Mortgage rates: October 2026 snapshot
| Benchmark | Rate | Date |
|---|---|---|
| 30-year fixed (Freddie Mac average) | 7.28% | Oct. 1, 2026 |
| 30-year fixed, one week earlier | 7.03% | Sept. 24, 2026 |
| 30-year fixed, one year earlier | 6.34% | Oct. 2025 |
| 15-year fixed (Freddie Mac average) | 6.60% | Oct. 1, 2026 |
| 30-year fixed jumbo (Bankrate national average APR) | 7.66% | Oct. 6, 2026 |
Source: Freddie Mac Primary Mortgage Market Survey (via Trading Economics and Mortgage News Daily); Bankrate jumbo mortgage rates.
Freddie Mac surveys lenders from Monday to Wednesday and publishes its averages every Thursday. These numbers are averages for strong borrowers. The rate you're offered depends on your credit score, down payment, loan type, points and the lender. Treat the survey as a yardstick for checking whether a quote is in the normal range.
The main mortgage types and who they fit
| Loan type | Minimum down payment | Credit guidelines | Mortgage insurance or fees |
|---|---|---|---|
| Conventional (conforming) | 3% at many lenders | Many lenders still require 620; Fannie Mae's automated system no longer has a fixed minimum | PMI if under 20% down; can be cancelled |
| FHA | 3.5% with 580+; 10% with 500–579 | Some lenders set higher floors | 1.75% upfront plus about 0.55% a year |
| VA | 0% | Set by lender (often 620) | One-time funding fee; no monthly mortgage insurance |
| USDA guaranteed | 0% | 640+ for streamlined processing | 1% upfront plus 0.35% a year; income and location limits |
| Jumbo | Often 10%–15% or more | Often 700+ | Six to 12 months of payments in reserves is common |
Source: HUD and FHA program summaries; Fannie Mae Desktop Underwriter update (effective Nov. 16, 2025); USDA guaranteed loan program summaries; Bankrate jumbo loan requirements; NerdWallet lender profiles (updated Aug. 2026).
Conventional loans
Conventional loans that meet Fannie Mae and Freddie Mac rules are "conforming." In 2026, the conforming limit for a one-unit home is $832,750 in most of the country, up $26,250 from 2025. In high-cost areas, it can reach $1,249,125. In November 2025, Fannie Mae dropped its fixed 620 minimum score for loans run through its Desktop Underwriter system. Lenders and mortgage insurers can still set their own minimums, and most large lenders still list 620.
If you put down less than 20%, you'll pay private mortgage insurance (PMI). Unlike FHA insurance, PMI doesn't last forever. You can ask to cancel it once your balance reaches 80% of the home's original value, if your payment history is good. Your servicer must drop it automatically when the balance is scheduled to reach 78%.
FHA loans
FHA loans accept lower credit scores: 580 with 3.5% down, or 500–579 with 10% down. The cost is mortgage insurance. You pay an upfront premium of 1.75% of the loan, which is $7,000 on a $400,000 loan and is usually added to the balance. You also pay an annual premium, typically 0.55%. With less than 10% down, the annual premium lasts for the life of the loan. With 10% or more down, it ends after 11 years. Many borrowers later refinance into a conventional loan to drop it. In 2026, FHA limits for a one-unit home range from $541,287 in lower-cost counties to $1,249,125 in the most expensive.
VA and USDA loans
VA loans let eligible service members, veterans and some surviving spouses buy with no down payment and no monthly mortgage insurance. Our VA loan lenders guide covers the 2026 funding fee and eligibility. USDA guaranteed loans also need no down payment. They are limited to eligible rural and suburban areas and to households earning up to 115% of the area median income.
Jumbo loans
Any loan above your county's conforming limit is a jumbo loan. Lenders take on more risk, so Bankrate notes typical requirements of a 700+ credit score, 10%–15% or more down, a debt-to-income ratio of 43% or lower, and six to 12 months of payments in savings. In early October 2026, Bankrate's average 30-year jumbo APR was 7.66%.
Lenders to know: who makes the most loans
Size doesn't guarantee the best rate, but it tells you which lenders have deep experience with each loan type. Here is 2025 HMDA data as reported by HousingWire in April 2026:
- Rocket Mortgage made the most loans: 429,332. NerdWallet lists a 620 minimum score and 3% down, or 1% through its ONE+ program for qualifying first-time buyers. It calls Rocket the largest FHA lender by volume in 2025, but notes that its average origination fees are on the higher side.
- United Wholesale Mortgage (UWM) led by dollar volume at $164.3 billion. It lends through mortgage brokers, so you reach it through a broker rather than directly.
- JPMorgan Chase ranked third by dollar volume at $66.3 billion. NerdWallet lists a 620 minimum, 3% down, home buyer grants of up to $5,000 and a 21-day average time to close.
- Bank of America ($37.3 billion) is a major jumbo lender. NerdWallet lists a 720 minimum and 5% down for its jumbo loans.
- Pennymac (100,816 loans) and loanDepot are big FHA lenders. NerdWallet lists FHA minimums of 580 and 520 respectively, with 3.5% down.
- Veterans United and Navy Federal Credit Union both made the top 10 by loan count, mostly through VA lending.
Banks and credit unions with affordability programs are worth a quote even if they're smaller. NerdWallet reports that U.S. Bank and PNC offer up to $17,500 in assistance through qualifying programs. Alliant Credit Union has a first-time buyer program with 0% down and no PMI, and you don't need to be a member until closing.
Source: HousingWire analysis of 2025 HMDA data (Apr. 6, 2026); NerdWallet lender profiles (updated Aug. 10, 2026). Program terms vary by location and income.
How to compare Loan Estimates
Lenders must send a Loan Estimate within three business days after you give them six pieces of information: your name, income, Social Security number, the property address, an estimate of its value and the loan amount. The CFPB notes that you don't need a signed purchase contract, and it recommends getting estimates from at least three lenders on the same terms.
- Request all quotes on the same day. Rates moved 25 basis points in one week in late September 2026, so quotes from different days aren't comparable.
- Keep the terms identical. Use the same loan type, term, down payment and lock period with each lender.
- Compare Section A (Origination Charges), Section B and any lender credits in Section J. These show what the lender itself charges, including points, and what it gives back.
- Check the "In 5 Years" figure on page 3. It totals what you'd pay over five years, which balances a low rate against high fees.
- Look at the APR alongside the rate. If the APR is much higher than the rate, fees are significant.
- Use the best offer to negotiate. The CFPB notes that lenders are often willing to match or beat a competitor's offer.
Shopping won't hurt your credit much if you keep it short. Credit scoring models count multiple mortgage inquiries within a short window as one. See how credit scores work for details. You'll get a Closing Disclosure at least three business days before closing. Compare it line by line with your final Loan Estimate.
Points and lender credits
One discount point costs 1% of the loan amount, or $4,000 on a $400,000 loan, and buys a lower rate. Lender credits work in reverse: you accept a higher rate and the lender pays part of your closing costs. To decide, divide the cost of the points by the monthly savings. In a hypothetical case where one point cut a 30-year rate from 7.28% to 7.03%, the payment would drop about $68 a month, so you'd break even in about 59 months. If you might sell or refinance before then, points don't pay off. With rates at multi-year highs, refinancing later is a real possibility, which makes lender credits worth considering.
What different choices cost on a $400,000 loan
| Scenario | Monthly principal and interest | Total interest |
|---|---|---|
| 30-year fixed at 7.28% | $2,737 | About $585,300 |
| 30-year fixed at 6.78% (a quote 0.5 point lower) | $2,602 | About $536,900 |
| 15-year fixed at 6.60% | $3,506 | About $231,200 |
Source: MoneyVerge calculations using Freddie Mac Oct. 1, 2026 averages. Taxes, insurance and mortgage insurance are not included.
The 15-year loan costs about $770 more a month but saves more than $350,000 in interest. A half-point better quote on a 30-year loan saves about $134 a month and roughly $48,400 over the full term. Budget for taxes, homeowners insurance (see our home insurance guide) and any PMI or MIP on top of these figures.
Common mistakes
- Getting only one quote. Lenders price the same borrower differently.
- Comparing quotes from different days while rates are moving quickly.
- Paying for points you won't keep long enough to break even.
- Taking FHA when you could qualify for conventional. With 5%–10% down and good credit, cancellable PMI may cost less over time than FHA's life-of-loan premium.
- Opening new credit or changing jobs before closing. Lenders recheck your finances before funding the loan.
Frequently asked questions
What is the average mortgage rate right now?
Freddie Mac's survey for October 1, 2026 put the 30-year fixed average at 7.28% and the 15-year at 6.60%. Its next survey comes out each Thursday. Your own rate depends on your credit, down payment, loan type and points.
What is the 2026 conforming loan limit?
For a one-unit home, it's $832,750 in most of the US and up to $1,249,125 in high-cost areas. That's the FHFA's 2026 figure, up $26,250 from 2025. Loans above your county's limit are jumbo loans.
What credit score do I need for a mortgage?
FHA allows 580 with 3.5% down, or 500–579 with 10% down, though some lenders set higher floors. For conventional loans, Fannie Mae removed its fixed 620 minimum for automated underwriting in November 2025, but most large lenders still list 620. Jumbo lenders often want 700 or more.
How many lenders should I get quotes from?
The CFPB recommends getting Loan Estimates from at least three lenders on the same loan terms. Request them on the same day so rate moves don't skew the comparison.
Can I get rid of mortgage insurance?
On a conventional loan, you can ask to cancel PMI when your balance reaches 80% of the home's original value, and it ends automatically at 78%. FHA annual premiums last for the life of the loan if you put down less than 10%, or 11 years with 10% or more down.
Are discount points worth it?
Only if you keep the loan past the break-even point. Divide the cost of the points by the monthly savings to find how many months that takes. If you may sell or refinance sooner, a lower-fee option or lender credits may cost less.
Sources
- Trading Economics – US mortgage rates (Freddie Mac PMMS, Oct. 1, 2026)
- Mortgage News Daily – Freddie Mac weekly survey history
- Freddie Mac – PMMS release, Aug. 27, 2026
- FHFA – FHFA Announces Conforming Loan Limit Values for 2026
- HUD – FHA Announces 2026 Loan Limits
- CFPB – Loan Estimate and Closing Disclosure: choose the right home loan
- CFPB – Compare Loan Estimates
- CFPB – What are discount points and lender credits?
- MPA – Fannie Mae scraps minimum credit score for DU loans
- Opendoor – How to remove PMI
- Financer – FHA loans explained
- GO Mortgage – What is a USDA loan?
- Bankrate – Jumbo mortgage rates and requirements
- HousingWire – Rocket, UWM and 2025 HMDA loan counts
- NerdWallet – Best mortgage lenders
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.