Today's 15-year mortgage interest rates rise to 6.25%, while 30-year terms climb to 7.13%

The median interest rate on a 30-year fixed-rate mortgage is 7.13% as of January 9, which is 0.25 percentage points higher than yesterday. Additionally, the median interest rate on a 15-year fixed-rate mortgage is 6.25%, which is 0.13 percentage points higher than yesterday. 

Federal Reserve officials reduced short-term interest rates by a full percentage point over their last three meetings of 2024, but the pace of cuts is expected to slow in 2025. In minutes from the meeting on December 18, policymakers noted that recent inflation readings had been higher than expected. Analysts predict the central bank will adopt a more cautious approach with future cuts; according to the CME FedWatch Tool, there is a 95.2% probability that there will be no change in policy this month.

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 on a 30-year mortgage: 7.13%

The current mortgage rate on a 30-year loan is 7.13%, 0.25 percentage points higher than yesterday.

The longer the loan term, the more your interest rate affects your payment amount. A $300,000 loan with a 6.5% mortgage rate would have a payment of $1,896. A rate decrease of 0.50 percentage points, to 6%, reduces the monthly payment to $1,799. 

Current interest rate on a 20-year mortgage: 6.99%

The current rate on a 20-year mortgage loan is 6.99%, 0.25 percentage points higher than yesterday.

Twenty-year mortgage loans usually have lower rates than 30-year loans. A $325,000 mortgage loan at 6.25% would have a monthly payment of $2,376. Reducing the rate to 5.75% lowers the monthly payment to $2,282.

Current interest rate on a 15-year mortgage: 6.25%

The current interest rate on a 15-year mortgage is 6.25%, 0.13 percentage points higher than yesterday.

A 15-year mortgage usually has a significantly lower rate than a 30-year loan.

If you were to borrow $350,000 at a 6% interest rate, your payment would be $2,953. Dropping the rate to 5.5% lowers your payment to $2,860

Current interest rate on a 10-year mortgage: 6.125%

The current interest rate on a 10-year mortgage loan is 6.125%, 0.13 percentage points higher than yesterday.

The trade-off between interest rate and payment amount is especially pronounced with a 10-year mortgage. A $375,000 loan with a rate of 5.75% would have a payment of $4,117 per month. With a half-point rate reduction of 5.25%, you’d lower your payment to $4,024.

Tips for comparing mortgage rates

The loan you choose will have a major impact on your finances for as long as 30 years, so it’s important to shop for the best mortgage for your home purchase or refinance. 

1. Select a few lenders, or select a mortgage rate comparison platform where you can request rates from several lenders at once.
2. Request quotes for loans that are alike — all 30-year loans, for example, and all with fixed rates. 
3. Look at both the interest rates and the annual percentage rates (APRs). When you compare offers, APRs give you a more accurate picture of the total annual cost because they account for interest and fees. 
4. Adjustable-rate mortgages may start with low promotional rates but the rate can change at intervals based on the market. Make sure you know how often the rates will adjust and the caps on changes during each adjustment period. 

Freddie Mac offers a comprehensive online mortgage loan comparison worksheet you can use to compare loans. It includes entries for interest rates and many other loan costs and features.

How do current mortgage rates stack up against historical trends?

The 6.08% average rate for a 30-year fixed-rate loan reported by Freddie Mac on Sept. 26 is the lowest rate since February 2023. While still high by recent standards, it’s 1.71 percentage points lower than the post-pandemic high of 7.79% in October 2023 — and 12.31 percentage points lower than the all-time high of 18.39% in October 1981, according to the Federal Reserve Bank of St. Louis.

Rates trended upward from 1971, when the Fed started tracking them, reaching that record high in 1981, with peaks coinciding with recessions. Rates began a roughly 40-year downward trend after that, culminating in the record low of 2.65% in January 2021 — the result, in part, of cuts to the federal funds rate implemented by the Federal Reserve to prop up the economy during the pandemic. 

Low mortgage rates drove demand for homes, which were in short supply. That imbalance between supply and demand was a major reason why mortgage rates shot up to nearly 8%. Also pushing rates higher were a series of federal funds rate increases meant to bring down inflation and rising 10-year Treasury bond yields, which correlate to mortgage rates.

Once inflation reached the Fed’s 2% goal in September 2024, policymakers began reducing the federal funds rate. The central bank announced its first cut in September, reducing the rate by a half-point, followed by two quarter-point cuts in November and December. Analysts expect only two cuts ahead in 2025, depending on whether inflation holds steady. Future cuts might have little or no effect on mortgage rates, as some economists believe lenders have already accounted for the cuts in their current rates.

Key factors that affect today's mortgage rates

Each lender has a range of rates it can offer borrowers. The lowest rate within the ranges, which lenders reserve for their most highly qualified borrowers, is called the prime rate. Lenders base their prime rates on economic factors and market conditions:

• Federal funds rate: The Fed raises and lowers the federal funds rate to maintain economic stability. Lenders often add a margin to it as part of their prime rate calculation.
• Inflation rate: Inflation reduces the purchasing power of money, including lenders’ profits on loans they make. They might offset that lower purchasing power by increasing rates.
• Competition: Lenders use pricing as a marketing strategy to stay competitive within their markets. 
• Supply and demand: Lenders might increase rates when demand for homes outpaces supply; they might lower mortgage rates when supply outpaces demand.
• Investment markets: Lenders often increase and decrease rates as the markets change — in particular, the market for mortgage-backed securities, which are bonds made up of bundled mortgage loans.

How can you secure the best mortgage rate today?

The best way to get the best mortgage rate is to strengthen your financial profile and then shop around for the lowest rate on the loan that’s best suited to your purchase or refinance. Here are some ways to increase your borrower profile:

• Monitor your credit: Check your credit reports for mistakes and any forgotten accounts that need to be paid off. 
• Pay down debt: Your debt-to-income ratio (DTI) tells lenders whether you can afford to repay the loan. Your total debt should be no more than 45% of your monthly income. A DTI of 36% or less is ideal.
• Save for a large down payment: While you can take out a mortgage with 5% down — or less, depending on the loan type — saving 20% will get you the best rate and save you from having to purchase mortgage insurance.

Should you lock in your mortgage rate now?

Mortgage loans typically give borrowers a specific amount of time — often 30 to 90 days — to lock in rates. Whether you should lock in your mortgage rate now depends on several factors, including market trends and the provisions of your loan.

When rates are declining, locking in too soon could result in a higher rate than you’ll get if you wait. But if you time the market wrong, you could lock in a higher interest rate. 

Your lender might allow you to purchase a float-down, which lets you lock in your rate now and get the lower rate at closing if rates drop. Another alternative is to pay an additional fee to extend your lock-in period.