Mortgage rates in early 2026 are starting far lower than they did a year ago, giving buyers and homeowners renewed breathing room. According to data from Zillow, the average 30-year fixed mortgage rate is now 5.90%, down 82 basis points from January 2025. Fifteen-year fixed loans have also improved, falling to 5.36%, a drop of 63 basis points year over year.
A weekly lender survey from Nadlan Capital group shows that competition among lenders is heating up. Several top-ranked lenders are now offering rates at or below 5.50%, a level not seen consistently in years.
Today’s Mortgage Rates
Here are the latest national average purchase mortgage rates, based on Zillow data:
- 30-year fixed: 5.90%
- 20-year fixed: 5.84%
- 15-year fixed: 5.36%
- 5/1 ARM: 6.11%
- 7/1 ARM: 6.28%
- 30-year VA: 5.48%
- 15-year VA: 5.07%
- 5/1 VA: 5.17%
These are national averages rounded to the nearest hundredth. Your actual rate may vary based on credit score, income, location, and loan type.
Today’s Mortgage Refinance Rates
Refinance rates remain slightly higher than purchase rates, but they have also moved lower:
- 30-year fixed refinance: 6.01%
- 20-year fixed refinance: 5.94%
- 15-year fixed refinance: 5.45%
- 5/1 ARM refinance: 6.37%
- 7/1 ARM refinance: 6.48%
- 30-year VA refinance: 5.51%
- 15-year VA refinance: 5.14%
- 5/1 VA refinance: 5.29%
For many homeowners who took out loans in 2024 or 2025, these levels may begin to make refinancing worth a closer look.
30-Year vs. 15-Year Mortgages
Shorter-term loans usually come with lower interest rates, but higher monthly payments.
For example:
- A $400,000 30-year loan at 5.90% results in a monthly principal and interest payment of about $2,373, with total interest of roughly $454,000 over the life of the loan.
- A $400,000 15-year loan at 5.36% raises the monthly payment to about $3,239, but total interest drops sharply to about $183,000.
Borrowers who want flexibility can also choose a 30-year loan and make extra payments when possible to reduce interest without committing to the higher monthly cost.
Fixed-Rate vs. Adjustable-Rate Loans
A fixed-rate mortgage locks in your interest rate for the full term, providing predictable monthly payments. Adjustable-rate mortgages (ARMs) keep rates fixed for an initial period, then adjust annually.
While ARMs sometimes start lower than fixed loans, that has not always been the case recently. Borrowers choosing ARMs should be comfortable with the risk of future rate increases once the initial period ends.
What’s Ahead for Mortgage Rates
Looking forward, forecasts remain mixed:
- The Mortgage Bankers Association expects 30-year rates to hover near the mid-6% range through much of 2026.
- Fannie Mae projects rates staying above 6% for most of the year, with a possible dip toward 5.9% late in 2026.
For now, January’s drop gives buyers and refinancers a rare window of opportunity. Rates are still well above pandemic lows, but compared with recent years, borrowing costs are clearly moving in a more buyer-friendly direction. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
