Mortgage rates experienced a slight uptick this weekend, continuing a period of relative stability following a peak in early 2025. According to data from Zillow’s lender marketplace, the average 30-year fixed rate now stands at 5.86%, an increase of five basis points. The 15-year fixed rate also edged higher, rising six basis points to 5.41%.
These figures contrast slightly with data released by Freddie Mac, which reported a 30-year fixed rate of 6.01% as of this week. The discrepancy highlights the varying methodologies employed by different rate trackers. Zillow compiles rates from its network of lenders, while Freddie Mac bases its figures on loan applications submitted to its underwriting system. Rate variations also occur based on state, ZIP code, lender, and loan type.
Current Mortgage Rate Landscape
Here’s a snapshot of current mortgage rates as of , based on Zillow data:
- 30-year fixed: 5.86%
- 20-year fixed: 5.82%
- 15-year fixed: 5.41%
- 5/1 ARM: 5.97%
- 7/1 ARM: 6.10%
- 30-year VA: 5.50%
- 15-year VA: 5.06%
- 5/1 VA: 5.24%
Refinance rates mirror those for home purchases, with the 30-year fixed refinance rate currently at 5.99%. Refinance rates are often, but not always, higher than purchase rates.
Fixed vs. Adjustable Rate Mortgages
The choice between a fixed-rate and adjustable-rate mortgage (ARM) remains a key consideration for borrowers. A 30-year fixed-rate mortgage offers the stability of predictable monthly payments, a significant advantage in an uncertain economic environment. However, this stability comes at the cost of potentially higher overall interest paid over the life of the loan.
Conversely, adjustable-rate mortgages, such as the 5/1 ARM currently averaging 5.97%, typically offer a lower initial interest rate. This can translate to lower monthly payments in the early years of the loan. However, the rate is subject to change periodically – in the case of a 5/1 ARM, after the initial five-year fixed period – exposing borrowers to the risk of increased payments if interest rates rise. The 7/1 ARM is currently averaging 6.10%.
For veterans, VA loans continue to offer competitive rates. The 30-year VA rate is currently 5.50%, while the 15-year VA rate is 5.06%, and the 5/1 VA rate is 5.24%.
Market Outlook and Expert Predictions
While rates have seen some fluctuation, forecasts suggest they are unlikely to decline significantly in the near term. The Mortgage Bankers Association (MBA) anticipates the 30-year mortgage rate will remain near 6.1% through 2026. Fannie Mae echoes this prediction, also forecasting a rate around 6% for the remainder of the year.
Rates have gradually decreased since topping out above 7% in January 2025, but a return to the historically low rates seen during the pandemic is not anticipated. The current market presents a more normalized environment for homebuyers, with prices stabilizing after the rapid increases of recent years.
Refinancing Considerations
For homeowners considering refinancing, the same principles apply as when initially purchasing a home: improving credit scores and lowering debt-to-income ratios are crucial. Shortening the loan term, such as opting for a 15-year mortgage, will result in a lower interest rate but higher monthly payments.
The decision to refinance should be carefully evaluated based on individual financial circumstances and long-term goals. While lower rates can provide significant savings, closing costs and other fees should be factored into the equation.
Is Now a Good Time to Buy?
The question of whether now is a good time to buy a home is highly personal. The housing market has cooled from its pandemic-era frenzy, offering buyers more negotiating power and a wider selection of properties. While rates remain elevated, they have stabilized, providing a degree of predictability. The best time to buy is when it aligns with an individual’s financial situation and life stage.
