Compare current mortgage rates for today

Rates remain above 6% heading into holidays

Rates dipped after the Labor Department reported that inflation had retreated to 2.7%. Economists had forecasted the consumer price index (CPI) to come in at 3%, and lower-than-expected inflation could allow mortgage rates to fall. 

Jobs are the other big factor driving mortgage rates, and a slowing labor market has also created some downward pressure. However, most housing economists don’t expect rates to drop significantly. The new consensus is that rates will stay above 6% in the coming months.

Another fresh data point came in the form of last week’s home sales number. While inflation and jobs numbers drive mortgage rates, home sales reflect how consumers feel about the cost of mortgages. The National Association of Realtors reported that the median sale price of existing homes sold in November was $409,200, up 1.2% from the previous year and an all-time high for the month. But home sales remain sluggish, at an annual pace of just 4.13 million.

“Despite mortgage rates that are close to a 12-month low, home buyers are still cautious for at least a couple of reasons. First, even with a dip in mortgage rates, home prices are still rising in many places, and affordability is still a major constraint,” says Lisa Sturtevant, chief economist at Bright MLS, a large listing service in the mid-Atlantic region. “Second, buyers are also concerned about their financial situations. Anxiety over job security and prices of goods and services has made some buyers hold back.”

Learn more: Weekly mortgage rate trend predictions

The rates you see advertised here might not match the rate you're offered due to factors like your credit score, down payment and more. Still, getting the best rate can make a big difference in your monthly budget, and potentially save you thousands of dollars in interest over the life of the loan. It’s been proven: Shopping with multiple lenders can save you up to $1,200 a year.

Follow these steps when comparing mortgage rates:

• Ensure you’re comparing apples to apples. If one rate seems significantly higher or lower than another, make sure it’s for the same type of product — for example, a 30-year, conventional loan — and that you’re comparing an interest rate to an interest rate or an annual percentage rate (APR) to an annual percentage rate.
• Look at APR and mortgage rate. Your mortgage 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 but higher fees on mortgages.
• 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. 

Factors that determine your mortgage rate

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

• Your credit and finances: The better your credit score and higher your income compared to your debt, the better the interest rate you’ll get. Borrowers with scores of 740 or above tend to qualify for the best rates.
• Loan size and type: The size of your loan, down payment and the type of loan all affect your mortgage rate. Smaller loans with higher down payments represent less risk for the lender, so they tend to get better rates. Certain types of loans which are perceived as less risky — for example, a loan for a single-family home that will be used as a primary residence — also qualify for lower rates. 
• Location: Rates vary based on where the property is located.
• Whether you’re a first-time homebuyer: Many first-time homebuyer loan programs offer lower-rate mortgages.
• Economic factors: Broadly, mortgage rates are impacted by forces like the Federal Reserve, inflation and investor appetite.
• The lender you work with: Lenders set rates based on many factors, including their own supply and demand.
• Mortgage points: Also known as discount points, these additional fees reduce your interest rate. Decide whether they're worth it with our guide to mortgage points.

How does the Federal Reserve affect mortgage rates?

Like any other financial product, mortgage costs may fluctuate with economic events, including Federal Reserve decisions. The central bank doesn’t set mortgage rates, but its policies set the tone for what banks and other lenders charge for loans. If the Federal Reserve lowers its benchmark rate, the rates on other types of loans often — but not always — follow suit. The reverse is true, too. When the Fed raises the rate — as it did after the pandemic — mortgage rates tend to increase. 

However, mortgage rates are more closely tied to other measures, like the yield on 10-year Treasury notes. So it’s not unusual to see mortgage rates move in the opposite direction as the Fed, either, especially in small increments and over short periods of time. 

The Federal Reserve capped off 2025 with three consecutive quarter-point cuts to its benchmark rate. Bankrate experts expect further cuts in 2026, which could — eventually — move mortgage rates lower. 

How to refinance your current mortgage

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