Mortgage rates are the interest rates charged on loans used to purchase real estate. These rates can vary based on several factors, including the borrower's credit score, the loan amount, and the overall economic environment. Generally, lower rates make borrowing more affordable, while higher rates can increase monthly payments. Mortgage rates can be fixed or adjustable. A fixed-rate mortgage maintains the same interest rate throughout the loan term, providing predictable payments. In contrast, an adjustable-rate mortgage may change after an initial period, potentially leading to lower initial payments but increased costs later on.