Mortgage and refinance rates for January 6, 2026: Hovering slightly above and below 6%

Current Trends in Mortgage Rates

Mortgage rates have been relatively stable for several weeks, staying within a tight range. Recent figures from Zillow show the average 30-year fixed mortgage rate at 6.04%, while the 15-year fixed rate averages 5.41%. According to ongoing tracking by Yahoo Finance, 30-year rates have hovered just above and below the 6% mark. In fact, one of the top five lenders currently offers rates as low as 5.5%.

Latest Mortgage Rates

Based on the most recent Zillow data, here are the prevailing mortgage rates:

• 30-year fixed: 6.04%
• 20-year fixed: 5.91%
• 15-year fixed: 5.41%
• 5/1 ARM: 6.12%
• 7/1 ARM: 6.10%
• 30-year VA: 5.54%
• 15-year VA: 5.11%
• 5/1 VA: 5.24%

These figures represent national averages and are rounded to the nearest hundredth of a percent.

Current Refinance Rates

The following are the latest refinance rates, according to Zillow:

• 30-year fixed: 6.09%
• 20-year fixed: 5.97%
• 15-year fixed: 5.53%
• 5/1 ARM: 6.17%
• 7/1 ARM: 6.40%
• 30-year VA: 5.53%
• 15-year VA: 5.11%
• 5/1 VA: 5.38%

As with purchase rates, these are national averages rounded to the nearest hundredth. Typically, refinance rates are slightly higher than rates for new home loans.

Understanding Refinance Interest Rates

Yahoo Finance Mortgage Calculator

Using a mortgage calculator can help you estimate how different loan terms and interest rates will impact your monthly payment. Try out the Yahoo Finance mortgage calculator to compare various scenarios.

You can save the Yahoo Finance mortgage payment calculator for easy access as you search for homes and lenders. This tool also factors in property taxes and homeowners insurance, giving you a more accurate picture of your total monthly payment than just principal and interest alone.

Comparing 30-Year and 15-Year Fixed Mortgage Rates

Generally, 15-year fixed mortgages come with lower interest rates than 30-year fixed loans. Choosing a shorter term can save you a significant amount in interest over the life of the loan, but your monthly payments will be higher since you’re repaying the same principal in half the time.

For instance, a $400,000 mortgage at 6.04% over 30 years results in a monthly payment of about $2,409 for principal and interest, with total interest paid reaching $467,059 over the loan’s duration.

By contrast, a $400,000 loan at 5.41% for 15 years would require monthly payments of approximately $3,249, but the total interest paid would be just $184,867.

If the higher monthly payment of a 15-year loan isn’t feasible, you can always make extra payments on a 30-year mortgage to pay off your loan sooner and reduce the total interest paid.

Fixed-Rate vs. Adjustable-Rate Mortgages

With a fixed-rate mortgage, your interest rate remains unchanged for the life of the loan, unless you refinance.

An adjustable-rate mortgage (ARM) offers a fixed rate for an initial period, after which the rate can rise or fall based on market conditions and the terms of your agreement. For example, a 7/1 ARM has a fixed rate for the first seven years, then adjusts annually.

While ARMs may start with lower rates than fixed mortgages, rates can increase after the initial period. Recently, ARM rates have sometimes started higher than fixed rates, so the initial savings may not always be available.

When Might Mortgage Rates Decrease?

Experts do not anticipate significant drops in mortgage rates before the end of 2026. Even after the Federal Reserve’s recent rate cut in December, mortgage rates have remained steady since mid-October.

The Federal Reserve is currently indicating the possibility of one or two rate cuts in 2026, with another potential cut in 2027.

Frequently Asked Questions About Today’s Mortgage Rates

What is the current 30-year fixed mortgage rate?

According to Zillow, the average 30-year fixed rate is 6.04% for home purchases and 6.09% for refinancing. These are national averages, so rates in your area may differ. Your personal financial situation will also influence the rate you receive.

Are mortgage rates expected to decline in 2026?

The Mortgage Bankers Association projects that the 30-year mortgage rate will hover around 6.4% through 2026. Fannie Mae also forecasts rates above 6% for most of next year, with a possible dip to 5.9% in the fourth quarter of 2026.

How low could mortgage rates get by 2027?

Mortgage rates are expected to remain relatively stable in 2027. The MBA predicts 30-year fixed rates around 6.3% for most of the year, rising to an average of 6.4% in the last quarter. Fannie Mae estimates average rates near 5.9% for the entire year.