Mortgage Rate Averages Explained: Which One Helps You Most?

Mortgage Rate Averages Explained: Which One Helps You Most?

If you’re buying your first home, mortgage rates can feel like moving targets. You hear one number on the news, see another online, and get a third from a lender. None of them match — and that’s normal.

Mortgage rate averages are built in different ways, for different goals. Some track trends. Some track real loans. Some track advertised offers. Knowing the difference helps you understand what rate you should expect and whether your quote is good.

Quick takeaway (start here)

• Mortgage rate averages answer different questions
• Some use a few lenders, others use hundreds
• Some move because borrower behavior changes
• For shopping, seeing the range matters as much as the average

Why mortgage rate averages don’t agree

There is no single mortgage rate. Rates depend on credit score, down payment, loan size, and how aggressive a lender wants to be. An “average” always reflects choices about what data is included — and what is left out.

Freddie Mac’s weekly average

Freddie Mac publishes the most quoted mortgage rate in the U.S. It is based on a weekly survey of lenders and a very specific borrower profile: excellent credit, 20% down, and a standard loan.

Pros:

• Long history (over 50 years)
• Good for long-term trends
• Widely trusted by media

Cons:

• Updated weekly, not daily
• Narrow borrower profile
• Not designed to judge your individual quote

Methodology: Freddie Mac PMMS

Mortgage News Daily’s daily index

Mortgage News Daily tracks lender rate sheets to show how rates move during the day. It focuses on top-tier borrowers and removes extreme outliers.

Pros:

• Very responsive to market news
• Good for tracking direction

Cons:

• Uses a small, curated lender set
• Does not show full market spread

Methodology: Mortgage News Daily rates

Optimal Blue’s OBMMI index

OBMMI is built from real mortgage locks processed through Optimal Blue’s system. It reflects what borrowers actually locked, not just what was advertised.

Pros:

• Based on real transactions
• Useful for understanding borrower behavior

Cons:

• Moves when borrower mix changes, even if rates don’t
• Influenced by large-volume lenders
• Hard to use for shopping decisions

Methodology: OBMMI overview

MBA’s weekly mortgage survey

The Mortgage Bankers Association publishes weekly data based on mortgage applications. It is mainly used to track demand, not pricing competition.

Pros:

• Shows market activity trends

Cons:

• Not based on advertised rates
• Not intended to evaluate your quote

Methodology: MBA survey

Consumer sites like Bankrate and NerdWallet

Consumer finance sites show mortgage rate averages from partner lenders. They are simple and popular, but cover a limited slice of the market.

Pros:

• Easy to read
• Familiar brands

Cons:

• Limited lender participation
• Rates often promotional

Examples: Bankrate, NerdWallet

Mortgage-Rates.ai and advertised-rate indices

Mortgage-Rates.ai tracks mortgage rates lenders publish on their own websites. Rates are averaged within each lender and then across hundreds of lenders.

Pros:

• Very broad lender coverage
• Shows real shopping options
• Makes market competition visible

Cons:

• Credit score rules vary by lender
• Outliers can influence averages
• Needs context to interpret correctly

How the indices compare

What this means for you

• Don’t rely on one average
• Check how many lenders are behind the number
• Use averages to guide shopping, not replace it

A quote that looks “high” against one index may be fair when compared across a broader market.