Mortgage Rates Today, Friday, February 27: We’re in the Fives

Mortgage rates are below 6%, the lowest level we’ve seen since September 2022.

The average interest rate on a 30-year, fixed-rate mortgage dropped to 5.81% APR, according to rates provided to NerdWallet by Zillow. This is 12 basis points lower than yesterday and 11 basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

Sometimes daily rate fluctuations are actually just noise, and that’s what we’re seeing today. Yes, our average dropped, but it’s just bringing us back to where we were Wednesday and erasing a little spike yesterday. “Spike” is relative, BTW — we’re talking about just over a tenth of a percentage point. These tiny moves reinforce how tracking rates ultra-closely can be kinda maddening. Zoom out, and you’ll see that yesterday’s “higher” average and today’s “lower” one are both plenty good.

While the economy never sleeps, markets are closed on the weekends. The rates you see Friday are unlikely to change much (if at all) until Monday.

Mortgage rates are constantly changing, since a major part of how rates are set depends on reactions to new inflation reports, job numbers, Fed meetings, global news … you name it. For example, even tiny changes in the bond market can shift mortgage pricing.

We keep saying it: Rates have dropped. The reason you’re seeing headlines and videos now is because of Freddie Mac’s weekly mortgage survey, which updates each Thursday. Freddie looks at mortgage applications from the prior seven days, so on one hand, it’s an indicator of the rates buyers are actually getting, not just what lenders are offering.

But on the other hand, because it’s retrospective and seven days can feel long when we’re talking mortgage rates, Freddie’s numbers tend to be the last to reflect rate trends. That survey hitting 5.98% yesterday makes it capital-O Official that 30-year rates have moved below 6%.

We spent a lot of time this week talking about how rates got here, but let’s turn our attention to what’s next. The first week of March is packed with employment data, capped off with February’s jobs report on Friday. If the labor market’s looking weak, mortgage rates could fall further.

For context, January’s numbers, which came out on Feb. 11, were mixed. On one hand, job creation was strong and unemployment saw a mild decline. On the other hand, nearly all the job creation came from healthcare and social assistance. (Social assistance encompasses areas like day care and community services.) Those aren’t an amazing indicator, since they’re fields society always needs. Even in a weaker job market, you’re likely to see openings in those areas.

The bigger story was last year’s job numbers, as the Bureau of Labor Statistics revised some of its older stats. That’s a normal thing for it to do, BTW — as more complete information is gathered over time, the data can be refined. This revision was rough, putting 2025 as the worst year for the job market since the pandemic, with only 181,000 jobs added over the entire year.

If February employment data looks grim, we could see mortgage rates continue to trend downward as markets increase the odds of rate cuts from the Federal Reserve.

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you could start considering a refi if your current rate is around 6.31% or higher.

Also consider your goals: Are you trying to lower your monthly payment, shorten your loan term or turn home equity into cash? For example, you might be more comfortable with paying a higher rate for a cash-out refinance than you would for a rate-and-term refinance, so long as the overall costs are lower than if you kept your original mortgage and added a HELOC or home equity loan.

If you’re looking for a lower rate, use NerdWallet’s refinance calculator to estimate savings and understand how long it would take to break even on the costs of refinancing.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

If the answer is yes, don’t get too hung up on whether you could be missing out on lower rates later; you can refinance down the road. Focus on getting preapproved, comparing lender offers, and understanding what monthly payment works for your budget.

NerdWallet’s affordability calculator can help you estimate your potential monthly payment. If a new home isn’t in the cards right now, there are still things you can do to strengthen your buyer profile. Take this time to pay down existing debts and build your down payment savings. Not only will this free up more cash flow for a future mortgage payment, it can also get you a better interest rate when you’re ready to buy.

If you already have a quote you’re happy with, you should consider locking your mortgage rate, especially if your lender offers a float-down option. A float-down lets you take advantage of a better rate if the market drops during your lock period.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

The rate you see advertised is a sample rate — usually for a borrower with perfect credit, making a big down payment, and paying for mortgage points. That won’t match every buyer’s circumstances.

In addition to market factors outside of your control, your customized quote depends on your:

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.