The top three mortgage lenders offering the lowest rates this week are Navy Federal Credit Union, Citi Mortgage, and PenFed Credit Union. Rates range from 5.889% to 6.042%. Despite a Federal Reserve rate cut, mortgage rates increased slightly. Larger banks and credit unions dominate the top positions, with Better edging out Truist for fifth place.

Of the 16 lenders surveyed, Wells Fargo, PNC, Flagstar Bank, and others did not make the top 10. Shopping around for rates is crucial, with a 0.91% APR difference between top and bottom lenders. Rates vary based on credit scores, down payments, and location. The key to savings is comparing offers from multiple lenders.

Understanding the mortgage annual percentage rate (APR) is crucial, as it includes interest rates and lender fees. Lenders may offer lower rates with discount points, which are prepaid interest that reduce the interest rate. When comparing offers, focus on the APR for an accurate comparison of rates and fees. Shopping with multiple lenders can help determine the best offer for your situation.

Read more at Yahoo Finance: Mortgage lenders with the best rates this week, Dec. 15-21, 2025