What Is a High Mortgage Interest Rate?

What is a high mortgage interest rate and how is it determined?

A high mortgage interest rate is relative, since it all depends on the current market, the type of loan you want, your FICO score, down payment amount and where you’re buying. But you can use some benchmarks to tell whether a rate is genuinely on the high end.

As of early 2025, the national average for a 30-year fixed mortgage hovers around 6.8% to 7.1%. So anything that’s a full percentage point higher than that would be widely considered “high.”

Looking at historical averages also helps add some context. The 10-year average for a 30-year fixed rate is roughly 4.5%, and the 50-year average is about 7.75%. This means today’s rates are above recent historical norms but still below the long-term highs seen in previous decades.

Your credit tier also determines whether your mortgage rate is considered high. For example, borrowers with credit scores of 740 or above can typically qualify for rates between 5% and 5.5% on a 30-year fixed mortgage.

Those with scores in the 700 to 739 range may see rates from 5.6% to 6.4%. And if your credit score is between 660 and 699, you may get somewhere between 6.5% and 7%. If your score is anything lower, you’ll likely be offered 7% or more.

Generally, if your rate is more than 1% above the current national average, it’s likely “high.” If your rate is above the historical average for your loan type, it’s “historically high.”

Here are the current mortgage rates to help you compare your offers to what’s normal for the current market.

What impacts your mortgage rate

What’s considered high can change depending on your loan type, where you live and your individual financial profile. For example, a 30-year fixed mortgage tends to have the highest rate because it’s the riskiest for lenders.

A 15-year loan typically comes with lower rates since lenders get paid back faster, which reduces their risk. And adjustable-rate mortgages generally start out lower than both because the rate resets after the initial period.

Rates also vary by state. If you live in expensive markets like California or New York, you may see rates that are 0.25% to 0.5% higher than those in the Midwest. Local competition, state lending laws and economic conditions all influence pricing.

Jumbo loans, which exceed conforming loan limits, also come with their own pricing standards, and what counts as high for a jumbo borrower might be slightly different from a standard conventional loan.

Your personal financial profile is another determining factor. Typically, the higher your credit score, the lower your mortgage rate since lenders see you as a lower risk.

The best way to evaluate your own offer is to compare it to the averages for both your loan type and your credit tier. Lenders are required to provide a loan estimate within three business days of your application, so always ask for one.

MORE: Today’s 10-year mortgage rates

How a high mortgage rate increases your costs

You’d want to aim for the lowest mortgage rate possible because a slightly higher rate can significantly increase your monthly mortgage payment and the total cost of your loan.

For example, if you take out a $400,000 loan using a 30-year fixed mortgage. At 6%, your monthly payment would be around $2,398, and you’d pay $463,000 in interest over the life of the loan.

If that rate goes up to 7%, your monthly payment will now be $2,661, and your total interest will go up to $558,000. That means a single percentage point could cost you an extra $263 per month and more than $95,000 in extra interest over 30 years.

The bigger your loan size, the more dramatic that difference will be. For example, if you were now taking out a $700,000 loan, that same 1% difference can add over $150,000 in lifetime interest.

To understand how a rate affects your budget, plug your loan amount, interest rate and term into a calculator like the ones offered by the Consumer Financial Protection Bureau. Compare your payment at an average rate versus a high rate, then assess whether the total interest paid over the life of the loan makes sense for your financial goals.

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How today’s rate compares to historic rates

Mortgage rates today are pretty high, but if you look at historical data, you’d notice that the definition of “high” fluctuates with economic cycles. In the early 1980s, rates reached 18.5%. During the 2008 financial crisis, they dropped back down to around 5% to 6%. Then, during COVID-19, rates plummeted to a record low of 2.7% because of pandemic-era monetary policy. And by 2025, rates are back up again.

Periods of high rates are typically followed by drops as the economy cools and the Federal Reserve adjusts policy. So if rates are at a peak, you may want to wait or consider refinancing to get a better rate. You can also use historical data from Fannie Mae’s Economic & Housing Outlook to understand likely future rate movements.