Mortgage rates projected to drop, but not enough to justify refinancing. How homeowners can tap equity for added cash

According to Zillow, the average 30-year fixed refinancing rate as of Jan. 8 was 6.54%, and 5.65% for a 15-year term (1). Fannie Mae’s latest housing forecast projected the average 30-year fixed mortgage rates would be 6.2% in the first quarter of 2026 and decline to 5.9% by year-end (2). Despite these projected improvements, interest rates are still higher than those seen in 2020 and 2021. The average 30-year fixed mortgage rate climbed above 6% in 2022, and it has not fallen below 6% since, per the Fede ...