BOSTON MORTGAGE RATES TODAY

Current mortgage rates in
Boston.

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Compare mortgage rates in Boston.

Key Points

• Mortgage rates in Boston are influenced by economic factors along with a borrower’s demonstration that they are creditworthy.

• Mortgage rates in the state of Massachusetts often trend below the national average.

• Fixed-rate mortgages offer you the stability of consistent monthly payments over the entire term of the loan.

• Adjustable Rate Mortgages (ARMs) provide flexibility. But they can also throw curveballs with variable rates that can change — up or down — as the loan term progresses.

• The better your credit score and the higher your down payment, the lower your mortgage rate.

• First-time homebuyers can also benefit by tapping into state and federal government-backed loans (FHA or VA).

Introduction to Mortgage Rates

Mortgage rates in Boston should be a key consideration if you’re looking to buy a home. Rates can greatly affect how much home you can afford and what your long-term financial planning needs to look like — especially since Boston rates tend to skew higher than the national average. This guide was created to help you understand how mortgage rates are determined and how you can get the best rate for your needs.

It may be especially helpful if you are looking into buying your first home. You’ll want to make understanding where Boston rates come from step one on your mortgage journey.

Where Mortgage Rates Come From

The rates homebuyers obtain when negotiating a home loan are influenced by a combination of factors, from the economy to the borrower’s financial situation and credit history. Let’s take a closer look:

Economic Factors Influencing Mortgage Rates

• The bond market, and especially the 10-year U.S. Treasury Note, has long been a primary indicator of the direction mortgage rates are headed. When rates on the Treasury Notes rise, mortgage rates tend to go in the same direction.

• The health of the housing market also plays a role. When the housing market cools down and more homes become available than there are interested buyers, lenders tend to offer lower rates to attract customers.

• Inflation and unemployment also play a role in determining the rates for mortgages. In a strong economy, mortgage rates tend to rise — they are reflecting the potential for increased borrowing demand, and the potentially higher costs lenders who provide loans to consumers will have. A recession is often accompanied by lower mortgage rates.

Borrower Factors Influencing Mortgage Rates

• Your credit score is a significant factor in the rate you will be offered. The higher your score, the lower the rate you’re likely to obtain.

• Your down payment amount also plays a role. The larger the down payment, the lower the interest rate, because borrowers with more equity in their newly purchased property are perceived as a lower default risk by the lender.

• Your debt-to-income (DTI) ratiois important, too. Lenders look at your income in relation to your monthly debts. Mortgage lenders usually like to see DTI ratios of no more than 36%, though that doesn’t mean you can’t qualify if yours is higher.

The type of home mortgage loan you choose and the term will impact your interest rate, too. We’ll get into that in more detail below.

How Interest Rates Affect Home Affordability

In Boston and other Massachusetts cities, even small mortgage rate changes can have a big impact on your home-buying ability. Here’s an example: If you negotiate a $400,000 home loan at a 6.95% interest rate, your monthly payment will be $2,648. But if the rate goes up to 7.45%, your monthly payment will jump to $2,783. Over the life of a 30-year mortgage, that 0.50% difference will add up to almost $48,000 in interest payments. This is essential to keep in mind if you’re looking at mortgage rates in Boston, where the housing market is competitive and prices are consistently high.

Interest Rate	Loan Term	Monthly Payment	Total Interest
6.00%	30-year	$2,398	$463,353
6.00%	15-year	$3,375	$207,577
7.00%	30-year	$2,661	$558,036
7.00%	15-year	$3,595	$247,156

This is why it is so important to get the best possible mortgage rate when buying a home in Massachusetts. By shopping around and comparing rates, you may save yourself big money in the long run.

Recommended: Best Affordable Places to Live in the U.S.

Boston Mortgage Rate Trends

Looking at historical mortgage rates in Massachusetts and throughout the country can help you get an idea of what the future might hold for Boston’s rates.

Historical U.S. Mortgage Rates

Mortgage rates in U.S. history have gone every which way, and always play a pivotal role in the ebb and flow of the housing market. From the 1970s all the way into the 2020s, rates fluctuated, reaching more than 18.00% and then plummeting below 3.00%. Federal Reserve policy and an ever-changing economic climate have been forces behind these shifts. Develop an understanding of these factors, and you’ll position yourself to make informed decisions about purchasing a home and navigating the complex mortgage financing landscape.

Historical Interest Rates in Massachusetts

The table shows how Massachusetts’ rate has compared to the national average in recent decades. As you can see, the state rate is similar to the national rate, but generally remains just below it. (The Federal Housing Finance Agency stopped compiling this state-level data after 2018.)

Year	Boston Rate	U.S. Rate
2000	7.93	8.14
2001	6.96	7.03
2002	6.42	6.62
2003	5.64	5.83
2004	5.42	5.95
2005	5.63	6.00
2006	6.47	6.60
2007	6.30	6.44
2008	5.99	6.09
2009	4.89	5.06
2010	4.76	4.84
2011	4.44	4.66
2012	3.62	3.74
2013	3.70	3.92
2014	3.92	4.24
2015	3.72	3.91
2016	3.53	3.72
2017	3.84	4.03
2018	4.32	4.57

Source: Federal House Finance Agency

Types of Mortgages Available in Boston

In Boston, you have a lot of options when looking for the type of mortgage loan that will best help you secure the funds to purchase your home. Understand your options and you can make informed decisions to suit your situation.

Fixed-Rate Mortgage

Fixed-rate mortgages are the no-surprises home loan choice, with an interest rate that will remain constant over the loan’s life. That predictability means monthly payments will stay the same and you can more easily plan your budget. Fixed-rate mortgages come with a variety of terms — often 10, 15, 20, 30, or as many as 40 years.

Adjustable-Rate Mortgage (ARM)

Adjustable-rate mortgages, or ARMs, offer lower interest rates to begin with compared to fixed-rate loans. They are a popular choice for, say, owners who believe they will sell the home again before the initial fixed-rate period ends. With an ARM, you’ll enjoy a steady interest rate for the first part of your loan, although as time passes, that rate can adjust up or down based on the market. Such flexibility may work in your favor if rates are falling, but your payments could also increase if rates go up.

FHA Loan

The Federal Housing Administration (FHA) offers this type of loan, which exists to open the doors of homeownership to a broader audience. FHA loans offer more flexible eligibility criteria than other types of loans, including a low down payment option and the ability to qualify with a minimum credit score of 580. They may be particularly appealing to those who qualify as a first-time homebuyer in Boston.

VA Loan

Veterans Affairs (VA) administration loans are a great opportunity for homebuyers who’ve served our country, and are available to eligible active-duty military personnel, veterans, reservists, National Guard members, and surviving spouses. One benefit of a VA loan is that it doesn’t require you to make a down payment. This means it’s a great option if you don’t have a bundle of cash in your savings. VA loans offer competitive rates, which means they will keep the cost of your mortgage down.

Jumbo Loan

In Boston and surrounding Suffolk County, Massachusetts, a conventional mortgage loan is capped at $914,250 for a single-family home. If you’re eyeing a property with a price that exceeds this figure, a jumbo loan is what you need. While jumbo loans might come with slightly higher interest rates and more stringent qualification requirements, they can open the door to your dream home.

Current mortgage rates by state.

Compare current home interest rates by state and find a mortgage rate that suits your financial goals.

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Should You Wait for Interest Rates to Drop?

If you’re in Boston or elsewhere in Massachusetts and are considering a home purchase, you could be wondering whether to wait and see if interest rates begin to fall. Current economic uncertainties make it hard to say. In April 2025, forecasters said that 2025 would end with the average interest rate for a 30-year fixed-rate mortgage at 6.50%.

Consider that if you buy right now and mortgage rates fall in the future, you can always think about a mortgage refinance to take advantage of dropping rates. It’s also important to think about your personal needs: Is the lease on your rental soon to expire? Is your apartment rental costing you about the same as what you pay for your mortgage every month? Are you anxious to build equity? It’s a good idea to weigh all of these factors.

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See How Boston’s Costs Stack Up

The overall cost of living in Boston impacts the city’s home prices — and also the challenges of fitting mortgage payments into your budget. Boston’s cost of living comes in at about 27.5% higher than the national average.

Here’s how Boston stacks up against other Massachusetts cities. The chart uses data from two indices comparing local costs of living to the average cost of living in the U.S.

Massachusetts City	Cost of Living
Boston	146
Cambridge	182
Framingham-Natick	137
Lowell	123
New Bedford	117
Northampton	117
Pittsfield	109
Salem	132
Worchester	110

Get Your Best Possible Rate in Boston

To secure the best mortgage rate possible in Boston, work on upping your credit score and getting your debt-to-income (DTI) ratio down. Conventional loans are the most common and typically require a credit score of 620 or higher; the average credit score of approved applicants in 2024 was 758, according to Experian®, which tracks consumer credit scores.

If you can increase your down payment and therefore lower your loan amount, you may be able to eliminate a need for private mortgage insurance (PMI), which is required for a conventional loan when you make a down payment of less than 20%. You’ll find different types of loans to consider, including ARMs, which tend to have lower initial rates than fixed-rate mortgages. Spending time monitoring Boston mortgage rates can help you make the most informed decision when you are ready to buy.

Helpful Tools & Calculators

Using a mortgage calculator is a great first step as you develop an understanding of different interest rates in Boston. Calculators can help you see how different rates will affect your monthly payments as you pay off your loan. These calculators are easy to use and effective for prospective homebuyers, especially if you are new to the process. They take into account loan amount, term length of the loan you select, and interest rate, and provide a clear and accurate financial picture of your future obligations.

Here are three mortgage calculators we like:

Run the numbers on your home loan.

Mortgage calculator

Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.

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Down payment calculator

Enter a few details about your home loan and we’ll provide your monthly mortgage payment.

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Home affordability calculator

Provide us with a few details and see how much you can afford to spend on a home purchase.

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Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.

How to Evaluate Loan Offers in Boston

When you secure a competitive mortgage rate, it can save you a substantial amount of money over the life of your loan. Pay attention to the annual percentage rate (APR), which encompasses fees, closing costs, and discount points.

When you find a loan offer that feels right for you, navigate the mortgage preapproval process so you’re ready to make an offer. You can also consider locking in the rate for up to 90 days, for a small fee, if you’re concerned about potential rate hikes.

Boston Mortgage Resources

Massachusetts offers all kinds of resources and programs to support homebuyers, especially if you’re buying your first home or working with a limited budget. Look at the state’s offerings, such as My Mass Mortgage: ONE Mortgage and MassHousing Loan, which provides low-interest, fixed-rate loans with down payments as low as 3% or 5%. Remember, Federal programs, including FHA loans and VA loans, also support first-time homebuyers with low down payments and flexible credit requirements.

You may also find down payment assistance programs or help with closing costs. These types of assistance can significantly reduce the financial burden of buying a home, and is worth researching to make more strategic and financially sound decisions. For many first-time homebuyer programs, anyone who has not purchased a primary residence in the last three years can be eligible.

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Closing Costs in Boston

If you’re looking to buy a home in Boston, you also need to think about closing costs. Typically, you’ll pay 2% to 5% of the home’s final purchase price. Costs can vary, depending on the property’s value and where it is located in the city. Overall, the median sale price of a home in Boston is well above the Massachusetts statewide median at $770,000 — and a home selling for that price would cost more than $10,000 to close.

Closing costs tend to cover the following:

• Abstract and recording fees: These costs are for summarizing the title search.

• Application fee: A lender may charge for processing your loan application.

• Appraisal and survey fees: Usually in the $300 to $600 range, these costs could also be considerably higher, depending on the home’s location, value, and other factors.

• Credit reporting, underwriting, and origination fees: A lender may charge $10 to $100 per applicant to check your credit score, and underwriting fees (perhaps in the $300 to $750 range) might also be added to your closing costs. Origination fees may be about 0.5% to 1% of loan value, and are there to cover the costs of the lender creating your loan documents.

• Flood certification fee: Lenders may require flood certification, which states the property’s flood zone status.

• Title search and title insurance fees: A title search is performed to see if there are any other claims on the property in question, and the buyer typically pays the fee for this — usually in the $75 to $200 range. Lenders also often require title insurance protection, likely a one-time fee costing between 0.1% and 2% of the home’s sale price.

As you figure out your budget for closing expenses, you may also want to think about reserving funds for mortgage points. (Each mortgage point you choose to buy costs 1% of the mortgage amount and generally lowers your mortgage interest rate by 0.25% per point.)

The Takeaway

Boston’s mortgage landscape is as diverse as the city itself, offering a wealth of options for those looking to become homebuyers. Staying informed about current mortgage rates in Boston and exploring available assistance programs are important strategies for prospective buyers, and the time spent will be well-invested. Whether you’re a first-time buyer or a seasoned homeowner, take advantage of all available resources and the process will be smoother and more affordable.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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FAQ

How do you lock in a mortgage rate?

Shop around and compare offers from multiple mortgage lenders to zero in on the best available rates. Once you’ve selected your lender, ask them how you can lock in your rate: Rate locks, typically last 30 to 60 days; they are sometimes free but often carry a cost somewhere between 0.25% and 0.50% of the loan amount.

How do mortgage interest rates work?

Mortgage interest rates, advertised as a percentage, basically tell you what it’s going to cost you to borrow money to purchase a home. Economic conditions affect rates, but so does your personal financial history. Fixed-rate mortgages come with rates that stay stable, while adjustable-rate mortgages, often referred to as ARMs, have rates that can change in time. It’s helpful for every homebuyer to understand mortgage rate basics, since even small rate changes can cost or save you thousands of dollars over the life of a 30-year loan.

Will mortgage rates drop in Boston?

Economists have predicted that mortgage rates in Boston will remain stable into 2026, but no one can guarantee that. Keeping an eye on economic factors like inflation and Treasury bond prices will help you anticipate as a homebuyer where mortgage rates may be headed. What’s more important than that, however, is weighing your personal financial readiness and credit situation.

Will Boston home prices ever drop?

The Boston housing market is continually influenced by a variety of factors, including the overall state of the economy both locally and nationally. The balance of supply and demand is also key in any homebuyer market. While it’s difficult to predict the exact direction of home prices, especially when the volatility of the market is increasing, a real estate agent with local knowledge should be able to help you assess the direction that prices are headed.

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. (www.nmlsconsumeraccess.org)

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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