What is the average interest rate for a mortgage?

Many bank websites have their current interest rates posted. Finding an average interest rate is probably going to be difficult, but it also won't be helpful. This is because mortgage rates vary based on a variety of factors.

When the Federal Funds Rate changes, mortgage costs change with it. However, other factors like the term of the mortgage are also considered, as well as whether the rate is variable or fixed. You can compare different mortgage rates and types for each bank on a bank's own website.

However, to compare banks, I'd recommend talking to a mortgage broker. Brokers have a good knowledge of the market's current state and can help home buyers find the loan that's best suited to their situation. They can also steer you away from products that you're not likely to get approved for so you don't waste time thinking you're going to get a different rate than you actually will.

The average mortgage rate offered by banks and mortgage lenders is constantly changing as market pressures cause mortgage rates to rise and fall. You can find the average interest rate from the previous week in the Weekly Primary Mortgage Market Survey(R) which is published each Thursday by Freddie Mac: freddiemac.com/pmms.

Interest expense divided by average interest-bearing liabilities (less convertible debentures).

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