Mortgage rates were little changed over the past week. The national average for a 30-year fixed mortgage this week was , according to Freddie Mac. 6.16%up one basis point. A year ago, the average was 6.93%. The 15-year fixed interest rate is 5.46%up two basis points. A year ago at this time, the average was 6.14%.
“Mortgage rates remained within a tight range during the first week of the new year, hovering around 6%,” said Sam Khater, chief economist at Freddie Mac. “The combination of solid economic growth and lower interest rates has led to improved demand momentum for homes for sale, with purchase applications up more than 20% from a year ago.”
Here are the current mortgage rates, according to the latest Zillow data:
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30 years fixed: 6.05%
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20 years fixed: 5.98%
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15 years fixed: 5.48%
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5/1 Arm: 6.32%
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7/1 Arm: 6.53%
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30 years VA: 5.55%
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15 years VA: 5.16%
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5/1 Virginia: 5.37%
Remember, these are national averages and have been rounded to the nearest percentile.
According to the latest Zillow data, these are today’s mortgage refinance rates:
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30 years fixed: 6.12%
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20 years fixed: 5.94%
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15 years fixed: 5.60%
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5/1 Arm: 6.32%
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7/1 Arm: 6.45%
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30 years VA: 5.47%
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15 years VA: 5.10%
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5/1 Virginia: 5.32%
Again, the numbers provided are national averages, rounded to the nearest percentile. Mortgage refinance rates are usually higher than the rates you paid when you bought the home, although this isn’t always the case.
Take an in-depth look at 7 home refinancing options.
refinance rate
Your mortgage interest rate plays a large role in your monthly payment. Use this mortgage calculator to see how your mortgage amount, interest rate and term length will affect your monthly payments:
You can bookmark the Yahoo Finance Mortgage Payment Calculator and keep it in a convenient place for future use when shopping for a home and with a lender.
The mortgage interest rate is the cost to borrow money from a lender, expressed as a percentage. You can choose between two types of rates: fixed or adjustable.
A fixed-rate mortgage locks in your interest rate for the entire term of your loan. For example, if you get a 30-year mortgage with an interest rate of 6 percent, your interest rate will remain at 6 percent for the entire 30-year term unless you refinance or sell.
An adjustable-rate mortgage locks your interest rate in for a predetermined period and then adjusts periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. The tax rate is 6% for the first seven years, then increases or decreases annually for the final 23 years of the term. Whether your interest rate goes up or down depends on several factors, such as the economy and the housing market.
At the beginning of your mortgage term, the majority of your monthly payment goes toward interest. Your monthly mortgage principal and interest payments remain the same over the years, however, you pay less and less toward interest and more toward the mortgage principal, or the amount you originally borrowed.
The 30-year fixed-rate mortgage is a good choice if you want lower mortgage payments and the predictability that comes with a fixed rate. Just know that your interest rate will be higher than if you choose a shorter term, and you’ll pay more in interest over the years.
If your goal is to pay off your home loan quickly and save money on interest, you may want to consider a 15-year fixed-rate mortgage. These shorter terms come with lower interest rates, and since you cut your repayment time in half, you’ll save a lot on interest in the long run. But you need to make sure you can comfortably afford the higher monthly payments that come with a 15-year term.
Generally, an adjustable rate mortgage can be a good option if you plan to sell before the introductory rate period ends. Adjustable rates typically start at a lower price than fixed rates, and then your rate will change after a predetermined amount of time. However, recently, 5/1 and 7/1 ARM rates have been similar (or even higher) than 30-year fixed rates. Before just getting an ARM at a lower rate, compare rate options with different terms and different lenders.
Mortgage interest rates have generally fallen since the end of May, and home loan interest rates are still lower than the same period a year ago. Economists don’t expect mortgage rates to fall significantly through the end of 2026. Even with the latest cut in the federal funds rate in December, mortgage rates continue to hover within a range, with little change since mid-October.
The national average 30-year mortgage rate rose 1 basis point this week to 6.16%, while the average 15-year mortgage rate rose 2 basis points to 5.46%, according to Freddie Mac.
MBA expects 30-year mortgage rates to be close to 6.4% by 2026, according to its December forecast. Fannie Mae also forecasts that 30-year mortgage rates will be above 6% by next year, but will fall to 5.9% by the fourth quarter of 2026.
Mortgage rates likely to remain unchanged in 2027. MBA forecasts 30-year fixed rates at 6.3% for most of 2027 before rising to an average of 6.4% in the fourth quarter of 2027. Fannie Mae forecasts that interest rates will average nearly 5.9% for all of 2027.