The average interest rate for a 30-year fixed-rate conforming mortgage loan in the United States has recently dropped to 6.190%, as reported by mortgage data firm Optimal Blue. This figure reflects a decrease of approximately 4 basis points from the previous day and 11 basis points compared to a week ago, marking the lowest level since mid-September.
As a point of reference, the current average rates for various mortgage types are as follows:
– 30-year conventional: 6.190%, down from 6.296% last week and slightly up from 6.170% a month ago.
– 30-year jumbo: 6.428%, down from 6.619% a week ago, and up from 6.422% a month ago.
– 30-year FHA: 6.060%, down from 6.102% last week and up from 5.981% last month.
– 30-year VA: 5.796%, down from 5.874% last week and also up from 5.676% last month.
– 30-year USDA: 5.954%, up from 5.912% last week and slightly down from 5.942% a month ago.
– 15-year conventional: 5.401%, down from 5.581% last week and up from 5.371% last month.
The data reflects home loans locked in as of October 16, as reviewed by Fortune. Observers noted a persistent trend with 30-year mortgage rates hovering close to 7%. There had been optimism that rates would decline with the Federal Reserve cutting the federal funds rate; however, this did not materialize as expected. Notably, in January 2025, the average rate for a 30-year mortgage surpassed 7% for the first time since May 2024.
While the historic average low of 2.65% in January 2021 may feel like a distant memory, experts remind homeowners that rates around 7% should be seen as more normal in the historical context. Comparatively, in the late 20th century, rates were often much higher, with some months in 1981 even exceeding 18%.
Despite current economic challenges, there is cautious optimism among homebuyers and those considering refinancing. The trend after late August and early September 2025 indicates a downward movement in mortgage rates, coinciding with the Fed’s decision to reduce its benchmark rate by a quarter percentage point in September. With additional Fed meetings scheduled for October and December, further rate cuts could be on the horizon.
When seeking the best mortgage, borrowers are encouraged to enhance their financial profiles. Steps such as ensuring high credit scores—ideally above 740—and maintaining a low debt-to-income ratio can significantly impact mortgage rates. Additionally, obtaining pre-qualifications from multiple lenders can help prospective homeowners find the most favorable terms.
Navigating today’s mortgage market may seem daunting given the fluctuating rates and economic factors. Nonetheless, with diligence in research and a proactive approach to improving personal finances, homebuyers may find ways to lower their borrowing costs and secure their dream properties.