30-Year Mortgage Rates Today

The daily rate survey by The Mortgage Report indicates that the lowest rates for a 30-year mortgage start at 4.875%.

However, the interest rates on your own loan might be higher or lower than the survey indicates. The actual rates you pay depend on several factors, including your credit score, loan type, down payment, and other factors. It’s, therefore, essential to compare the available options and choose the lowest rates.

30-Year Fixed Mortgage Rates For July 6, 2022

ProgramMortgage RateAPR*Change
Conventional 30 year fixed5.564%5.599%Unchanged
30 year fixed FHA5.865%6.706%+0.02
30 year fixed VA5.619%5.854%+0.03
*The rates above are sourced from our partner network. They may not reflect the current market rates. Your mortgage rates may be different.

How You Can Get a 30-Year Mortgage With the Lowest Rate

  1. Strengthen and Improve Your Financial Well-Being — You can do this by increasing your down payment and credit. This will give you access to the lowest 30-year mortgage rates available today. 
  2. Shop Around — Different lenders have different rates. Request personalized quotes from as many mortgage lenders as possible to unearth the best deal possible. Seek quotes from at least 3-5 lenders.
  3. Consider Discount Points — If you have ample savings, consider paying more for the property upfront. The discount points will help you lower the fixed rates over the loan’s life.
30-year mortgage

A 30-year FRM fixed-rate mortgage is repaid over 30 years. It’s the most popular mortgage loan in the country, thanks in part to the following considerations:

  • As the name suggests, the interest rates and payment of a 30-year fixed rate mortgage are ‘fixed’ and will not change over the life of the loan. This means that the monthly payment and rates will remain constant unless you refinance your loan.
  • The 30-year life of the mortgage attracts lower monthly payments than shorter-term loans. Compared to a 15-year FRM, you’ll repay the loan over a longer time. 
  • 30-year FRMs are available across the full range of loan types, including USDA, FHA, and conventional. This type of loan is also available from all mainstream lenders.
  • Most prospective homeowners can get a 30-year FRM by availing of a down payment between 3% and 3.5%. Importantly, you do not need a perfect credit score to qualify for a mortgage loan.

Owing to these benefits of an FRM (and today’s low-interest rates), the 30-year mortgage offers many an affordable path to owning a home.

How do 30-Year FRM Rates Compare to Other Types of Loans?

Like all other rates, the current rates on a 30-year mortgage loan are the lowest in U.S history.

That being said, you should note that the 30-year mortgage rates will often look higher than other rates advertised.

Nonetheless, it’s possible to find lower mortgage interest rates if you go for:

A Shorter-Term Mortgage – Typically, the shorter the home loan, the lower the rates. Short-term mortgages, such as 10-, 15-, or even 20-year FRMs, tend to attract lower rates than FRMs as the investor doesn’t hold the risk that comes with carrying the debt for the long term. However, shorter-term loans attract higher monthly repayments. After all, you’re repaying the same loan amount over a shorter period.

An Adjustable-Rate Mortgage – Instead of choosing a fixed mortgage, you can go for an adjustable-rate mortgage. Such a loan comes with lower introductory rates than an equivalent 30-year FRM. This mortgage attracts a fixed interest rate in the formative years of repaying the loan. Thereafter, the rate changes with the market changes. However, the rates adjust to the market rates and could rise later on. As such, it’s impossible to guarantee that the rates will remain low.

Despite slightly higher rates, most borrowers choose a 30-year FRM instead of an adjustable-rate loan or a 15-year FRM. Most borrowers prefer the predictability and stability of a 30-year fixed rate mortgage over the slightly lower rates of other loans.

Compare Current 30-year Mortgage Rates

ProgramMortgage RateAPR*Change
Conventional 30 year fixed5.564%5.599%Unchanged
Conventional 15 year fixed4.993%5.047%Unchanged
Conventional 20 year fixed5.478%5.532%-0.01
Conventional 10 year fixed4.782%4.867%-0.01
30 year fixed FHA5.865%6.706%+0.02
15-year fixed FHA5.058%5.511%Unchanged
30 year fixed VA5.619%5.854%+0.03
15-year fixed VA5.179%5.552%Unchanged
*The rates above are sourced from our partner network. They may not reflect the current market rates. Your mortgage rates may be different.

Interest Rates & APR Vary by Loan Type

There are no standard rates even for the 30-year FRMs. Different loan types offered by various loan programs vary considerably.

If you’re interested in the lowest rates, the V.A. loan offers the lowest rates. The next lowest interest rate mortgage is the USDA loans.

FHA loans also attract below-market interest rates. However, they tend to charge exorbitant mortgage insurance premiums (MIP), increasing the loan cost.

The issue of high insurance coverage costs is also present among private loans. For instance, conventional loans where you make less than 20% in down payment tend to have an expensive Private Mortgage Insurance (PMI). This issue is particularly prevalent among borrowers with lower credit scores.

Conversely, borrowers with great credit can access loans while keeping their PMI low. The low PMI reduces the overall monthly mortgage payments.

Look at Mortgage Rates and APR 

While scrutinizing the mortgage rates, you should also look at the annual percentage rate – the APR. APR accounts for the total yearly cost of your mortgage loan. It takes into account the added expenses, such as mortgage insurance and interest.

While the FHA loan might attract lower rates than a conventional mortgage loan, it might be more expensive owing to having a costlier APR. “Jumbo” loans that exceed Freddie Mac and Fannie Mae are a bit unique. The loan rates are near and sometimes below conventional loans. However, it is difficult for a borrower to qualify for these loans.

What About 30-Year Mortgage Refinance Rates?

You can often lower the monthly payments by refinancing a 30-year mortgage, as long as the current interest rates are lower than when you initially took out the loan. It works this way because mortgage refinancing allows you to spread the loan repayment over a longer span of time while also lowering the interest rate.

That being said, you should be cautious when refinancing into a new loan.

Restarting your mortgage by taking out a new 30-year loan means you increase the length of time you’ll pay the interest. If you’ve been paying interest for the loan a long time or the interest charge on your new loan is not low enough, you might pay more interest at the end of the loan term.

Homeowners with 15 to 20 years remaining on their original loan can refinance into a shorter loan term. The shorter loan term can help lower interest rates. It can also help you pay off the mortgage on schedule or close to the original schedule.

How do Lenders Determine Your Interest Rate 

The overall interest rate market and the economy typically determine the overall mortgage rates.

Like any other loan product, mortgage rates move up and down depending on the amount investors are willing to pay for mortgage bonds in the secondary market (also known as mortgage-backed securities). In this regard, the economy hugely influences mortgage rates.

During troubled economic times, the interest rates are typically low. Conversely, the rates go up when there is a positive economic outlook. Additionally, lenders typically adjust interest rates depending on how “risky” a borrower appears.

Lenders are willing to offer lower-interest mortgages if you appear less risky. On the other hand, if you seem risky, expect the rates to increase.

Lenders use various factors to determine risk and, thereafter, set mortgage rates. These factors include:

Financially secure individuals are classified as “top-tier borrowers.” They qualify for the lowest 30-year mortgage rates. The further your financial well-being moves from being stable and secure, the higher the interest rates you’ll pay.

Tips for Receiving Low Mortgage Rate

To receive the lowest rates possible, you should work to get your finances in tip-top condition before you apply for a mortgage.

For instance, you should manage your debt well and keep your credit score as high as possible. These two elements alone will help you qualify for lower interest rates. Additionally, saving for bigger down payments will help lower the interest on your mortgage.

It doesn’t mean you should expect to perform miracles. However, small improvements can and do make a difference in the mortgage rate lenders offer you.

Below are a few low-hanging fruits you can take advantage of:

  • Pay all of your bills on time
  • Increase your savings
  • If possible, buy discount points. They add to your upfront cost but lower the interest rate and long-term cost of your mortgage
  • Pay as much of your card balances as possible. It helps improve your DTI and credit score 
  • Be cautious when opening and/or closing credit accounts. Unnecessary opening and/or closing of credit cards lowers your credit score

Few people are in a position to pay down their debt and boost their savings concurrently. So, don’t worry if you cannot do both simultaneously. Just focus on areas you think will make the most significant difference for you. For instance, paying down revolving, high-interest credit accounts like credit cards will improve your credit score.

Another way you can lower your interest rate is to shop around. Mortgage lenders are flexible regarding the interest rates they offer. Some lenders will offer mortgages with lower interest based on your current situation. By requesting 3 to 5 quotes from different lenders, you can save hundreds or even thousands on the overall mortgage interest you pay.

Should I Go for a 30-Year FRM?

30-year loans are popular with home buyers and those looking to refinance their properties for a reason. They are good and suit the needs of most people. However, there are exceptions, including:

Borrowers with high monthly income – If you have plenty of spare cash left every month, it might be wiser to opt for higher payments with shorter mortgage terms. A shorter-term loan could save you a lot of money by paying less interest. Rather than choosing a 30-year mortgage, go for a 10, 15, 20, or few years. The less the length you pay interest, the more you save on your mortgage.

The same case applies when you are refinancing. Opt for a 15-year term instead of choosing a 30-year loan term.

Are you intrigued yet? Do some calculations on The Mortgage Reports’ calculator. You learn that the payments are higher for a 15-year loan term. However, you’ll make huge savings on interest.

If You’re Moving Soon (In Less Than 10 Years) – The main benefit of a 30-year FRM is it buys you predictability and security over the length of the mortgage. However, if you don’t need the security and predictability for that long, as you plan to move within ten or a few years, why not go for a shorter-term loan?

You might fare better with an adjustable-rate mortgage – ARM. ARM loans come in three forms – 5/1, 7/1, and 10/1. While these loans are available in 30-year terms, the first number describing the loan type (i.e., 5, 7, or 10) denotes the number of years the loan has a fixed interest rate. 

If you plan to move before the fixed-rate period ends, consider an ARM seriously. Take advantage of the loan’s introductory rate, as it’s usually lower than the 30-year FRM.

30-Year Mortgage Rates FAQ

What is the average interest rate for a 30-year fixed mortgage?      
The average 30-year FRM rates vary on a daily basis. In some cases, it varies two or more times in a day. Check the table above for today’s rates.

However, historically, the mortgage rates of the 30-year FRM have averaged about 8%. In recent years, they’ve been below the historical average. In 2016, 2017, 2019, and 2020, the average rates were below 4%.

What is the lowest rate ever on the 30-year mortgage?
Freddie Mac weekly rate survey records indicate that the lowest 30-year mortgage rate ever recorded was 2.66%. However, these records may not be up-to-date. Furthermore, it’s important to note that it is not the lowest possible but an average rate. Top-tier borrowers with large down, excellent credit, or pay for points get offered rates far below the average.

How do 30-year mortgages work?
A 30-year FRM allows borrowers to repay their loan balance over 30 years. Over the life of the loan, the interest rates and monthly repayments are fixed. Unless you refinance your property, your monthly payments remain the same. 

It’s important to note that you’re not required to keep the home for all 30 years. Typically, you can sell the house or refinance into a different mortgage at any time.

Which one is better? A 20-year mortgage or 30-year mortgage?
Generally, having the shortest mortgage you can comfortably afford is better. The shorter the loan terms, the lower the interest you pay.

Some financial planners argue that longer mortgages are better if you invest the money you save by taking on lower monthly payments into something that will yield a high return on investment. However, high-return-on investment ventures come with high risks. As such, you should decide based on your level of risk tolerance more than being enamored by glossy spreadsheets. 

Are 30-year FRM mortgage rates creeping up or down?
On the grand scale, 30-year FRM mortgage rates have been on a decline in the past 40 years. There were some brief periods when the rates rose. In 2020, the rates pushed to several record lows during the coronavirus pandemic.

At the micro level, they change regularly, typically daily. When shopping for a 30-year mortgage, keep an eye on the rate fluctuation and choose your rate lock when the mortgage rates are the lowest. 

That being said, your financial well-being (down payment, debts, and credit) will impact your mortgage rates more than when you rate lock your loan.

What are 30-year mortgage rates tied to?
Mortgage rates on a 30-year FRM are tied to the secondary market’s mortgage-backed securities (MBS). MBSs are bundles of different mortgages sold to investors in the secondary market. Many lenders sell their mortgages as soon as they close the loan to free up cash, allowing the lenders to make more loans.

Investors’ return on investment from MBS will depend mainly on the economy’s well-being. A stronger economy means investors can get better returns on high-risk investments such as the stock market. This, in turn, pushes MBS prices lower, increasing mortgage rates.

When the economy isn’t doing well, investors are more inclined to buy safer investments, balancing their risk exposure in their portfolios. They balance the risk by purchasing MBS and U.S. Treasuries. The higher demand increases the prices of MBSs, which lowers the mortgage rates. 

Which lenders have the best 30-year FRM rates?
The nature of mortgage lending means that rates vary incredibly from one lender to the next. Different lenders use different formulas to determine every prospective borrower’s risk’. The risk helps the lender set the rates. Furthermore, lenders adjust their rates depending on their appetite for new loans and their current workload.

As such, there is no single best lender we can point you to to get the ‘lowest’ rates. The best lender varies from day to day. The best way to find the best lender is to shop around. Compare the rates as well as the fees from 3 to 5 lenders, and choose the best lender with the lowest cost from the bunch.