There are seven primary factors that determine your mortgage rate:
Your credit score. The higher your score, the lower your rate.
Your down payment amount. Lenders may offer lower rates with a higher down payment.
Your loan amount. You may get a better rate for a higher loan amount.
Your loan program. Interest rates on government-backed refinance programs offered by the FHA and VA tend to be lower than conventional loan rates.
Your loan term. Shorter terms usually equal lower rates.
Your location. Interest rates vary based on where you live.
Economic factors. Inflation, the Federal Reserve’s monetary policy and U.S. Treasury bond yields can influence whether mortgage rates go up or down.