Navigating the housing market today can be challenging, especially for those looking to buy a new home or refinance an existing mortgage. High mortgage interest rates combined with a limited inventory of homes have made affordability a concern for many prospective buyers and current homeowners. However, securing a favorable mortgage rate is still achievable, particularly if you have a strong credit profile and a well-prepared application.
As of November 21, 2025, national averages show that mortgage and refinance interest rates are notably higher than they were a few years ago. According to data collected by Money, mortgage rates currently hover around 6-7%, a significant increase from the 2-3% rates commonly available in 2020. This rise is largely due to the Federal Reserve’s actions over the past two years, where successive interest rate hikes were implemented to manage economic conditions. Taylor Jessee, a Certified Financial Planner and founder of Impact Financial, explains that borrowing costs have become more expensive in this environment, but there is hope that if the Fed pauses its rate increases, mortgage rates might stabilize as well. This outlook is encouraging for borrowers who have been waiting for more favorable terms.
Despite the current higher rates, both buyers and homeowners looking to refinance can still find competitive deals. One of the most crucial factors in qualifying for the best mortgage rates is your credit score. The Consumer Financial Protection Bureau highlights that borrowers with credit scores in the mid- to high-700s or above typically receive the most attractive rates and have the widest range of loan options. To improve your credit profile, it’s important to pay all bills on time, ensure there are no errors on your credit report, and avoid applying for new credit close to the time you plan to submit your mortgage or refinance application.
When shopping for a mortgage or refinance loan, comparing offers from multiple lenders is essential. Many homeowners mistakenly assume that refinancing with their current lender is the only option, but looking beyond your existing lender can uncover better rates and loan terms. These differences can significantly affect your overall costs and monthly payments over the life of the loan. Taking the time to shop around and compare can lead to substantial savings.
Another key consideration when choosing a mortgage or refinance loan is the loan term. Generally, shorter loan terms, such as 15-year mortgages, offer lower interest rates compared to 30-year loans. However, shorter terms also mean higher monthly payments, so it’s important to assess what fits your budget and long-term financial goals. Additionally, fees and closing costs vary by lender and loan type, and these charges contribute to your overall payment. Before committing to any loan, calculate your monthly payments carefully to ensure they are affordable.
For those refinancing, it’s critical to weigh the full details of the new loan against your current mortgage. Even if the refinance interest rate is lower, closing costs or other fees might outweigh the savings over time. Evaluating the total costs and benefits helps you make an informed decision that supports your financial well-being.
Once you’ve found a mortgage or refinance loan that fits your needs and budget, locking in your mortgage rate is an important final step. Locking the rate ensures that it won’t increase before you close on your home, providing peace of mind and financial certainty during the home buying or refinancing process.
In summary, while mortgage rates are higher than in recent years, there are still good opportunities for both new homebuyers and those refinancing their homes. The key is to prepare your credit profile, shop around among lenders, carefully compare loan terms and fees, and calculate your monthly payments thoroughly. By taking these steps, you can secure a mortgage or refinance loan that aligns with your financial goals and helps you manage the costs effectively.
If you are ready to explore current mortgage rates and find the best options available to you, start by comparing offers today. Taking a proactive and informed approach will position you to navigate the housing market successfully despite the challenges of today’s rate environment.