5.5% and below: Mortgage lenders with the best rates this week, Jan. 12, 2026

Core Insights - Mortgage rates have decreased for many lenders, with six of the top ten home loan providers offering rates below 6% [1] - The best rates this week are led by Navy Federal and PedFed, both offering 30-year fixed-rate mortgages below 5.5% [3] - Competition among lenders is increasing, with Bank of America and Wells Fargo entering the top ten lowest rates, displacing Citizens Bank and Fifth Third Bank [3] Mortgage Rate Trends - The top lender, Navy Federal, has an APR that is 1.311 percentage points lower than the bottom-ranked lender, Third Federal [4] - A total of 16 lenders were surveyed, with several notable lenders not making the top ten based on APR [4] Shopping for Mortgage Rates - Borrowers can save an average of $44,000 over the life of a 30-year loan by shopping around for the best mortgage rates [7] - The APR is emphasized as the most important figure, as it includes both the interest rate and lender fees, providing a clearer picture of borrowing costs [8] Discount Points and Offers - Discount points can be used to lower interest rates, where one point typically costs 1% of the loan amount and reduces the interest rate by about 0.25% [10] - Lenders are increasingly offering special discounts on interest rates and fees, with examples including Citi Mortgage's $500 off closing costs [12] Simplifying the Process - When comparing rates, it is recommended to request quotes with zero discount points from multiple lenders and focus on the APR for accurate comparisons [14]