Mortgage rates have dropped below 6% again this week. Data from Zillow shows the average 30-year fixed mortgage rate is now 5.91%, while the 15-year fixed rate stands at 5.36%.
President Trump recently announced two proposals aimed at reducing mortgage costs. The measures include prohibiting institutional buyers from acquiring single-family homes and directing Fannie Mae and Freddie Mac to purchase billions of dollars in mortgage bonds. Following these announcements, mortgage rates moved lower.
Current mortgage rates according to Zillow data are 5.91% for 30-year fixed, 5.83% for 20-year fixed, and 5.36% for 15-year fixed. Adjustable rates include 6.17% for 5/1 ARM and 6.36% for 7/1 ARM. VA loan rates are 5.57% for 30-year, 5.21% for 15-year, and 5.36% for 5/1 VA.
Refinance rates are slightly higher at 5.99% for 30-year fixed, 5.75% for 20-year fixed, and 5.43% for 15-year fixed. Refinance adjustable rates include 6.39% for 5/1 ARM and 6.49% for 7/1 ARM. VA refinance rates are 5.46% for 30-year, 5.13% for 15-year, and 5.44% for 5/1 VA.
These figures represent national averages rounded to the nearest hundredth. Mortgage rates have been declining gradually since late May, when the 30-year fixed rate was 6.89%. The rate had reached over 7% in January before fluctuating in subsequent months.
Industry forecasts suggest rates will remain near current levels. The Mortgage Bankers Association expects the 30-year rate to stay around 6.4% through 2026. Fannie Mae predicts rates above 6% through next year, potentially dropping to 5.9% by the fourth quarter of 2026.