Average Mortgage Rates & History

National benchmark: Freddie Mac publishes the current weekly US average every Thursday at freddiemac.com/pmms. The table below shows completed calendar-year averages from Freddie Mac's Primary Mortgage Market Survey (PMMS) — verified public history, not a live quote. Your personal rate depends on credit score, loan-to-value, loan size, and lender.

Freddie Mac PMMS: 30-Year Fixed Annual Averages

These are the official Freddie Mac PMMS calendar-year averages for the 30-year fixed conforming mortgage (borrowers with strong credit and 20% down). They are the most-cited US benchmark and are published openly, so you can check any figure against the primary source.

*2025 is a full calendar-year figure that varies slightly by data source (Freddie Mac PMMS reports roughly 6.6%); confirm the latest weekly reading on Freddie Mac's PMMS page. The survey began in 1971; see our full historical table (1972–2024) for every year. On a weekly basis the 30-year fixed peaked at 18.63% (Oct 9, 1981) and bottomed at 2.65% (Jan 7, 2021).

How Loan Programs Typically Compare

The national average above is for a 30-year fixed conforming loan. Other programs usually sit at a relationship to it rather than a single published number:

• 15-year fixed: typically about 0.5 to 0.7 percentage points below the 30-year average.
• 5/1 ARM: usually starts about 0.25 to 0.5 points below the 30-year, then adjusts after year five.
• FHA / VA: often comparable to or slightly below conventional rates, but the insurance structure changes the true cost — VA has no monthly mortgage insurance; FHA charges mortgage insurance premiums for most of the loan's life.

For the exact rate on any program, request a quote from a lender; these relationships are general guidance, not offers.

How Average Mortgage Rates Are Set

Mortgage rates are not set by the Federal Reserve, despite the common myth. The Fed influences short-term rates like the federal funds rate, but long-term mortgage rates track the 10-year Treasury yield and the mortgage-backed securities (MBS) market. When investors expect economic growth or inflation, they demand higher yields on bonds, which pushes mortgage rates up. When the outlook weakens, money flows into bonds for safety and mortgage rates fall.

Several forces pull rates in different directions at once:

• Inflation: Higher inflation pushes rates up because lenders need higher yields to keep up with rising prices.
• Employment and wage growth: A hot labor market signals economic strength, which tends to lift rates.
• Fed policy: The Fed's rate decisions and bond-buying programs influence the broader rate environment, even though they do not set mortgage rates directly.
• Global capital flows: In times of global uncertainty, foreign investors buy US bonds, pushing yields and mortgage rates down.
• Lender capacity: When refinancing volume spikes, lenders raise rates to manage demand; when volume is thin, they cut rates to compete.

30-Year Fixed vs 15-Year Fixed: The Trade-Off

The 30-year fixed is the most popular mortgage in America because the payment is the lowest for any fixed-rate option on a given loan size. The trade-off is total interest — you pay roughly twice as much interest over 30 years as you would over 15.

On a $350,000 loan using the 2024 Freddie Mac 30-year average (6.72%) and a 15-year rate shown illustratively about 0.5 points lower (6.20%):

*The 15-year figure is illustrative, using the typical ~0.5-point gap below the 30-year average. The 30-year figure uses the verified 2024 Freddie Mac PMMS annual average. Run your own numbers in the mortgage calculator.

The 15-year saves a stunning amount of interest, but the payment is $720 higher every month. A common middle path: take the 30-year for the lower required payment, then make extra principal payments when cash flow allows. You keep the flexibility of the lower payment while cutting years off the loan. Use the mortgage calculator to see how extra payments change your amortization schedule.

When an Adjustable-Rate Mortgage Wins

A 5/1 ARM locks in a fixed rate for five years, then adjusts annually based on an index plus a margin. The starting rate is usually below the 30-year fixed — in 2026, about 0.3% to 0.4% lower. ARMs make sense in a few specific situations:

• You plan to sell or refinance within five to seven years, before the first adjustment.
• You expect rates to fall and want to refinance into a fixed loan later.
• You need the lowest possible payment now and are confident your income will rise.

The risk is real. After the fixed period, the rate can adjust up by 2% per year (typically capped at 5% over the life of the loan). A 6.05% ARM could jump to 8.05% in year six. If you cannot afford the maximum possible payment, stick with a fixed rate.

FHA vs VA vs Conventional: Which Rate Applies to You?

The loan program you qualify for shapes the rate and the total cost. Conventional loans (backed by Fannie Mae and Freddie Mac) are the default for borrowers with solid credit and at least 5% down. FHA loans (backed by the Federal Housing Administration) serve buyers with lower credit scores or smaller down payments — as little as 3.5% down with a 580+ FICO. VA loans (backed by the Department of Veterans Affairs) are reserved for eligible veterans, active-duty service members, and surviving spouses, and offer 0% down with no monthly mortgage insurance.

FHA and VA rates often run slightly below conventional rates, but the comparison is not apples to apples. FHA requires an upfront mortgage insurance premium (1.75% of the loan) plus monthly MIP for the life of the loan in most cases. VA charges an upfront funding fee (varies by down payment and service history) but no monthly mortgage insurance. The true cost depends on how long you hold the loan and whether you can drop PMI on a conventional loan once you reach 80% LTV.

How to Get the Best Mortgage Rate in 2026

The national average is a benchmark, not a quote. The rate a lender offers you depends on factors you can control and a few you cannot. Here is what moves the number most:

1. Credit score. Moving from 680 to 740 can drop your rate by 0.25% to 0.5%. Pay down credit card balances to under 10% of the limit in the 60 days before applying, and dispute any errors on your credit report.
2. Down payment / LTV. Putting 20% down eliminates PMI and unlocks the best rate tiers. Each 5% closer to 20% generally improves the offer.
3. Loan term. Shorter terms carry lower rates. A 15-year fixed runs about 0.7% below a 30-year in 2026.
4. Loan size. Conforming loans (under the 2026 FHFA baseline limit of $832,750 in most areas, up to $1,249,125 in high-cost markets) get the best rates. Jumbo loans typically run 0.125% to 0.25% higher.
5. Discount points. Each point costs 1% of the loan and lowers the rate by roughly 0.25%. Points only pay off if you hold the loan past the break-even — run the math before buying them.
6. Lender shopping. Rates vary by 0.25% to 0.5% between lenders on the same loan. Get quotes from at least three lenders within a 14-day window so the credit inquiries count as a single hard pull.

Reading the Rate Environment

Mortgage rates move daily with the bond market, and no one can predict them with certainty. Recent history is verifiable: the 30-year fixed averaged 6.81% in 2023 and 6.72% in 2024 (Freddie Mac PMMS), after peaking near 7.8% in late 2023. For where rates may head, the published outlooks from Fannie Mae, the Mortgage Bankers Association, and Freddie Mac are the authoritative sources — read them directly rather than relying on a single summarized range.

The practical move for most borrowers: if the math works at a rate you can verify today — whether for a purchase or a refinance — lock it in. You can always refinance again later if rates drop further. Waiting for a perfect rate that may never arrive often costs more in lost time and rent than it saves.

If you are still deciding how much house fits your budget at these rates, the mortgage affordability calculator applies the 28/36 rule to your income and debts. If you already own and want to see whether refinancing pays off, the refinance calculator runs the break-even math. And if you are weighing buying versus renting, the rent vs buy calculator compares total costs over your expected time horizon.

When your budget looks right on paper, the next move is to confirm it with a lender — get prequalified for a mortgage to see the number a loan officer would actually approve.