The current average mortgage rate on a 30-year fixed mortgage is 6.05%, according to the Mortgage Research Center. The average rate on a 15-year mortgage is 5.23%, while the average rate on a 30-year jumbo mortgage is 6.51%.
30-Year Mortgage Rates Drop 0.18 Percentage Points
Borrowers are seeing some relief this week, as the average rate on a 30-year mortgage has declined to 6.05%, down from 6.23% just one week ago. The annual percentage rate (APR), which reflects both the interest rate and lender fees, is now 6.08%, compared with 6.26% last week. At the current 6.05% rate, financing $100,000 with a 30-year fixed mortgage would result in a monthly principal and interest payment of approximately $603, excluding taxes and insurance, according to the Forbes Advisor mortgage calculator. Over the full term of the loan, total interest paid would amount to roughly $117,624.
15-Year Mortgage Rates Drop 0.18 Percentage Points
The average rate for a 15-year fixed mortgage is currently 5.23%, reflecting a decrease of 0.18 percentage points from last week’s 5.41%. The annual percentage rate (APR) now stands at 5.27%, down from 5.46% the previous week. At today’s 5.23% interest rate, a $100,000 loan on a 15-year term would require a monthly principal and interest payment of about $803, excluding taxes and insurance. Over the life of the loan, total interest costs would come to approximately $44,906.
Jumbo Mortgage Rates Drop 0.09 Percentage Points
The average rate for a 30-year fixed jumbo mortgage—defined in 2026 as a loan amount exceeding $832,750 in most markets—is currently 6.51%, marking a decline of 0.09 percentage points from the previous week. At this rate, borrowers can expect to pay approximately $633 per month in principal and interest for every $100,000 financed. Over the full 30-year term, that would result in about $128,018 in total interest paid.
Mortgage Rates Trends for 2026
For much of 2025, the average rate on a 30-year fixed mortgage held in the mid- to upper-6% range. Meanwhile, 15-year fixed rates fluctuated between the low 6% and mid-to-upper 5% range after reaching a peak of 6.27% in January.
Mortgage rates began to ease in the final quarter of 2025 following a series of Federal Reserve rate cuts in September, October, and December, which lowered the federal funds rate to a target range of 3.50% to 3.75%. At its January 28, 2026 meeting, the Federal Open Market Committee chose to keep the benchmark rate unchanged at 3.50% to 3.75%, opting to pause additional cuts while reviewing incoming economic data.
The Fed is expected to revisit rate decisions at upcoming FOMC meetings throughout the year. Additional reductions to the federal funds rate could help drive mortgage rates lower nationwide, while further pauses or rate hikes may cause borrowing costs to stabilize or move higher.
When Will Mortgage Rates Go Down?
A range of economic forces shape mortgage rates, which makes predicting when they will decline difficult.
Decisions made by the Federal Reserve play a major role in determining borrowing costs. When inflation slows or the economy weakens, the Fed may reduce the federal funds rate, often leading lenders to lower mortgage rates as well.
Mortgage rates also tend to move in line with yields on U.S. Treasury bonds. When Treasury yields fall, mortgage rates generally decrease, and when yields rise, mortgage rates often follow.
In addition, global events that disrupt financial markets can influence interest rates. For instance, during the Covid-19 pandemic, emergency rate cuts by the Federal Reserve helped drive mortgage rates to historic lows.
Although a sharp drop in mortgage rates does not appear imminent, rates could gradually move lower if inflation cools or economic growth slows.
How To Calculate Mortgage Payments
Mortgages and mortgage lenders are often a part of purchasing a home, but it can be difficult to understand what you’re paying for—and what you can actually afford.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.
Here’s what you’ll need in order to calculate your monthly mortgage payment:
- Home price
- Down payment amount
- Interest rate
- Loan term
- Taxes, insurance and any HOA fees
How Are Mortgage Rates Determined?
Mortgage interest rates are determined by several factors, including some that borrowers can’t control:
- Federal Reserve. The Fed rate hikes and decreases adjust the federal funds rate, which helps determine the benchmark interest rate that banks lend money at. As a result, mortgage rates tend to move in the same direction with the Fed’s rate decision.
- Bond market. Mortgages are also loosely connected to long-term bond yields as investors look for income-producing assets—specifically, the 10-year U.S. Treasury Bond. Home loan rates tend to increase as bond prices decrease, and vice versa.
- Economic health. Rates can increase during a strong economy when consumer demand is higher and unemployment levels are lower. Anticipate lower rates as the economy weakens and there is less demand for mortgages.
- Inflation. Banks and lenders may increase rates during inflationary periods to slow the rate of inflation. Additionally, inflation makes goods and services more expensive, reducing the dollar’s purchasing power.
While the above factors set the base interest rate for new mortgages, there are several areas that borrowers can focus on to get a lower rate:
- Credit score. Applicants with a credit score of 670 or above tend to have an easier time qualifying for a better interest rate. Typically, most lenders require a minimum score of 620 to qualify for a conventional mortgage.
- Debt-to-income (DTI) ratio. Lenders may issue mortgages to borrowers with a DTI of 50% or less. However, applying with a DTI below 43% is recommended.
- Loan-to-value (LTV) ratio. Conventional home loans charge private mortgage insurance when your LTV exceeds 80% of the appraisal value, meaning you need to put at least 20% down to avoid higher rates. Additionally, FHA mortgage insurance premiums expire after the first 11 years when you put at least 10% down.
- Loan term. Longer-term loans such as a 30-year or 20-year mortgage tend to charge higher rates than a 15-year loan term. However, your monthly payment can be more affordable over a longer term.
- Residence type. Interest rates for a primary residence can be lower than a second home or an investment property. This is because the lender of your primary mortgage receives compensation first in the event of foreclosure.
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