Mortgage interest rates represent the percentage charged on a home loan, which borrowers pay in addition to repaying the principal amount. These rates vary depending on the loan type, term, and borrower qualifications.
Current Mortgage Interest Rates (as of May 18, 2025)
- 30-year fixed-rate mortgages : Around 6.89% to 7.03% interest rate, with APRs close to 6.96% to 7.03% depending on the lender and product specifics
- 20-year fixed-rate mortgages : Approximately 6.60% to 6.81% interest rate
- 15-year fixed-rate mortgages : Roughly 6.06% to 6.16% interest rate
- 10-year fixed-rate mortgages : About 6.00% to 6.16% interest rate
- Adjustable-rate mortgages (ARMs) : Rates vary, with 5-year ARMs near 7.2% and 7-year ARMs around 7.1% APR
Rates for government-backed loans like FHA and VA mortgages are close to these ranges but can differ slightly (e.g., FHA 30-year fixed around 6.62% to 7.04%)
Factors Influencing Mortgage Rates
- Borrower-specific factors : Credit score, down payment size, loan type, and property use affect the rate offered. Higher credit scores and larger down payments generally secure lower rates
- Economic factors : Inflation, Federal Reserve policies, and global economic conditions impact mortgage rates broadly
Understanding Rates and APR
- The interest rate is the cost to borrow the money.
- The APR (Annual Percentage Rate) includes the interest rate plus other fees and costs spread over the loan term, providing a fuller picture of loan cost
Summary
Mortgage interest rates for a 30-year fixed loan are currently near 6.9% nationally, with shorter terms and adjustable-rate loans offering somewhat different rates. These rates fluctuate based on market conditions and individual borrower profiles
