Mortgage rates edge higher for many loan types

The average rate for a 30-year fixed-rate conforming mortgage in the U.S. stands at 7.158%, a small increase from the previous day, according to Mortgage Research Center data.

The average rate for a 15-year fixed-rate conforming mortgage has also moved up, reaching 6.313% over the same period.

Mortgage rate snapshot

Here’s a brief look at recent rate movement.

Fortune reviewed the latest Mortgage Research Center data available on Nov. 3.

How much interest you’d pay at current rates

Using the federal government’s Office of Financial Readiness mortgage calculator, a 30-year loan of $300,000 at 7.158% would cost about $430,025.35 in total interest over the life of the loan.

On a 15-year mortgage for the same amount, total interest would come to roughly $164,864.59 at a rate of 6.313%.

What the Fortune/MRC partnership means

Fortune works with Mortgage Research Center, which specializes in mortgage data, to keep readers informed during the homebuying process. The publication reviews average rates from MRC each workday they are available, covering a range of loan types.

Below is a breakdown of how rates changed from the prior day.

30-year conventional mortgage rates

This is often the most common mortgage option in the U.S.

The current average on a 30-year mortgage is 7.158%, up from 7.118% in the previous report.

15-year conventional mortgage rates

Borrowers who want to reduce total interest over the life of the loan often favor this option.

The current average 15-year rate is 6.313%, up from 6.273% in the previous report.

30-year jumbo mortgage rates

A jumbo mortgage exceeds the conforming loan limits set by the Federal Housing Finance Agency. While the cap can differ in some high-cost areas, it is $832,750 in most of the U.S.

The average rate on a 30-year jumbo loan is 7.377%, slightly lower than 7.392% in the prior report.

30-year FHA mortgage rates

This loan type can be more accessible to borrowers with somewhat lower credit scores than conventional loans, since the Federal Housing Administration insures the loans and reduces lender risk.

The current average rate on a 30-year FHA home loan is 6.623%, slightly higher than 6.608% in the prior report.

30-year VA mortgage rates

These loans are generally available to U.S. service members, veterans, and surviving spouses. A major benefit is that they do not require a minimum down payment, unlike most other mortgage types.

The current average rate on a 30-year VA home loan is 6.738%, down from 6.683% in the prior report.

30-year USDA mortgage rates

USDA loans are designed to help low- and moderate-income borrowers buy homes in eligible rural areas. Like VA loans, they do not require a minimum down payment.

The current average rate on a 30-year USDA home loan is 7.101%, up from 6.967% in the prior report.

The Federal Reserve’s role

The Fed does not directly set mortgage rates. It does, however, set the federal funds rate, which is the rate banks charge one another for overnight borrowing.

Mortgage rates often move in the same direction as changes in the federal funds rate. That means a Fed increase or cut can eventually influence consumer borrowing costs.

At its most recent meeting, the Federal Open Market Committee left the federal funds rate unchanged at 3.75% to 4.00%. Another meeting is scheduled later this year.

Many homebuyers remember the record-low average mortgage rate of 2.65%, reached in January 2021. That came after the Fed pushed its benchmark rate effectively to zero while trying to cushion the economy during the coronavirus pandemic.

Experts do not expect mortgage rates to return to that level unless an extreme crisis emerges.

Mortgage application trends

After several weeks of declines, mortgage applications have turned higher. For the week ending Oct. 23, applications were up 3.4% from a week earlier, according to the Mortgage Bankers Association’s recurring survey.

“Mortgage rates declined for the second week in a row,” Joel Kan, the MBA’s vice president and deputy chief economist, said in a news release.

Kan added that lower rates gave borrowers some relief and helped applications recover slightly, especially for conventional loans.

He also said purchase applications were still 18% below the pace from a year earlier, while refinance applications were down more than 60% year over year.

Adjustable-rate mortgages accounted for 11.3% of total applications.

Recent Fortune coverage on housing

Follow the Fortune newsroom for more coverage of housing and the broader economy:

• The ‘haunted’ housing market’s real problem may be too few people, not too few homes, says J.P. Morgan’s David Kelly
• A 3.4% GDP print hides a ‘haunted’ housing market and a September stall in the economy
• The Pentagon and Britain are bracing for the power to go out. The ultrawealthy got there first, with backup generators, escape homes, and stockpiles
• Coconut Grove is Miami’s billionaire enclave, drawing Larry Page and Ken Griffin. Now luxury hotelier Raffles is building 35 homes there from $4.5M
• Michael Burry of ‘The Big Short’ was asked to give advice to Gen Z: ‘Buy half the house you can afford,’ and ‘If it flies or floats, rent it’
• Jeff Bezos reportedly added a $69.5 million beach house to his $237 million Miami compound. A broker says that’s how billionaires live now
• Goldman sees a housing freeze through 2027. It would lock in an economic divide between millennials

Why comparing offers matters

In a high-rate environment, borrowers who apply with multiple lenders may save between $600 and $1,200 a year compared with those who do not, according to Freddie Mac.

When shopping for a mortgage, it helps to compare two things: lenders and loan types. One lender may offer better pricing or service, while different loan products can suit different borrower profiles.

For example, someone with an excellent credit score might get the best deal with a conventional mortgage. By contrast, a borrower with a credit score below 600 may still have a chance at FHA approval in some situations, even if a conventional loan would be out of reach.

Frequently asked questions

Are mortgage interest rates and APR the same?

Not exactly. APR includes your interest rate plus any applicable fees, so it is usually higher than the interest rate alone.

What is considered a good mortgage rate now?

A rate above 6.50% but below 7.00% would generally be considered favorable, given that the average for 30-year conventional loans has recently hovered above 7.00%.

Will mortgage rates fall?

It is possible, but nothing is guaranteed. Rates could decline if the Fed cuts the federal funds rate later this year. Other influences include inflation, the national debt, and demand for home loans. Market watchers also do not expect a rate cut at the remaining meeting on the calendar.