Mortgage rates today: Wednesday, November 29, 2023

Why mortgage rates change every day

As seen in the mortgage rates chart above, mortgage rates go up and down daily. They move up or down according to what's happening in the broad economy: changes in inflation expectations, job creation and overall economic growth. Rates tend to rise when the economy is strengthening, and they tend to fall when the economy is weakening.

NerdWallet’s daily mortgage rates are an average of the published annual percentage rate with the lowest points from a sampling of major national lenders. The APR is based on the interest rate and includes mortgage origination fees and discount points to indicate all of the costs of getting the loan.

Personalized versus average interest rates

You'll almost certainly end up with a different interest rate than you'll see quoted on mortgage lenders’ websites. The reason is that your rate will be personalized according to your circumstances. The rates advertised on websites usually assume that you're using the loan to buy a primary home, that it's a single-family house, that you're making a substantial down payment, that you're paying closing costs out of pocket and that regulators consider it affordable.

If your circumstances differ, the interest rate will, too — for example, if you're refinancing instead of buying a home, or it’s a condominium instead of a house, or you're making a down payment of less than 20%, or you're rolling some of the closing costs into the loan amount, or the monthly payments will take a bigger-than-usual bite of your income.

The lender will gather these details when you apply for a mortgage preapproval and will provide an estimate of a personalized rate.

Advertisements often assume a credit score of 740 or higher. If your credit score is lower than that, the interest rate might be higher.

How your credit score affects your rate

Your credit score influences your mortgage interest rate. Lenders call it “risk-based pricing.” A higher credit score indicates a lower risk that you’ll default on a loan — so you get a better interest rate. The lower your credit score, the higher your interest rate.

When you should lock your mortgage rate

A mortgage rate lock is your lender's guarantee that you will pay an agreed-upon interest rate if you close on the loan by a specified deadline as long as there are no changes to your application. A rate lock means your rate won't change between the day you lock the rate and the day you close — no matter what happens in the market.

You may lock the mortgage rate after you have been approved and up until a few days before the scheduled closing date. As far as timing goes, forecasting rates accurately is impossible. It's best to lock when you are comfortable that you can afford the monthly payments at that interest rate.

Rate locks have an expiration date. If you don't close on the loan before the rate lock expires, you might get stuck with a higher interest rate.

Today’s rates for specific kinds of mortgages

Mortgages come in various terms (the number of years it takes to pay off the loan) and types (such as conventional, FHA, VA, jumbo). Fixed-rate mortgages keep the same interest rate throughout the term; with adjustable-rate mortgages, interest rate changes over time can make monthly payments go up or down.

The most common terms are the 30-year fixed-rate mortgage, the 15-year fixed, and the 5-year adjustable-rate mortgage.