what is a mortgage rate 
a mortgage rate is the percentage of interest that is charged for a home loan broadly speaking mortgage rates change with the economic conditions that prevail at any given time however the mortgage rate that a homebuyer is offered is determined by the lender and depends on the individual s credit history and financial circumstances among other factors the consumer decides whether to apply for a variable mortgage rate or a fixed rate a variable rate will go up or down with the fluctuations of national borrowing costs and alters the individual s monthly payment for better or worse a fixed rate mortgage remains the same for the life of the mortgage understanding mortgage ratesthe prevailing mortgage rate is a primary consideration for homebuyers seeking to purchase a home using a loan the rate a homebuyer gets has a substantial impact on the amount of the monthly payment that they will pay mortgage rates are highly sensitive to economic conditions since 1980 average mortgage rates for a 30 year fixed rate mortgage have hit a high of 18 3 during a period of runaway inflation in 1981 and a low of 2 6 in 2020 in the early days of the covid 19 pandemic in mid july 2023 the average national rate was 7 2 1