For example, on a loan amount of $300,000, you might pay $418,524.05 in interest over a 30-year term at a rate of 7.00%. But decrease that rate to 6.50%, and you might pay $382,636.71 in interest over the same time period.

Here’s a look at where current average mortgage rates stand (via data from the Mortgage Research Center) to help you know if you’re being offered a good deal as you shop around with different lenders. 

See the most recent average mortgage rate data

Below you’ll find the most recent data from our partner on average rates for purchase mortgages, refi mortgages, and home equity lines of credit.

Purchase mortgage rates

Refi mortgage rates

HELOC rates

Data provided by the Mortgage Research Center. Rates are based on the assumptions of $315,000 for conforming loans and $850,000 for non-conforming loans.

Recent trends in mortgage applications

Here’s what has been happening in the mortgage market for the week ending Sept. 11, according to a recurring survey created by the Mortgage Bankers Association.

• Mortgage applications dipped 4.1% compared to a week earlier.
• Refinance activity was down 9% compared to a week earlier.
• Refi activity was 65% lower than the same week a year ago.

Current federal funds rate on September 17, 2026

The Federal Reserve does not directly set mortgage rates, but its benchmark federal funds rate is one factor lenders consider when they set mortgage rates on their products. As of this writing, the federal funds rate stands at 3.75%-4.00%. The next meeting of the Federal Open Market Committee, at which the Fed has the option of changing this rate, is set for Oct. 27-28.

Reporting from Fortune on the housing market

• 1 in 3 Gen Z and millennials are stuck in their parents’ home—now, Airbnb is swooping in with a $250 million fund for affordable rental homes
• Even Americans earning more than $155,000 now call themselves ‘working class’—a sign of how far the affordability crisis has spread
• Mortgage lending standards are so tight that homebuyers must have ‘pristine’ credit histories, study says, as sales head for 31-year low

What factors influence mortgage rates?

While mortgage rates are determined by several complex economic factors, here are some of the major ones to keep an eye on. 

Your credit history

One of the biggest factors impacting the rates that you’re offered, and the main factor that’s in your hands, is your credit. If you’ve got a credit score that ranges from good to exceptional, and a lengthy history of paying your credit cards, loans, and bills on time, lenders will consider you a lower risk borrower than someone whose record shows missed payments or defaulted obligations.

Carrying large credit card balances, having a debt-to-income ratio higher than 43%, and applying for too much new credit in a short period of time can also be red flags. If you’re planning ahead and know you want to take out a mortgage in the foreseeable future, try to avoid applications for new credit cards and loans and focus on paying down existing debt as much as possible.

Note that if you’re applying for a mortgage with a co-borrower, both people’s credit scores will be taken into consideration. Lenders will generally review borrowers’ scores from each of the three major credit bureaus, identify the middle of those three scores, and place the most weight on the “lower middle”—meaning the middle score for the person whose credit is the less stellar of the two.

The federal funds rate

When the Federal Reserve increases the federal funds rate, this effectively makes borrowing more expensive. The Fed uses this as a tool to combat inflation. Meanwhile, decreasing the rate and making borrowing less expensive can be used to stimulate the economy and try to stave off a recession. While the Fed does not directly set mortgage rates, lenders tend to increase rates on products such as home loans when the federal funds rate goes up.

Inflation

When inflation is running hot, lenders may need to increase rates to mitigate the risk of effectively losing money in the long run. With inflation being a persistent challenge for the U.S. economy ever since the coronavirus pandemic—and more recently in light of the Trump administration’s war in Iran—this factor is contributing to rates staying high.

The national debt

A recent analysis determined the national debt of the U.S. to be increasing by about $7.35 billion a day. The higher that debt goes, the more expensive borrowing overall becomes—including for products like mortgages and car loans.

How to increase your chances of getting a low mortgage rate

From the list of factors we mentioned above, the primary one you can influence is how good your credit looks to prospective lenders. Key steps it’s advisable to take in any situation include:

• Always make on-time payments. At 35% of your FICO Score, payment history is by far the most important factor.
• Don’t max out your credit cards. Amounts owed is the second-most important factor impacting your FICO Score, at 30%.

Additional steps that may help as you get ready to apply for a mortgage include:

• Avoid applying for new credit. It’s typically considered best to abstain from applications for new credit accounts for six months to a year before you apply for a home loan.
• Pay off credit card balances. A commonly quoted rule of thumb is to keep your utilization, meaning how much of your available credit you’re using, at no more than 30%. So for example, if you have a credit card with a $9,000 credit limit, you would not want to have a balance higher than $2,700 at any point if using the 30% mark as a guideline. However, know that even lower utilization is generally going to be considered even better.

For conventional loans—meaning ones that are issued by a private lender and not backed by the government—lenders typically want to see a credit score of at least 620. It’s still possible to get a mortgage with a lower credit score than that, for example with an FHA home loan requiring at least a 580 credit score or at least a 500 credit score and 10% for your down payment.

But, if your credit score is lower than those benchmarks, you’ll need to repair it before applying for a mortgage. Responsibly using a secured credit card (which requires a deposit in the amount of your credit limit) from a reputable bank or credit union is one way to do this. If you’re carrying a large amount of debt you’re struggling to pay down, it may be wise to consider working with an accredited nonprofit credit counselor and asking about a debt management plan.

Note that improving one’s credit is generally not a quick process. 

You’ll also have to decide whether it’s worth purchasing mortgage discount points to buy down your rate. If you expect to stay in the home and keep your original loan for a substantial length of time, it might be worth the upfront expense to use mortgage points to get a lower rate. But if you intend to sell in the foreseeable future, or hope to refinance for a lower rate rather than keeping the original loan, points might not be worth the cash you’d have to pony up.

Frequently asked questions

Is the Fed going to cut rates soon?

As of September 2026, it seems unlikely the Federal Reserve will cut the federal funds rate in the foreseeable future. As inflation continues to be a stubborn foe against a backdrop of the Trump administration’s war in Iran and an increasing national debt, the Fed actually chose to raise its benchmark rate at the most recent FOMC meeting.

When should I lock in a mortgage rate?

Speaking generally, you may be able to lock in a mortgage interest rate for a period ranging from 30 to 90 days. Depending on the lender, there may or may not be a fee for doing this. The obvious downside of locking in a rate too early is that if the market shifts and rates drop, you could miss out. But, if you’re in an uncertain environment, and are nearing time to close, it could be worth locking in when you’ve got a rate on offer you know your budget can tolerate.

How many mortgage lenders should I apply with?

It’s advisable to get preapprovals from at least three different mortgage lenders so you can evaluate them on rates, service, and more. Make sure you’re comparing apples to apples when you get quotes, as some lenders may include an assumption of using points to buy down the rate. A quote that relies on buying down the rate might look lower than a competitor, but if the latter does not rely on mortgage discount points, it could in fact be the better offer.

Who are the best mortgage lenders?

That will depend on factors like your credit profile and what you’re looking for in a loan. But Rate Mortgage made our top pick in our roundup of best mortgage lenders, and Veterans United Home Loans stood out to us as the best lender with a military focus.

How much should I budget for closing costs?

It’s generally smart to set aside somewhere between 2% to 5% of your mortgage amount to cover closing costs. As an example, on a $300,000 loan, that would range from $6,000 to $15,000.