Mortgage rates in 2026 have begun at levels notably lower than those seen at the start of 2025. Data from Zillow shows the average 30-year fixed mortgage rate currently stands at 5.90%, which is 82 basis points below the rate from this time last year. The 15-year fixed rate has also declined, now at 5.36%, a decrease of 63 basis points.
A weekly survey conducted by Yahoo Finance, which examined lenders offering the best mortgage rates, identified three top-five-ranked lenders with loan rates at or below 5.50%.
Current mortgage rates for home purchases, based on the latest Zillow data, are as follows: 30-year fixed at 5.90%, 20-year fixed at 5.84%, 15-year fixed at 5.36%, 5/1 ARM at 6.11%, 7/1 ARM at 6.28%, 30-year VA at 5.48%, 15-year VA at 5.07%, and 5/1 VA at 5.17%. These figures represent national averages rounded to the nearest hundredth.
For refinancing, current rates are: 30-year fixed at 6.01%, 20-year fixed at 5.94%, 15-year fixed at 5.45%, 5/1 ARM at 6.37%, 7/1 ARM at 6.48%, 30-year VA at 5.51%, 15-year VA at 5.14%, and 5/1 VA at 5.29%. These are also national averages, and refinance rates are typically higher than purchase rates.
In general, 15-year mortgage rates are lower than 30-year rates. For instance, a $400,000 mortgage with a 30-year term at 5.90% results in a monthly principal and interest payment of about $2,373, with total interest paid over the loan reaching $454,117. A $400,000 15-year mortgage at 5.36% leads to a monthly payment of approximately $3,239, but total interest paid is only $182,965. If the 15-year payment is too high, borrowers can make extra payments on a 30-year loan to reduce interest.
With a fixed-rate mortgage, the interest rate is locked in from the start, though refinancing would establish a new rate. An adjustable-rate mortgage maintains a set rate for an initial period, such as seven years for a 7/1 ARM, after which it adjusts annually based on economic factors and contract terms. While adjustable rates can start lower than fixed rates, they carry the risk of increasing after the initial period, and recently they have sometimes begun higher.
Regarding future trends, the Mortgage Bankers Association's December forecast expects the 30-year mortgage rate to remain near 6.4% through 2026. Fannie Mae predicts a rate above 6% for most of 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 fourth quarter, while Fannie Mae predicts average rates near 5.9% for the full year.