Mortgage rates have seen a slight decrease this week, with the average 30-year fixed rate dropping two basis points to 6.09%, according to Freddie Mac. This is just three basis points above the three-year low of 6.06%. The 15-year fixed-rate also saw a decrease, falling six basis points to 5.44%.
In a surprising turn of events, discounts on new homes have outpaced the resale market for the first time in recent history. Realtor.com reported that prices were cut on nearly one in five new homes in late 2025.
Here are the current mortgage rates, as per the latest Zillow data:
– 30-year fixed: 5.88%
– 20-year fixed: 5.73%
– 15-year fixed: 5.44%
– 5/1 ARM: 6.08%
– 7/1 ARM: 5.84%
– 30-year VA: 5.52%
– 15-year VA: 5.11%
– 5/1 VA: 5.08%
For mortgage refinance rates, the current averages are:
– 30-year fixed: 6.00%
– 20-year fixed: 5.86%
– 15-year fixed: 5.48%
– 5/1 ARM: 6.15%
– 7/1 ARM: 6.18%
– 30-year VA: 5.44%
– 15-year VA: 5.15%
– 5/1 VA: 5.03%
It’s important to note that these figures are national averages and have been rounded to the nearest hundredth. Mortgage refinance rates are typically higher than rates when purchasing a home.
Mortgage interest rates play a significant role in determining your monthly payments. Fixed-rate mortgages lock in your rate for the entire loan term, providing predictability. On the other hand, adjustable-rate mortgages adjust periodically after an initial fixed period.
Most of your initial monthly payment goes towards interest, but over time, more of it goes towards paying off the principal amount borrowed. Choosing between a 30-year fixed-rate mortgage and a 15-year fixed-rate mortgage depends on your financial goals and ability to handle higher monthly payments.
Economists predict that mortgage rates are unlikely to see drastic declines in the near future. The Mortgage Bankers Association and Fannie Mae both expect rates to hover around 6% through 2026 and into 2027.
In conclusion, understanding the current mortgage rates and the different types of mortgages available can help you make informed decisions when purchasing a home or refinancing your existing loan. It’s essential to compare rates from various lenders and consider your financial goals before committing to a mortgage.
