What is a good mortgage rate?
How to judge whether a rate is "good"
There is no single magic number. The most reliable yardstick is the current national average for the exact loan you are getting. As of July 2026, the Freddie Mac Primary Mortgage Market Survey puts the 30-year fixed at roughly 6.43% and the 15-year fixed at roughly 5.79%. A quote at or below the matching average is generally competitive; a quote noticeably above it is worth questioning.
One caution: compare like with like. A 15-year rate will almost always look lower than a 30-year rate, and an adjustable-rate loan may start below both. Judging a 30-year offer against a 15-year average makes a mediocre rate look great. Also remember these averages are national snapshots that change every week, so a rate that was strong last month may be ordinary today.
What actually moves your rate
The advertised average is a starting point; lenders price your specific rate from your profile. The biggest levers are your credit score (740 and above typically earns the best pricing), the loan term (shorter terms like 15 years carry lower rates than 30 years), and your down payment, which sets your loan-to-value ratio. A larger down payment usually means a lower rate.
Two other factors are within your control at closing. Discount points let you pay money upfront to buy the rate down, so a very low advertised rate may assume you are paying points. Loan type matters too: conventional, FHA, VA, and jumbo loans price differently. When you compare offers, check whether each quote assumes the same points, term, and loan type before deciding which is truly lower.
Why a quarter-point matters: a worked example
Rate differences that look tiny on paper add up over a 30-year loan. Take a 0.25% gap on a $400,000 loan. The difference between, say, 6.43% and 6.68% is only a quarter of a percentage point, but it changes your monthly principal-and-interest payment by roughly $65 and adds up to well over $20,000 in extra interest across the full term.
The cleanest way to see the real dollar impact for your own numbers is to run both rates through the Mortgage Calculator. Enter your loan amount and term once at the lower rate and once at the higher rate, then compare the monthly payment and total interest side by side. Seeing the two totals next to each other turns an abstract fraction of a percent into a concrete figure you can weigh.
When to be cautious about a rate quote
A rate far below the current average is a signal to read the fine print, not just to celebrate. Very low teaser rates often assume you are paying several discount points, carry a shorter term, or apply to an adjustable-rate loan that resets later. The rate alone does not tell the whole story.
To compare offers fairly, look at the APR alongside the rate, since APR folds in points and certain fees, and confirm the term and loan type match. Because Freddie Mac's averages update weekly, treat any number, including the ones here, as a point-in-time reference that will drift as market conditions change. The Consumer Financial Protection Bureau publishes neutral guidance on comparing loan estimates if you want a checklist for lining up quotes.
Frequently asked questions
What is considered a good 30-year mortgage rate right now?
Does my credit score really change my mortgage rate?
Is a 15-year mortgage rate lower than a 30-year rate?
How much difference does a quarter-point make?
Sources: Freddie Mac Primary Mortgage Market Survey (PMMS); Consumer Financial Protection Bureau.
Last reviewed July 4, 2026 · Editorial policy · This is general information, not financial advice.