Mortgage Rates Today 2026

Mortgage rates change daily based on economic data, Federal Reserve policy decisions, and global events. As of May 2026, the average 30-year fixed mortgage rate stands at 6.46% with a 6.49% APR, while the 15-year fixed rate averages 5.96% with a 6.00% APR. Rates are up approximately 4 basis points from last week and 47 basis points compared to one year ago, when the 30-year averaged around 6.96%. The daily fluctuation means timing matters when locking in your mortgage rate.

Understanding the difference between the interest rate and the APR is critical. The interest rate is the cost of borrowing the principal, while the APR includes the interest rate plus points, broker fees, and other charges. A lower APR means lower total borrowing costs over the life of the loan. Shopping multiple lenders can save you thousands — borrowers who compare three to five different loan offers typically save about $3,000 over the life of their mortgage.

Current Mortgage Rates

Rate Trends

Mortgage rates have been on a gradual upward trajectory over the past year. Today's rates are up 4 basis points versus one week ago and 47 basis points higher than the same time last year. The trend reflects persistent inflationary pressures and the Federal Reserve's cautious approach to rate cuts. While the Fed does not directly set mortgage rates, its benchmark rate decisions influence the bond market, which in turn determines mortgage rate movements. The 10-year Treasury yield, which mortgage rates closely track, has been fluctuating in response to mixed economic signals.

What Drives Mortgage Rates

Several factors influence where mortgage rates land on any given day. Federal Reserve interest rate decisions are the most significant driver — when the Fed raises or lowers its benchmark rate, mortgage rates tend to move in the same direction. Inflation data, particularly the Consumer Price Index and the Personal Consumption Expenditures index, signals whether the economy is overheating. Employment reports showing wage growth and job creation also affect rate expectations. Geopolitical events, including ongoing trade tensions and international conflicts like the Iran situation, create market uncertainty that can push rates up or down as investors seek safe-haven assets.

How to Get the Best Rate

Your personal financial profile determines the rate a lender offers you. Borrowers with credit scores of 740 or higher qualify for the best available rates. A larger down payment — 20% or more — eliminates private mortgage insurance and signals lower risk to lenders. Choosing a shorter loan term, such as a 15-year fixed instead of a 30-year fixed, typically reduces your rate by half a point or more. Most importantly, comparing loan estimates from at least three to five different lenders gives you negotiating leverage and can save you thousands in interest over the life of the loan.

Rate Lock Guidance

Once you are satisfied with a rate quote, locking it in protects you from increases before closing. Most lenders offer rate locks for 30 to 60 days. If rates drop after you lock, a float-down option — available at some lenders for an additional fee — lets you capture the lower rate. Consider locking when you have a signed purchase agreement and are confident in your closing timeline. If rates have been trending upward, locking sooner rather than later is usually the smart move. If you expect rates to fall, consider waiting or negotiating a one-time float-down provision.

Lender Comparison

The mortgage market offers a variety of lenders with different strengths. Tomo stands out for its transparent, low-fee model and fast digital closing. First Federal Bank competes on rate with consistently low APRs, particularly on government-backed loans. Real Genius offers a fully digital experience with competitive rates and a streamlined process. Farmers Bank provides personalized service and local underwriting. Northpointe Bank is known for its customer satisfaction ratings and competitive pricing. Each lender has different strengths depending on your loan type, credit profile, and preferred closing timeline.

Refinance Math

Refinancing your mortgage makes financial sense when you can lower your current rate by at least 0.50% to 0.75%. With average closing costs of $3,000 to $8,000, the monthly savings must be significant enough to break even within a reasonable timeframe. For example, if you lower your payment by $150 per month and pay $5,000 in closing costs, your break-even point is 33 months. If you plan to stay in the home beyond that point, refinancing is worth considering. Always run the numbers with your specific loan terms before committing.

FAQs on Mortgage Rates

A fixed-rate mortgage keeps the same interest rate for the entire loan term, providing predictable monthly payments. An adjustable-rate mortgage starts with a lower rate that can change periodically based on market conditions. Mortgage points are prepaid interest — one point costs 1% of the loan amount and typically reduces your rate by 0.25%. Preapproval involves the lender verifying your income, assets, and credit to determine exactly how much you can borrow. Prequalification is a rough estimate based on self-reported information and is not a firm commitment.