According to the Zillow lender marketplace, mortgage rates continue to have more room to fall following this week’s Fed meeting, which left the federal funds rate unchanged.
The average 30-year fixed rate today, Friday, July 31, 2026, is 6.55%, down 10 basis points since yesterday. The 15-year fixed loan is currently at 6.03%, 4 basis points lower than yesterday. The 5/1 ARM is 6.42%, 16 basis points lower than on Thursday.
Read more: Weekly survey of mortgage lenders with the lowest rates: Pushing higher
Current mortgage rates
Here are the current purchase rates, according to the latest Zillow data, for Friday, July 31, 2026:
30-year fixed: 6.55%
20-year fixed: 6.26%
15-year fixed: 6.03%
5/1 ARM: 6.42%
7/1 ARM: 6.21%
30-year VA: 5.99%
15-year VA: 5.59%
5/1 VA: 5.83%
Remember, these are national averages and have been rounded to the nearest hundredth.
Current mortgage refinance rates
These are the latest refinance rates, according to the latest Zillow data, for Friday, July 31, 2026:
30-year fixed: 6.76%
20-year fixed: 6.33%
15-year fixed: 6.11%
5/1 ARM: 6.86%
7/1 ARM: 6.52%
30-year VA: 6.16%
15-year VA: 5.74%
5/1 VA: 5.65%
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.
Learn more: Dig deeper into the 7 home refinance options
Free mortgage calculator
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 the best mortgage lenders.
How mortgage interest rates work
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.
Read more: Determine whether an adjustable-rate vs. fixed-rate mortgage is better for you
Which mortgage term length should you get?
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.
Read more: Learn how to decide between a 15-year and 30-year fixed-rate mortgage
Typically, an adjustable-rate mortgage might be suitable if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, and then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates have been 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.
Are mortgage rates decreasing?
Yes, they are. The average 30-year fixed rate today, Friday, July 31, 2026, is 6.55%, down 10 basis points since yesterday. The 15-year fixed loan is currently at 6.03%, 4 basis points lower than yesterday. The 5/1 ARM is 6.42%, 16 basis points lower than on Thursday.
Mortgage interest rates today: FAQs
What are mortgage interest rates doing today?
According to Freddie Mac, the average 30-year mortgage rate was 6.66% through Wednesday, up from 6.58% a week earlier. A year ago, the average 30-year mortgage rate was 6.72%.
How low will mortgage rates go in 2026?
According to the latest forecasts, the MBA expects the 30-year mortgage rate to average 6.5% through 2026. Fannie Mae predicts a 30-year rate of 6.4% through the end of the year.
How low could mortgage rates go by 2027?
Mortgage rates are likely to remain little changed in 2027. The MBA forecasts 30-year fixed rates of 6.5% for all of 2027. However, Fannie Mae is more optimistic, predicting average rates will be between 6.2% and 6.3% throughout 2027.
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