Mortgage rates and affordability
If you're in the market to buy a home, you should understand how the mortgage rate affects your ability to afford a home and watch mortgage rates carefully.
A mortgage rate is the interest rate you pay on the money you borrow to buy your house. A lower mortgage rate makes homes more affordable because it costs you less to borrow money, which in turn increases your purchasing power (the financial ability to buy the home).
Lenders set a mortgage rate for each person based on several personal factors, such as your credit, which determines the risk of loaning you money and whether you qualify for a loan, in addition to current market rates.
Even a small difference in your interest rate can make a big difference in your payments over the life of your loan. That’s why it’s important to watch mortgages rates closely if you’re buying a home.
Did you know?
| Average Mortgage Rates as of May 21, 2026 | |
|---|---|
|
30-Yr FRM 6.51% |
15-Yr FRM 5.85% |
The Primary Mortgage Market Survey® is based on loan applications submitted to Freddie Mac by lenders across the country and shows the average 30-year fixed-rate and 15-year fixed-rate mortgage rates. The results are released weekly on Thursdays at 12 p.m. ET.
To put rates in perspective, this chart outlines a $200,000 loan financed at various rates — allowing you to quickly see how rates impact your wallet.
| 30-year Fixed Mortgage Rate | Approximate payment on a $300,000 mortgage |
|---|---|
| 6.5% | $ 1,896 |
| 7% | $ 1,996 |
| 7.5% | $ 2,098 |
| 8% | $2,201 |
Mortgage payments are principal and interest only, based on a $200,000 fully amortizing mortgage. All terms are assumed to be 30 years. FreddieMac.com/pmms
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