Updated March 2026 | best mortgage rates
Mortgage rates fluctuate daily based on the Federal Reserve policy, inflation data, and bond market movements. As of March 2026, the average rates by loan type are:
30-Year Fixed: 6.45% average nationally. This is the most popular mortgage type, chosen by about 90% of homebuyers. Monthly payment on a $350,000 loan: approximately $2,198.
15-Year Fixed: 5.80% average. Higher monthly payments but saves tens of thousands in interest. Monthly payment on $350,000: approximately $2,918. Total interest savings vs 30-year: approximately $156,000.
Adjustable Rate (5/1 ARM): 5.95% initial rate. Lower starter rate that adjusts after 5 years. Best for buyers planning to move or refinance within 5 years.
FHA Loans: 6.25% average. Requires only 3.5% down payment with credit score of 580+. Popular with first-time buyers. Includes mortgage insurance premium (MIP).
VA Loans: 6.10% average. Zero down payment for eligible veterans and active military. No private mortgage insurance required. Often the best deal available.
Jumbo Loans: 6.75% average. For loan amounts exceeding $766,550 (2026 conforming limit). Requires stronger credit and larger down payment.
1. Improve Your Credit Score: Borrowers with 760+ credit scores get rates 0.5-1.0% lower than those with 680 scores. On a $350,000 mortgage, that difference costs $35,000-$70,000 over 30 years. Check your credit report for errors and pay down credit card balances below 30% utilization before applying.
2. Make a Larger Down Payment: Putting 20% down eliminates private mortgage insurance ($100-300/month savings) and typically gets you a 0.25% lower rate. Even going from 5% to 10% down can reduce your rate.
3. Shop Multiple Lenders: The Consumer Financial Protection Bureau found that borrowers who get quotes from 5+ lenders save an average of $3,000 over the life of the loan. Get quotes from at least 3 banks, 2 credit unions, and 1 mortgage broker.
4. Buy Mortgage Points: One discount point costs 1% of the loan amount and typically reduces your rate by 0.25%. On a $350,000 loan, one point costs $3,500 and saves about $62/month. Break-even: 56 months (under 5 years).
5. Choose a Shorter Loan Term: 15-year mortgages have rates 0.5-0.75% lower than 30-year loans. If you can handle the higher payment, you save massively on interest.
6. Lock Your Rate at the Right Time: Rate locks typically last 30-60 days. If rates are trending down, a shorter lock may get you a better deal. If rates are rising, lock immediately for 60 days.
7. Consider an ARM: If you plan to sell or refinance within 5-7 years, a 5/1 ARM starts 0.5-1.0% lower than a 30-year fixed. Just understand the risk if you stay longer.
Your credit score is the single biggest factor in your mortgage rate. Here is the approximate rate difference by credit score tier on a 30-year fixed mortgage in 2026:
760-850 (Excellent): 6.15% - Best available rates
740-759 (Very Good): 6.30% - Still excellent rates
720-739 (Good): 6.45% - Average rates
700-719 (Good): 6.65% - Slightly above average
680-699 (Fair): 6.90% - Higher rates, still conventional
660-679 (Fair): 7.20% - May need FHA
620-659 (Poor): 7.50%+ - FHA likely required
On a $350,000 loan, the difference between a 760 score (6.15%) and a 660 score (7.20%) means $245/month more, or $88,200 extra over 30 years. Improving your credit score before applying is the single most impactful thing you can do.
Choose a 30-year fixed if: You plan to stay 7+ years, want payment predictability, or rates are historically low.
Choose a 15-year fixed if: You can afford 40-50% higher payments, want to build equity fast, or are refinancing with 15 years left.
Choose a 5/1 ARM if: You plan to move within 5 years, expect rates to drop, or want the lowest initial payment.
The average homeowner stays in their home 8-10 years. If you expect to move within 5 years, the ARM saves money. If you are staying put, the fixed rate provides security.