Compare current mortgage rates for today

Rates dip to kick off 2026

Mortgage rates dipped to a 15-month low this week, according to Bankrate’s national survey of lenders. As of Jan. 7, the average rate on a 30-year home loan was 6.24%, down from 6.25% the previous week and the lowest since late September 2024.

But is it enough to move would-be buyers off the fence? Apparently not, says Samir Dedhia, CEO of One Real Mortgage.

“We’re still sitting well below the highs of early 2025,” he says. “Even with the 30-year rate moving down, we’re seeing lower mortgage demand to start the year. Buyers and homeowners alike seem to be taking a wait-and-see approach. Some of that is seasonal, but it also reflects the broader reality: Rates have improved, but not enough to dramatically shift affordability.”

November’s annual pace of sales was a relatively slow 4.13 million homes, according to the National Association of Realtors. During that same month, the median sale price of existing homes sold was $409,200, up 1.2% from the previous year and an all-time high for the month. 

Although it hasn’t yet meaningfully shifted prospective buyers’ behavior, there are some signs that rates may decline further. The Labor Department reported last month 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 numbers give mortgage rates some room to fall. 

Jobs are the other big factor driving mortgage rates, and a slowing labor market — unemployment rose to 4.6% in November — has also created downward pressure. In general, bad news for the labor market is good news for mortgage borrowers. 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.

Mortgage experts will keep a close eye on the jobs report scheduled to be released Jan. 9. “It is the one bit of data which can seriously move markets,” says Dick Lepre, a mortgage loan officer at Realfinity.

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: