Mortgage Rates Today: October 3, 2025 – 30-Year and 15-Year Rates Hold Firm

The current mortgage rate on a 30-year fixed mortgage fell by 0.80% in the last week to 6.36%, according to the Mortgage Research Center.

Meanwhile, the APR on a 15-year fixed mortgage dropped 0.08 percentage point during the same period to 5.37%.

For existing homeowners, compare your current mortgage rates with today’s refinance rates.

30-Year Mortgage Rates Drop 0.80%

Today’s average rate on a 30-year, fixed-rate mortgage is 6.36%, which is 0.80% lower than last week.

The interest plus lender fees, called the annual percentage rate (APR), on a 30-year fixed mortgage is 6.39%. The APR was 6.44% last week.

To get an idea about how much you might pay in interest, consider that the current 30-year, fixed-rate mortgage of 6.36% on a $100,000 loan will cost $623 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total amount you’ll pay in interest during the loan’s lifespan is $124,829.

15-Year Mortgage Rates Drop 1.52%

The average interest rate on a 15-year mortgage (fixed-rate) declined to 5.37%. This same time last week, the 15-year fixed-rate mortgage was at 5.45%.

The APR on a 15-year fixed is 5.41%. It was 5.5% this time last week.

With an interest rate of 5.37%, you would pay $810 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $46,236 in total interest.

Jumbo Mortgage Rates Drop 2.21%

The average interest rate on the 30-year fixed-rate jumbo mortgage (mortgages above 2025’s conforming loan limit of $806,500 in most areas) inched down to 6.64%. Last week, the average rate was 6.79%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 6.64% will pay $641 per month in principal and interest per $100,000. That means you’d pay roughly $131,322 in total interest over the life of the loan.

Overview of 2025 Mortgage Rate Trends to Date

After reaching highs in 2024, the average 30-year fixed mortgage rate has remained in the mid-to-high 6% range since late January 2025. The 15-year fixed mortgage rate has hovered between the low-6% and high-5% range.

While interest rates have fallen somewhat since mid-January 2025, experts don’t expect them to drop significantly anytime soon.

When Can I Expect Mortgage Rates To Drop?

Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop.

Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit.

The Federal Reserve’s decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows.

A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens.

What Affects Mortgage Rates?

The Federal Reserve’s restrictive monetary policy – including its interest rate hikes, which it’s using to restrain inflation – is the primary factor that’s pushing long-term mortgage rates higher. The state of the economy and housing market also affects mortgage rates. As for what interest rate the lender might offer you, this depends on your debt-to-income (DTI) ratio and credit score, both of which indicate your risk as a borrower.

Related: Mortgage Rates Forecast And Trends

How To Compare Mortgage Rates

Shop around and talk to various lenders to get a sense of each company’s mortgage loan offerings and services. Don’t go with the first lender quote you receive; instead, compare the best mortgage rate quotes to get a deal. In particular, consider what fees they charge, what fees they’re willing to waive and what closing assistance they might provide. Make sure any special offers or discounts don’t come at the cost of a higher mortgage rate. 

Be sure to apply with each lender within a 45-day window. During this window, you can have multiple lenders pull your credit history without additional impact on your credit score.

Is This a Good Time To Buy a House?

Mortgage rates remain elevated, and the nation’s housing supply remains limited. The low inventory is preventing house prices from dropping. Meanwhile, the combination of high mortgage rates and appreciated home values will continue to present an obstacle for many prospective homebuyers seeking affordable housing.

How Are Mortgage Rates Determined?

Multiple factors affect the interest rate for a mortgage, including the economy’s overall health, benchmark interest rates and borrower-specific factors.

The Federal Reserve’s rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn’t directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation.

Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment.

Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term.

What Type of Mortgage Is Best for You?

Many home buyers are eligible for several mortgage loan types. Each program can have its own advantages:

• Conventional mortgage. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums.
• FHA loan. An FHA home loan is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579.
• VA loan. Borrowers with a qualifying military background may prefer a VA loan for its flexibility. A down payment may not be required. While you pay a one-time funding fee, there are no ongoing mortgage insurance premiums or service fees.
• USDA loan. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower.
• Jumbo loan. Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency’s conforming loan limits. The limit in most municipalities is $806,500 in 2025.

Frequently Asked Questions (FAQs)