As of September 3, according to Credible data gathered from more than 500 U.S. lenders*, the median interest rate on a 30-year fixed-rate mortgage is 6.375%, which is unchanged from Friday. Additionally, the median interest rate on a 15-year fixed-rate mortgage is 5.490%, which is also unchanged from Friday.
*Data used to calculate the median mortgage interest rates is based on rates from 300 mortgage purchase lenders and 250 refinance lenders and includes lenders in all 50 states. The data is collected daily by Credible based on a $400,000 purchase price, $80,000 down payment, single-family primary residence, and a 740+ FICO score.
At the Federal Reserve’s annual conference, Chairman Jerome Powell said “the time has come” for interest rate cuts, setting the stage for a likely rate cut in September. Inflation dropped to 2.5% in July, and Powell expressed confidence that it would continue to cool further.
The chairman’s assessment that inflation is finally under control provided encouraging news. Analysts expect a cut of at least 0.25 to 0.50 percentage points in September based on the chairman’s remarks, though the pace and amount of future cuts will depend on the economy.
Your rate may differ from these based on your finances, property type and other factors. Still, knowing what rates to expect when you’re buying a home can help you evaluate whether you’re getting a good deal and when to submit your application or lock your rate. It’s always smart to compare rates and fees from several lenders on the same day to make sure you’re getting a good deal.
30-year mortgage interest rate, 6.375%
Today’s mortgage interest rate for a 30-year fixed-rate loan is 6.375%, which is unchanged from Friday.
While rates can fluctuate, it’s important to understand how they impact your monthly payment. For example, the monthly payment for a $250,000 mortgage with a 30-year term and a fixed interest rate of 6% would be $1,498.88. The principal and interest for the same mortgage with a 6.5% fixed rate would be $1,580.17 per month.
20-year mortgage interest rate, 5.875%
The mortgage interest rate for a 20-year fixed-rate loan is 5.875%, which is unchanged from Friday.
Here’s how slight variations can influence your payment. The monthly principal and interest for a $250,000 mortgage with a 20-year term and fixed interest rate of 5.75% would be $1,755.21, while the monthly payment for the same loan with a 6.25% interest rate would be $1,827.32
15-year mortgage interest rate, 5.490%
Today’s interest rate for a 15-year fixed-rate mortgage is 5.490%, which is unchanged from Friday.
The monthly payment for a $250,000 mortgage with a 15-year term and a fixed interest rate of 5.5% would be $2,042.71. The payment for the same loan with a 6% interest rate would be $2,109.64.
10-year mortgage interest rate, 5.250%
The interest rate for a 10-year fixed-rate mortgage is 5.250%, which is unchanged from Friday.
Small changes in interest rates can impact your monthly payment. For example, the monthly payment for a $250,000 mortgage with a 10-year term and a fixed interest rate of 5% would be $2,651.64. The monthly payment for the same loan with a 5.5% interest rate would be $2,713.16.
How to lock in a mortgage rate
The mortgage rate on your loan estimate is not guaranteed unless you’ve locked in your rate. Some lenders lock your rate upfront, but you might have to request it from other lenders—or you might want to let your rate float for now if you think rates will drop.
“If you think the Fed is likely to lower the federal funds rate, then you would want to wait a bit after the meeting to lock in your rate,” said Shang Saavedra, personal finance educator and founder of Save My Cents, Inc. “This gives financial institutions time to integrate the changes into their own pricing and issue newer, likely lower mortgage rates, from which you can then benefit, resulting in lower monthly payments and less interest paid to your lender over time.”
Once you tell your loan officer you want to lock in your rate, you’ll usually have 30, 45 or 60 days to complete the transaction. If you lock your rate, you won’t have to worry about interest rates going up.
Before you lock your rate, ask your lender about its rate lock extension and rate float down policies. Find out if there’s an option to lower your rate if rates drop after you lock and, if so, what that would cost.
Today’s mortgage rates FAQ
How often do mortgage rates change?
Mortgage rates tend to change daily, but they only change on days when the mortgage bond markets are open (weekdays, excluding holidays). When the economy is especially volatile, rates might change several times a day. Lenders are constantly repricing their mortgages to account for changes in inflation, unemployment and other economic factors that affect investor demand for mortgage-backed securities.
Can I negotiate my mortgage rate?
Some lenders may be willing to negotiate a mortgage rate with you, especially if you have a competing offer from another lender and you have top-notch credit, a solid down payment and a low DTI.
What’s the difference between a 30-year and 15-year mortgage rate?
A 15-year mortgage will usually have an interest rate up to 1 percentage point lower than a 30-year mortgage. You can compare 15- and 30-year interest rates over time using data compiled by Freddie Mac. However, your monthly payment will be significantly higher on a 15-year loan despite the lower rate because you’re repaying the loan principal in half the time.