Average U.S. mortgage loan interest rates declined for the week ending October 30, 2025, according to Freddie Mac's weekly Primary Mortgage Market Survey, marking the fourth consecutive week of falling rates.
On a $650,000 loan, home buyers with a 6.17 percent interest rate will save approximately $235 per month compared to last year's 6.72 percent.
For homeowners who may want to refinance or home buyers who can afford a higher monthly payment to save money over the term of the loan, a 15-year mortgage might be worth considering.
The 15-year note averaged 5.41 percent, down from 5.44 percent the prior week. A year ago, the 15-year fixed-rate mortgage averaged 5.99 percent.
Well-qualified borrowers in Massachusetts often obtain mortgage interest rates below the national average, in part because of the high level of lender competition. When comparing mortgage terms between lenders, prospective home buyers should consider the annual percentage rate (APR).
When you shop for a mortgage, you will see two numbers: the interest rate and the APR. The interest rate is the cost of borrowing the principal. The APR goes further. It wraps in upfront fees you must pay to get the loan, giving you a broader view of your yearly cost as a percentage. Under the Truth in Lending Act, lenders must disclose the APR so borrowers can more easily compare offers.
The APR is a helpful tool, but it's not perfect. The APR relies on how lenders label "prepaid finance charges," fees paid only to obtain the loan, not for a stand-alone service. For example, a loan processing fee is a prepaid finance charge. Homeowners insurance is not, because it is a tangible product you would pay for regardless of whether you have a mortgage.
The APR is a good screening tool, but you should verify that lenders providing you with quotes are including identical prepaid financing charges. Used carefully, the APR gives prospective borrowers a better picture of the total cost of borrowing than the interest rate alone.