are influenced by personal factors, like your down payment and your debt. And different lenders may offer you different mortgage rates and fees based on their business needs. 

That’s why it’s important to shop with multiple lenders — it can save you over $1,000 a year, according to research from Freddie Mac.

Here’s how to compare mortgage rates:

• Ensure you’re comparing the same loan type. If one rate is significantly higher or lower than another, make sure it’s for the same type of product. A government-backed loan, like an FHA or VA loan, won’t have the same rate as a conventional mortgage.
• Consider APR and mortgage rate. Your interest rate is one cost of borrowing money, but your APR includes that as well as other fees associated with your loan, making it a more complete picture of the actual cost. Some lenders charge lower rates on mortgages, but higher fees.
• Get quotes from different types of lenders. You may find different costs from a local bank or credit union compared with a national bank or an online lender. 

How your mortgage rate affects your monthly payment

Your mortgage rate impacts how much you pay month to month — sometimes by a lot. For this example, we’re using the principal and interest payment on a $400,000 house, assuming 20% down and a 30-year fixed-rate mortgage.

As you can see, every increase of half a percentage point between 5% and 7% changes the monthly payment by around $100. On a yearly basis, that’s a difference of $1,200. For more expensive homes, this difference is even larger.

How your mortgage rate is determined

Your mortgage rate depends on a number of factors, including your individual credit profile and what’s happening in the broader economy. These include:

• Your lender: Lenders set rates based on many factors, including their own supply and demand.
• Your credit and finances: The better your credit score and the higher your income compared to your debt, the better the interest rate you’ll likely get.
• Your loan size and type: The size of your loan, your down payment and the type of loan all affect your mortgage rate. For example, making a bigger down payment typically earns you a lower mortgage rate, as it reduces the lender’s risk. 
• Economic factors: Broadly, mortgage rates are impacted by forces like the Federal Reserve, inflation and investor appetite.
• Mortgage points: Also known as discount points, these are upfront fees you can pay to reduce your interest rate. Decide whether they're worth it with our guide to mortgage points.

How to refinance your current mortgage

Before you start applying for a mortgage, here are some mortgage resources to prepare you for the process: