What's a Good Mortgage Rate Right Now? (Updated Monthly)

Current Mortgage Rate Benchmarks

Mortgage rates fluctuate daily based on economic conditions, Federal Reserve policy, and bond market activity. As of early 2026, here are approximate benchmark rates for borrowers with good credit (740+ FICO score) and at least 20% down payment. These figures are derived from the Freddie Mac Primary Mortgage Market Survey and represent national averages — your actual rate will depend on your specific financial profile.

What Determines YOUR Rate

The rate you see advertised is rarely the rate you'll get. Your actual mortgage rate is determined by a combination of factors that reflect your risk profile as a borrower. Credit score is the single biggest factor — the difference between a 760+ score and a 680 score can be 0.50–1.0% or more. Loan-to-value (LTV) ratio matters too: borrowers with 20%+ down payment get better rates than those with 5% down. Loan type affects pricing: VA loans typically have the lowest rates, followed by FHA, then conventional. Property type adds risk premiums: a primary residence gets the best rate, while investment properties add 0.50–0.75%. Even the loan amount matters — conforming loans (under the GSE limit) get better rates than jumbo loans. Your rate is the result of all these factors combined.

Rate vs. APR: Which Number Matters More

When comparing mortgage offers, the APR (Annual Percentage Rate) is more useful than the interest rate alone. The interest rate tells you the cost of borrowing money, while the APR incorporates the interest rate plus most fees and costs associated with the loan (origination fees, points, PMI, etc.) into a single annualized number. For example, a loan at 6.75% interest with $5,000 in fees might have an APR of 6.95%, while a loan at 7.00% interest with $1,000 in fees might have an APR of 7.05%. In this case, the first loan appears cheaper based on rate alone but is actually slightly more expensive when fees are included. The APR is particularly important when comparing loans from different lenders who structure their fees differently.

How Credit Score Affects Your Rate

Mortgage pricing is heavily tiered by credit score. Lenders use risk-based pricing adjustments called Loan-Level Price Adjustments (LLPAs) that directly translate credit score ranges into rate increases or decreases. Here's approximately how credit score tiers affect your rate in the current market:

• 760+ FICO: Best available rate — no LLPA adjustments. This is the rate you see in benchmark surveys and advertisements.
• 720–759 FICO: Add approximately 0.125–0.25% to the best rate. Still excellent pricing with minimal impact on monthly payments.
• 680–719 FICO: Add approximately 0.25–0.50%. At this tier, the rate increase starts to be significant — on a $400,000 loan, this adds $60–$120 to your monthly payment.
• 640–679 FICO: Add approximately 0.75–1.25%. This is a substantial premium. Improving your credit score before applying could save you tens of thousands over the life of the loan.
• Below 640 FICO: Add 1.5% or more. At this level, you may be limited to FHA or specialized loan products. Consider working on credit improvement before buying.

How to Get the Best Rate

Getting the best possible rate requires a combination of preparation and shopping. First, optimize your credit score before applying — pay down credit card balances to below 30% utilization, dispute any errors on your credit report, and avoid opening new accounts in the 6 months before your mortgage application. Second, save for a larger down payment: the 20% threshold eliminates PMI and gets you the best rate tier. Third, get quotes from at least three lenders — research from Freddie Mac shows that borrowers who get five quotes save an average of $3,000 over the life of their loan compared to those who only get one. Fourth, consider rate lock timing: locks are typically 30–60 days, so time your application so the lock doesn't expire before closing. Finally, ask each lender for multiple rate/point combinations to find the optimal balance for your situation.

Frequently Asked Questions