Today’s 30-year mortgage interest rates stay at 6.88% while 15-year terms climb to 6.25%

The median interest rate on a 30-year fixed-rate mortgage is 6.88% as of November 13, which is unchanged from yesterday. Additionally, the median interest rate on a 15-year fixed-rate mortgage is 6.25%, which is 0.12 percentage points higher than yesterday. 

Due to encouraging economic data, the Fed cut the federal funds rate by 0.25 percentage points on November 7, dropping its benchmark rate to a range of 4.50% to 4.75%. Experts predict another cut may occur in December if inflation, which hovers around 2.4%, continues to ease.

Federal Reserve Chair Jerome Powell told reporters that the economy has made “significant progress” in the past two years. “As the economy evolves, monetary policy will adjust in order to best promote our maximum employment and price stability goals,” he added. 

With mortgage rates changing daily, it's a good idea to check today's rate before applying for a loan. It's also important to compare different lenders' current interest rates, terms, and fees to ensure you get the best deal.

Median mortgage interest rates are calculated based on rates from over 500 mortgage lenders in all 50 states. The data collected daily by Credible is based on a $400,000 purchase price, $80,000 down payment, single-family primary residence, and a 740+ FICO score.

Current interest rate for 30-year mortgage: 6.88%

Today’s 30-year fixed-rate mortgage interest rate is 6.88%, unchanged from yesterday.

While mortgage rates can vary, it’s essential to recognize their effect on your monthly payment. For instance, a $350,000 mortgage with a 30-year term at a 5.5% fixed interest rate would result in a monthly payment of $1,987.26. In comparison, the same mortgage with a 6.5% fixed rate would raise the monthly payment to $2,212.24.

Current interest rate for 20-year mortgage: 6.63%

Today’s 20-year fixed-rate mortgage interest rate is 6.63%, 0.13 percentage points higher than yesterday.

Interest rates on mortgages fluctuate, so it’s crucial to understand how they impact your monthly payment. For example, a $350,000 mortgage with a 20-year term at a 5.25% fixed interest rate would result in a monthly payment of $2,065.88. The same mortgage with a 6.25% interest rate would raise the monthly payment to $2,558.25. 

Current interest rate for 15-year mortgage: 6.25%

Today’s 15-year fixed-rate mortgage interest rate is 6.25%, 0.12 percentage points higher than yesterday. 

It’s important to understand how interest rates influence your monthly payment before you take out a home loan. For instance, a $350,000 mortgage with a 15-year term at a 4.75% fixed interest rate would result in a monthly payment of $2,722.41. In contrast, the same mortgage with a 5.75% fixed interest rate would have a monthly payment of $2,906.44. 

Current interest rate for 10-year mortgage: 6.13%

Today’s 10-year fixed-rate mortgage interest rate is 6.13%, 0.14 percentage points higher than yesterday. 

While mortgage interest rates can vary, it’s important to understand how they can influence your monthly payment. For example, a $350,000 mortgage with a 10-year term at a 4.5% fixed interest rate would result in a monthly payment of $3,627.34. In comparison, the same mortgage with a 5.5% fixed interest rate would raise the monthly payment to $3,798.42. 

How do mortgage rates work?

When you take out a mortgage loan to purchase a home, you’re borrowing money from a lender. The lender will charge interest on the amount you borrowed to compensate for that risk.

Expressed as a percentage, a mortgage interest rate is the cost of borrowing money. It can vary based on several factors, such as your credit score, debt-to-income ratio (DTI), down payment, loan amount, and repayment term.

When you get a mortgage, you’ll typically receive an amortization schedule, which shows your payment schedule for the life of the loan. It also indicates how much of each payment goes to reduce the principal balance versus the interest.

You'll spend more money on interest and less on the principal balance at the beginning of your loan term. Over time, as the amount you owe decreases, you'll pay more toward the principal and less toward interest.

Your mortgage interest rate can be either fixed or adjustable. With a fixed-rate mortgage, the rate will be consistent for the duration of the loan. With an adjustable-rate mortgage (ARM), the interest rate can fluctuate with the market.

Mortgage rates change frequently - sometimes on a daily basis - in response to economic factors. Inflation plays a significant role in these fluctuations. Interest rates tend to rise in periods of high inflation, and drop or remain roughly the same in times of low inflation. Other factors, like the economic climate, demand, and inventory can also impact the current average mortgage rates.

What determines the mortgage rate?

Mortgage lenders typically determine the interest rate on a case-by-case basis. Generally, they reserve the lowest rates for low-risk borrowers - that is, those with a higher credit score, income, and down payment amount. Here are some other personal factors that may determine your mortgage rate:

• Location of the home
• Price of the home
• Your credit score and credit history
• Loan term
• Loan type (e.g., conventional or FHA)
• Interest rate type (fixed or adjustable)
• Down payment amount
• Loan-to-value (LTV) ratio
• DTI

Other indirect factors that may determine the mortgage rate include:

• Current economic conditions
• Rate of inflation
• Market conditions
• Housing construction supply, demand, and costs
• Consumer spending
• Stock market
• 10-year Treasury yields
• Federal Reserve policies
• Current employment rate

How to compare mortgage rates

The lender you choose can also affect your mortgage rate. Some lenders have higher average mortgage rates than others, regardless of your credit or financial situation. That's why it's important to compare lenders and loan offers.

Here are some of the best ways to compare mortgage rates and ensure you get the best one:

• Shop around for lenders: Compare several lenders to find the best rates and lowest fees. Even if the rate is only lower by a few basis points, it could still save you thousands of dollars over the life of the loan.
• Get several loan estimates: A loan estimate comes with a more personalized rate and fees based on factors like income, employment, and the property's location. Request and compare loan estimates from several lenders.
• Get pre-approved for a mortgage: Pre-approval doesn't guarantee you'll get a loan, but it can give you a better idea of what you qualify for and at what interest rate. You'll need to complete an application, submit financial documents, and undergo a hard credit check.
• Consider a mortgage rate lock: A mortgage rate lock lets you lock in the interest rate a lender offers you for a certain amount of time - usually 30, 45, or 60 days but sometimes more. During this time, you can continue shopping around for a home without worrying about the rate changing.
• Choose between an adjustable- and fixed-rate mortgage: The interest rate type can affect how much you pay over time, so consider your options carefully.

Here's a simple example of what a 15-year fixed-rate mortgage might look like versus a 30-year fixed-rate mortgage:

15-year fixed-rate

• Loan amount: $300,000
• Interest rate: 6.29%
• Monthly payment: $2,579
• Total interest charges: $164,186
• Total loan amount: $464,186

30-year fixed-rate

• Loan amount: $300,000
• Interest rate: 6.89%
• Monthly payment: $1,974
• Total interest charges: $410,566
• Total loan amount: $710,565

Pros and cons of mortgages

If you’re thinking about taking out a mortgage, here are some benefits to consider: