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Mortgages
Compare 30-Year Mortgage Rates for July 2025
These popular mortgages have high interest rates this summer, but improving your credit and negotiating with lenders can get you a better deal.
Katherine WattFormer Staff Writer
Katherine Watt is a former CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor's degree in English literature.
For most prospective homebuyers, a 30-year fixed-rate mortgage is the top choice compared to other types of home loans. It offers the appeal of lower monthly payments by stretching the loan over three decades, allowing more flexibility in your budget. You also get the predictability of a fixed interest rate, meaning your monthly payments will stay consistent over the course of your loan.Â
However, longer-term loans tend to have higher interest rates than shorter-term loans. In the first half of 2025, average 30-year home loan rates fluctuated between 6.5% and 7%. Meanwhile, 15-year rates have averaged between 5.75% and 6.25%.Â
Soaring inflation and a series of Federal Reserve rate hikes drove mortgage rates to record highs in recent years. This, coupled with steep home prices and limited housing inventory, has made homeownership prohibitively expensive for millions.Â
Last year, optimism grew among prospective homebuyers as the Fed began lowering interest rates. But mortgage rates aren't directly set by the central bank. Despite the Fed's rate reductions last year, mortgage rates increased immediately after.
The mortgage market responds to a complex mix of factors, like inflation, labor market trends, the bond market and geopolitical events. Right now, the biggest driver for rates is the uncertainty around federal government policies. Given still-strong economic data and ongoing inflation under the Trump administration, the Fed has postponed additional interest rate cuts so far this year.
Experts warn that if the Fed holds off on further rate reductions until the fall or later, average 30-year fixed mortgage rates could stay above 6.5% for the foreseeable future.
How to get the best 30-year mortgage rate
Developing a strong financial profile will help you get the best mortgage rate and term. Here are ways you can get a better mortgage rate:
Improve your credit score: Mortgage lenders will often advertise low interest rates but those are only available for borrowers with excellent credit scores (740 and above). Paying bills on time, keeping your credit balances low and regularly checking your credit report for errors could help improve your score.
Save for a larger down payment: The more money you put down upfront (ideally 20%), the less you'll need to borrow with a home loan. A larger down payment also makes you a less risky borrower in the eyes of a lender, which may help you qualify for a lower mortgage rate.
Compare multiple loan offers: Experts recommend you get quotes from at least two or three different mortgage lenders, including banks, credit unions and online lenders. Rates and loan terms (like how much you pay in closing costs) can vary significantly between lenders.
You can take out a larger loan: Lower monthly payments might allow the lender to approve you for a larger loan so you can buy a bigger or more expensive house.
Less expensive path to homeownership: A conventional 30-year mortgage term with a lower monthly payment gives you more opportunities to find and buy a home. If you want to shorten the length of your loan term and build equity faster, you can pay more toward your principal every month.
Cons
Higher interest rate: Generally, the longer the term, the higher the interest rate.
It costs more in the long run: You'll pay more over the life of a 30-year loan compared with a 15-year loan due to interest.
Always look at multiple lenders. By comparison shopping, you're more likely to get a 30-year mortgage with a competitive interest rate, though the specifics will depend on your credit score and financial situation.
When comparing quotes, make apples-to-apples comparisons. Make sure all the criteria match, including loan term, lender fees, points and interest rate. You shouldn't compare one quote that provides only an interest rate with another that includes an APR, which includes additional fees and costs.
Regarding your credit, it's fine to submit multiple mortgage applications in a short time. The credit rating bureaus will recognize you're rate shopping, and though your credit score may absorb the impact of one hard credit check, it should be relatively minor.
These loans, which may be granted by the USDA, VA and FHA, are backed by the US government.
Loans with an interest rate that won’t change over the life of the loan. Your payment will be the same every month.
Though your interest rate might start low at an initial fixed rate, it can change periodically based on market conditions.
These loans accommodate amounts above the maximum allowed for a conventional loan.
We use data collected by Bankrate to track daily mortgage rate trends. The above table summarizes the average rates offered by lenders across the country.
FAQs
It’s a loan you take out to buy a house that you pay back over 30 years. Most 30-year mortgages have a fixed rate that never changes, so you’ll have the same monthly payment over the life of the loan. That’s why it’s important to lock in the best rate possible when you apply for a mortgage.
Though sometimes used interchangeably, these two terms are different. The interest rate is the percentage of a loan you’ll pay to the lender in exchange for borrowing money. With a mortgage, your monthly payment includes interest due.
Mortgage rates fluctuate, so the lowest rate you see today might change by tomorrow. By comparing the rates of different lenders, you should be able to find a competitive rate based on your credit score and financial situation.
Your credit score, debts, loan-to-value ratio and economic factors all play a role in determining your mortgage rate.
Your credit score is one of the first things mortgage lenders will look at. You usually need a credit score of at least 740 to secure the lowest mortgage rates. Lenders will also scrutinize your debts and monthly expenses to make sure you can afford to pay your mortgage every month. Try to pay down any high-interest debt, such as credit cards, before applying for a home loan. Another factor is your loan-to-value ratio, which is calculated by dividing how much of the loan you still need to pay off by your home’s value.
In addition, 30-year mortgage rates are determined by a number of economic factors outside a homebuyer’s control, such as Federal Reserve policy, inflation and the job market.
The best way to find a low rate is to shop around with different mortgage lenders and see who offers you the best rate. You should talk to at least two or three lenders before making a decision. With online lending, you have more options to compare rates and find a lender you feel comfortable with.
Refinancing is an option for people who have built up equity in their home by making consistent mortgage payments over the years. When you refinance your home loan, you’re taking out a new loan at a better interest rate to replace your old mortgage.
If you’ve had your mortgage for only a few years and have less than 20% equity in your home, the numbers may not work out in your favor. That’s because if your loan-to-value ratio is too high, you’ll only end up paying more interest over a longer period of time, defeating the purpose of refinancing.
Katherine Watt is a former CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor's degree in English literature.
