Today's Mortgage Rates — Live Averages & What Drives Your Quote

What "today's mortgage rate" actually means

Rates you see advertised — including the Freddie Mac PMMS averages below — are national survey averages for a well-qualified borrower on a standard scenario. They are not a personal quote. Your rate is a function of your credit score, loan-to-value (LTV), debt-to-income (DTI), loan purpose, occupancy, property type, loan amount, and the day and time you lock. Per the CFPB TILA-RESPA Integrated Disclosure (TRID) rules, the only binding rate figures are the ones printed on your Loan Estimate.

How mortgage rates are set

Consumer mortgage rates track the price of mortgage-backed securities (MBS) traded in the secondary market — not the Federal Reserve's overnight Fed Funds Rate directly. When investors bid MBS prices up, the yield falls and mortgage rates fall with it; when investors sell MBS (often on stronger-than-expected inflation or jobs data), rates rise. Fed policy influences the long end of the curve, but the connection runs through inflation expectations and the 10-year Treasury, not a direct dial.

Why this matters to you: mortgage rates can — and do — move intraday. Lenders "reprice" mid-day when MBS moves are sharp. That's why an online rate advertised at 9 a.m. can look different by 2 p.m., and why your Loan Officer will time your lock around a specific market window rather than a headline number.

Rate vs. APR — and why they aren't the same number

The interest rate is the cost of borrowing the principal. The APR (Annual Percentage Rate) folds in most upfront finance charges — origination, discount points, mortgage insurance where required — expressed as an annualized rate. APR is disclosed on the Loan Estimate and Closing Disclosure exactly because it makes two competing offers comparable. A lower rate with 2 discount points can carry a higher APR than a slightly higher rate with zero points. Always compare Loan Estimates side-by-side, not just the headline rate.

Why your rate can differ from the advertised rate — LLPAs, explained

Fannie Mae, Freddie Mac, FHA, VA, and USDA all publish Loan-Level Price Adjustments (LLPAs) — pricing hits or credits based on the risk characteristics of your loan. The most common LLPA drivers on a conventional loan:

• Credit score (FICO): pricing tiers change at 780, 760, 740, 720, 700, 680, 660, 640, 620.
• Loan-to-value (LTV): the lower your LTV (bigger down payment), the better the price — with breakpoints at 60%, 70%, 75%, 80%, 85%, 90%, 95% and 97%.
• Occupancy: primary residence prices best; second homes and investment properties add LLPAs.
• Property type: single-family prices best; condos, manufactured homes, and 2–4 unit properties add LLPAs at higher LTVs.
• Loan purpose: cash-out refinances price higher than rate-and-term.

FHA, VA, and USDA use their own pricing grids and add their respective mortgage insurance premiums or funding fees. Government loans often price better than conventional at lower FICO tiers, which is why we cross-shop programs for you rather than steering you into one lane.

Rate locks — how they protect you

A rate lock is a written agreement from the lender guaranteeing a specific rate for a specific window while your loan is processed. Standard lock windows are 15, 30, 45, and 60 days. Longer locks cost more in either rate or points because the lender is hedging market risk for longer. Under CFPB TRID rules, your lock terms — rate, points, expiration date — must be disclosed on the Loan Estimate.

Float vs. lock: if you believe rates will fall before closing, you can "float" and lock later. If rates spike, you're exposed. Some programs offer a one-time float-down after lock if rates drop by a defined threshold — ask your Loan Officer whether your program qualifies.

Discount points, lender credits, and buydowns

You can trade money at closing for a lower rate (discount points) or take a higher rate in exchange for money at closing to cover fees (lender credits). One discount point equals 1% of the loan amount and typically buys down the rate by roughly 0.25% — but the exact ratio depends on the program and the market that day. A 2-1 temporary buydown lowers your rate 2 percentage points in year 1 and 1 point in year 2 before reverting to the note rate; sellers or lenders sometimes fund these on purchases to help affordability.

Break-even math matters: if paying 1 point costs $4,000 and saves you $60 a month, your break-even is roughly 67 months. If you'll refinance or sell before that, points aren't worth it. Use our mortgage calculator below to model the trade-off.

How your credit score changes your rate

All else equal, moving from a 680 FICO to a 760 FICO on a conventional 30-year at 80% LTV typically saves 0.25% to 0.75% on rate depending on market conditions — worth tens of thousands over the life of a loan. If you're within 20 points of a pricing tier, we run a soft rapid-rescore to see if paying down a card or removing an inaccurate item can bump you up before we lock. Credit monitoring lives at MyITINCredit.com.

How to compare rate quotes the right way

1. Same day, same time: rates move intraday, so quotes from different days aren't apples-to-apples.
2. Same lock period: a 15-day quote will look better than a 45-day quote from another lender.
3. Compare Loan Estimates, not verbal quotes: the LE is the standardized, regulated document.
4. Look at Section A (Origination) and total closing costs — not just rate. A lower rate loaded with points can cost more overall.
5. Check APR — it's the closest single-number comparison.

What we do differently at Simply Approved Mortgages

On eligible residential transactions we generally use a 1.5% lender-paid compensation structure — the lender pays our broker compensation under its lender-paid compensation plan, so you don't pay us a separate broker fee. It’s disclosed on your Loan Estimate. We shop your file across wholesale investors so your rate reflects real market pricing for your scenario, not a retail markup baked into the branch overhead. You get a full breakdown of rate, APR, points, credits, and closing costs before you commit — always.

Any rate figure shown on this page is illustrative and is not a quote, lock, offer, or commitment to lend. Your binding rate, APR, and payment appear on your Loan Estimate. Simply Approved Mortgages LLC · NMLS# 2620881 · Equal Housing Opportunity.