Mortgage rates in Ohio

Quick insights

• The interest rate on your mortgage is an important factor in determining your monthly payment; lower rates can lead to lower payments, potentially making it easier to afford a home.
• Various factors influence mortgage rates in Ohio, such as the type of mortgage, the federal funds rate and overarching real estate market conditions. 
• Because interest rates are updated so frequently, consider searching for the current mortgage rates where you want to buy a house.

Determining local interest rates tends to be a priority for homebuyers and those looking to refinance their homes. After all, the mortgage rate you’re approved for can make a big difference in terms of both your monthly payment and the overall cost of your home. However, rates can change quickly, influenced by both personal and broader economic conditions. 

In this article, we’ll explore mortgage rates in Ohio and their influences. We’ll also point you toward helpful resources that can inform your own rate comparisons as you shop.

How to find Ohio mortgage rates

Mortgage rates are generally specific to the zip code. To view current mortgage rates for a specific area you’re planning to buy in, visit our current mortgage rates page and enter the 6-digit code. We update our interest rate table every day, Monday through Friday. Refinancingec-refinance-hl000061 rates tend to vary slightly, so be sure to visit the mortgage refinance rates page for those inquiries. 

You can also touch base with a Home Lending Advisor for guidance or consider getting preapprovedaffordability-hl000008 to learn about mortgage terms that are based on your situation.

U.S. mortgage rate trends

Current 30-year mortgage rates have been between 5% and 10%.30yr-fixed-mortgage-average-fed-reserve-25 Here’s a snapshot of 30-year fixed-rate mortgage rates since 1971:30yr-fixed-mortgage-average-fed-reserve-25

• 1974: 9.19%
• 1982: 16.04%
• 1990: 10.13%
• 1998: 6.94%
• 2006: 6.41%
• 2014: 4.17%
• 2020: 3.11%
• 2024: 6.72%

Factors affecting mortgage rates in Ohio

There are many factors that affect average mortgage rates in Ohio. Some of those factors are specific to the individual, while others relate to broader market conditions impacting all borrowers.

Consumer impacts

From a lender’s perspective, a borrower with a strong financial profile is more likely to repay their mortgage, lowering the lender’s risk of losing money on the loan. Personal factors which may influence your interest rates include:

• Credit score: A borrower’s credit score is a significant factor in determining interest rates for loans and other credit products. This score, built gradually with a history of on-time payments, indicates creditworthiness to lenders. A high credit score can lead to favorable interest rates.
• Debt-to-income (DTI) ratio: This commonly referenced ratio, which compares your overall debt to your total income, is used by lenders to assess affordability for a loan. If your DTI is on the higher side, you may be approved for a loan at a higher rate to offset the lender’s perceived risk.
• Down payment: A larger down payment shrinks the overall size of the loan, therefore reducing risk for the lender. Making a larger down payment may result in lower interest rates for a specific loan.
• Income: High-income borrowers are generally considered lower risk by lenders, but this isn’t always the case. A high income is beneficial, but lenders also look at the stability and source of that income. A borrower with a high but unstable income, such as commission-based or freelance work, might be considered riskier than someone with a stable, salaried position.

Market conditions

The U.S. Federal Reserve (commonly referred to as “the Fed”) regularly adjusts the federal funds rate, a figure which broadly influences economic activity in all states. When the federal funds rate rises, borrowing costs for banks increase, which often results in higher rates for mortgages. Keying into Federal Reserve announcements can help give you a sense of what changes to expect for mortgage rates. 

Mortgage rates by loan type

In addition to the personal and market conditions which can affect interest rates, rates also tend to vary by the type of mortgage. This can be because of the term, the purpose of the loan or its specific features. Types include (but are not limited to):

• Fixed-rate loans: Fixed-rate loans have one unchanging interest rate throughout their lifetime, resulting in predictable monthly payments.
• Adjustable-rate mortgages (ARMs): ARMs typically have introductory interest rate periods before switching to a variable rate structure.
• Federal Housing Administration (FHA) loans: FHA loans are backed by the federal government and may have lower interest rates compared to conventional loans.
• Veteran’s Affairs (VA) loans: VA loans may have lower interest rates for veterans and active duty servicemembers.
• Jumbo loans: Jumbo loans are larger than conventional loans and considered higher risk, often leading to higher interest rates.

How rates affect affordability

So, why are borrowers so fixated on mortgage rates? For one, a lower interest rate may significantly impact the amount you pay for your home—both month-to-month, and over the lifetime of repayment. However, interest rates are not the only aspect affecting the amount you pay. The term you choose for your loan (such as 15 or 30 years) can also affect the monthly payment size and lifetime total. To see for yourself how these factors interact, consider using a mortgage affordability calculator.

In summary

If you’re planning to buy a home soon or are hoping to refinance an existing mortgage in Ohio, connecting with a Home Lending Advisor can be a good place to start. Our advisors can provide location-specific insights, making it easier to get straight-forward answers that are relevant to your search.