Mortgage and refinance rates for January 10, 2026: Trump’s plans drive rates under 6%

Current Trends in Mortgage Rates

Mortgage rates have once again dipped below the 6% mark. Based on recent data from Zillow, the average rate for a 30-year fixed mortgage stands at 5.91%, while the 15-year fixed option is at 5.36%. In response to these trends, President Trump has put forward two proposals aimed at reducing mortgage rates: one would prohibit institutional investors from purchasing single-family homes, and the other would involve Fannie Mae and Freddie Mac buying substantial amounts of mortgage-backed securities. These initiatives have been met with positive movement in rates.

Latest Mortgage Rates

According to the most recent Zillow figures, here are the prevailing mortgage rates:

• 30-year fixed: 5.91%
• 20-year fixed: 5.83%
• 15-year fixed: 5.36%
• 5/1 ARM: 6.17%
• 7/1 ARM: 6.36%
• 30-year VA: 5.57%
• 15-year VA: 5.21%
• 5/1 VA: 5.36%

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

Current Refinance Rates

Here are today’s refinance rates, as reported by Zillow:

• 30-year fixed: 5.99%
• 20-year fixed: 5.75%
• 15-year fixed: 5.43%
• 5/1 ARM: 6.39%
• 7/1 ARM: 6.49%
• 30-year VA: 5.46%
• 15-year VA: 5.13%
• 5/1 VA: 5.44%

These rates are also national averages, rounded to the nearest hundredth. Typically, refinance rates are a bit higher than purchase rates, though this isn’t always the case.

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30-Year Fixed Mortgages: Advantages and Disadvantages

Opting for a 30-year fixed mortgage offers two key benefits: lower monthly payments and consistent payment amounts. Because the loan is spread over a longer period, your monthly obligation is reduced compared to shorter terms. Additionally, your interest rate remains unchanged throughout the loan, ensuring predictability—unless your homeowners insurance or property taxes change.

The main drawback is the total interest paid. Thirty-year loans generally have higher interest rates than shorter terms, and you’ll pay more in interest over the life of the loan due to both the higher rate and the extended repayment period.

15-Year Fixed Mortgages: Pros and Cons

The advantages and disadvantages of 15-year fixed mortgages are essentially the reverse of the 30-year option. While your monthly payments remain predictable, you benefit from a lower interest rate and pay off your home much sooner—potentially saving a significant amount in interest over time.

The trade-off is that your monthly payments will be higher, since the loan is repaid in half the time.

Adjustable-Rate Mortgages (ARMs): What to Consider

Adjustable-rate mortgages (ARMs) start with a fixed interest rate for a set period, after which the rate adjusts periodically. For instance, a 5/1 ARM keeps the same rate for five years, then adjusts annually for the remaining term.

The primary benefit is a lower introductory rate compared to most 30-year fixed loans, resulting in reduced initial payments. However, sometimes fixed rates can be lower than ARMs, so it’s important to compare options with your lender before making a decision.

The main risk is uncertainty—once the initial fixed period ends, your rate could rise, leading to higher and unpredictable payments. If you plan to move before the adjustment period begins, you may benefit from the lower rate without facing future increases.

Is It a Good Time to Buy a Home?

Compared to recent years, now may be a favorable time to purchase a home. Housing prices are no longer surging as they did during the pandemic, making the current market more stable for buyers. If you’re considering a move soon, market conditions are relatively positive.

Ultimately, the best time to buy is when it aligns with your personal circumstances. Trying to predict the perfect moment in the housing market is as challenging as timing the stock market—focus on what works best for you.

Frequently Asked Questions About Mortgage Rates

What is the current 30-year mortgage rate?

Zillow reports the national average for a 30-year mortgage at 5.91%. Rates may differ between sources because of varying data collection methods—Zillow gathers rates from its lender marketplace, while Freddie Mac uses loan application data. Rates also fluctuate by state, ZIP code, lender, loan type, and other factors, so it’s wise to compare offers from several lenders.

Are interest rates likely to decrease?

Not significantly. The Mortgage Bankers Association projects the 30-year rate to hover around 6.4% through 2026. Fannie Mae expects rates to remain above 6% into next year, with a possible dip to 5.9% by the fourth quarter of 2026.

Are mortgage rates trending downward?

Since late May, mortgage rates have been gradually declining. The 30-year fixed rate peaked above 7% in January, fluctuated for several months, and then began a slow descent from 6.89% at the end of May.

How can I qualify for the lowest refinance rate?

Getting a favorable refinance rate involves steps similar to those you’d take when buying a home: work on improving your credit score and reducing your debt-to-income ratio (DTI). Choosing a shorter loan term can also help you secure a lower rate, though your monthly payments will be higher.