As of Tuesday mortgage rates are showing slight declines, with Zillow Home Loans reporting a 6.125% average rate for a 30-year fixed loan. Buyers in the market may see slightly better offers depending on their credit, location, and loan type.
Current mortgage rates by loan type
Here’s where rates stand for the most popular mortgage options:
30-Year Fixed
- Rate: 6.125%
- APR: 6.292%
- Points: 1.756
FHA (for lower credit profiles)
- Rate: 5.875%
- APR: 6.557%
VA (military borrowers)
- Rate: 6.000%
- APR: 6.305%
20-Year Fixed
- Rate: 6.000%
- APR: 6.246%
15-Year Fixed
- Rate: 5.500%
- APR: 5.762%
7-Year ARM (adjustable)
- Rate: 6.500% (national average)
These rates include lender fees or “points,” which represent upfront costs to secure the rate.
Rates vary by state—and your rate might be lower
While the national average for a 30-year fixed loan recently hit 6.3%, regional differences can lead to better deals.
According to WalletHub, the states with the lowest average mortgage rates in Q2 2025 include:
- Idaho: 4.35%
- Hawaii: 4.48%
- Utah: 4.54%
- California & Arizona: 4.56%
Rates tend to be lower in competitive housing markets or areas where lenders operate with lower overhead.
What affects your mortgage rate?
A number of factors influence the rate you’re offered, including:
- Credit score: Higher scores lead to better rates
- Down payment: Bigger down payments reduce lender risk
- Debt-to-income ratio: Lower debt improves your loan profile
- Loan type and term: Fixed vs. adjustable, 15- vs. 30-year
- Property type and location: Primary residence vs. investment, plus state-specific risks
Even neighboring states can show noticeable rate differences. For example, New Jersey’s average rate was 6.85%, while Alabama saw rates drop to 4.82% earlier this year.
Should you lock in your mortgage rate now?
With rates still hovering above 6%, locking in could be smart—especially if you’re shopping in a competitive market. However, borrowers planning to refinance soon might consider adjustable-rate mortgages (ARMs) to take advantage of lower initial rates.
Experts suggest that most buyers don’t keep their original mortgage for the full 30 years, so flexible loan types may save money in the short term.
Tips to get the lowest mortgage rate
- Boost your credit score before applying
- Increase your down payment, if possible
- Shop around—compare quotes from multiple lenders
- Ask about rate locks and how long they’re valid
- Consider shorter-term or ARM loans if you plan to refinance or sell
Zillow’s BuyAbility tool can help personalize your rate estimate based on your income, credit, and location.