Mortgage rates are now significantly lower than they were in January of last year. According to Freddie Mac, the average 30-year fixed mortgage rate has dropped 98 basis points year-over-year to 6.06%. This time last year, that rate was over 7%.
Current mortgage rates, based on the latest Zillow data, show a 30-year fixed rate at 5.86%. A 20-year fixed is at 5.82%, and a 15-year fixed is at 5.33%. Adjustable-rate mortgages include a 5/1 ARM at 6.11% and a 7/1 ARM at 6.14%. For VA loans, the 30-year rate is 5.46%, the 15-year is 5.09%, and the 5/1 ARM is 5.16%. These figures are national averages rounded to the nearest hundredth.
Today's mortgage refinance rates, also from Zillow, list a 30-year fixed at 6.05%. A 20-year fixed is at 5.92%, and a 15-year fixed is at 5.47%. Adjustable options include a 5/1 ARM at 6.39% and a 7/1 ARM at 6.29. VA refinance rates are 5.41% for 30-year, 5.08% for 15-year, and 5.12% for 5/1 ARM. A 30-year FHA refinance rate is 5.83%. These numbers are also national averages and are often higher than purchase rates.
Mortgage rates have generally fallen since the end of May and remain lower than a year ago. For the week, Freddie Mac reported the national average 30-year mortgage decreased by 10 basis points to 6.06%, while the 15-year rate fell eight basis points to 5.38%.
Looking ahead, economists do not anticipate drastic declines through the end of 2026. The Mortgage Bankers Association expects the 30-year rate to be near 6.4% through 2026. Fannie Mae predicts a rate above 6% for next year, dipping to 5.9% in the fourth quarter of 2026. For 2027, the MBA forecasts 30-year fixed rates around 6.3% for most of the year, averaging 6.4% in the final quarter. Fannie Mae predicts average rates near 5.9% for the full year of 2027.
Rates have continued to hover within a range with little movement since mid-October, even after the federal funds rate cut in December.