Mortgage rates today, May 7, 2026

The 30-year fixed mortgage rate is averaging 6.44% today, May 7, 2026 — down from a recent peak above 6.50% earlier this week. Rates pulled back after reports emerged that the United States and Iran were nearing a preliminary peace agreement, which pushed oil prices and bond yields lower. Mortgage rates move in the same direction as bond yields because most home loans are ultimately packaged into mortgage-backed securities (MBS) and sold to investors — when bond yields fall, mortgage rates typically follow.

For context, today’s rate is about 0.44% lower than it was a year ago, which translates to meaningful monthly savings on a typical home purchase. A 15-year fixed mortgage is averaging 6.00% today, while the 7/6 adjustable-rate mortgage (ARM) sits at 6.11%.

Rates remain sensitive to geopolitical developments and inflation data. If a formal peace agreement is reached, rates could continue to ease. If talks break down, rates could quickly climb back above 6.50%. Knowing where rates stand today — and getting pre-approved — puts you in the strongest position to act when conditions favor you.

What are mortgage rates today, May 7, 2026?

Here are today’s national average rates, pulled from the designated industry rate index:

These are national averages — your actual rate depends on your credit score, down payment, loan amount, and lender.

A 30-year fixed mortgage locks your interest rate for the full loan term, giving you a predictable monthly payment. It’s the most common loan type for purchase buyers. A 15-year fixed mortgage carries a lower rate but higher monthly payment — it’s a strong choice for borrowers who can handle the larger payment and want to pay significantly less interest over time.

An adjustable-rate mortgage (ARM) — such as the 7/6 SOFR ARM — keeps your rate fixed for an initial period (seven years in this case), then adjusts every six months based on market conditions. ARMs typically start lower than fixed rates, which is why you see the 7/6 at 6.11% while the 30-year fixed sits at 6.44%. The tradeoff is rate uncertainty after the initial fixed period ends.

FHA loans are insured by the Federal Housing Administration and are popular with first-time buyers and those with lower credit scores or smaller down payments. VA loans are available to eligible military service members, veterans, and surviving spouses, and carry no minimum down payment requirement. Today’s today’s mortgage rates across all loan types reflect the day’s improvement.

How do today’s rates compare to last week?

It has been a volatile week. Rates spiked sharply on Monday after escalating tensions related to the U.S.-Iran conflict pushed oil prices higher and sent bond yields surging — briefly pushing the 30-year fixed above 6.50% for the first time in more than a month. Tuesday offered only modest recovery. Today marks a more meaningful pullback, with the average lender back near last Friday’s levels.

Year over year, today’s 30-year rate is approximately 0.44% lower than the same period in 2025, which provides meaningful relief for buyers compared to the higher-rate environment of last year.

What’s driving mortgage rates right now?

To understand where rates are going, it helps to understand what moves them. Mortgage rates do not follow the Federal Reserve’s benchmark rate directly — they track mortgage-backed securities (MBS), which are bonds comprised of pools of home loans. MBS prices move with the broader bond market, and bond yields rise and fall based on inflation expectations, economic data, and — right now especially — geopolitical developments.

The current rate environment has been heavily influenced by the U.S.-Iran conflict. Escalation in that conflict pushes oil prices higher. Higher oil prices feed into inflation expectations, because energy costs ripple through manufacturing, transportation, and consumer goods. Higher inflation expectations cause bond investors to demand higher yields to offset purchasing power erosion — and that pushes mortgage rates up.

This week illustrated that dynamic in both directions. When news broke that U.S.-Iran peace talks were progressing, oil prices dropped sharply and bond yields followed. The result was today’s meaningful rate improvement.

The Federal Reserve has also played a role in the recent rate environment. At its most recent meeting, the Fed held its benchmark rate steady and signaled it wants more evidence that inflation is cooling before considering rate cuts. Three voting members pushed back on language in the Fed’s statement that some interpreted as tilting toward future cuts — a minor negative signal for rate watchers. That development contributed to earlier-week rate pressure before today’s geopolitical news took center stage.

Understanding why mortgage rates are rising or falling on any given day helps you make better-informed decisions about timing.

How does today’s rate affect your monthly payment?

Even small movements in your mortgage rate produce real differences in what you pay each month. Here’s how today’s rate compares against recent highs for a $350,000 loan:

Example is for illustrative purposes only. Rates, payments, and total interest will vary based on credit profile, loan terms, and market conditions.

The 10-basis-point improvement from Monday’s peak saves roughly $29 per month — or about $350 per year — on a $350,000 loan. Over the life of a 30-year loan, that adds up to more than $10,400 in interest. Use the mortgage calculator to estimate your payment at any rate and loan amount.

The 15-year fixed scenario shows higher monthly payments because you’re paying off the same loan balance in half the time — but you’re borrowing at 6.00% instead of 6.44%, and the total interest paid over the life of the loan is dramatically lower.

Should you lock your mortgage rate today?

A rate lock is an agreement between you and your lender that guarantees a specific interest rate for a set period — typically 30 to 60 days — while your loan is being processed. Once you lock, your rate won’t increase even if market rates rise before you close. Most locks also mean you won’t benefit from a drop unless your lender offers a float-down option.

Many lenders offer float-down options that allow you to lock a rate and then move to a lower rate should it drop materially before closing. This can be worth asking about if you’re locking in a volatile environment like the current one.

Today’s rate environment carries meaningful uncertainty in both directions. If the U.S.-Iran peace talks produce a formal agreement, oil prices could fall further and rates could continue to ease. If talks stall or break down, rates could move back above 6.50% quickly. That volatility makes the lock-or-wait decision genuinely uncertain.

What makes the most sense for most buyers: lock when you find a rate that works for your budget. Trying to time the exact bottom of a rate cycle rarely succeeds, and a delayed closing due to rate-watching can cost you a property you want. Understand when to lock your mortgage rate in the context of your specific loan timeline.

How to get the best mortgage rate available to you

The rate table above shows national averages. The rate you actually receive will depend on several factors you control:

Credit score is one of the most significant factors. Borrowers with scores above 740 typically qualify for better pricing than those in the 680–720 range. Even a 20-point improvement in your score before applying can save thousands over the life of your loan. It’s worth checking your credit report before you start the application process.

Debt-to-income ratio (DTI) measures your monthly debt payments as a percentage of your gross monthly income. Most conventional lenders want to see a DTI at or below 43–45%. A lower DTI signals to lenders that you have more room in your budget, which can improve your rate.

Down payment and loan-to-value (LTV) also affect pricing. A larger down payment — particularly crossing the 20% threshold — reduces your LTV, eliminates private mortgage insurance (PMI), and typically earns you a better rate.

Shopping across lenders is one of the highest-impact moves you can make. Rates can vary meaningfully from lender to lender for the same borrower profile. Understanding how to shop around for mortgage rates is worth doing before you commit to any single offer. You may find that rates are more negotiable than you expect.

Better’s fully online mortgage process lets you see real rates without a hard credit inquiry — so you can understand what determines mortgage rates for your specific profile before you commit to anything.

Frequently asked questions

What are mortgage rates today, May 7, 2026?

The 30-year fixed mortgage rate is averaging 6.44% today, down 10 basis points from this week’s peak. The 15-year fixed is at 6.00%, and the 7/6 SOFR ARM is at 6.11%. FHA and VA loans are averaging 5.92% and 5.93%, respectively.

Why did mortgage rates go down this week?

Rates spiked Monday when escalating Iran conflict headlines pushed oil prices and bond yields higher. They pulled back Wednesday after reports that the U.S. and Iran were close to signing a preliminary peace framework. Lower oil prices reduce inflation expectations, which reduces bond yields, which brings mortgage rates down.

I’m buying a home this spring with a 720 credit score — is 6.44% the best rate I can get?

The 6.44% figure is a national average. With a 720 credit score, you should be able to qualify for a competitive conventional rate, though the exact figure depends on your down payment, loan amount, DTI, and lender. Shopping multiple lenders is the most reliable way to confirm you’re getting the best rate your profile qualifies for.

Should I lock my mortgage rate now or wait to see if rates drop below 6%?

That depends on your timeline and risk tolerance. Today’s geopolitical uncertainty means rates could move materially in either direction within days. If a rate in the low-to-mid 6% range works for your budget, locking now eliminates the risk of rates rising before you close. Ask your lender about float-down options if you want some protection against a drop.

How does a 0.10% drop in mortgage rates actually change my monthly payment?

On a $350,000 30-year loan, the 0.10% improvement from Monday’s peak saves approximately $29 per month. That’s roughly $350 per year and more than $10,400 over the life of the loan. Larger loan balances see proportionally larger savings.

Is an FHA loan or a conventional loan a better choice when rates are this high?

FHA loans often carry lower interest rates (today’s average is 5.92% vs. 6.44% for conventional), but they require mortgage insurance premiums for the life of the loan in most cases. Conventional loans eliminate PMI once you reach 20% equity. The better choice depends on your down payment amount, credit profile, and how long you plan to stay in the home.

What would cause mortgage rates to drop significantly in 2026?

The most likely drivers of meaningful rate relief would be a confirmed peace resolution in the Middle East (reducing oil price pressure), clear evidence of cooling inflation in CPI or PCE data, or a Federal Reserve pivot toward rate cuts. Industry economists generally expect the 30-year fixed to remain above 6% through most of 2026 unless one of those catalysts materializes.

Today’s rates in context

Rates have pulled back from this week’s spike, and spring buyers have a modestly better window today than they did on Monday. The path forward depends heavily on how the geopolitical situation develops — a formal peace agreement could push rates meaningfully lower, while a breakdown in talks could reverse today’s gains quickly.

What you can control is your preparation. Knowing your credit profile, understanding your DTI, and getting pre-approved means you can move decisively when a rate that works for your budget appears. Check current refinance rates if you’re evaluating a refi rather than a purchase.

Rates shown are daily average interest rates, not APRs, based on Better Mortgage data and are for informational purposes only. Rates are not guaranteed, may include borrower-paid or lender credits, and actual rates and terms vary by borrower and transaction. Comparison to industry average rates may not reflect individual borrower scenarios and is not a guarantee of lower rates or savings.