Key takeaways
- The average 30-year fixed mortgage rate was 7.32% and the 15-year was 6.68% in Freddie Mac’s survey for October 22, 2026.
- The “best” mortgage depends on your credit, down payment and how long you’ll stay in the home — not just the advertised rate.
- Getting quotes from at least three lenders on the same day is one of the simplest ways to save money.
- Compare the APR and the Loan Estimate, not just the interest rate, so fees and points are included.
A mortgage is likely the largest loan you’ll ever take on, and small differences add up. On a $320,000 loan, a rate that is just half a percentage point lower can save more than $100 a month and tens of thousands of dollars over 30 years. This guide walks through the main loan types, how lenders set your rate, and a step-by-step plan to get the best deal.
Mortgage rates today
Rates and terms checked: Oct. 22, 2026 (Freddie Mac weekly survey). They change often, so confirm with the provider before you apply. How we review lenders
| Loan | Average rate | Source / date |
|---|---|---|
| 30-year fixed | 7.32% | Freddie Mac PMMS, Oct 22, 2026 |
| 15-year fixed | 6.68% | Freddie Mac PMMS, Oct 22, 2026 |
Survey averages assume strong credit and a 20% down payment. Your own quote may be higher or lower. Mortgage rates follow the 10-year Treasury yield more closely than the Federal Reserve’s benchmark, which the Fed held at 3.75%–4.00% on October 28, 2026.
The main types of mortgages
| Loan type | Minimum down payment | Typical credit score | Best for |
|---|---|---|---|
| Conventional | 3%–5% (20% avoids PMI) | 620+ | Borrowers with solid credit |
| FHA | 3.5% (580+) or 10% (500–579) | 500–580+ | Lower scores or small down payments |
| VA | 0% | Set by lender | Eligible veterans and service members |
| USDA | 0% | Set by lender | Eligible rural and suburban buyers within income limits |
| Jumbo | Often 10%–20% | 700+ | Loans above the conforming limit |
Fixed-rate vs. adjustable-rate (ARM)
A fixed-rate mortgage keeps the same rate and principal-and-interest payment for the life of the loan. An adjustable-rate mortgage, such as a 7/6 ARM, starts with a fixed rate for a set period (seven years in that example) and then adjusts every six months. ARMs can make sense if you’re confident you’ll sell or refinance before the first adjustment, but they add risk if rates rise.
15-year vs. 30-year
A 15-year loan has a lower rate and builds equity much faster, but the monthly payment is higher. A 30-year loan keeps payments lower and more flexible. Use our mortgage calculator to compare both side by side, including taxes and insurance.
What lenders look at when setting your rate
- Credit score. Higher scores get lower rates. Even a 20- to 40-point improvement can move you into a better pricing tier. See our guide on how to improve your credit score.
- Down payment and loan-to-value (LTV). Putting down more lowers the lender’s risk and can remove private mortgage insurance (PMI).
- Debt-to-income ratio (DTI). Many lenders prefer total monthly debts, including the new mortgage, at or below about 43% of gross income.
- Loan type and term. Government-backed loans, shorter terms and ARMs are priced differently.
- Discount points. Paying points upfront lowers your rate. This makes sense mainly if you’ll keep the loan long enough to break even.
How to get the best mortgage: 7 steps
- Check your credit early. Get free reports at AnnualCreditReport.com and dispute errors at least two to three months before applying.
- Set a realistic budget. Include property taxes, homeowners insurance, HOA dues and maintenance — not just principal and interest.
- Save for the down payment and closing costs. Closing costs often run 2%–5% of the loan amount. A high-yield savings account keeps this money safe while it earns interest.
- Look into assistance programs. Many states and cities offer grants or low-interest loans. Start with our list of first-time homebuyer programs.
- Get preapproved with several lenders. Compare a bank, a credit union and an online lender. Multiple mortgage inquiries within a short window generally count as a single inquiry for credit scoring.
- Compare Loan Estimates line by line. Look at the APR, lender fees (Section A), points and cash to close.
- Lock your rate once you have an accepted offer, and avoid new debt until closing.
Tip: If you’re paying off other debts before you apply, focus on high-interest balances first. Our guide on how to prioritize debt payments explains the order that helps your DTI the most.
Where to get a mortgage
- Banks may offer relationship discounts if you keep your checking or savings there.
- Credit unions often have competitive rates and lower fees for members. Compare them in our guide to credit unions vs. banks.
- Online lenders can be fast and competitive on price, with fully digital applications.
- Mortgage brokers shop several wholesale lenders for you. Ask how they’re paid.
Should you wait for rates to drop?
No one can predict rates reliably. If you find a home you can afford at today’s rate, buying now and refinancing later if rates fall is a common approach — but only count on a refinance if the numbers work even without it. Waiting can also mean facing higher home prices.
Free calculators & tools
Frequently asked questions
What credit score do I need to buy a house?
FHA loans allow scores as low as 580 with 3.5% down (or 500 with 10% down). Most conventional loans require at least 620, and the best rates typically go to scores of 740 and above.
How much should I put down?
Twenty percent avoids PMI on a conventional loan, but many buyers put down 3%–10%. A smaller down payment gets you into a home sooner but raises your monthly cost.
What is the difference between the interest rate and the APR?
The interest rate is the cost of borrowing the principal. The APR adds lender fees and points, so it’s better for comparing offers.
How long does it take to close?
Most purchase loans close in about 30 to 45 days after an accepted offer, depending on the appraisal and underwriting.
Rate data: Freddie Mac Primary Mortgage Market Survey, October 22, 2026, and Federal Reserve FOMC statement, October 28, 2026. This article is for educational purposes and isn’t financial advice. Consult a licensed loan officer for terms specific to you.
Written by Chanchala
Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending
Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.