Today’s 30-year mortgage interest rates hold at 6.88% while 15-year terms climb to 6.13%

The median interest rate on a 30-year fixed-rate mortgage is 6.88% as of November 5, which is unchanged from yesterday. Additionally, the median interest rate on a 15-year fixed-rate mortgage is 6.13%, which is 0.13 percentage points higher than yesterday. 

Federal Reserve policymakers are weighing another interest rate cut this week. According to Freddie Mac, 30-year interest rates rose for the fifth week in a row, closing out October at their highest since August. According to The Labor Department’s latest jobs report, the U.S. added 12,000 jobs last month. The Fed is trying to balance the cooling labor market and easing inflation as it tries to achieve a soft landing. Fed policymakers will consider that report and other economic data during their meeting on Nov. 6 and 7.

Analysts expect Fed officials to reduce the federal funds rate by 0.25 percentage points, lowering the rate to a range between 4.50% and 4.75%. Though the reduction isn’t as hefty as the half-point cut made in September, experts predict another cut in December, and more in 2025.

With mortgage rates changing daily, it's a good idea to check today's rate before applying for a loan. It's also important to compare different lenders' current interest rates, terms, and fees to ensure you get the best deal.

Median mortgage interest rates are calculated based on rates from over 500 mortgage lenders in all 50 states. The data collected daily by Credible is based on a $400,000 purchase price, $80,000 down payment, single-family primary residence, and a 740+ FICO score.

Current interest rate for 30-year mortgage: 6.88%

Today’s 30-year fixed-rate mortgage interest rate is 6.88%, unchanged from yesterday.

While mortgage rates can vary, it’s essential to recognize their effect on your monthly payment. For instance, a $350,000 mortgage with a 30-year term at a 5.5% fixed interest rate would result in a monthly payment of $1,987.26. In comparison, the same mortgage with a 6.5% fixed rate would raise the monthly payment to $2,212.24.

Current interest rate for 20-year mortgage: 6.63%

Today’s 20-year fixed-rate mortgage interest rate is 6.63%, 0.25 percentage points lower than yesterday.

Interest rates on mortgages fluctuate, so it’s crucial to understand how they impact your monthly payment. For example, a $350,000 mortgage with a 20-year term at a 5.25% fixed interest rate would result in a monthly payment of $2,065.88. The same mortgage with a 6.25% interest rate would raise the monthly payment to $2,558.25. 

Current interest rate for 15-year mortgage: 6.13%

Today’s 15-year fixed-rate mortgage interest rate is 6.13%, 0.13 percentage points higher than yesterday. 

It’s important to understand how interest rates influence your monthly payment before you take out a home loan. For instance, a $350,000 mortgage with a 15-year term at a 4.75% fixed interest rate would result in a monthly payment of $2,722.41. In contrast, the same mortgage with a 5.75% fixed interest rate would have a monthly payment of $2,906.44. 

Current interest rate for 10-year mortgage: 5.99%

Today’s 10-year fixed-rate mortgage interest rate is 5.99%, 0.01 percentage points lower than yesterday. 

While mortgage interest rates can vary, it’s important to understand how they can influence your monthly payment. For example, a $350,000 mortgage with a 10-year term at a 4.5% fixed interest rate would result in a monthly payment of $3,627.34. In comparison, the same mortgage with a 5.5% fixed interest rate would raise the monthly payment to $3,798.42. 

How do mortgage rates work?

When you take out a mortgage loan to purchase a home, you’re borrowing money from a lender. The lender will charge interest on the amount you borrowed to compensate for that risk.

Expressed as a percentage, a mortgage interest rate is the cost of borrowing money. It can vary based on several factors, such as your credit score, debt-to-income ratio (DTI), down payment, loan amount, and repayment term.

When you get a mortgage, you’ll typically receive an amortization schedule, which shows your payment schedule for the life of the loan. It also indicates how much of each payment goes to reduce the principal balance versus the interest.

You'll spend more money on interest and less on the principal balance at the beginning of your loan term. Over time, as the amount you owe decreases, you'll pay more toward the principal and less toward interest.

Your mortgage interest rate can be either fixed or adjustable. With a fixed-rate mortgage, the rate will be consistent for the duration of the loan. With an adjustable-rate mortgage (ARM), the interest rate can fluctuate with the market.

Mortgage rates change frequently - sometimes on a daily basis - in response to economic factors. Inflation plays a significant role in these fluctuations. Interest rates tend to rise in periods of high inflation, and drop or remain roughly the same in times of low inflation. Other factors, like the economic climate, demand, and inventory can also impact the current average mortgage rates.

What determines the mortgage rate?

Mortgage lenders typically determine the interest rate on a case-by-case basis. Generally, they reserve the lowest rates for low-risk borrowers - that is, those with a higher credit score, income, and down payment amount. Here are some other personal factors that may determine your mortgage rate:

• Location of the home
• Price of the home
• Your credit score and credit history
• Loan term
• Loan type (e.g., conventional or FHA)
• Interest rate type (fixed or adjustable)
• Down payment amount
• Loan-to-value (LTV) ratio
• DTI

Other indirect factors that may determine the mortgage rate include:

• Current economic conditions
• Rate of inflation
• Market conditions
• Housing construction supply, demand, and costs
• Consumer spending
• Stock market
• 10-year Treasury yields
• Federal Reserve policies
• Current employment rate

How to compare mortgage rates

The lender you choose can also affect your mortgage rate. Some lenders have higher average mortgage rates than others, regardless of your credit or financial situation. That's why it's important to compare lenders and loan offers.

Here are some of the best ways to compare mortgage rates and ensure you get the best one:

• Shop around for lenders: Compare several lenders to find the best rates and lowest fees. Even if the rate is only lower by a few basis points, it could still save you thousands of dollars over the life of the loan.
• Get several loan estimates: A loan estimate comes with a more personalized rate and fees based on factors like income, employment, and the property's location. Request and compare loan estimates from several lenders.
• Get pre-approved for a mortgage: Pre-approval doesn't guarantee you'll get a loan, but it can give you a better idea of what you qualify for and at what interest rate. You'll need to complete an application, submit financial documents, and undergo a hard credit check.
• Consider a mortgage rate lock: A mortgage rate lock lets you lock in the interest rate a lender offers you for a certain amount of time - usually 30, 45, or 60 days but sometimes more. During this time, you can continue shopping around for a home without worrying about the rate changing.
• Choose between an adjustable- and fixed-rate mortgage: The interest rate type can affect how much you pay over time, so consider your options carefully.

Here's a simple example of what a 15-year fixed-rate mortgage might look like versus a 30-year fixed-rate mortgage:

15-year fixed-rate

• Loan amount: $300,000
• Interest rate: 6.29%
• Monthly payment: $2,579
• Total interest charges: $164,186
• Total loan amount: $464,186

30-year fixed-rate

• Loan amount: $300,000
• Interest rate: 6.89%
• Monthly payment: $1,974
• Total interest charges: $410,566
• Total loan amount: $710,565

Pros and cons of mortgages

If you’re thinking about taking out a mortgage, here are some benefits to consider:

How to qualify for a mortgage

Requirements vary by lender, but here are the typical steps to qualify for a mortgage:

1. Have steady employment and income: You'll need to provide proof of income when you apply for a home loan. This may include money from your regular job, alimony, military benefits, commissions, or Social Security payments. You may also need to provide proof of at least two years' worth of employment at your current company.
2. Review any assets: Lenders consider your assets when deciding whether to lend you money. Common assets include money in your bank account or investment accounts.
3. Know your DTI: Your DTI is the percentage of your gross monthly income that goes toward your monthly debts - like installment loans, lines of credit, or rent. The lower your DTI, the better your approval odds.
4. Check your credit score: To get the best mortgage rate possible, you'll need to have good credit. However, each loan type has a different credit score requirement. For example, you'll need a credit score of 580 or higher to qualify for an FHA loan with a 3.5% down payment. Check your credit score to see what you qualify for.
5. Know the property type: During the loan application process, you may need to specify whether the home you want to buy is your primary residence. Lenders often view a primary residence as less risky, so they may have more lenient requirements than if you were to get a secondary or investment property.
6. Choose the loan type: Many types of mortgage loans exist, including conventional loans, VA loans, USDA loans, FHA loans, and jumbo loans. Consider your options and pick the best one for your needs.
7. Prepare for upfront and closing costs: Depending on the loan type, you may need to make a down payment. The exact amount depends on the loan type and lender. A USDA loan, for example, has no minimum down payment requirement for eligible buyers. With a conventional loan, you'll need to put down 20% to avoid private mortgage insurance (PMI). You may also be responsible for paying any closing costs when signing for the loan.

How to apply for a mortgage

Here are the basic steps to apply for a mortgage, and what you can typically expect during the process:

1. Choose a lender: Compare several lenders to see the types of loans they offer, their average mortgage rates, repayment terms, and fees. Also, check if they offer any down payment assistance programs or closing cost credits.
2. Get pre-approved: Apply for pre-approval to boost your chances of getting your dream home. You'll need identifying documents, as well as paperwork verifying your employment, income, assets, and debts.
3. Submit a formal application: Complete your chosen lender's application process - either in person or online - and upload any required documents.
4. Wait for the lender to process your loan: It can take some time for the lender to review your application and make a decision. In some cases, it may request additional information about your finances, assets, or liabilities. Provide this information as soon as possible to prevent delays.
5. Complete the closing process: If approved for a loan, you'll receive a closing disclosure with information about the loan and any closing costs. Review it, pay the down payment and closing costs, and sign the final loan documents. Some lenders have an online closing process, while others require you to go in person. If you are not approved, you can talk to your lender to get more information and determine how you can remedy any issues.

How to refinance a mortgage

Refinancing your mortgage lets you replace your current loan with a new one. It does not mean taking out a second loan.

You might want to refinance your mortgage if you:

• Want a lower interest rate or different rate type
• Are looking for a shorter repayment term so you can pay off the loan sooner
• Need a smaller monthly payment
• Want to remove the PMI from your loan
• Need to use the equity for home improvement projects or debt consolidation (cash-out refinancing)

The refinancing process is similar to getting the original loan. Here are the basic steps:

• Choose the type of refinancing you want.
• Compare lenders for the best rates.
• Complete the application process.
• Wait for the lender to review your application.
• Provide supporting documentation (if requested).
• Complete the home appraisal.
• Proceed to closing, review the loan documents, and pay any closing costs.

How to access your home's equity

If you need to tap into your home's equity to pay off debt, fund a renovation, or cover an emergency expense, there are two popular options to choose from: a home equity loan and a home equity line of credit (HELOC). Both a home equity loan and a HELOC allow you to borrow against your home's equity but a home equity loan comes in the form of a lump sum payment and a HELOC is a revolving line of credit.

These two loan types have some other key similarities and differences in how they work:

FAQ

What is a rate lock?

Interest rates on mortgages fluctuate all the time, but a rate lock allows you to lock in the rate a lender offers you for a set amount of time. This ensures you get the rate you want as you complete the homebuying process.

What are mortgage points?

Mortgage points are a type of prepaid interest that you can pay upfront - often as part of your closing costs - for a lower overall interest rate. This can lower your APR and monthly payments.

What are closing costs?

Closing costs are the fees you, as the buyer, need to pay before getting a loan. Common fees include attorney fees, home appraisal fees, origination fees, and application fees.