2026 Mortgage Rates: Latest Averages and Forecasts for Purchase and Refinance Loans
Mortgage rates have experienced a significant decline, reaching levels not seen in several years. According to recent information from Zillow, the average 30-year fixed mortgage rate stands at 5.85%. The 15-year fixed rate is recorded at 5.36%.
Current Mortgage Rates
The following are the national average mortgage rates for purchase loans:
- 30-year fixed: 5.85%
- 20-year fixed: 5.64%
- 15-year fixed: 5.36%
- 5/1 ARM: 5.81%
- 7/1 ARM: 5.71%
For VA loans, the average rates are as follows:
- 30-year term: 5.36%
- 15-year term: 5.15%
- 5/1 ARM: 4.99%
Current Refinance Rates
Mortgage refinance rates also reveal key insights:
- 30-year fixed: 5.97%
- 20-year fixed: 5.67%
- 15-year fixed: 5.39%
It is worth noting that refinance rates are generally higher than purchase rates, which can influence decision-making for borrowers considering refinancing options.
Payment Comparisons
Understanding the financial implications of different loan terms is essential for prospective borrowers. For example, a $300,000 mortgage with a 30-year term at a 5.85% interest rate would incur a monthly payment of approximately $1,770. Over the life of the loan, this arrangement would yield a total interest payment of around $337,136.
Conversely, the same loan amount with a 15-year term at 5.36% would entail a higher monthly payment of about $2,429, but it significantly reduces total interest to approximately $137,224.
Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) offer an initial fixed rate for a set term, such as five years for a 5/1 ARM. After this period, rates adjust at scheduled intervals. While ARMs may start with lower rates, they come with the risk of future increases. Recently, the rates for ARMs have approached or even surpassed fixed-rate offerings.
Securing a Lower Mortgage Rate
Borrowers looking to secure more favorable mortgage rates can consider several strategies:
- Higher down payments
- Strong credit scores
- Low debt-to-income ratios
- Purchasing discount points at closing for permanent rate reductions
- Temporary interest rate buydowns
Rate Forecasts for 2026
Looking ahead, the Mortgage Bankers Association forecasts that the 30-year mortgage rate will hover around 6.1% through 2026. Additionally, Fannie Mae anticipates a similar rate of approximately 6% by the end of the year.
As the housing market evolves, these insights into 2026 mortgage rates for purchase and refinance loans will be crucial for buyers and homeowners alike.
