Mortgage and Refinance Rates Near Three-Year Lows in February 20, 2026

Mortgage rates February 2026 are now at their lowest levels since September 2022, according to new weekly data. While daily rate movement has been limited, the broader trend shows steady improvement for homebuyers and homeowners looking to refinance.

Weekly Average Shows New Low

According to Freddie Mac, the average 30-year fixed mortgage rate declined eight basis points to 6.01% this week. The 15-year fixed rate fell nine basis points to 5.35%.

This marks the lowest weekly average in more than three years.

However, daily rate tracking shows that rates were slightly better on a few recent days, including January 9, January 12, February 13, and February 17. The reason for the difference is methodology. Freddie Mac reports a weekly average based on lender data collected from Thursday through Wednesday. Even if rates were slightly lower on a single day, the weekly average can still show a new low.

Current Mortgage Rates

Based on the latest data from Zillow, national averages for purchase loans are:

• 30-year fixed: 5.81%
• 20-year fixed: 5.81%
• 15-year fixed: 5.35%
• 5/1 ARM: 5.86%
• 7/1 ARM: 5.98%
• 30-year VA: 5.49%
• 15-year VA: 5.07%
• 5/1 VA: 5.20%

These figures are national averages and rounded to the nearest hundredth.

Current Refinance Rates

Refinance rates are slightly higher in most cases:

• 30-year fixed: 5.92%
• 20-year fixed: 5.70%
• 15-year fixed: 5.40%
• 5/1 ARM: 5.97%
• 7/1 ARM: 5.99%
• 30-year VA: 5.45%
• 15-year VA: 5.05%
• 5/1 VA: 4.87%

Refinance rates often run above purchase rates, though that can vary by lender and borrower profile.

Why Rates Are Moving Lower

Mortgage rates are influenced by bond market activity, especially the 10-year Treasury yield. In recent weeks, stock market volatility has pushed more investors toward bonds. As bond prices rise, yields fall, and mortgage rates often follow.

Rates have generally trended downward since late spring of last year. While the decline has not been sharp, it has been steady.

Economists do not expect large rate cuts in 2026, but gradual easing has helped bring rates below 6% for many borrowers.

Fixed vs. Adjustable Mortgage Rates

Borrowers typically choose between fixed-rate and adjustable-rate mortgages.

• Fixed-rate mortgage: The interest rate stays the same for the entire loan term. Monthly principal and interest payments remain predictable.
• Adjustable-rate mortgage (ARM): The rate is fixed for an initial period, such as five or seven years, then adjusts annually based on market conditions.

Recently, ARM rates have been close to or even higher than 30-year fixed rates. Because of that, many borrowers are choosing fixed options for stability.

30-Year vs. 15-Year Mortgage

A 30-year mortgage offers lower monthly payments because repayment is spread over a longer period. However, total interest paid over time is much higher.

A 15-year mortgage usually comes with a lower rate and saves significant interest over the life of the loan. The trade-off is a higher monthly payment.

Choosing between the two depends on income stability, long-term plans, and financial goals.

Will Mortgage Rates Keep Falling?

Forecasts from the Mortgage Bankers Association suggest the 30-year rate may remain near 6.1% through the rest of 2026. Fannie Mae also expects rates to stay close to 6% into next year.

Looking ahead to 2027, projections show little movement, with rates expected to hover between 6% and 6.3%.

While dramatic drops are unlikely, the steady decline seen in recent months has improved affordability compared to peak levels in 2023 and 2024.

What This Means for Buyers and Refinancers

Lower rates typically increase both purchase and refinance demand. Buyers may see improved purchasing power, while homeowners who locked in higher rates over the past two years may now have refinancing opportunities.

If you plan to buy or refinance, comparing lenders is important. Even small differences in interest rates can reduce long-term borrowing costs.

For now, mortgage rates February 2026 remain at multi-year lows, offering a more favorable environment than many borrowers have seen in recent years. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.