What Is a Good Mortgage Interest Rate Right Now?

Most people consider a “good” mortgage rate to be the lowest average current rate available. But here’s what they may not realize: Not everyone will qualify for the lowest rates out there.

So what is a good mortgage rate? As of September 17, 2026, the average 30-year fixed rate was 6.95%, according to Freddie Mac, so a rate at or below that may be considered good. But it can be different for every borrower, depending on their financial situation and credit score.

Many factors go into determining the mortgage rate you can get. Once you understand what these variables are, the better equipped you’ll be to navigate the mortgage market and find a loan that fits your situation.

What Is a Mortgage Interest Rate?

If you’re a first-time homebuyer, you may have a lot of questions about mortgage interest rates. The interest rate on a loan is the cost you pay to borrow money. You pay the interest each month as part of your regular payments for your loan.

There are different types of mortgage rates. With a fixed rate mortgage, your interest stays the same over the life of the loan. This means your monthly payment will always be the same.

An adjustable-rate mortgage (ARM) starts with a fixed rate for an initial period, commonly three, five, seven, or 10 years. After that, the rate adjusts periodically based on a benchmark index, such as the Secured Overnight Financing Rate (SOFR), plus a set margin. This could potentially make your payments much higher, depending on the state of the economy.

How Do Mortgage Interest Rates Work?

So what is a good mortgage interest rate? Interest rates are always changing. A variety of factors determine mortgage rate changes. Some you have control over, and others you don’t.

One of the critical factors that’s outside your control is what’s happening in the economy. Major economic events have a significant effect on interest rate fluctuations. For instance, a strong job market can add to inflation pressure, which may lead the Federal Reserve to keep interest rates higher.

Inflation, which limits consumers’ purchasing power, also plays a role. The Federal Reserve (the Fed) raised its benchmark rate in 2022 and 2023 to fight inflation, then cut it in late 2024 and 2025. In September 2026, with inflation still elevated, the Fed raised its rate again. The Fed’s rate influences mortgage rates, but it doesn’t set them. Mortgage rates tend to track longer-term rates, like the 10-year Treasury yield, more closely.

Your personal financial situation also affects the interest rate you get, as outlined below.

How Lenders Determine Your Mortgage Rate

In addition to the economic factors and the influence of the Fed, your unique financial situation will help determine the mortgage rate you qualify for.

Here are a few key factors lenders typically consider when determining your rate.

Credit Score

Most lenders review your credit history to determine if you’re eligible for a mortgage.

With this in mind, it can help to check your score regularly. Paying your bills on time and keeping your credit balances low are two habits that can affect it.

Credit report agencies will assign you a credit score by evaluating these factors. The most common model is the FICO® credit score, which ranges from 300 to 850.

Usually, if you have a credit score of 800 or higher, it’s considered exceptional, whereas a credit score between 740 and 799 is considered very good.

A credit score of 739 to 670 is good, and a score between 669 and 580 is fair. A score of 579 and lower is considered poor. A low credit score indicates that a borrower represents a higher risk. Borrowers with these credit scores may have trouble getting approved for a loan.

It’s important to note that specific credit score requirements may depend on the loan you apply for.

Income and Assets

Your income is another important factor lenders use to determine if you’re eligible for a mortgage. Lenders prefer borrowers with a steady income. To determine if you qualify, lenders evaluate your income and other assets, such as investments.

Also, your debt-to-income ratio (DTI) is essential information. Your DTI indicates what percentage of your monthly income is used for debt payments. This number gives lenders an idea of how well you’re doing financially.

If your DTI ratio is high, it may show that you’re not in a position to take on more debt. A lender might give you a higher interest rate or deny your mortgage application altogether.

Down Payment Amount

Sometimes your down payment amount can lower your interest rate or even determine what loans you’re eligible for. Lenders may see you as less of a risk if you put more money down.

Putting 20% down on a conventional loan generally lets you avoid private mortgage insurance, and it may help you get more favorable interest rates.

However, if you’re applying for a government-backed loan, you may not need such a big down payment. For example, a Veterans Affairs (VA) purchase loan may not require a down payment as long as the sale price isn’t higher than the home’s appraised value. A Federal Housing Administration (FHA) loan requires as little as 3.5% down for borrowers with a credit score of 580 or higher.

Also, some conventional home loans do not require 20% down.

Loan Term and Type

The loan term you select, such as 15 or 30 years, can also make a difference in the interest rate you receive. In general, a shorter-term loan will have a lower interest rate than a longer-term loan. However, your monthly payments will be higher with a shorter-term mortgage.

There are also several types of mortgage loan categories, including conventional, FHA, USDA, and VA loans. Each loan product may have very different rates.

Finally, as discussed, with a fixed-rate mortgage, your interest rate will remain the same for the life of the loan. But if you choose an adjustable-rate mortgage, your interest rate will vary after an initial fixed rate.

Before you take out any loan, it’s important to compare all of your options to find a competitive rate.

Location

Where your property is located can also play a role in the interest rate you receive, since many lenders offer slightly better rates depending on the state. For instance, the cost of living in California tends to be higher than it is in some other locations.

You can check the cost of living by state to see how your state ranks.

Other Factors That Determine Your Mortgage Rate

In addition to your financial situation and location, and the type of loan you’re applying for, there are some other things that may influence the mortgage rate you get. They include:

The Lender You Choose

Different lenders offer different mortgage rates and terms. Shopping around can help you find a competitive rate you can qualify for.

Broader Market Conditions

This factor is out of your control, but it’s good to understand how it works. Mortgage rates tend to track longer-term interest rates, such as the 10-year Treasury yield, more closely than they track the Fed’s benchmark rate. Knowing what’s happening in the broader market when you’re shopping for a home loan can help prepare you for what to expect.

What Is Considered a Good Mortgage Rate

As of September 17, 2026, the average rate on a 30-year fixed-rate mortgage was 6.95%, according to Freddie Mac. That average reflects conventional loans for borrowers who put 20% down and have excellent credit, so the rate you’re offered may differ. A rate below or close to the current average might be considered good.

But again, what’s a good mortgage rate for you depends on your financial situation and many other factors. A good rate is what you can qualify for. Comparing rates from different lenders can help you find a competitive deal.

As you’re comparing your options, it can help to look at the loan’s APR (annual percentage rate). An APR gives borrowers a broader measure of the cost to borrow money than the interest rate alone does.

The APR includes the interest rate, any points, mortgage broker fees, and other charges you pay to borrow money. So when you’re comparing options, you’ll want to review each lender’s APR to indicate the true cost of borrowing.

How to Get a Good Mortgage Rate

Now that you know the answer to the question, what is a good interest rate for a mortgage?, it might be a good idea to look for a competitive rate. Making sure your finances are in order before you apply for a mortgage will likely help you obtain a better interest rate and loan terms. Here are some ways to do that.

•   Pay off higher-interest debt. If you have debt like credit card debt, you’re likely paying a lot of money in interest. That money could be going toward other things like a mortgage payment. Second, carrying a large amount of debt means you lower your chances of approval for a home loan. Paying off as much of your debt as you reasonably can may help.

•   Save more for a large down payment. Buyers who put down less than 20% may end up paying for private mortgage insurance (PMI), which Freddie Mac says typically costs $30 to $70 per month for every $100,000 borrowed.

•   Review your credit history and check for errors. You can get a free copy of your credit report from the three major credit bureaus or from AnnualCreditReport.com. If you spot any errors, consider alerting the credit bureaus right away. Correcting any mistakes may help improve your ability to get a home loan.

The Takeaway

What is a good interest rate on a mortgage? Your financial health, the health of the economy, the loan type and term, and other factors help determine the actual rates you’re offered. What you can do is work to strengthen your financial situation and pay down debt you have, such as credit card debt.

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FAQ

What is the 30-year mortgage rate right now?

As of September 17, 2026, the average rate on a 30-year fixed-rate mortgage was 6.95%, according to Freddie Mac. Freddie Mac updates this average weekly, and the rate you’re offered will depend on your finances and the type of loan you choose.

What is a good interest rate for a mortgage now?

A rate at or below the current average may be considered good. As of September 17, 2026, the average 30-year fixed rate was 6.95%, according to Freddie Mac. But a good mortgage rate can be different for every borrower, depending on their financial situation and credit score, as well as the type of home loan they’re applying for, among other factors.

Is 5.50% a good rate for a mortgage?

As of September 17, 2026, a 5.50% rate would be well below the 6.95% average for a 30-year fixed-rate mortgage, according to Freddie Mac, so it could be considered a good rate. Whether that rate is available to you will depend on factors like your credit, down payment, and loan type.

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