Mortgage rates refer to the interest rates charged on a mortgage loan, which is a type of loan specifically used to purchase real estate. The rate can be fixed, meaning it remains constant over the life of the loan, or variable (or adjustable), meaning it can change at specified intervals based on market conditions. Mortgage rates are influenced by various factors, including the overall economy, inflation, the borrower’s credit score, the loan-to-value ratio, and the type of mortgage product selected. They play a crucial role in determining the monthly payment that a borrower must make to repay the loan, as well as the total cost of borrowing over time. Lower mortgage rates generally make homebuying more affordable, while higher rates can reduce home purchasing power.