Mortgage Rates for Today: October 12, 2026

Mortgage rates continued to tick lower. The 30-year fixed-rate loan averaged 7.37%. Most experts expect rates to stay above 7% through year-end.

Key mortgage rate averages:

• The 30-year fixed-rate mortgage averaged 7.37% APR
• The 30-year fixed-rate FHA mortgage averaged 8.12% APR
• The 30-year fixed-rate VA mortgage averaged 7.17% APR
• The 30-year fixed-rate jumbo mortgage averaged 7.59% APR
• The 15-year fixed-rate mortgage averaged 6.71% APR
• The 7/6 adjustable-rate mortgage averaged 6.87% APR
• The rate on a HELOC averaged 8.01% APR
• The rate on a home equity loan averaged 8.25% APR

Mortgage rate trends

Mortgage rates appear to be stabilizing in the mid-7% range, their highest level since 2023. While elevated rates increase affordability challenges for some buyers, lower volatility can give financially ready buyers time to find and lock in a favorable rate.

Prospective buyers hoping rates will decrease later this year may be disappointed. In emailed comments, Kara Ng, senior economist at Zillow Home Loans, writes that rates are likely to move only a little lower. Zillow’s revised rate forecast now expects the 30-year rate to average 7.1% by year’s end.

Which loan is best for you?

When shopping for a mortgage, you may be offered several loan options to meet different needs. Here’s a rundown of the most common loan types you’ll find, and who they work best for.

30-year conventional mortgage: Conventional loans work best for borrowers who have a credit score above 620, have saved enough to make a down payment of at least 3% and are looking for flexibility in the type of property being purchased.

30-year Federal Housing Administration (FHA) mortgage: FHA loans are good for first-time homebuyers, borrowers with less-than-perfect credit scores or those with a high debt-to-income ratio.

30-year U.S. Department of Veterans Affairs (VA) loan: Specifically designed for active-duty and retired service members, members of the National Guard and Reserves, and surviving spouses. Offers 0% down loan options, competitive rates and accepts less-than-perfect credit scores.

30-year jumbo loan: Good for homebuyers purchasing property that is priced above the Federal Housing Finance Agency (FHFA) conforming loan limit. In 2026, that limit is $832,750 in most of the U.S. but increases to $1,249,125 in high-cost areas.

15-year fixed-rate loan: Borrowers who prefer a shorter loan term and can afford to make higher monthly payments will pay less overall interest with a 15-year mortgage and pay off the loan faster.

7/6 adjustable rate loan: Good for a buyer who wants to lock in a favorable interest rate for a set period of time and either plans on selling the home before the interest rate starts, is willing to make a higher monthly payment once the rate becomes variable or is open to refinancing the loan.

Home equity line of credit (HELOC): A good option for a homeowner who wants to access the equity they’ve accumulated in their home and have an open line of credit to use as needed.

Home equity loan: Another option for a homeowner who wants to access their home equity and have the financial capacity to take on a second mortgage.

How mortgage rates affect affordability

Your mortgage rate can make a big difference in how much home you can afford and how large your monthly payments are. That’s true whether buying your primary residence, an investment property or refinancing an existing loan.

Here’s an example. If you bought a $250,000 home and made a 20% down payment of $50,000, your starting loan balance would be $200,000. On a $200,000 home loan with a fixed rate for 30 years, here’s what you would pay:

• At a 3% interest rate = $843 in monthly payments (not including taxes, insurance, or HOA fees)
• At a 4% interest rate = $955 in monthly payments (not including taxes, insurance, or HOA fees)
• At a 6% interest rate = $1,199 in monthly payments (not including taxes, insurance, or HOA fees)
• At an 8% interest rate = $1,468 in monthly payments (not including taxes, insurance, or HOA fees)

Using a mortgage calculator lets you see how a lower rate or other changes could affect what you pay. A home affordability calculator can also estimate the maximum loan amount you may qualify for based on your income, debt-to-income ratio, mortgage interest rate and other variables. The Consumer Financial Protection Bureau can also provide a range of rates lenders offer in each state.