Mortgage and refinance interest rates today, January 5, 2026: Rates barely above 6% but look for even lower offers

Core Viewpoint - Current mortgage rates are slightly above 6%, with some lenders offering rates in the mid-5% range, indicating a competitive lending environment [1]. Current Mortgage Rates - The national average for a 30-year fixed mortgage rate is 6.01%, while the 15-year fixed rate is 5.44% [1][18]. - Other mortgage rates include: - 20-year fixed: 5.95% - 5/1 ARM: 6.23% - 7/1 ARM: 6.51% - 30-year VA: 5.52% - 15-year VA: 5.14% - 5/1 VA: 5.22% [5]. Mortgage Payment Insights - For a $300,000 mortgage at a 30-year term with a 6.01% rate, the monthly payment would be approximately $1,800, totaling $348,209 in interest over the loan's life [8]. - A 15-year mortgage at a 5.44% rate would result in a monthly payment of $2,442, with total interest paid being $139,508 [10]. Adjustable Mortgage Rates - Adjustable-rate mortgages (ARMs) typically start with lower rates than fixed-rate mortgages but can increase after the initial period [11]. - The 5/1 ARM has a fixed rate for the first five years, after which it adjusts annually [11]. - Recent trends show that ARM rates can be similar to or even higher than fixed rates, necessitating careful comparison among lenders [13]. Factors Influencing Mortgage Rates - Lenders offer lower rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios [14]. - Options for reducing interest rates include paying for discount points at closing or utilizing temporary buydowns [15]. Future Rate Predictions - The Mortgage Bankers Association (MBA) forecasts the 30-year mortgage rate to remain around 6.4% through 2026, while Fannie Mae predicts rates above 6% next year, potentially dipping to 5.9% in Q4 2026 [20].