The mortgage lenders with the best rates this week include PenFed Credit Union, Chase Home Lending, and U.S. Bank, according to a survey conducted by Yahoo Finance. Lenders were ranked by annual percentage rate (APR), which includes lender fees.
With the second federal funds rate cut of 2025 announced last week by the Federal Reserve, potential home loan borrowers may be looking for mortgage rates to move lower immediately. That’s not a sure thing.
The Fed influences, but does not control, mortgage rates. However, mortgage lenders might lean into consumer demand and adjust their offerings because the Fed draws the world’s attention by cutting rates.
Here’s an example:
“The Fed cut rates by 0.25%, so we lowered ours,” Rocket Mortgage posted in a red banner at the top of its website. Rocket is indeed in the top 10 for the best 30-year fixed mortgage rates of the lenders we surveyed this week.
Here are the results of our survey for the lowest mortgage rates on conventional loans this week. The following numbers are each lender’s annual percentage rate (APR).
PenFed Credit Union: 5.951%
Chase Home Loans: 5.978%
U.S. Bank: 6.159%
Rate: 6.26%
Citizens Bank: 6.337%
Bank of America: 6.406%
Wells Fargo: 6.414%
Truist: 6.563%
Flagstar Bank: 6.711%
Rocket Mortgage: 6.778%
These are all sample mortgage rates found on lender websites and are based on generic assumptions. Lenders advertise 30-year mortgage rates based on varying credit scores, down payments, and other credit qualifications. Even where you live affects your mortgage rate.
Your rate will be based on your particular credit profile.
If a mortgage lender required additional borrower information to provide a sample rate, we supplied a median home value and credit score, with a 20% down payment based on a home located in the Midwest.
The key to getting the lowest mortgage rate is shopping, according to new research from Realtor.com. So, that’s what we’re doing for you: Scouring national lender rates for the best offers we can find after the Federal Reserve cut interest rates last week.
We’re also looking for details that you will want to consider. Often, borrowers focus on the offered interest rate, as that’s what lenders typically highlight. However, the mortgage annual percentage rate, or APR, is the most important number.
APR includes both the interest rate and lender fees (e.g., the mortgage origination fee), so it is the most accurate measure of your annual borrowing costs.
Lenders often include mortgage discount points to lower their offered interest rate. That’s where things can get confusing.
First off, discount points are prepaid interest — an up-front fee paid at closing that reduces your interest rate. Although lenders often include discount points in their advertised rates online, buying points is optional. Each point represents 1% of your loan amount and generally lowers your interest rate by about 0.25%. For example, one point on a $400,000 mortgage would cost $4,000 and reduce a 6.25% home loan to 6%.
On the other hand, Truist offered negative points, which are typically referred to as lender credits. That means they are not charging you more for your loan — on the contrary, they will actually apply that credit to your closing costs.
Just remember, no matter what the lender puts in an advertised rate or in a loan offer, when you get a Loan Estimate and see discount points under the lender fees section, you can say no and have them removed. But your rate will be higher.
That’s a lot of moving parts, we know.
If possible, when shopping with three or more lenders, have each of them quote a mortgage rate with zero discount points. Then, focus on the APR for an accurate side-by-side comparison of rates and fees.
Laura Grace Tarpley edited this article.
