Mortgage rates moved slightly lower this week, keeping borrowing costs close to the lowest levels seen in nearly three years. At the same time, homebuilders are offering more price cuts, giving buyers extra incentive to act.
According to Freddie Mac, the average 30-year fixed mortgage rate slipped two basis points to 6.09%, just three basis points above the recent three-year low of 6.06%. The 15-year fixed rate fell six basis points to 5.44%.
Separate data from Zillow shows national averages slightly lower, with the 30-year fixed rate at 5.88% for home purchases.
Meanwhile, a report from Realtor.com found that nearly one in five new homes saw price cuts in late 2025 the first time in recent history that new-home discounts have outpaced those in the resale market.
Together, lower mortgage rates and builder incentives are giving buyers more room to negotiate.
Current Mortgage Rates – February 13, 2026
Based on the latest data from Zillow, national average purchase rates are:
- 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%
Rates vary by lender, location, and credit profile.
Current Refinance Rates
National refinance averages:
- 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%
Refinance rates are often slightly higher than purchase rates, though that can vary.
Why Rates Are Holding Near Three-Year Lows
Mortgage rates tend to move with bond markets and inflation expectations.
Earlier in January, rates fell sharply after news that federal housing agencies would increase purchases of mortgage-backed securities. That move pushed rates to their lowest point in more than three years. Since then, rates have stayed in a narrow range just slightly above those lows.
This week’s small improvement was helped by a softer-than-expected Consumer Price Index (CPI) report. Lower inflation readings often ease pressure on long-term interest rates, including mortgages.
Economists do not expect major declines through the rest of 2026, but stability near 6% is viewed as positive compared to last year, when rates approached 7%.
New Home Discounts Give Buyers Leverage
Lower borrowing costs are only part of the story.
According to Realtor.com, nearly 20% of new homes saw price reductions in late 2025. Builders are adjusting pricing to attract buyers in a slower demand environment.
For buyers, this creates two advantages:
- More negotiating power
- Potential upgrades or incentives, such as rate buydowns
In some markets, builders are offering closing cost assistance or temporary rate reductions to compete with resale homes.
Fixed vs. Adjustable Mortgage Options
Buyers continue to weigh fixed-rate and adjustable-rate loans.
Fixed-Rate Mortgage
- Rate stays the same for the life of the loan
- Predictable monthly payments
- Most popular option
Adjustable-Rate Mortgage (ARM)
- Lower rate for an initial period
- Rate adjusts after that period
- Can work well if planning to sell before adjustments begin
Recently, ARM rates have been close to or even above fixed rates, reducing their traditional advantage.
30-Year vs. 15-Year Mortgage
A 30-year loan offers lower monthly payments but higher total interest over time.
A 15-year mortgage:
- Comes with a lower interest rate
- Builds equity faster
- Requires higher monthly payments
For example, at today’s rates, a shorter term could save tens of thousands in interest over the life of the loan, but buyers must be comfortable with the higher payment.
Are Mortgage Rates Expected to Fall Further?
Forecasts from major housing groups suggest limited movement through 2026.
The Mortgage Bankers Association expects 30-year rates to hover around 6.1% this year. Fannie Mae projects rates near 6% into 2027.
While a major drop appears unlikely, even small declines can improve affordability, especially when paired with builder price reductions.
Bottom Line for Buyers in February 2026
Mortgage rates February 2026 remain close to multi-year lows. Combined with growing new-home discounts, buyers have more flexibility than they did a year ago.
Rates are not dramatically low by historical standards, but they are meaningfully better than recent peaks. For buyers ready to move, this may be one of the more stable windows seen in several years.
The key now is watching inflation data and upcoming economic reports. Even small shifts can influence where mortgage rates go next. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
