What is the current 30-year mortgage rate in 2026?

The average 30-year fixed mortgage rate is approximately 6.75% as of May 2026. Rates vary by lender, credit score, loan size, and down payment. Borrowers with 760+ credit scores and 20% down can qualify for rates near 6.25%; borrowers with lower scores may see rates above 7.25%.

Will mortgage rates go down in 2026?

Mortgage rates are expected to remain in the 6.25%–7.25% range through most of 2026. Rates could fall further if the Federal Reserve continues cutting its target rate, but mortgage rates also depend on Treasury yields and mortgage-backed securities demand — they don't move in lockstep with the Fed funds rate.

What credit score do you need to get the best mortgage rate?

To qualify for the best available mortgage rates, you typically need a credit score of 760 or higher. Scores from 740–759 qualify for rates just slightly above the best tier. Borrowers with scores below 680 will pay significantly higher rates — often 0.5%–1.5% more than top-tier borrowers.

How much does a 1% difference in mortgage rate matter?

On a $400,000 30-year mortgage, a 1% higher rate (say 7.5% vs. 6.5%) costs $244 more per month and $87,840 more in total interest over 30 years. Even a 0.5% difference adds $120/month and $43,200 over the loan life. Shopping multiple lenders is one of the highest-value financial decisions a homebuyer can make.

Mortgage Interest Rates 2026: Current Rates by Loan Type

The average 30-year fixed mortgage rate is approximately 6.75% as of May 2026. The 15-year fixed rate is approximately 6.25%. Rates have declined from the 2023 peak of 7.79% but remain well above the historically low rates of 2020–2021 (under 3%).

Current mortgage rates (May 2026): 30-year fixed: ~6.75% | 15-year fixed: ~6.25% | 5/1 ARM: ~5.75% | FHA 30-year: ~6.40% | VA 30-year: ~6.10%

Current Mortgage Rates by Loan Type (May 2026)

Loan Type	Average Rate	Best Available Rate*
30-year fixed	6.75%	~6.25%
20-year fixed	6.55%	~6.00%
15-year fixed	6.25%	~5.75%
10-year fixed	6.10%	~5.60%
5/1 ARM	5.75%	~5.25%
7/1 ARM	6.00%	~5.50%
FHA 30-year	6.40%	~5.90%
VA 30-year	6.10%	~5.65%
USDA 30-year	6.35%	~5.85%
Jumbo 30-year	6.90%	~6.30%

*Best available rates for borrowers with 760+ credit score, 20%+ down payment, good debt-to-income ratio.

Rates are approximate and current as of May 2026. Freddie Mac surveys lenders weekly — verify current rates before applying.

What Your Rate Depends On

Mortgage lenders price rates based on risk. Key factors:

Credit Score (Most Impactful)

Credit Score Range	Rate Premium vs. Best Rate
760–850 (excellent)	Best available rate
740–759 (very good)	+0.10%–0.25%
720–739 (good)	+0.25%–0.50%
700–719 (fair)	+0.50%–0.75%
680–699	+0.75%–1.25%
Below 680	+1.25%–1.75%+

Down Payment

20% or more: Best rates, no PMI
10%–19%: Slightly higher rates, PMI required
5%–9%: Higher rates, higher PMI
Less than 5%: Requires FHA or VA loan

Loan Size

Conforming loans (up to $806,500 in most areas, 2026): Standard rates
Jumbo loans (above conforming limit): Typically 0.10–0.25% higher

Debt-to-Income Ratio (DTI)

Under 36%: Best rates
36%–43%: Standard approval rates
43%–50%: Higher rates, stricter underwriting
Above 50%: Difficult to qualify with conventional financing

How Much a Rate Difference Costs You

On a $400,000 30-year fixed mortgage:

Rate	Monthly Payment	Total Interest (30 yrs)
6.00%	$2,398	$463,353
6.50%	$2,528	$510,177
6.75%	$2,594	$534,010
7.00%	$2,661	$557,867
7.50%	$2,797	$606,978

A 0.75% rate difference (6.00% vs. 6.75%):

Monthly difference: $196
30-year difference: $70,657

Shopping 3–5 lenders and comparing Loan Estimates can realistically save you 0.25%–0.50%, which on a $400,000 loan is worth $25,000–$50,000 over the life of the loan.

ARM vs. Fixed: Which Makes Sense in 2026?

A 5/1 ARM offers a fixed rate for 5 years (~5.75%), then adjusts annually based on a benchmark index plus a margin. The current ~1% discount to the 30-year fixed creates a real savings calculation:

$400,000 loan comparison (5/1 ARM at 5.75% vs. 30-year fixed at 6.75%):

ARM monthly payment (years 1–5): $2,335
Fixed monthly payment: $2,594
5-year savings with ARM: ~$15,540

The risk: After year 5, your ARM rate adjusts. If rates rise, your payment could increase substantially. ARMs make sense if you expect to sell or refinance within 5–7 years.

FHA vs. Conventional Loans

Feature	FHA Loan	Conventional
Minimum credit score	580 (3.5% down)	620
Minimum down payment	3.5%	3% (with PMI)
Mortgage insurance	Required for life of loan	Cancels at 80% LTV
Rate (30-year, May 2026)	~6.40%	~6.75%
Best for	Lower credit, smaller down payment	Higher credit, larger down payment

FHA loans charge an upfront mortgage insurance premium (1.75% of loan amount) plus annual MIP (0.55%–1.05% depending on LTV). Conventional PMI cancels automatically when you reach 20% equity; FHA MIP often continues for the life of the loan.

How the Federal Reserve Influences Mortgage Rates

The Fed funds rate directly controls short-term rates. Mortgage rates, however, are more closely tied to 10-year Treasury yields and the mortgage-backed securities (MBS) market.

When investors expect inflation to fall and the economy to slow, Treasury yields drop — and mortgage rates follow. The Fed cutting rates helps, but the 10-year Treasury is the more direct driver of mortgage rates.

Current 10-year Treasury yield (May 2026): approximately 4.20% Typical mortgage spread over 10-year Treasury: 2.50–3.00% This math supports current mortgage rates around 6.70–7.20%

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy