Mortgage and refinance interest rates today, January 1, 2026: Beginning 2026 with a new one-year low

Mortgage Rates Overview - The average 30-year fixed mortgage rate has decreased to 6.15%, down from 6.91% a year ago, marking a one-year low [1] - The 15-year fixed mortgage rate has also dropped to 5.44%, compared to 6.13% one year prior [1] Economic Context - Sam Khater, Freddie Mac's chief economist, noted that the decline in mortgage rates is a positive sign for potential homebuyers as they enter the new year [2] Current Mortgage Rates - Current national averages for various mortgage types include: - 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% [6] Refinance Rates - Refinance rates can be higher than purchase mortgage rates, but this is not always the case [4] Factors Influencing Mortgage Rates - Mortgage rates are influenced by both controllable factors, such as credit scores and down payments, and uncontrollable factors, primarily economic conditions [11][12] - A struggling economy typically leads to lower mortgage rates to encourage borrowing, while a strong economy may result in higher rates to temper spending [13] Mortgage Types Comparison - 30-year fixed mortgages offer lower monthly payments but come with higher long-term interest costs, while 15-year fixed mortgages have higher monthly payments but lower overall interest costs [14][15][16] Market Insights - The lowest-ever 30-year fixed mortgage rate recorded was 2.65% in January 2021, and it is unlikely rates will drop below 3% in the near future [19]