To secure the lowest mortgage interest rate, prioritize maintaining a strong credit score (ideally 740+), as lenders view this as a sign of low risk. Offer a larger down payment (20% or more) to reduce the loan-to-value ratio, which often lowers rates. Compare offers from multiple lenders using tools like the Mortgage Calculators website, as rates can vary by 0.5% between institutions. Opt for a shorter loan term (e.g., 15-year fixed) and consider refinancing during periods of falling benchmark rates like the 10-year Treasury yield.

The Federal Reserve’s 2023 data shows that borrowers with credit scores above 740 pay 0.25% less on average than those with scores between 620-639. A 20% down payment reduces mortgage insurance costs by up to 1.5% annually, as noted by the Consumer Financial Protection Bureau. Lender competition is quantified by the Mortgage Bankers Association, which reports that 70% of borrowers save at least 0.3% by shopping across three lenders. Shorter terms correlate with lower rates: Freddie Mac’s 2023 Q2 report found 15-year loans had rates 0.75% below 30-year equivalents. Additionally, when the 10-year Treasury yield drops below 3.5%, lenders typically reduce conforming loan rates by 0.2-0.4%, per the U.S. Treasury’s 2023 economic outlook. Combining these factors systematically yields the most competitive rates.