Mortgage rates remain near 6.5% for the seventh week in a row.

The 30-year fixed-rate mortgage dropped six basis points to 6.43% for the week ending Wednesday, according to Freddie Mac.

Still, the housing market is clinging to slim seasonal gains.

"Purchase applications remain ahead of 2025's pace and have exhibited year-over-year growth for almost three months, as prospective homebuyers are finding opportunities in markets with ample inventory and easing home-price growth," Joel Kan, deputy chief economist for the Mortgage Bankers Association, said in a statement.

Danielle Hale, chief economist for Realtor.com, pointed to eight months of declining home prices and seven months of gains in pending sales.

"Sellers are reading market conditions and are pricing accordingly from the start rather than listing high and cutting later, and buyers are taking note and making bids. This is a welcome sign that we are in a functioning market," Hale said in a June housing report.

Thursday, the jobs report showed the U.S. economy added 57,000 jobs in June, below the 115,000 expected. That may temper Wall Street's expectations for a Federal Reserve rate hike this summer and ease pressure on mortgage rates, at least in the short term.

Read more: Discover the best mortgage refinance lenders

Today's mortgage rates

Here are the current purchase mortgage rates for Thursday, July 2, 2026, according to the latest Zillow data:

30-year fixed: 6.36%

20-year fixed: 6.22%

15-year fixed: 5.87%

5/1 ARM: 6.41%

7/1 ARM: 6.29%

30-year VA: 5.75%

15-year VA: 5.41%

5/1 VA: 5.66%

Remember, these are the national averages and rounded to the nearest hundredth.

Read more: Here are 8 strategies for getting the lowest mortgage rate possible.

Today's mortgage refinance rates

Here are today's mortgage refinance interest rates, Thursday, July 2, 2026, according to the latest Zillow data:

30-year fixed: 6.33%

20-year fixed: 6.31%

15-year fixed: 5.85%

5/1 ARM: 6.33%

7/1 ARM: 6.34%

30-year VA: 5.80%

15-year VA: 5.49%

5/1 VA: 5.69%

As with mortgage rates for purchase, these are national averages, rounded to the nearest hundredth. Refinance rates can be higher than purchase mortgage rates, but that isn't always the case.

Monthly mortgage payment calculator

Use the mortgage calculator below to see how various mortgage rates will impact your monthly payments.

Payment breakdown Amortization Mortgage payment calculator Home price Down payment Down Payment: This is the part of your home's purchase price that you pay upfront, not covered by your loan. The amount you pay as a down payment can influence your mortgage interest rate. Generally, larger down payments result in lower interest rates, as lenders see these as a sign of strong financial commitment. Loan term Loan Term: This refers to the duration over which you will repay your loan, typically measured in years. Opting for a longer loan term can reduce your monthly payments by spreading them out over a greater number of years, whereas shorter loan terms generally lead to higher monthly payments. Interest rate Interest Rate: This is the annual cost you incur for borrowing money, expressed as a percentage of the loan amount. It represents the fee you pay each year to the lender for your loan. Data is provided as-is via the Zillow Mortgage API © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use. Interest rate provided via Enter Taxes, insurance and HOA fees Property tax /month Homeowners insurance /month Private mortgage insurance /month HOA fees /month Mortgage payment breakdown 81% Principal & interest 13% Property tax 6% Homeowners insurance 0% Private mortgage insurance 0% HOA fees Monthly total $2,628 81% Principal & interest $2,124 13% Property tax /month 6% Homeowners insurance /month Taxes, insurance, HOA fees 0% Private mortgage insurance /month 0% HOA fees /month See rates at top mortgage lenders Advertiser Disclosure Check rates Check rates Check rates

You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders. Be sure to use the dropdown to include private mortgage insurance costs and HOA dues, if applicable. These monthly expenses, along with your mortgage principal and interest rate, will give you a realistic idea of what your monthly payment could be.

How do mortgage rates work?

A mortgage interest rate is the fee charged by a lender for borrowing money, expressed as a percentage. There are two basic types of mortgage rates: fixed and adjustable rates.

A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you get a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30 years. (Unless you refinance or sell the home.)

An adjustable-rate mortgage keeps your rate the same for the first few years, then changes it periodically. Let's say you get a 5/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first five years, and then the rate would increase or decrease once per year for the last 25 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and the U.S. housing market.

At the beginning of your mortgage term, most of your monthly payment goes toward interest. As time passes, less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.

Read more: Learn how to choose between an adjustable-rate vs. fixed-rate mortgage.

How are mortgage rates determined?

Two categories determine mortgage rates: those you can control and those you cannot.

What factors can you control? First, you can compare the best mortgage lenders to find the one that gives you the lowest rate and fees.

Second, lenders typically extend lower rates to people with higher credit scores, lower debt-to-income (DTI) ratios, and considerable down payments. If you can save more or pay down debt before securing a mortgage, a lender will probably give you a better interest rate.

What factors can you not control? In short, the economy.

The list of ways the economy impacts mortgage rates is long, but here are the basic details. If the economy — for example, employment rates — is struggling, mortgage rates decrease to encourage borrowing, which helps boost the economy. If the economy is strong, mortgage rates go up to temper spending.

With all other factors being equal, mortgage refinance rates are typically slightly higher than purchase rates. So don't be surprised if your refinance rate is higher than you may have expected.

30-year vs. 15-year fixed mortgage rates

Two of the most common mortgage terms are 30-year and 15-year fixed-rate mortgages. Both lock in your rate for the entire loan term.

A 30-year mortgage is popular because it has relatively low monthly payments. But it comes with a higher interest rate than shorter terms, and because you're accumulating interest for three decades, you'll pay a lot of interest in the long run.

A 15-year mortgage can be a good choice because it has a lower rate than you'll get with longer terms, so you'll pay less in interest over the years. You'll also pay off your mortgage much faster. But your monthly payments will be higher because you're paying off the same loan amount in half the time.

Basically, 30-year mortgages are more affordable from month to month, while 15-year mortgages are cheaper in the long run.

Current mortgage rates: FAQs

What bank is offering the lowest mortgage rates?

According to Yahoo Finance's weekly survey of lenders with the lowest rates, some of the banks with the lowest rates are Chase and Citibank. However, it's a good idea to shop around for the best rate, not just with banks, but also with credit unions and companies specializing in mortgage lending.

Is 2.75% a good mortgage rate?

Yes, 2.75% is an amazing mortgage rate. You're unlikely to get a 2.75% rate in today's market unless you take on an assumable mortgage from a seller who locked in this rate in 2020 or 2021, when rates were at all-time lows.

What is the lowest-ever mortgage rate?

According to Freddie Mac, the lowest-ever 30-year fixed mortgage rate was 2.65%. This was the national average in January 2021. It is extremely unlikely that rates will dip below 3% again anytime soon.

At what rate should you refinance your mortgage?

Some experts say it's worth refinancing when you can lock in a rate that's 2% less than your current mortgage rate. Others say 1% is the magic number. It all depends on your financial goals when refinancing, how long you plan to stay in the same house, and on your break-even point after paying the refinance closing costs.