What Is a Good Mortgage Interest Rate? (2026 Guide)

Understand what constitutes a good mortgage rate in today's market. Learn how rates are determined and how to get the best rate for your situation.

Current Market Rates (2026)

30-year fixed

7.2%

15-year fixed

6.5%

5/1 ARM

5.8%

30-year FHA

6.8%

What Determines a Good Rate?

Credit Score

Higher credit scores qualify for lower rates. Scores above 740 typically get the best rates.

Down Payment

Larger down payments reduce LTV and can lead to better rates, especially 20% or more.

Loan Term

Shorter terms like 15-year mortgages typically have lower rates than 30-year terms.

Rate Comparison by Credit Score

Credit Score Range	30-Year Fixed Rate	15-Year Fixed Rate
740+	6.8%	6%
700-739	7.1%	6.3%
660-699	7.5%	6.7%
620-659	8%	7.2%

Tips to Get the Best Rate

Improve Your Credit

Pay bills on time, reduce credit card balances, and check your credit report for errors before applying.

Shop Around

Get quotes from multiple lenders including banks, credit unions, and online lenders to compare rates.

Consider Points

Paying discount points can lower your interest rate, which may save money over the long term.

Lock Your Rate

Once you find a rate you like, lock it in to protect against rate increases during the loan process.

Frequently Asked Questions

What is a good mortgage interest rate in 2026?

As of 2026, a good 30-year fixed mortgage rate is typically below 7%. Rates between 6.5%-7% are considered excellent, while 7%-7.5% is still competitive. The best rate for you depends on your credit score, down payment, and loan type.

What is the average mortgage rate today?

As of 2026, average 30-year fixed mortgage rates are around 6.8-7.2%. 15-year rates are about 0.75% lower, around 6.0-6.5%. Rates fluctuate daily based on economic factors like inflation and Fed policy.

How can I get the best mortgage rate?

To get the best rate, maintain a credit score of 740+, make a 20%+ down payment, compare offers from 3-5 lenders, consider discount points, and lock your rate when you find a good deal.

Is 7% a good mortgage rate?

7% is a solid rate in 2026. While higher than the historically low rates of the past decade, it's competitive given current market conditions. Over 30 years, even a 0.5% difference can save tens of thousands in interest.

Do mortgage rates change daily?

Yes, mortgage rates can change daily, sometimes multiple times a day. They respond to economic news, inflation reports, employment data, and Federal Reserve announcements.

How much does 1% affect my mortgage payment?

A 1% rate difference on a $300K loan changes the monthly payment by about $165. Over 30 years, that's nearly $60,000 in total interest difference.

What credit score gets the best mortgage rates?

Credit scores of 740+ typically qualify for the best rates. Scores between 680-739 get good rates, while scores below 620 may face higher rates or difficulty qualifying.

Should I buy points to lower my rate?

Buying points makes sense if you plan to stay in the home long enough to recoup the cost. Each point costs 1% of the loan amount and typically lowers the rate by 0.25%.

How long can I lock my mortgage rate?

Rate locks typically last 30-60 days, though longer locks (90+ days) are available for a fee. Lock periods should match your expected closing timeline.

What is the difference between APR and interest rate?

The interest rate is the cost of borrowing, while APR includes the interest rate plus closing costs, points, and fees. APR gives a better picture of the total cost of the loan.

Will mortgage rates go down in 2026?

Rate predictions vary, but many experts expect rates to stabilize or decrease slightly in 2026 if inflation continues to moderate. However, this depends on economic conditions.

Is an ARM better than fixed rate in 2026?

ARMs typically offer lower initial rates (around 5.8% for 5/1 ARM in 2026). They make sense if you plan to sell or refinance within 5-7 years. Fixed rates offer stability for long-term homeowners.

Always consult with a qualified mortgage professional to get accurate rate quotes.