Today’s mortgage rates are significantly lower than last January’s rates. This time last year, the average 30-year fixed mortgage rate was over 7%, according to Freddie Mac. Now, the year-over-year 30-year rate has dropped 98 basis points to 6.06%. This is a good time to shop for the mortgage lender offering the best deal and lock in a rate.
Here are the current mortgage rates, according to the latest Zillow data:
30-year fixed: 5.86%
20-year fixed: 5.82%
15-year fixed: 5.33%
5/1 ARM: 6.11%
7/1 ARM: 6.14%
30-year VA: 5.46%
15-year VA: 5.09%
5/1 VA: 5.16%
Remember, these are national averages and have been rounded to the nearest hundredth.
These are today’s mortgage refinance rates, according to the latest Zillow data:
30-year fixed: 6.05%
20-year fixed: 5.92%
15-year fixed: 5.47%
5/1 ARM: 6.39%
7/1 ARM: 6.29%
30-year VA: 5.41%
15-year VA: 5.08%
5/1 VA: 5.12%
30-year FHA: 5.83%
Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.
Dig deeper into the 7 home refinance options.
Refinance interest rates
Your mortgage rate plays a large role in how much your monthly payment will be. Use this mortgage calculator to see how your mortgage amount, rate, and term length will impact your monthly payments:
You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders.
A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.
A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you obtain a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30-year term unless you refinance or sell.
An adjustable-rate mortgage locks in your rate for a predetermined period and then adjusts it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once per year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and housing market.
At the beginning of your mortgage term, most of your monthly payment goes toward interest. Your monthly payment toward mortgage principal and interest stays the same throughout the years — however, less and less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.
A 30-year fixed-rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term, and you will pay significantly more in interest over the years.
You may want to consider a 15-year fixed-rate mortgage if you aim to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot in interest in the long run. But you’ll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.
Typically, an adjustable-rate mortgage could be good if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates have similar to (or even higher than) 30-year fixed rates recently. Before getting an ARM just for a lower rate, compare your rate options from term to term and lender to lender.
Mortgage rates have generally fallen since the end of May, and home loan rates are still lower than the same time one year ago. Economists don’t expect drastic mortgage rate declines through the end of 2026. Even with the most recent cut in December to the federal funds rate, mortgage rates continue to hover within a range — barely moving since mid-October.
According to Freddie Mac, the national average 30-year mortgage rose decreased by 10 basis points to 6.06% for the week, while the average 15-year mortgage rate fell by eight basis points to 5.38%.
According to its December forecast, the MBA expects the 30-year mortgage rate to be near 6.4% through 2026. Fannie Mae also predicts a 30-year rate above 6% through next year, yet dipping down to 5.9% in Q4 2026.
Mortgage rates are likely to remain little changed in 2027. The MBA forecast 30-year fixed rates of 6.3% for most of 2027, before stepping up to an average of 6.4% in Q4 ’27. Fannie Mae predicts average rates near 5.9% for the full year of 2027.
