Current mortgage rates have fallen below 6 percent. Data from Zillow shows the average 30-year fixed mortgage rate decreased by 19 basis points over the last month, now standing at 5.90 percent. The 15-year fixed rate dropped 16 basis points to 5.36 percent.
Zillow's latest figures list current mortgage rates. The 20-year fixed rate is 5.84 percent. The 5/1 adjustable-rate mortgage is 6.11 percent, while the 7/1 ARM is 6.28 percent. For VA loans, the 30-year rate is 5.48 percent, the 15-year is 5.07 percent, and the 5/1 VA is 5.17 percent.
Refinance rates are also available. The 30-year fixed refinance rate is 6.01 percent. The 20-year fixed is 5.94 percent, and the 15-year fixed is 5.45 percent. Adjustable-rate refinance options include 5/1 ARM at 6.37 percent and 7/1 ARM at 6.48 percent. VA refinance rates are 5.51 percent for 30-year, 5.14 percent for 15-year, and 5.29 percent for 5/1.
These numbers represent national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than purchase rates, though not always.
Comparing loan terms, a $300,000 mortgage with a 30-year term at 5.90 percent results in a monthly principal and interest payment of approximately $1,779. Total interest paid over the loan life would be about $340,587. The same loan amount with a 15-year term at 5.36 percent increases the monthly payment to around $2,429, but reduces total interest to approximately $137,224.
Fixed-rate mortgages lock in the rate for the entire loan term unless refinanced. Adjustable-rate mortgages maintain an initial fixed period, such as seven years for a 7/1 ARM, before adjusting annually based on economic factors and contract terms. Adjustable rates typically start lower than fixed rates, though recently some fixed rates have begun lower.
Lenders generally offer lower rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios. Improving personal finances before home shopping may help secure better rates. Waiting for rates to drop is not currently considered the best strategy for obtaining the lowest rate.
To choose a lender, experts recommend applying for preapproval from three or four companies within a short timeframe for accurate comparison and minimal credit score impact. When comparing offers, the mortgage annual percentage rate (APR), which includes interest rate, points, and fees, provides the most accurate reflection of true borrowing costs.
Regarding future expectations, the Mortgage Bankers Association forecasts the 30-year mortgage rate to remain near 6.4 percent through 2026. Fannie Mae predicts rates above 6 percent through next year, potentially dipping to 5.9 percent in the fourth quarter of 2026.