Mortgage and refinance interest rates today, January 2, 2026: Last year, rates fell from 7% to near 6%

Mortgage rates were down for the past week. According to Freddie Mac, the national average 30-year fixed mortgage this week was 6.15%, a new low for 2025. It topped 7% in January 2025. The 15-year fixed rate was 5.44%.Discover which lenders offer the best mortgage rates this week.Current mortgage ratesHere are the current mortgage rates, according to the latest Zillow data:30-year fixed: 6.16%20-year fixed: 5.93%15-year fixed: 5.42%5/1 ARM: 6.26%7/1 ARM: 6.14%30-year VA: 5.58%15-year VA: 5.08%5/1 VA: 5.24%Remember, these are national averages and have been rounded to the nearest hundredth.Current mortgage refinance ratesThese are today's mortgage refinance rates, according to the latest Zillow data:30-year fixed: 6.18%20-year fixed: 5.83%15-year fixed: 5.53%5/1 ARM: 6.24%7/1 ARM: 6.50%30-year VA: 5.44%15-year VA: 5.19%5/1 VA: 5.27%Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that's not always the case.Dig deeper into the 7 home refinance options.Refinance interest ratesFree mortgage calculatorYour mortgage rate plays a large role in how much your monthly payment will be. Use this mortgage calculator to see how your mortgage amount, rate, and term length will impact your monthly payments:You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders.How mortgage interest rates workA mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you obtain a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30-year term unless you refinance or sell.An adjustable-rate mortgage locks in your rate for a predetermined period and then adjusts it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once per year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and housing market.At the beginning of your mortgage term, most of your monthly payment goes toward interest. Your monthly payment toward mortgage principal and interest stays the same throughout the years — however, less and less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.Determine whether an adjustable-rate vs. fixed-rate mortgage is better for you.Which mortgage term length should you get?A 30-year fixed-rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term, and you will pay significantly more in interest over the years.You may want to consider a 15-year fixed-rate mortgage if you aim to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot in interest in the long run. But you’ll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.Learn how to decide between a 15-year and 30-year fixed-rate mortgage.Typically, an adjustable-rate mortgage could be good if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates have similar to (or even higher than) 30-year fixed rates recently. Before getting an ARM just for a lower rate, compare your rate options from term to term and lender to lender.Are mortgage rates decreasing?Mortgage rates have generally fallen since the end of May, and home loan rates are still lower than the same time one year ago. Economists don't expect drastic mortgage rate declines through the end of 2026. Even with the most recent cut to the federal funds rate, mortgage rates continue to hover within a range — barely moving since mid-October.Mortgage interest rates today: FAQsWhat are mortgage interest rates doing today?According to Freddie Mac, the national average 30-year mortgage slipped three basis points to 6.15% for the week, while the average 15-year mortgage rate moved down six basis points to 5.44%.How low will mortgage rates go in 2026?According to its December forecast, the MBA expects the 30-year mortgage rate to be near 6.4% through 2026. Fannie Mae also predicts a 30-year rate above 6% through next year, yet dipping down to 5.9% in Q4 2026.How low could mortgage rates go by 2027?Mortgage rates are likely to remain little changed in 2027. The MBA forecast 30-year fixed rates of 6.3% for most of 2027, before stepping up to an average of 6.4% in Q4 '27. Fannie Mae predicts average rates near 5.9% for the full year of 2027.