Mortgage rates generally eased slightly lower this week, with two lenders retreating from 8% home loans. The Yahoo Finance weekly survey ranks lenders by the lowest annual percentage rate (APR), which includes lender fees. Read on to see the lenders with the lowest rates this week.
See our top picks for mortgage lenders for first-time home buyers.
Top 5 mortgage lenders with the best rates this week: October 12, 2026
Here are the five mortgage lenders with the best interest rates this week, as determined by our survey of the lowest mortgage rates on 30-year, fixed-rate conventional loans. The following numbers are each lender’s annual percentage rate (APR).
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PenFed Credit Union: 7.192%
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Citi Mortgage: 7.241%
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Better: 7.261%
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Chase Home Lending: 7.351%
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Truist: 7.411%
The full survey list of 15 national lenders, showing included fees, is in the table below.
Why does the largest retail mortgage lender offer some of the highest rates?
We’ve been surveying lender mortgage rates for almost one year now (beginning November 3, 2025, when rates were below 6%), and one thing that has surprised us from the beginning is the wide-ranging rates and fees being charged:
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The largest retail lender in the nation, Rocket Mortgage, consistently ranks near or at the bottom of our list — with some of the highest mortgage rates in the survey.
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Better Mortgage and Chase Home Lending — also among the largest home loan providers in the nation — often rank near the top of our survey, but charge some of the most fees; frequently well over 2 discount points.
Shopping for a mortgage isn’t easy. Our survey works to help you focus on three of the most important factors: 1) the offered rate, 2) the rate with fees (APR), and 3) the discount points used to lower a loan rate.
An APR difference of 0.631 percentage point separated the top lender, PenFed Credit Union, from the bottom-ranked Zillow Home Loans. Points vary from zero (Fifth Third Bank) to 2.250 (Better Mortgage).
Read more: Is it a good time to refinance?
Important note: Sample mortgage rates use generic data
These are 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. Where you live also 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, along with a 20% down payment, based on a home in the Midwest.
We’ve found more than one lender advertising outdated (or undated) rates. We have excluded them from the survey. Showing rates that are as much as two months old — or without a reference date — is not a service to a borrower: it is frankly misleading.
See the average mortgage rate in your state
How to shop for mortgage rates
The key to securing the lowest mortgage rate is shopping around, which could save borrowers up to an average of $44,000 over the life of a 30-year loan, according to a Realtor.com analysis.
Focus on the APR
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 (for example, the mortgage origination fee), so it is the most accurate measure of your annual borrowing costs.
Discount points are an option
Lenders often include mortgage discount points to lower the interest rate they offer. 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 6.75% home loan to 6.50%.
Just remember: no matter what the lender puts in an advertised rate or 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.
How mortgage rates are determined
Simplify your mortgage rate shopping process
If possible, when shopping with three or more lenders, have each of them provide a quote for a mortgage rate with zero discount points. Then, focus on the APR for an accurate side-by-side comparison of rates and fees.
How we determined the mortgage lenders with the lowest rates
See the table below to understand the Yahoo Finance methodology for determining which mortgage lenders have the best rates this week. Remember, we are sorting by APR, which includes both the interest rates and mortgage lender fees, including points.
Mortgage lenders ranked by APR: October 12, 2026
Some advertised rates required no additional information. When asked for details, we used the U.S median home sales price of $410,800, a 20% down payment ($82,200; $328,600 loan), the current median FICO credit score of 715, and the ZIP code for Indianapolis, IN (46077)
