Average Mortgage Rates: A Reference for Major Loan Types

Average 30-Year Fixed Mortgage Rate

The 30-year fixed-rate mortgage is the most common home loan, and its average rate serves as a benchmark for the mortgage market. According to the Consumer Financial Protection Bureau (CFPB), the monthly average interest rate for 30-year fixed-rate closed-end conventional conforming loans originated to prime borrowers increased from 6.238% in January 2023 to 7.169% by December 2023. This rate reflects loans secured by first-lien principal residences and is based on Home Mortgage Disclosure Act (HMDA) data.

For earlier years, HMDA data show the median interest rate for 30-year fixed-rate conventional conforming home purchase loans was 3.000% in 2021 and 4.990% in 2022. These figures illustrate how average rates can fluctuate with market conditions and provide a baseline for understanding rate trends.

• The 30-year fixed is included in the CFPB's Average Prime Offer Rate (APOR) methodology, which surveys eight mortgage products.
• The APOR survey data includes nationwide average offer prices for best-quality, 80% or less loan-to-value, first-lien loans.

Sources: Consumer Financial Protection Bureau

Average 15-Year Fixed Mortgage Rate

The 15-year fixed-rate mortgage offers a shorter repayment term and typically lower interest rates than a 30-year loan, though it requires higher monthly payments. The CFPB's APOR methodology includes the 15-year fixed-rate product, meaning it is one of the eight mortgage products used to calculate average prime offer rates.

While specific average rates for 15-year fixed loans are not disclosed in the supplied data, borrowers can use APOR data and lender surveys to gauge current levels.

Sources: Consumer Financial Protection Bureau

Average Adjustable-Rate Mortgage (ARM) Rates

An adjustable-rate mortgage (ARM) is a type of loan for which the interest rate can change, usually in relation to an index interest rate. The CFPB's APOR methodology includes four types of ARMs: 10/6, 7/6, 5/6, and 3/6 variable-rate loans. These products are part of the eight mortgage products surveyed for average prime offer rates.

• APOR methodology includes 10/6, 7/6, 5/6, and 3/6 variable-rate loans.

Sources: Consumer Financial Protection Bureau

Average FHA and VA Loan Rates

FHA and VA loans are government-backed mortgage programs with their own rate characteristics. According to HMDA data, in 2021, FHA loans had higher median interest rates than any other enhanced loan types, at 3.125%, while VA loans had the lowest median interest rate at 2.750%. In 2022, FHA loans again had the highest median rate at 5.125%, while jumbo loans had the lowest, but VA loans were not separately reported that year. In 2023, VA loans tied with jumbo loans for the lowest median rate at 6.250%.

These historical medians provide a reference, but current average rates for FHA and VA loans can be obtained from lenders or the official VA and FHA websites. Note that FHA loans may have additional mortgage insurance costs, and VA loans often have a funding fee.

Sources: Consumer Financial Protection Bureau

How averages are compiled

Average mortgage rates are compiled using different methodologies and data sources. The CFPB's APOR methodology is based on survey data for eight mortgage products, including 30-year fixed, 20-year fixed, 15-year fixed, 10-year fixed, and several variable-rate products. The survey data includes nationwide average offer prices for best-quality, 80% or less loan-to-value, first-lien loans. To determine the APOR for a loan, the applicable term closest to the loan's term is used; if the loan is exactly halfway between two terms, the shorter term is used.

For HMDA-based reports, the CFPB uses the most comprehensive publicly available data on mortgage market activity. HMDA data provide median interest rates, which differ from averages. The annual percentage rate (APR) is a broader measure of the cost of borrowing than the interest rate, as it includes points, broker fees, and other charges. When comparing average rates, pay attention to whether the figure is an interest rate or an APR, and whether it is a median or average.

• The APOR methodology is used for regulatory purposes and is based on survey data from eight mortgage products.
• HMDA data are the most comprehensive publicly available information on mortgage market activity.

Sources: Consumer Financial Protection Bureau

APOR Product List

The following table lists the eight mortgage products included in the CFPB's Average Prime Offer Rate methodology. This table can help you see which loan types are tracked and how they compare in terms of product types.

Sources: Consumer Financial Protection Bureau