Find the Best 30-Year Mortgage Rates

At the most recent policy-setting meeting, the Federal Reserve held interest rates steady for the seventh consecutive time, keeping the federal funds rate at a target range of 5.25% to 5.5%, the highest it’s been in 23 years. Previously the Federal Reserve projected three interest rate cuts in 2024, but because of higher-than-expected inflation, officials now estimate just one quarter-point cut for the year.

The official statement reads: "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent."

Currently, the 30-year mortgage rate is at 6.95%, compared to 6.86% last week and 6.71% last year. Overall, this is lower than the long-term average of 7.73%. 

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

30-year mortgage rates

Currently, as mentioned above, the average interest rate for a 30-year fixed mortgage is at 6.95%. Last month, the average rate for 30-year fixed mortgages was higher, at 6.99%. 

Additionally, the interest rate for a 15-year fixed mortgage is at 6.25%, compared to 6.16% a week ago and up from 6.06% last year. This is higher than the long-term average of 5.23%. Rates for 15-year fixed mortgages last month were 6.29%.

Use our tool, in partnership with Bankrate, to compare current mortgage rates available for purchase and refinancing.

Four ways to get a lower mortgage rate

• Raise your credit score: One of the best and most effective ways to save on your mortgage is to raise your credit score, the biggest factor in determining your mortgage rate. Upping your FICO credit score, which ranges from 300 to 850, by just 20 points can save you hundreds of dollars by lowering your mortgage. So, while you’ll likely need at least a 620 FICO score in order to qualify for a mortgage at any rate, you'll need a higher score to get approved for the best rates. Raising your credit score can be done in a number of ways, including making card payments on time and keeping balances low. 
• Increase your down payment: In order to get the best rates on a conventional mortgage loan from Fannie Mae or Freddie Mac, you'll need to make at least a 20% down payment. In fact, the bigger your down payment is, the better your rate will likely be. You'll have to repay less principal and less interest over the life of the loan.
• Get multiple quotes: Different lenders may offer different rates. Because of this, it's important to get multiple quotes to ensure you're getting the lowest interest rates available for you. 
• Consider an adjustable-rate mortgage (ARM): if you know you're going to sell your home in the near future, opting for an ARM could be a good decision. For example, if you're going to sell your home in four years, choosing a 5 year ARM could save you a lot in interest. You'll be able to take advantage of the lower interest rates associated with this kind of mortgage, and won't have to worry about your rate changing before you sell. 

Related Content

• The 10 Most Expensive Cities in the U.S.
• How to Help Your Children Buy a Home
• 10 Things For Retirees To Know About Buying A Second Home