Mortgage and refinance rates for January 9, 2026: Down 0.75 percentage points compared to last year

Mortgage Rate Update

Over the past week, mortgage rates have shown minimal movement. Freddie Mac reports that the average national rate for a 30-year fixed mortgage now stands at 6.16%, a slight increase of one basis point. This time last year, the rate was 6.93%. For 15-year fixed mortgages, the rate has edged up by two basis points to 5.46%, compared to 6.14% a year ago.

Sam Khater, Chief Economist at Freddie Mac, noted, “During the first full week of the new year, mortgage rates stayed close to 6%, fluctuating within a narrow band. Strong economic performance and lower rates have boosted demand for homes, with purchase applications rising over 20% from last year.”

Latest Mortgage Rates

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

• 30-year fixed: 6.05%
• 20-year fixed: 5.98%
• 15-year fixed: 5.48%
• 5/1 ARM: 6.32%
• 7/1 ARM: 6.53%
• 30-year VA: 5.55%
• 15-year VA: 5.16%
• 5/1 VA: 5.37%

These figures represent national averages and have been rounded to two decimal places.

Current Refinance Rates

The following are today’s average mortgage refinance rates, according to Zillow:

• 30-year fixed: 6.12%
• 20-year fixed: 5.94%
• 15-year fixed: 5.60%
• 5/1 ARM: 6.32%
• 7/1 ARM: 6.45%
• 30-year VA: 5.47%
• 15-year VA: 5.10%
• 5/1 VA: 5.32%

As with purchase rates, these refinance rates are national averages rounded to the nearest hundredth. Typically, refinancing rates are higher than purchase rates, though exceptions do occur.

Refinance Interest Rates

Free Mortgage Calculator

Your mortgage interest rate significantly affects your monthly payment. Use this calculator to see how changes in loan amount, rate, and term length can impact your monthly costs:

Understanding Mortgage Interest Rates

The interest rate on your mortgage is the cost you pay to borrow money, shown as a percentage. You can select either a fixed or adjustable rate for your loan.

With a fixed-rate mortgage, your interest rate remains constant for the entire loan term. For example, if you secure a 30-year mortgage at 6%, that rate will not change for the full 30 years unless you refinance or sell your home.

An adjustable-rate mortgage (ARM) offers a fixed rate for an initial period, after which the rate adjusts periodically. For instance, a 7/1 ARM with a 6% introductory rate would remain at 6% for the first seven years, then adjust annually for the remaining 23 years. Rate changes depend on factors like economic conditions and the housing market.

At the start of your mortgage, most of your monthly payment goes toward interest. Over time, the portion applied to interest decreases while more goes toward the principal—the original amount you borrowed. The total monthly payment typically remains the same.

Choosing the Right Mortgage Term

If you prefer lower monthly payments and a predictable rate, a 30-year fixed mortgage may be ideal. However, these loans usually have higher interest rates than shorter terms, resulting in more interest paid over time.

Opting for a 15-year fixed mortgage can help you pay off your home faster and save on interest, thanks to lower rates and a shorter repayment period. Be sure you can manage the higher monthly payments that come with this option.

An adjustable-rate mortgage might suit you if you plan to move before the introductory rate ends, as initial rates are often lower than fixed rates. However, current 5/1 and 7/1 ARM rates are similar to or even higher than 30-year fixed rates. Always compare rates across different terms and lenders before deciding.

Are Mortgage Rates Going Down?

Since late May, mortgage rates have generally trended downward and remain below last year’s levels. Experts do not anticipate significant drops in mortgage rates through 2026. Despite a recent reduction in the federal funds rate in December, mortgage rates have stayed relatively stable since mid-October.

Mortgage Rate FAQs

What are mortgage rates doing right now?

Freddie Mac’s latest data shows the average 30-year mortgage rate has increased by one basis point to 6.16%, while the 15-year average has risen by two basis points to 5.46%.

How low could mortgage rates get by 2026?

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

What about mortgage rates in 2027?

Mortgage rates are expected to remain relatively steady in 2027. The MBA anticipates 30-year fixed rates at 6.3% for most of the year, rising to 6.4% by the fourth quarter. Fannie Mae predicts an average rate near 5.9% for all of 2027.